Co-founder of the bitcoin mining giant Bitmain Jihan Wu, recently stated at a crypto conference a few days ago that the ASIC (application specific integrated circuits) chips make the network more decentralized and we are reading more about it in our Sunday blockchain news.
Jihan Wu explained at the conference:
“ASIC miners – powerful processors designed for crunching specific algorithms – are less of a centralizing force than more general purpose graphics processing units (GPUs) that are also commonly used in cryptocurrency mining.”
He continued to explain that no matter the fact that ASIC resistant algorithms exist such as the Ethereum (ETH) ProgPOW (progressive proof-of-work), the ASIC miners for the blockchains will still exist. Wu said:
“While we have seen various network upgrades that aim to become ASIC-resistant, such as Cuckoo cycle and ProgPow, but what we can foresee is that, very likely, there will still be ASIC miners for these two algorithms.”
The Co-founder of Bitmain attacked the ProgPOW algorithm of Ethereum which automatically blocks the ASIC chips from mining and he said that the developers of the Ethereum network will bring to the network becoming more centralized. Wu explained further:
“To me, ProgPow is clearly an effort to achieve centralization, in an attempt to exclude other integrated circuit designers to participate in Ethereum mining. And GPU hardware is strongly protected by patents, so having a tailor-made algorithm for this type of hardware is certainly a way to avoid a fully competitive market.”
Bitmain is currently the largest ASIC chip producer in the world and Jihan Wu only wants the best for his company and his company’s interest. His claims however are a topic of disagreement between other miners, experts and traders since they don’t believe that banning the ASIC mining chips will make the network more centralized. ASIC mining chips are extremely expensive and spend a lot of power than the GPUs which makes them ideal for a big mining farm. GPUs on the other hand are easily affordable and accessible for individuals and home miners. Some even believe that his decision is the one that will make the network more centralized.
DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at [email protected]