Not enough GPU miners confirmed problem; required urgent update – explanation below.
The mobile phone based Electroneum (ETN), has performed a U-Turn by bringing ASICs miners back to the fold. The reason, to confirm transactions once the original forking become ASIC-resistant.
Founder of the company and CEO, Richard Ells – has said to the company’s Telegram community, they’ve chosen to make urgent actions, thereby reducing and re-introducing ASIC miners, effectively turning the fork around that had integrated ASIC-resistant coding coming towards the end of May.
Electroneum set the intention in its consensus model to become a GPU-based system, to make it more accessible and less susceptible to 51% of all attacks made against the system. After the fork was completed, however, the entire network continually failed to reach sufficient GPU-miners for the network to run efficiently.
“The GPU community actually convinced us to go anti-ASIC”, Ells reported to a site called Crypto Briefing while on a phone interview with them “But when we did this, they [GPU miners] left in droves, which made the network less profitable for them and less secure for us and our users.”
UK based Electroneum focuses primarily on using phones as a means to send and receive micro-payments. The primary users are in emerging economies, ones in which major percentages of the community have mobile phone access but remain without bank accounts.
Another fork, created from the privacy-based coin Monero, removed many of the privacy features on Electroneum, so the network would operate correctly in jurisdictions where KYC-procedures where needed.
“Being an anti-establishment coin won’t get us anywhere; we’re a cryptocurrency that needs to work with the operators and regulators to roll-out our services”, Ells said.
The company already formulated many different commercials to deal with various partnerships on mobile networks, even including South American operator Xius and Malaysian operator redone; as well as keeping a heavy foothold in Central Asia and Bangladesh.
More Effects On Electroneum’s Fork
Bitcoin’s consensus pool has been centralized with ASICs protocol, where three mining pools making up 48% of BTCs hashrate this week alone. There has even been concern as to whether or not Bitmain, which designs and uses its own ASICs, would be able to soon be in a suitable position to make an attack against Bitcoin.
When asked as to whether or not welcoming back ASIC-rigs would place Electroneum at risk of a consensus attack, Ells made the argument that it would actually make the network much safer:
“When we banned ASICs, Electroneum became vulnerable to attack”, Ells said. “From a rate of approximately 2 giga-hashes, we ended up with 30 mega-hashes just yesterday. We calculated that if a malicious agent used a cloud-mining site like NiceHash, they could successfully stage a 51% attack for as little as $3,000”.
The fork, which Ells preferred to label a much needed, “urgent update”, was also essential for the company to be able to sign commercial deals and finalize its listing on the Coinbene crypto Exchange.
“They [Coinbene] were worried about the network’s stability”, stated Ells. Now with hashrates of more than 500 mega-hashes, Ells declared, the re-released ASICs wouldn’t affect mining on the network in a negative way or make it inaccessible for several of their users.
“Most coins using the CryptoNight algorithm are now ASIC-resistant, meaning that there are loads of secondhand rigs out there which can be bought for comparatively little”, Ells explained. “The low cost will stop Electroneum developing a high-barrier of entry”.
A Micro-payment-based platform like Electroneum needs to be suitable to handle fast transactions at speedy rates to perform the best functions. Although it’s not entirely necessary, moving ASICs seemed like it was a counter-productive move for a network that focuses mostly on accessibility and inclusivity.
CryptoNight ASICs may currently be an inexpensive, yet very promising corporate deal – one that could potentially see Electroneum expand. The platform would then become an even more desirable one for larger mining pools. If that were to happen, Electroneum’s power to the people slogan would become extremely outdated.