Author: Mustafa Al-Bassam 2016-04-06 12:09:33
Published on: 2016-04-06T12:09:33+00:00
On April 1, 2016, Timo Hanke announced a white paper that describes a new algorithmic improvement to the Bitcoin mining process. The paper explains how AsicBoost can be used to reduce power consumption and increase mining efficiency. The performance gain is achieved through high-level optimization of the Bitcoin mining algorithm which allows for drastic reduction in gate count on the mining chip. AsicBoost is applicable to all types of mining hardware and chip designs. However, there are concerns about centralization because of the patenting of this improvement. It could potentially give one manufacturer exclusive rights, depending on the licensing model used. There are also concerns about whether or not it is purely a software thing, as some believe it can be used by modifying hardware. Even though the patenting of mining algorithms may seem effective in certain countries, Bitcoin's mining and decentralized design combined with an international economy makes it ultimately pointless. On the other hand, the patenting of the AsicBoost algorithm could cause a sudden increase of Bitcoin mines in countries where the algorithm is not patented, leading to a geographical decentralization of miners from countries that already have a lot of miners like China.
Updated on: 2023-06-11T04:41:08.883898+00:00