Monero lost more than 50% of its network hash rate
This is old news to many but I’ve been watching it, the hash rate on Monero was just over 1000 MH/s prior to the algorithm update as a way to combat ASIC mining by companies like Bitmain. It plunged to as a little as 157MH/s initially but as of now (2018-08-08) 461 MH/s.
This is significant and the move wasn’t without controversy but I think it was the right way to go. Monero wanted to stop giant mining farms like you see for Bitcoin and Litecoin.
I think it worked, initially and clearly a lot of mining was disrupted because all the mining software had to be updated such as xmr-stak or xmrig etc.. Today if you use a pre April 2018 miner you will get “invalid results” or “share not accepted” from the pool because the algorithm has changed. This effectively bricked Bitmain’s Monero miners but all was not lost for them as it is believed they were probably mining with them for several months if not more before releasing them publicly. For any critics at least Monero clearly communicated almost immediately after Bitmain’s announcement that they would update the algorithm and would be sure to brick them. And in all fairness at least Bitmain warned of this on their own sales page so it is nice to see an issue like this handled well by the main parties involved (of course those who still bought a Monero miner are out of their money).
Considering that months later the old hash rate of 1+ GH/s is now only about 460MH/s I think it is fair to say there were ASIC mining farms controlling over half of Monero! This very well could have been Bitmain and other manufacturers themselves. But going back to the whole mining thing, most know I am against it. One inherent vulnerability of any mineable coin is that whoever has the most hashing power wins or controls the network allowing them to steal from others essentially. As illustrated in my picture earlier one pool supportxmr.com has 80 MH/s, Nanopool 95MH/s, minexmr 94 MH/s so essentially 3 pools control about 60% of the hashing rate or about 20% each on average. If you check out the list of Monero pools essentially the hash rate is concentrated among numerous pools which puts it in a similar situation as Bitcoin in a sense.
The current situation is better but nothing stops people from spending millions on GPUs and CPUs in order to dominate the network. With Monero only worth around $100 USD at the moment there is little incentive to do so unless an organization simply wanted to kill Monero. I would imagine criminal organizations like the ones who targeted Bitcoin Gold and other coins will be ready and waiting to do the same though.
What do you think?
Cheers,
A. Yasir
