Sia (SC) Outpaces the Market After Announcing an ASIC Miner Block
Sia (SC), a decentralized storage platform secured by blockchain technology that leverages underutilized hard drive capacity, announced this week that it will conduct a hardfork to reset its proof-of-work (PoW) function in order to block third-party ASIC miners, including those made by Innosilicon and Bitmain.
1/4 Big announcement: the Sia core team has decided to reset the Proof-of-Work algorithm to brick Bitmain and Innosilicon ASIC hardware via hardfork. Blog post here. https://t.co/7gdqVcIM8x
— Sia (@SiaTechHQ) October 1, 2018
According to an announcement by David Vorick, CEO of Sia parent company Nebulous, the decision to fork comes amid a growing threat from external ASIC miners that are gaining a significant portion of Sia’s global hashrate. For instance, Innosilicon is currently mining around 37.5% of the Sia hashrate.
Therefore, the team made the decision to go forward with the fork despite a vocal minority that sees it as a path towards centralization, as Sia is simultaneously developing its own brand of ASIC miners.
In response, Vorick states that “[Sia doesn’t] view blockchains as a democracy, we view them as a source of stability,” meaning that Sia is less interested in governance models than in leveraging the underlying technology to build-out its end data storage product. Vorick also notes that the larger Sia community was suffering after its initial decision to allow the major third-party mining groups to dominate the coin’s hashrate.
However, despite Sia’s ongoing battle with external ASIC miners, the project has no plans to move to a GPU-friendly mining algorithms given that they are more susceptible to attack.
“To the best of my knowledge, no ASIC mined coin has ever been hit by a 51% attack. And yet, something like a dozen different GPU mined coins have been hit by 51% attacks, typically to steal from exchanges,” said Vorick.
SC currently has a $242 million market cap, making it the 37th largest altcoin in the ALT100 Index.
More: Sia Proof-of-Work Reset
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