New bitcoin mining algorithm

[pishite]

Seeing that bitcoin has long been impossible to mine on a regular computer began to ponder the question of why the development team does not seek to switch to another algorithm to stop the mining of coins by large corporations and return to the canons that bequeathed Satoshi. It may be worth switching to the pos algorithm, you will not need to spend a huge amount of electricity and investors will be able to receive passive income for storing coins. There will also be no need to be afraid of the quantum computer. Interested in everyone's opinion.

[pooya87]

Seeing that bitcoin has long been impossible to mine on a regular computer

it is impossible to mine bitcoin without investing a large amount of money and no matter what alogirthm it switches to, in the end that large amount of money will be required because there are A LOT of people mining bitcoin hence the difficulty will always be high and consequently you need to have a higher hashrate => invest more money.

began to ponder the question of why the development team does not seek to switch to another algorithm

because unlike shitcoins, in bitcoin we don't want to fool people into thinking if they could mine it with a cheap computer (that translates into having a low difficulty and hashrate) then the coin is a good and "decentralized" one!

to stop the mining of coins by large corporations

nobody is stopping you to buy a ton of ASICs and become a "large corporation that mines bitcoin". so i don't see any issues there. it is just that YOU don't want to make that kind of commitment and others do and you blame them for that kind of investment!

It may be worth switching to the pos algorithm,

PoS is the weakest with lots of issues.

you will not need to spend a huge amount of electricity and investors will be able to receive passive income for storing coins.

why should anybody be paid money out of thin air for just owning money?

There will also be no need to be afraid of the quantum computer.

if quantum computers were capable of breaking anything you would have a lot more to worry about than just the mining algorithm that bitcoin uses...

[Wind_FURY]

OP, research POS. It will basically change Bitcoin's incentive model, and a mere suggestion of a change to POS is already laughable.

[NeuroticFish]

The fact Bitcoin is mined at industrial scale with ASICs makes its network the safest one. This is much better than it would have been if everyone could have been able to mine it. Actually the price also reflect this.

There's probably a (small?) loss in decentralisation, but overall this is very good. So it will not be charged.

As said, nobody force you mine, nobody force you choose Bitcoin... I'll add that all CPU mined coins in the last 2 years were unprofitable to mine. So...why would we doom Bitcoin?

[pishite]

Well, let's say some mining pool has taken over 51% of the network and can now manage your state as it wants, for example, change the chain that you have 0 coins, what do you say? Ethereum is not in vain switching to the pos algorithm, since it is impossible to do this on it .

[Artemis3]

Seeing that bitcoin has long been impossible to mine on a regular computer began to ponder the question of why the development team does not seek to switch to another algorithm to stop the mining of coins by large corporations and return to the canons that bequeathed Satoshi. It may be worth switching to the pos algorithm, you will not need to spend a huge amount of electricity and investors will be able to receive passive income for storing coins. There will also be no need to be afraid of the quantum computer. Interested in everyone's opinion.

Because there is no need to do this, and PoS is never the answer. The free market forces alone are fixing this, mining is meant to become rare and few people will bother doing it anymore, so its not like you can't and large corps can, soon they too will quit. If anything, only the hobbyists that don't mind losing money, will remain as the last miners, and those smaller operations with free energy such as those with renewable sources.

As you can see, everything is in your own misconceptions. Did you ever thought people would live of mining bitcoin? The mining phase was meant to end, bitcoin is about the coin, not about living of it. Once minted you use them, like you would any other coin.

Nearly all coins have been minted, around 18million of 21, and the reminder will come in the span of the next hundred years, with each one coming slower and slower, which is why mining has to become unprofitable and unattractive.

Bitcoin is entering maturity, and you need to do absolutely nothing to "fix" that. Those who claim it, are either misguided or mistaken.

[lightningmelo]

Contrary to some's belief, it's actually good that bitcoin mining is not "ASIC-proof".

Miners are incentivized to establish large contracts with electricity companies, allowing the network to be secured by the cheapest electricity at very large amounts.

This means that no one player can easily dominate the network.

[squatter]

Seeing that bitcoin has long been impossible to mine on a regular computer began to ponder the question of why the development team does not seek to switch to another algorithm to stop the mining of coins by large corporations and return to the canons that bequeathed Satoshi.

Any POW algorithm will eventually follow the same path towards ASIC production and mining concentration because of the massive economic incentives involved. It's comparable to a heated arms race.

You could hard fork to new algorithms often -- bricking existing ASIC miners each time -- but this has security implications. Industrial miners won't be willing to risk securing a network where their operation could be rendered worthless overnight. The network would be limited to much lower hash rates, exposing it to 51% attack risks.

It may be worth switching to the pos algorithm, you will not need to spend a huge amount of electricity and investors will be able to receive passive income for storing coins.

The double spending problem hasn't been adequately solved in POS. There is no perfect solution to the problems you're bringing up. Every approach to decentralized consensus has trade-offs.

[1Referee]

Well, let's say some mining pool has taken over 51% of the network and can now manage your state as it wants, for example, change the chain that you have 0 coins, what do you say? Ethereum is not in vain switching to the pos algorithm, since it is impossible to do this on it .

It's hard to imagine that with how the mining ecosystem is pretty good at self-regulation to kick out bad actors. Larger miners can simply pool their share together to make sure the safety of the network and their own financial incentives are ensured. It's pretty safe to say that the time and money needed to perform such an attack on Bitcoin is useless at this point in time.

EOS is POS too, where some exchanges (Bitfinex was one of them) have already abused their voting rights. Ethereum will be a similar toy because of how most of the coins are held by centralized exchanges. People just like POS for its staking aspect, while everything else of negative nature is discarded because that's not of interest to them. 

[figmentofmyass]

EOS is POS too, where some exchanges (Bitfinex was one of them) have already abused their voting rights. Ethereum will be a similar toy because of how most of the coins are held by centralized exchanges. People just like POS for its staking aspect, while everything else of negative nature is discarded because that's not of interest to them. 

this is why ethereum has delayed so much on POS, and is backtracking towards a hybrid POW-POS system. it's a much harder problem to solve than vlad zamfir and the others working on casper had imagined, especially when considering the economic/political forces around a complete removal of POW incentives. that's got contentious fork written all over it, even with the backing of vitalik. it's potentially a much worse version of the ethereum classic fork because miners are strongly incentivized to back the POW fork.

thankfully, they aren't as reckless as some bitcoiners make them out to be. they obviously don't want that. hybrid POW-POS at least retains mining incentives. as an added bonus for traders and investors, the hybrid POS incentives create massive pump potential. just look at DASH's historical chart.

[pooya87]

Contrary to some's belief, it's actually good that bitcoin mining is not "ASIC-proof".

well there is no such thing as "ASIC-proof". this was a term invented by altcoins that wanted to have an excuse to advertise and then pump themselves. they first started exaggerating bitcoin being mined by ASICs situation and then fooled people into thinking their algorithm can not be optimized by using ASICs.

what they call "ASIC-proof" is actually "SHA256-ASIC-proof", in other words it can not be mined by the same ASICs that bitcoin uses but new ASICs can be created to mine that particular algorithm.

[Wind_FURY]

The fact Bitcoin is mined at industrial scale with ASICs makes its network the safest one. This is much better than it would have been if everyone could have been able to mine it. Actually the price also reflect this.

Not "safe", but "secure" from a transaction finality standpoint. One confirmation in the Bitcoin blockchain is equivalent to more confirmations in the Bitcoin Cash blockchain.

There's probably a (small?) loss in decentralisation, but overall this is very good. So it will not be charged.

Big loss if compared to a perfect scenario that there was ASIC resistance/no pools. Thank the community full nodes for validating everything.

[NeuroticFish]

Thank you for the correction, indeed, it's the most secure network.

About the decentralisation, while I don't deny the big help of the full nodes, I expect the miners be smart enough and don't weaken the network (i.e. use multiple pools to keep the decentralisation), since any other move would be bad business. (again, it's better that we also have the full nodes).

[oleg681010]

Will the new algorithm make mining more profitable? That's the most important question for me

[camaund]

Hashrate and high difficulty in PoW is the bread and butter of preventing a 51% attack. This is one of the features of BTC and why there is so much trust in it compared to other alts

[Red-Apple]

Will the new algorithm make mining more profitable? That's the most important question for me

as a matter of fact that is a very interesting question. and i believe the answer is no. the profit should theoretically stay the same no matter what the algorithm is.

think of it this way, all those who are mining bitcoin with current algorithm are going to continue mining bitcoin with new algorithm. so the reward (1800BTC/day) is still going to be distributed among the same number of miners with nearly the same share of the hashrate.
in short term we may see differences during that transition but the end result is the same!

[BrewMaster]

at the end of the day unless you have an actual algorithm to propose and argue about merits of that mining algorithm and convince the rest of the network that the benefits are more than the dangers of a hard fork, there is no point talking about hypothetical algorithms that might be better!
so far we had thousands of altcoins with dozens of mining algorithms. i still don't see anything that doesn't have more flaws than what bitcoin uses.

[Wind_FURY]

Will the new algorithm make mining more profitable? That's the most important question for me

More profitable how? There are only 21 million coins to mine. Make mining more efficient maybe? But what's more efficient than ASICs?

[stompix]

investors will be able to receive passive income for storing coins

The dream of everyone!
Buy 100 coins, power up your laptop and earn money without doing anything!
What could be better, we could feed the whole of Afric with this....until the basic laws of economy start kicking in and you will receive a passive income of 0.0002 cents because everyone will be doing it.

How many time does it have to be posted or told here so everyone can understand?
If there is money to be made people will start doing it being it staking or hashing, the income per person decreases and ver time those that have higher cost will drop out or the reward will be close to zero for everyone at which point 99% will stop doing it.
There is no magical algorithm that will make everyone earn with zero effort and at the same time earn something meaningful.

as a matter of fact that is a very interesting question. and i believe the answer is no. the profit should theoretically stay the same no matter what the algorithm is.

think of it this way, all those who are mining bitcoin with current algorithm are going to continue mining bitcoin with new algorithm. so the reward (1800BTC/day) is still going to be distributed among the same number of miners with nearly the same share of the hashrate.
in short term we may see differences during that transition but the end result is the same!

The revenue, not the profit!
The total reward will stay the same, what might change would be the costs and nobody could anticipate how this will be in the first stage.

But at one point things will eventually arrive at the same point we're now, where you buy a mining gear or video card or cpu that will make ROI in 5-6 months and it will all depend on your costs.
If for instance, we turn to a cpu dedicated algo in the first days the reward will be enormous for a single cpu, then draw by the money people will strat buy cpu power in cloud, the reward will slowly drop, server farms will gain the edge over home miners who can't afford to keep the pace and....we will indeed end at step one.
So yeah,  nothing will change in the long run.

[thirdprize]

Will the new algorithm make mining more profitable? That's the most important question for me

More profitable how? There are only 21 million coins to mine. Make mining more efficient maybe? But what's more efficient than ASICs?

ASICs mean a more centralized world of BTC where a few manufacturers and a few pools control all the income.  What is so great about that?  Satoshi designed it so anyone could mine and anyone could earn BTC.