Ethereum (ETH) to Be ASIC-Resistant, No Date Set However
Ethereum core developers once again approved the migration to ProgPoW, the ASIC-resistant approach to mining, without promising a set date.
Ethereum (ETH) has once again signaled its readiness to move to an anti-ASIC mining algorithm, the long-promised ProgPoW. In their latest meeting, Ethereum developers pointed to their general approval of the move, without setting a certain date.
Back in January, Ethereum showed readiness to disable the newly arrived ASICs and give a chance to loyal GPU miners. But the idea was put on hold for a while. Now, the change in mining is looming again, as the community is in support of a more democratic form of mining.
“We’re going back to stuff we were tired of talking about months ago! We Decided that the only issue is whether there were errors in the algorithm, backdoors in the algorithm, anything like that. Not arguments between the GPU people and the ASIC people. That will unroll over time,” Greg Colvin, one of Ethereum core developers, said.
The risk of an anti-ASIC decision is that the price of ETH could be lowered, as the network becomes unattractive to miners. The recent Constantinople hard fork, which lowered the block reward from 3 to 2 ETH, also led to a drop of around 30% in mining.
Abandoning ASIC mining is also seen as a vulnerability. In theory, programmable chips may become specialized very fast to new types of mining algorithms. This would leave the Ethereum network vulnerable to stealth mining attacks since the hashrate would drop dramatically with reliance solely on GPUs.
The changes arrive at a time when ETH prices are at a crossroads. As an asset, ETH is an integral part of multiple trading pairs, serving to ensure a dollar-equivalent price for many assets. A crash in ETH prices could create panic across the markets, and lead to a deepening of the pessimism of the bear market.
ETH traded at $139.33 as of 13:20 UTC on Monday, on volumes of around $4.1 billion’s equivalent.
Ethereum’s network was also facing problems of scalability, and reneging on its promise of storing a complete and immutable history of the blockchain’s states. It became clear that running a complete and synchronized node is too cumbersome even for specialized node providers.