Most recently, the Monero network successfully upgraded to a new mining algorithm aiming to be ASIC-resistant, RandomX.
This upgrade led to a surge of 190% in the hash rate of the Monero network. From 297 MH/s on Nov. 29, the day before the upgrade to 862 MH/s on Dec. 4. We are currently at just below 800 MH/s.
However, price-wise there isn’t much movement.
XMR is trading at $54, up about 1% in the past 24-hours, as per Coincodex. However, in the past seven days, it has been down 1.56% and 14.40% in the past month.
In the BTC market, XMR is down by 46.57% in the past 1 year. It is also down 91% from its all-time high of $593.
Punishing the ASIC Miners with RandomX
This proof-of-work algorithm uses random code execution along with memory-focused techniques to be resistant to application-specific integrated circuits (ASIC). ASIC is an integrated circuit chip customized for professional mining operational rather than general-purpose use.
Monero has been fighting against ASICs for a long time as the team believes these machines have a centralization effect on the network as only a few companies are able to manufacture them.
The upgrade as such is optimized for general-purpose central processing units (CPU) to make the network more decentralized and making it more difficult for those using graphic processing units (GPU) to mine XMR.
A Limited Life Span
According to Bran Cohen, who is known for writing the peer-to-peer BitTorrent protocol, Monero’s efforts to be ASIC resistant is a bad idea.
“ASIC resistance just creates more centralization around manufacture when it inevitably fails,” Cohen said.
However, according to him it also has its downsides in the way that they make 51% attacker cheaper and further believes these algorithms to have a limited lifespan.
Amidst this, another cryptocurrency exchange, Estonia-based BitBay announced that it is no longer supporting Monero on its platform. All users are asked to withdraw their XMR by May 20, 2020.
The reason behind delisting the coin was its privacy feature — Monero uses ring signatures to obfuscate the identity of individuals.
“The decision was made to block the possibility of money laundering and inflow from external networks,” the exchange said explaining as a licensed exchange they need to comply with the market standards and regulations.