Monero Undergoes Hardfork to Make the Blockchain ASIC Resistant
A protocol upgrade has been carried out to the Monero (XMR) blockchain, using mining algorithm RandomX, in order to make it ASIC resistant. On the final day of last month, Monero’s core team conducted a live stream of the upgrade on YouTube.
The upgrade was completed successfully at roughly the 58th minute. The latest upgrade also installed proof-of-work (PoW) algorithm, named RandomX, which utilizes random code execution along with memory-centered procedures to make the blockchain ASIC (application-specific integrated circuits) resistant, implying that specialized hardware created to attain maximum benefits from mining will not work.
The protocol upgrade also functions better with common central processing units, aiding better decentralization of the network. Therefore, miners using graphics processing units (GPU) to mine Monero will not be highly successful than the rest.
The Monero core team is of the opinion that ASIC machines aid centralization as there are only a handful of enterprises across the globe which has the ability to manufacture them. This argument is contradicted by several crypto enthusiasts.
Notably, Bran Cohen, who authored P2P (peer-to-peer) BitTorrent protocol, recently stated that ASIC resistance PoW is not a good idea and will remain as a dream. Cohen believes that it is better to support ASIC hardware because “ASIC resistance just creates more centralization around manufacture when it inevitably fails.”
The views of Cohen was echoed by Ethereum co-founder Vitalik Buterin who said that there is growing acceptance to the argument that ASIC resistance algos have a short lifespan and also makes 51% attacks cost effective.
BitBay, a cryptocurrency exchange headquartered in Poland, has announced earlier this month that it will remove the privacy focused crypto Monero on February 19, 2020 on concerns of money laundering.
The exchange explained:
“Monero (XMR) can selectively utilize anonymity features among projects. This feature of XMR is a subject to end of transaction support. The decision was made to block the possibility of money laundering and inflow from external networks.”
Back in September, cryptocurrency exchange OKEx delisted Monero and a series of many privacy focused coins such as Zcash (ZEC) and Dash (DASH), among others.