DASH Crypto Miners Not Profitable for Blocks Higher Than 0.9 MB Says Study
A Study Finds That Blocks Higher Than 0.9MB To Be Inefficient For Dash Crypto Mining
Dash announced a strategic partnership with Arizona State University’s blockchain research laboratory back in January 2018. The $350,000 Dash scholars fund was created as a means of accelerating the research and education regarding ways that enhance blockchain transaction security, efficiency, user-base, and speed.
One of the first studies released under this partnership has been launched, and it has significant insights about Dash blockchain opportunities while highlighting some of the existing scaling issues.
The block propagation research was designed to explore the various scaling challenges facing the Dash cryptocurrency. Each simulation that was run during the study included networks with 6,000 nodes and the researchers also endeavored to cater for variances by ensuring enough time for all simulations to produce 700 blocks.
Protocols For Block Propagation
This research presumed that all crypto miners were mining the same block sizes. Hence, the researchers based their efforts on three protocols of block propagation, including traditional propagation, compact and extreme thin blocks block propagation.
The results of the study showed that there was enough feasibility proof for the Dash ecosystem to scale upwards to higher block sizes up to 10MB via the xthin protocol for block propagation. Meanwhile, the network scaling was limited to between 8MB and 6MB by using the compact propagation rule.
The other notable finding was that scaling above 10MB block sizes was a realistic goal provided the minimum amount of orphan block rates was maintained within the network.
Inefficient Block Sizes
A critical outcome of the study undertaken by Dash and ASU was that it is uneconomical to mine blocks that are above 896KB. The reason for this is that the transaction costs at that specific level didn’t provide crypto miners sufficient compensation, especially considering the high orphan rates.
Over time, as the Dash ecosystem continues to scale upwards, the financial incentives for miners to incorporate more transactions within a block must be considered. If you assume that all transactions contain a fee density of 0.01 DASH coin per 1MB, 1.67 DASH mining reward and a 2.15% orphan rate rise per MB, then it means that blocks above 896KB are highly uneconomical.
With these findings listed above, the researchers working on the project had a few recommendations for DASH crypto miners to enhance their profitability. They recommended a 5MB block size coded limit and also limited the mining capacity to below 890KB for all blocks.
The future for this interdisciplinary initiative with ASU researchers is to include more extensive simulations involving larger block sizes and also creating independent test nets to emulate the Dash platform. Both the ASU and Dash will continue benefiting immensely from this strong collaboration efforts.