A Fight Over Specialized Chips Threatens an Ethereum Split

The article titled “A Fight Over Specialized Chips Threatens an Ethereum Split” delves into the significant controversy surrounding a new proposal within the Ethereum community. The proposal, led by developer Kristy-Leigh Minehan, focuses on the types of machines used to mine cryptocurrency. More specifically, it centers on the use of specialized chips known as ASICs (application-specific integrated circuits) in Ethereum mining.

The article traces the origins of the conflict back to the hack of the decentralized autonomous organization (DAO) in 2016, which prompted a core group of developers to alter Ethereum’s code to return the lost funds. This event sparked dissent within the Ethereum community, leading to a split in the community. Since then, Ethereum’s decision-making process has remained ill-defined, consisting of Twitter polls, developer votes, and in-person conversations.

The crux of the current controversy lies in the use of ASICs in Ethereum mining. ASICs are specifically designed to handle the computations required to mine a particular coin, in this case, Ethereum. However, their use has raised concerns about centralization, as they tend to be more expensive and require greater power consumption than standard GPUs. Additionally, ASICs are primarily produced by a small number of companies, mainly located in China, leading to worries about limited access and potential monopolization.

In response to the rise of ASICs, Minehan and two other developers have been working on a new mining algorithm called ProgPoW, aimed at slowing down the impact of ASICs in Ethereum mining. However, the proposal has faced vocal opposition from Chinese ASIC makers, who argue that it is an attempt to centralize Ethereum under a few public American GPU makers, AMD and Nvidia. Allegations have also been made regarding Minehan’s alleged collusion with GPU makers, which she has denied.

The article highlights the technical and political complexities surrounding the ProgPoW proposal. While some believe that ASICs can improve security due to their specificity in mining only one coin, others point to the potential drawbacks in terms of centralization and limited access.

The controversy has left the inclusion of ProgPoW in Ethereum’s next update uncertain, with concerns that GPU miners, alarmed by the threat of ASIC dominance, may splinter off from the main network, resulting in another Ethereum split.

In conclusion, the article sheds light on the contentious issues surrounding specialized chips in Ethereum mining and the wider implications for the future of the platform. It underscores the challenges inherent in making hard decisions within decentralized systems like Ethereum, where technological and political factors intersect to shape the platform’s development.