The first ASIC built for Sia mining unveiled

Obelisk, the first ASIC built for Sia mining has been announced
22 June 2017   3710
SiaCoin

Is a cryptocurrency for the actively developed decentralized private cloud data storage service Sia

A decentralized cloud storage SiaCoin has announced the first ASIC built for Sia mining - Obelisk. 

ASIC miner for the Sia network ASIC miner for the Sia network

Blockchain

Distributed database that is used to maintain a continuously growing list of records, called blocks

However, as Sia Team reports in its blog, the announcement received a lot more heat and controversy than they expected. Thus, people primarily seemed to be concerned with mining centralization, and what happens if a small number of groups end up controlling all the hashrate — groups that may well include the developers, as the developers are the ones making the chips.

In order to defend their choice for ASICs, the team explains several things.

GPU based mining is a false panacea that ultimately leaves a cryptocurrency far more vulnerable to attack.
 

David Vorick
SiaCoin Team

The company details that the relative decentralization gained from having the active hashrate controlled by a larger number of parties is far outweighed by the fact that the currency ends up being far more vulnerable to 51% attacks by centralized parties. In the GPU mined altcoin world, the price dropping means that miners just hop to a more profitable coin.

The team claims that there are multiple factors that went into this decision and all of them relate to keeping Sia as decentralized as possible.

The choice for ASICs is distasteful, because the disadvantages are more visible vs. other choices we could make, but I strongly believe that ASICs are far and away the best long term decision.
 

David Vorick
SiaCoin Team

As Sia Team qrgues in its blogpost, Proof of Work is a very impressive system, and it’s impressive in spite of all the miner centralization that plagues it. "If you want true decentralization and trustlessness, it is the only solution that has stood the test of time".

Bear Market to Hit Mining Hard

BitMEX research division presented an analysis of the impact of market decline on the mining industry
11 December 2018   75

The cryptocurrency market has experienced a marked decline over the past weeks. The BitMEX research division presented an analysis of the impact of these events on the mining industry. Bitcoin hash rate has fallen by 31% since the beginning of November, which is equivalent to the capacity of 1.3 million Bitmain S9 devices. From this, BitMEX concludes that miners as a class are in a difficult situation, however, they may have different conditions, and those who pay more for electricity, are forced to turn off their equipment first, while others may still be quite viable.

The decrease in the price of Bitcoin by 45% since the beginning of November has already caused two recalculations of the complexity of mining to the lower side - by 7.4% and 15.1% on November 16 and December 3, respectively. The first recalculation turned out to be the largest since January 2013, the second - since October 2011.

Bitcoin mining revenue fell from $ 13 million per day in early November to $ 6 million per day in early December. The fall in the size of the miner's encouragement turned out to be even more rapid than the fall in the price of cryptocurrency. This is due to the delay in recalculating the complexity of mining. For the six-day period ending December 3, 21.8% fewer blocks were mined than expected, since the miners left the network before recalculating the difficulty. As a result, in addition to reducing the size of the miners' encouragement in dollar terms, due to lower asset prices, they received 21.8% less bitcoin awards.

One of the popular reasons for the recent decline in the cryptocurrency market is that miners sold bitcoins to cover their costs of hash warsin the Bitcoin Cash network. The monitoring platform Boltzmann recorded an unusually large sale of Bitcoin by the miner on November 12, that is, 3 days before the hard fork of Bitcoin Cash.

BitMEX assumes that the actions of miners over the past weeks could have played a significant role in reducing the market, however, recommends not overestimating their value and reminds that in a bearish trend, prices continue to fall regardless of asset movements and news.