Outrage as Bitmain Introduces ASIC to Mine Monero

ASICs are yet to make an impact on the mining of digital coins using the CryptoNote protocol. However, Bitmain, one of the largest suppliers of ASIC-based mining equipment, has cracked the nut, as it announced its latest machine, the CryptoNight-capable X3.

We are pleased to announce the all-new Antminer X3, to mine cryptocurrencies based on the CryptoNight hashing algorithm.
Two batches: shipping in June (https://t.co/VeidZrreK2) and shipping in May (https://t.co/RKtJe6Rm8D)
To prevent hoarding and to enable.... (1/2) pic.twitter.com/PBKdXrwg9b

— BITMAIN [Not giving away ETH] (@BITMAINtech) March 15, 2018

However, the introduction of the X3 has attracted criticism, with developers of Monero, one of the most popular coins using the CryptoNote hashing algorithm, at the forefront of this criticizing squad. Monero’s lead developer Riccardo “fluffypony” Spagni himself warned potential customers against the compatibility of Antminer X3 for mining the coin.

According to an email sent by Bitmain, the company is offering a substantial discount to its existing customers for Antminer X3 and has reduced the price of the device from $7,600 to $3,000. However, industry specialists warn that Monero's upcoming hard Fork Fork A fork can occur when a blockchain diverges into two potential paths forward, there is a change in protocol, or a scenario occurs in which two or more blocks have the same block height.Because blockchain networks are decentralized, the participants on the network must come to an agreement when it comes to things like software upgrades to a network. This is called consensus.When consensus cannot be achieved on a software upgrade, a fork occurs, effectively representing a divergence in software th A fork can occur when a blockchain diverges into two potential paths forward, there is a change in protocol, or a scenario occurs in which two or more blocks have the same block height.Because blockchain networks are decentralized, the participants on the network must come to an agreement when it comes to things like software upgrades to a network. This is called consensus.When consensus cannot be achieved on a software upgrade, a fork occurs, effectively representing a divergence in software th Read this Term will change the coin's proof-of-work algorithm, meaning that the Antminer X3 will not be able to mine it. Many are also accusing Bitmain of offloading the soon-to-be obsolete mining devices after secretly mining Monero for months.

Monero ASIC theory 🤔

1. Bitmain produces 1st CryptoNite asic summer 2017
2. Mine secretly from November 2017 (no asic sales)
3. Blame hashrate on botnets+hype
4. Monero announces PoW fork
5. “Wrap it up!”
6. Dump used ASICs 12k$/each right before obsolescence
7. 🤑🤫

Genius? pic.twitter.com/bdIJk7CcWk

— CRY HARDER (bullbitcoin.com) (@francispouliot_) March 15, 2018

Monero’s Response

Monero, a digital coin designed to be mined with the spare processing power of computers, has been struggling with a massive surge in its hash power for a few months now. To tackle the issue, Monero announced an upgrade to its proof-of-work algorithm on February 11, which will make the coin compatible with the CryptoNight algorithm.

“We will perform an emergency hard fork to curb any potential threat from ASICs if needed," the announcement read. "Furthermore, in order to maintain its goal of decentralization and to provide a deterrent for ASIC development and to protect against unknown or undetectable ASIC development, the Monero team proposes modifying the Cryptonight PoW hash every scheduled fork, twice a year…Finally, we will continue to research alternative Proof of Work functions that may provide better ASIC resistance than Cryptonight.”

Moreover, a Twitter user pointed out that the skyrocketing Hash Rate Hash Rate A hash rate is the measure of a cryptocurrency miner’s performance and a key security metric. In the context of mining, the more hashing or computing power in a given network, the greater its security and its overall resistance to attackMining hashrate is a key security metric. The more hashing (computing) power in the network, the greater its security and its overall resistance to attack. Hash rate is also a measurement of the output of a device that is used to add transactions to a blockchain A hash rate is the measure of a cryptocurrency miner’s performance and a key security metric. In the context of mining, the more hashing or computing power in a given network, the greater its security and its overall resistance to attackMining hashrate is a key security metric. The more hashing (computing) power in the network, the greater its security and its overall resistance to attack. Hash rate is also a measurement of the output of a device that is used to add transactions to a blockchain Read this Term of Monero is directly tied to Bitmain's acquisition of CryptoNight-enabled chipsets.

Can't believe I missed this earlier, but sure enough - confirmation of @BITMAINtech having #cryptonight chips on January 23rd (#XMR AntRouter). Only goes to confirm the argument that ASICs silently caused the nethash to skyrocket. cc @fluffypony / #monero team pic.twitter.com/L4PEdJdgqp

— the vessel of morganna (@astraleureka) March 16, 2018

Even after the scheduled hardfork, the Antminer X3 can be used to mine other coins using the CryptoNote algorithm, such as Bytecoin, Digitalnote, and Darknetcoin. However, as these coins are less popular than Monero, mining them will likely prove less profitable.