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Equihash Cryptocurrencies Face Future Attacks by ASIC Miners: Study

A lot of research has been conducted regarding the future of cryptocurrency mining. Not all of these findings are overly positive. In the case of currencies using the Equihash algorithm, it seems a large amount of the combined hashrate is provided by ASIC hardware. It’s a worrisome development which could introduce a lot more 51% attacks in the future.

The Future of Equihash May Be in Peril

Cryptocurrency enthusiasts all over the world have witnessed an influx of 51% attacks over the past few months. Currencies such as Bitcoin Gold, Electroneum, and Verge have all suffered attacks. Although the full repercussions of these developments remain unclear, it seems highly likely that more 51% attacks are looming around the corner.

Research by experts at the University of Luxembourg puts all of this in a completely different light. It seems there is a good reason as to why these attacks have kept happening over the past few months. Close to 30% of the entire Equihash hashrate comes directly from ASIC devices, which is a rather worrisome development, all things considered.

While all major cryptocurrency networks are subject to ASIC mining, they also present a major problem in the long run. More ASIC mining will eventually lead to more centralization issues and the potential for miners – and even mining pools – to collude as a way to attack the networks in question.

For Equihash currencies, it seems to only be a matter of time until new incidents come to light. Major currencies such as Zcash use this algorithm, although it has been safe from such attacks for quite some time now. Bitcoin Gold, ZenCash, and a few others are completely different creatures in this regard. With Bitmain having launched its Antminer Z9 mini ASIC recently, it seems more hardware will come online soon.

The bigger question is what this means for the Equihash mining algorithm in the long run. After all, if these ASICs continue to pose problems, it’s only natural that most altcoins will move away from this algorithm or try to modify it in such a way that it can remain safe from 51% attacks. That is much easier said than done, though.

Moreover, it remains unclear who is responsible for the recent 51% attacks. One obvious possibility is that Bitmain is covertly mining these cryptocurrencies with its own ASICs prior to their release. Whether or not there is any truth to that remains to be determined.

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Bitcoin Cash Price Gets Skewed due to Exchange Trickery

A lot of confusing action is taking place where the Bitcoin Cash price is concerned. Although its actual decline in value is quite obvious for everyone to see, the real price of BCH is not necessarily what people can see on Coinmarketcap. This is primarily because numerous exchanges treat BCHABC as Bitcoin Cash already despite nothing being decided in terms of which chain will be the longest. Bitcoin Cash Value Fluctuates Heavily Depending on where traders look at, the price of Bitcoin Cash will be either close to the $400 level or down to $250-ish. That is quite a large gap between prices, yet one that is also very easy to explain. Bitcoin Cash, as people knew it before the fork, no longer exists. Most professional exchanges have also retired this price ticker, for the time being. As the hash war rages on, there are still a lot of unknown factors waiting to be addressed. Despite this ongoing kerfuffle, there is a net 5.76% decrease in the Bitcoin Cash price, and a 5.4% decline over Bitcoin. More specifically, that is what CoinMarketCap reports at this time, although this is not necessarily the case whatsoever. In fact, some exchanges are clearly jumping the gun by labeling BCHABC as BCH and thus dragging the Bitcoin Cash price down a bit more. Exchanges currently engaging in this activity include Bittrex and Coinex, neither of which plays a big role of importance when it comes to trading. However, based on the current value of BCH on Bitfinex and Gate.io, it seems a similar incident is taking place. One also has to keep in mind Bitcoin Cash was getting battered ahead of the network split as well. Most exchanges have halted trading of BCH indefinitely, primarily because the currency no longer exists. It is evident either BCHABC or BCHSV will take over that name in the future, but nothing has been decided at this point. As such, any trading referring to just “Bitcoin Cash” or “BCH” should be avoided, as most users can never be sure which currency is effectively being traded under this name. All of this skews the picture pertaining to Bitcoin Cash altogether. Coinmarketcap reports there is still $392m in trading volume for BCH, even though that is virtually impossible right now. With so many exchanges freezing deposits and withdrawals, it is evident actual BCH trading is no longer possible whatsoever. Virtually all platforms have deposits of BCHSV and BCHABC frozen as well, which only makes this market trend more confusing. It is safe to say the entire network split has been a bit of a mess first and foremost. In the case of Bitcoin Cash itself, that name will – under the current circumstances- not be used across exchanges for much longer. Instead, the two separate camps need to be treated as such first and foremost. Until things settle down – with might not necessarily happen anytime soon – the Bitcoin Cash price itself is pretty much irrelevant for most traders and speculators. Disclaimer: This is not trading or investment advice. The above article is for entertainment and education purposes only. Please do your own research before purchasing or investing into any cryptocurrency. The post Bitcoin Cash Price Gets Skewed due to Exchange Trickery appeared first on NullTX.

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