The Monero token, XMR, is known for its place as the 13th largest crypto asset by market cap, and there’s a major hard fork that is only hours away from happening. This hard fork is the first of the year for the token, and it is scheduled to be implemented on block #1788000. According to a crypto media website, the block was at #1787800 about two hours ago.
There is already a Reddit thread on this change, which states that there are four main changes that are going to come with the hard fork. The dynamic block size algorithm will be altered to fix both the big bang attack and the spam-bloating attack. It will also improve the scalability in the near and far future.
In the image below from GitHub, the company explains a big bang attack.
By scaling for short term, Monero explains that this term means “allowing a short term in demand due for example to seasonal issues.” This had recently occurred during the holidays, which results in a rise of 20x within a few days or weeks, dropping sharply right after the holiday commences. The dynamic block size algorithm will allow for up to a 50x jump in the transaction rates, and that will be increased by twice over if the limit is “maxed out,” according to GitHub.
Since it can also scale for long term, this terminology simply means that it will help with the overall growth of Monero over time. There will be a 1.4x increase after 5000, which can easily handle the Monero network’s growth. Though some people have suggested a “simpler dual median,” this change would only meet the short-term needs, leading Monero to take on other changes as well.
The second change includes the mining algorithm on the Monero network, which appears to reduce mining performed by ASICs. The statement from the team shows that it will “preserve ASIC resistance,” which means that miners will end up needing to either update or completely change their mining software. The current algorithm in place has had multiple updates already, and the repeated changes have made it increasingly difficult to prevent losses. Considering the way that Coinhive mines, the company blames the Monero hard for as the reason for their own shutdown, along with the recent crypto winter.
In the third update, the hard fork will essentially create a “dummy encrypted payment ID,” and it will be added to every transaction to increase consistency. The fourth of the changes will be reducing the size of “amount encodings and using deterministic masks,” simplify amount commits.
Monero added, in the Reddit post, that the hard fork will happen in two events – one around March 9th, and one around March 10th. With this division, there is a small period that will allow the use of the v1 transaction format that miners still use.
To prepare for the hard forks, Monero has recommended that anyone who uses their network to upgrade to CLI v0.14.0.0 Boron Butterfly or GUI v0.14.0.0 Boron Butterfly. These upgrades will smoothly implement the hard fork when it comes for users, services, pool operators, merchants, and exchanges.