Nebulous, the company behind blockchain storage protocol Sia, is planning to block specialized mining hardware from its network. Hardware from companies like Innosilicon and Bitmain will no longer be able to do its mining operations on the Sia network. Nebulous plans to slightly alter their blockchain with a so-called hardfork.
“We believe this will break tens of millions of dollars of hardware”, said CEO David Vorick in a statement. Hardware from Innosilicon and Bitmain will be obsolete and they would need a couple of months to bring new hardware to the market. Vorick wants a less ASIC dominant mining market.
According to the CEO mining company Innosilicon controls 37.5 percent of the Sia network’s mining power through its own mining operation. The only ASIC mining hardware that will still be able to mine Sia, comes from Obelisk. This is hardware that’s financially backed by Nebulous.
Bitman and Innosolicon are well known companies in the mining space, but according to Vorick there’s a major underground mining business. Here people create ASIC mining hardware that’s not commercially released and that can be made for any type of coin. “I think it’s safe to assume that every Proof-of-Work coin with a block reward of more than $20 million in the past year has at least one group of secret ASICs currently mining on it, or will have secret ASICs mining on it within a few months”, he wrote in his blog.
Nebulous will add a small piece of code to its chain. This will require miners to recreate new hardware. It’s not yet known with Nebulous and Sia Coin will do once major companies like Bitmain catch up again. It’s also possible that there will be two Sia network chains, which is just as fine. Nebulous will support them both, if this would happen.