166667 avalon chips to absolutley dominate bitcoin network

[vnezapno]

I know that  this won't happen 'couse doing this for an asic chips manufacturer is like blowing up the goldmine but think a bit.
If 1 avalon chip is 300 mhash and total network hashrate is 100000ghash for now they need just 170k chips running to absolutely dominate bitcoin network.
Considering 1 chip 0.085btc (and of course net cost is MUCH less) one asic manufacturer would need just ~1 million dollars and asic chip factory to do whatever they want with bitcoin.
I know that in practice that won't gonna happen(nobody wants to blow the goldmine right ?) but don't you think that even hypothetical opportunity of such an easy scam should lead us to conclusion that sha256 is not good enough to provide appropriate network decentralization.

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[cedivad]

lead us to conclusion that sha256 is not good enough to provide appropriate network decentralization.

Your logic fails here.

[vnezapno]

lead us to conclusion that sha256 is not good enough to provide appropriate network decentralization.

Your logic fails here.

I don't think so.

[bcpokey]

None of this is news. It's been this way since the beginning of bitcoin, and it's actually why the spread of ASIC is potentially the savior of the bitcoin network. CPU -> GPU was the same thing, $1M in GPUs would have totally destroyed the fledgling bitcoin chain then (admittedly GPUs were more readily available than ASICs are, but the idea still stands).

However after ASICs there are no (known) revolutionary advancements of the same kind, that allow minimal investment to dominate the existing infrastructure. This is a rocky time where the network is vulnerable, but as ASICs start rolling out and the network expands it will quickly close the gap.

Not really sure what it has to do with SHA256 though.

[vnezapno]

Almost all of the remaining bitcoins potentially belong to chineese chip manufacturers.
They sell() overpriced products with no warranty (by the fact) and no guaranteed shipping dates.
Obviously they will ship the chips when they will already have next-gen ones.

Not really sure what it has to do with SHA256 though.

I think network should switch to hashing algorithm that would be optimized for GPU/CPU mining so that making asic for it would be unprofitable.

[grue]

Not really sure what it has to do with SHA256 though.

I think network should switch to hashing algorithm that would be optimized for GPU/CPU mining so that making asic for it would be unprofitable.

you're always free to use litecoin

[ashaw596]

Eventually, if the demand is there, an asic will be made for the scrypt algorithm. The best we can do is try to keep the asic distribution decentralized. Its been ok so far and with the additional asic companies coming in, it looks ok.

[bb999]

Also the network adjusting difficulty every 2016 blocks means that the leaps forward in hashrate will be partially offset by increasing network difficulty, thus requiring an even greater investment to try and dominate the hashrate space, most likely making the investment not worth it as the difficulty increases while the block reward decreases.

[mokahless]

I know that  this won't happen 'couse doing this for an asic chips manufacturer is like blowing up the goldmine but think a bit.
If 1 avalon chip is 300 mhash and total network hashrate is 100000ghash for now they need just 170k chips running to absolutely dominate bitcoin network.
Considering 1 chip 0.085btc (and of course net cost is MUCH less) one asic manufacturer would need just ~1 million dollars and asic chip factory to do whatever they want with bitcoin.
I know that in practice that won't gonna happen(nobody wants to blow the goldmine right ?) but don't you think that even hypothetical opportunity of such an easy scam should lead us to conclusion that sha256 is not good enough to provide appropriate network decentralization.

You also misused the word "scam"

[vnezapno]

I know that  this won't happen 'couse doing this for an asic chips manufacturer is like blowing up the goldmine but think a bit.
If 1 avalon chip is 300 mhash and total network hashrate is 100000ghash for now they need just 170k chips running to absolutely dominate bitcoin network.
Considering 1 chip 0.085btc (and of course net cost is MUCH less) one asic manufacturer would need just ~1 million dollars and asic chip factory to do whatever they want with bitcoin.
I know that in practice that won't gonna happen(nobody wants to blow the goldmine right ?) but don't you think that even hypothetical opportunity of such an easy scam should lead us to conclusion that sha256 is not good enough to provide appropriate network decentralization.

You also misused the word "scam"

my bad

[r3wt]

litecoin is almost dead. saw it mentioned somewhere in this thread.