Zcoin implements Crypto Mining ASIC Resistant Merkle Tree Proof (MTP)

Today, Zcoin has implemented a new one extraction algorithm this hampers the FPGA, ASICand botnets extraction. Merkle Tree proof of work (MTP) has the potential to move cryptocurrency extraction away from huge farms and again in the hands of cryptic enthusiasts, once again decentralized extraction.

Merkle Tree proof of work extraction it is a solution implemented to remedy the problems faced by small miners. Most extraction the algorithms are susceptible to FPGAs and ASICs, extraction hardware that is much more efficient than computer hardware readily available. Usually, this hardware is only available for large companies whose engineer can design better hardware.

Merkle Tree Proofs details

MTP is protected because it is intensive "memory". It is much more difficult to develop specialized extraction hardware for intensive memory use extraction algorithm. Making cryptocurrency extraction more egalitarian, it is further decentralized. Greater decentralization makes it more difficult for miners to collude and make a 51% attack, or carry out other nefarious activities that could damage the performance and security of a blockchain.

Another problem that MTP addresses are botnets. Currently there are millions of devices with malicious code. Hackers fill their wallets using these hijacked devices to extract the cryptocurrency.

According to the Zcoin website, users infected with computer viruses that participate in botnets have a significant decline in performance and are therefore more likely to suspect that something is not working on their computers.

Once a user notices a drop in performance, an intelligent user may infer that there may be malicious behavior extraction they occur and have the opportunity to eliminate the malicious code. This feature is exclusive to Zcoin and is not visible in others ASIC resistant algorithms.

Primer on Zcoin

Zcoin is a private currency that uses the exclusive "Zerocoin" protocol. This protocol uses zero-knowledge tests that allow for scalable privacy for the many thousands of transactions, unlike Bitcoin mixers and rings, which are limited to a few hundred transactions and have other privacy vulnerabilities, according to the Zcoin website .

Centralization in other algorithms

There is a set of evidence that suggests existing proof-of-work methods, like those of Bitcoin SHA-256, Litecoin and Dogecoin & # 39; s scryptand Dash's X11 algorithms are massively centralized ASIC farms because normal miners often had to lose money if they wanted to participate in these networks. Even for the often propagandized "ASIC-resistant" Ethereum Ethash algorithm, there is evidence that Bitmain, one of the biggest miners in the world, has already developed a ASIC for this.

For Bitcoin, it is estimated that between 70 and 80 percent of extraction occurs in China. If a handful of those miners colluded, there is the possibility that they can conduct a 51% attack on the Bitcoin network.

That said, there are some cryptocurrencies that are actively fighting extraction centralization. Monero, and now Zcoin, are leading the charge for ASIC– conflicting updates.

Comments from the team

CryptoSlate contacted Reuben Yap, the COO of Zcoin. According to Yap, the basic reasoning for the building industry ASIC the resistance in Zcoin is to fight centralization:

"For a currency to succeed it needs a broad distribution, and ASICs do not provide this distribution ASIC miner[‘s] the main job is to make money ".

To reach that distribution in the early stages of a coin extraction, it is essential to have a fair and regular distribution of prizes:

"At the beginning of the distribution and chronology of a currency it is necessary to have that fair extraction to distribute [the currency]. If we are now dominated by ASICs, only a handful of people will own the new supply ".

Unlike general hardware manufacturers, ASIC the miners are also incentivized to accumulate the hardware they design because it is as if they were selling a "money making machine":

"… A producer of miners who sells ASIC must decide whether to keep or sell." This is not the same as other sectors [players] like AMD or Intel, where there is no incentive to accumulate their products. Why should I sell a money-making machine? "

It is interesting to note that Yap is not anti-ASIC. He believes that there are some positive aspects for which ASICs dominate a well-established cryptocurrency:

"Even for the record, they're not anti-ASICs, ASICs play a role, and perhaps when a currency is mature, ASICs offer more security as long as you're the dominant currency of that hardware"

He elaborates why ASICs can be positive for the security of a network:

"As a ASIC this can only do one thing, it does not make sense to attack the coin that gives mine ASIC value. When I'm invested in a ASIC I'm actually investing in the coin family[cheusaquellostesso[thatusesthatsame[cheusaquellostesso[thatusesthatsameextraction algorithm]".

According to Yap, the Zcoin team had initially planned to introduce the MTP in the middle of last year:

"The MTP was supposed to be launched in the middle of last year." Lyra2z was always meant to be a temporary algorithm and we knew it was not ASIC resistant but we only saw each other using it for a couple of months "

However, a few weeks before the MTP was launched, an academic document was published that highlighted weaknesses in the MTP algorithm, so you need to run an additional software development before MTP is ready for deployment:

"An academic document has been published [by] Dinur and Nadler highlighted ways to reduce MTP[‘s] ASIC resistance, and so we had to fund further research and awards [security] harden MTP. "

Yap concluded by explaining how the proof-of-stake and the proof-of-stake delegate excel in performance and throughput, essential characteristics for a smart contract platform. Meanwhile, the demonstration of labor excels in equitably distributing coins and linking the costs of the real world to a chain; Essential components for a currency, like Zcoin.

Getting started Extraction

At the moment, MTP has software available for both processor and Nvidia GPUs. Extraction AMD GPU software is scheduled for release within the next two weeks.

According to Zcoin, the most efficient way to extract on MTP is the use of GPUs with at least 4.5 GB of RAM. For those interested in extraction using MTP, refer to the Zcoin official extraction guide.

It is promising to see projects like Zcoin contribute to the ASIC resistant movement Since the development of cryptocurrency software is often open source, these improvements are transferable to other cryptocurrencies. Furthermore, the diversity in the choice of cryptocurrency allows greater diversity in the market, which means greater innovation and greater safety. Overall, Zcoin took another step in building a more private and safer way to make transactions on the web.