Categories: News

Jihan Wu to newbies: “ASIC Miners make the network more decentralized”

Jihan Wu (Co-founder of former Bitcoin Mining Giant, Bitmain) recently told a bunch of new people at a cryptocurrency conference that ASIC (Application specific integrated circuits) chips make the network more decentralized.

“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.”, said Jihan Wu.

He further added, that even though ASIC resistant algorithms exist, like Ethereum ProgPOW ( Progressive Proof-Of-Work ), there will still be ASIC miners for these blockchains.

“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.”

Jihan Wu further attacked Ethereum’s ProgPOW algorithm which will automatically block ASIC chips for mining, stating the developers of Ethereum will be making the network more centralized.

“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.”

Blockmanity’s Take

Bitmain is the world’s biggest producer of ASIC chips, and Jihan Wu being the company’s founder has to protect his company’s interest.

But Jihan Wu’s claim that banning of ASIC chips will make the network more centralized is false and complete nonsense. ASICs are expensive and consume more power than GPUs making them ideal for big mining farms. GPU, on the other hand, can be afforded by individuals.

Thus, on the contrary reliance on ASIC is going to make a network more centralized.


Discuss this news on our Telegram Community. Subscribe to us on Google news and do follow us on Twitter @Blockmanity

Did you like the news you just read? Please leave a feedback to help us serve you better

Disclaimer: Blockmanity is a news portal and does not provide any financial advice. Blockmanity's role is to inform the cryptocurrency and blockchain community about what's going on in this space. Please do your own due diligence before making any investment. Blockmanity won't be responsible for any loss of funds.

Ishan Garg

Ishan is a cryptocurrency trader and a journalist. He joined the cryptocurrency space in 2017. He is the founder of Blockmanity. He is a HODLER and is holding BTC, ETH & UGT.

Share
Published by
Ishan Garg

Recent Posts

Bullish Signals for Sui Blockchain: Top SUI meme projects of 2024

Macro guru and Real Vision CEO Raoul Pal shone the spotlight on a rising layer-1…

2 months ago

AI Companions: A New Era of Digital Relationships and Virtual Experiences

As the technology landscape transforms at lightning speed, AI Companions has positioned itself as a…

2 months ago

zkCross Network: Simplifying DeFi Complexity and Achieving Fundraising Success

Did you know that 85% of DeFi value is concentrated in six blockchains?  DeFi is…

2 months ago

Don’t Miss Out: Get $CLP Tokens in the Exclusive RWA IDO Now!

CLAPART - a groundbreaking RWA platform has launched its much-anticipated $CLP token IDO on Gempad…

3 months ago

Step into the Future of Web3 at Blockchain Futuristic Conference 2024, August 13-14

Join us at BFC 2024 to explore the future of Web3. Use a special discount…

4 months ago

WebX Asia 2024: Web3 Innovation Ignites in Tokyo

Catch all the updates with Altcoin Observer, official media partner of WebX Asia 2024. Gear…

4 months ago