Nostr Web Client

ASIC — Mining or Resistance

Monero's approach to mining differs significantly from Bitcoin's.

Here's why ASIC-resistant Monero mining is better or more decentralized than Bitcoin's ASIC mining.

🧵👇🏻

Pros of ASIC-resistant Monero Mining

Equal Access

Monero's RandomX algorithm is designed to be ASIC-resistant, favoring general-purpose CPUs, making mining more accessible to everyday users.

Decentralization

With CPUs, the network avoids centralization by large ASIC farms, ensuring a more distributed mining landscape.

Security

Diverse miner participation reduces the risk of 51% attacks since power isn't concentrated in a few hands.

Innovation

Encourages the development of more efficient algorithms for general-purpose hardware, promoting broader tech advancements.

Cons of ASIC-resistant Monero Mining

Lower Efficiency

CPUs are less efficient compared to ASICs in terms of hash power per watt, potentially leading to higher energy consumption for the same hash rate.

Market Volatility

The lack of specialized hardware can make mining profitability more sensitive to market fluctuations.

Bitcoin's ASIC Mining Pros

High Efficiency

ASICs are optimized for SHA-256, making Bitcoin mining highly efficient in terms of power consumption and hash rate.

Stability

A more predictable mining landscape due to specialized, stable hardware and established mining farms.

Bitcoin's ASIC Mining Cons

Centralization

Mining is dominated by a few large players with substantial resources to afford ASICs, leading to potential centralization.

Entry Barriers

High costs of ASICs prevent average users from participating, reducing overall network decentralization.

In sum: Monero's approach with RandomX promotes a more decentralized and inclusive mining ecosystem compared to Bitcoin's ASIC-dominated environment, despite some trade-offs in efficiency.

---

Ressources:

Mining Centralization Poses Risks To Bitcoin, Yet Optimism Remains

https://crypto.ro/en/news/mining-centralization-poses-risks-to-bitcoin-yet-optimism-remains/

Monero(XMR) RandomX PoW Algorithm Explained

https://ruisiang.medium.com/monero-xmr-randomx-pow-algorithm-explained-d3cf95619717

Reply to this note

Please Login to reply.

Discussion

Chuck Langstrumpf 1y ago

There is the argument though, that a state actor could use (or rent) existing CPU infrastructure to atttack Monero with a 51% attack and can reuse the computing power for something else afterwards while Asics are worthless after a 51% attack against Bitcoin.

Whats your opinion about that?

cryptowolf 1y ago

its so private, you would never even know! lol

Hanshan 1y ago

Thats true.

It would be interesting to see what happens if monero had say 10x the marketcap it has today.

Chuck Langstrumpf 1y ago

Monero ETF will pump our bags ;)

Hanshan 1y ago

never

Chuck Langstrumpf 1y ago

Come on, i heard rumours Larry Fink and Jamie Dimon are die hard Monero fans!

henrixd 1y ago

I think that more diversified mining is what bitcoin was supposed to be and people were supposed to be able to mine on their home PCs. Maybe Satoshi failed to predict specialized ASIC hardware but wouldn't blame him too much from that oversight. I think he did pretty well overall. ;) I do like how Monero mining works but I'm not sure which is better overall. There are pros and cons to both.

Centralization is a threat but actual attack would still go against their monetary incentives and would require risking a lot of money. At least I cant see this as a good way to attack against bitcoin. There has to be better indirect ways that would be more efficient.

https://m.primal.net/IPti.mp4

Saberhagen The Nameless 1y ago

Pro of ASIC-resistance Monero mining

Deniability. Much easier to blend in. You could be buying/using that CPU for numerous various reasons. Everyone knows why you're buying/using an ASIC.

Concealment. Heat, noise, and energy draw of ASICs make mining very suspicious.

"Police raid a concealed #Bitcoin mining operation, initially mistaking it for an illegal marijuana farm due to the heat signature"

https://twitter.com/BitcoinNewsCom/status/1721359382745874489