The first ASIC built for Sia mining unveiled

Obelisk, the first ASIC built for Sia mining has been announced
22 June 2017   2616
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".

'Kodak Miner' Turned Out to be a Scam

KashMiner by Spotlite USA was promoted as Kodak branded bitcoin miner 
17 July 2018   137

The KashMiner bitcoin miner, exhibited at the Kodak stand during the CES technology show in Las Vegas, was in fact a product designed to mislead potential consumers and with a potentially unattainable potential return. This is reported by BBC.

Spotlite USA is licensed by Kodak's lighting division, which allows it to use the famous brand in its products. In January 2018 the company introduced its miner and announced that it intends to lease it. According to its business plan, potential users had to pay a commission before getting the device. It was expected that after depositing $ 3,400, the customer will receive a device that will allow him to easily cover expenses and receive revenue from bitcoin mining.

However the company did not have an official Kodak license to use the brand in the production of mining equipment and initially overstated the indicators of the potential profit of its device, refusing to take into account the growing complexity and costs of bitcoin mining. The advertising materials reported that KashMiner brings $ 375 a month, which, subject to a 2-year contract, would allow the client to receive $ 5,600 of profit after paying a commission. Experts from the industry of cryptocurrency call this offer a scam.

There is no way your magical Kodak miner will make the same $375 every month.
 

Saifedean Ammous

Economist

CEO Spotlite USA Halston Mikail previously reported that he plans to install hundreds of miners at the headquarters of Kodak. According to him, he already managed to place 80 miners there, but the Kodak spokesman denied this information.

While you saw units at CES from our licensee Spotlite, the KashMiner is not a Kodak brand licensed product. Units were not installed at our headquarters.
 

Kodak Spokesman

In a phone call with the BBC, Spotlite's Halston Mikail said the US Securities and Exchange Commission (SEC) had prevented the scheme from going ahead.