Co-founder of Bitmain Jihan Wu recently shared his view on the influence of ASIC miners on blockchain networks like Ethereum. While speaking at a recent blockchain event in Chongqing, China, Wu expressed his suggested ASIC Miners could lead to a more decentralized blockchain platform while also airing his doubts on Ethereum’s ProgPow upgrade. It appears that the Bitmain Co-founder expects Progressive Proof-of-Work upgrade expects the focus more on GPU mining than ASIC mining. According to Wu:
“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.”
Wu went ahead to make a case for ASIC miners by stating that a blockchain network is actually safer with ASICs compared to GPU hardware:
“But GPU-based mining algorithms are not specialized, they are compatible with each other. If miners attack one cryptocurrency, there are still others that can be mined. That’s why there are more 51-percent attacks on GPU-based cryptos.”
New ASIC Miners to be Launched By Bitmain
The China-based manufacturer of mining devices has two products up its sleeves slated to be unveiled before the next Bitcoin halving, an event scheduled for May 2020, according to reports.
The plan is to launch the new ASIC miners at the end of 2019. The representatives of the company projects a favorable market performance for the new product since miners are optimistic about the recovery of the crypto market.
The company has announced that the devices, S17 and T17, will come equipped with 7 nm chips, which will provide 30% more efficiency than the previous generation.
Products Are Still in the Design Process
Sources close to the situation have revealed that the two products are, in fact, still being designed since mining devices are currently low in demand and the chip maker TSMC lacks the capacity to manufacture these new chips.
Bitmain has in the past made a move like this. Before the last Bitcoin halving in 2016, the company unveiled the Antminer S9. This model was so successful that it became one of the most popular devices from the company, and a year after its launch, it contributed 60% to the company’s revenue.
However, taking into consideration the growing competition in the mining industry, a number of experts are of the opinion that Bitmain may not succeed this time around, according to reports.
In another event, Bitmain investors are currently preparing a class action lawsuit against the company in Hong Kong. This is in a bid to reclaim their investments after the IPO application of the company expired.