Developers for Monero are considering a shift in their algorithm that will replace its current CryptoNight operating system.
Recent industry talk on algorithms has centered on the second largest cryptocurrency by market cap Ethereum, which is in the midst of a landmark 2.0 upgrade that will transition the currency from Proof of Work (PoW) to Proof of Stake (PoS). The decision has sparked debate over whether Proof of Work is becoming an outdated model for cryptocurrency and if PoS can offer more in terms of energy efficiency and utility.
Proof of Work Transition
However, the industry’s leading privacy coin Monero (XMR) is not yet ready to give up on PoW. According to the most recent update, Monero developers intend to transition from their current Proof of Work algorithm to a new model that will rely upon the ‘RandomX’ algorithm. The transition is being made in agreement with Arweave, a data storage blockchain protocol, who will be funded to perform an audit on the new algorithm according to an email sent to CoinTelegraph.
Prior to the transition to RnadomX, Monero developers have relied upon regular hard-forks of the currency every six months, in order to keep ahead of mining resistance to application-specific integrated circuits (ASIC). However, the implementation of regular hard-forks have caused pushback from the Monero community, particularly over the issue of centralization. As pointed out by GitHub members, the act of conducting a hard-fork necessitates a level of centralization in a cryptocurrency, which increases with the number of repeated forks.
Arweave claims that RandomX will provide the benefit of keeping Monero mining resistant to ASIC without compromising the currency’s decentralization any further. The company also claims that the new Proof of Work algorithm will require less developer input and will make mining through graphics processing units (GPUs) uncompetitive.
The report also includes details on funding for the project. Arweave has partnered with Monero developers to cover the costs the $150,000 cost of the audit, which is expected to take place over the next two months. Miner specific details related to RandomX have been posted on the GitHub page.
Private Transactions on the Rise
Despite being ranked in the top 15 cryptocurrencies by market capitalization, Monero has come under fire for its presence as an anonymity coin. XMR has been associated with hackers and malware extortionists, who utilize the privacy features of the coin to avoid detection.
Nonetheless privacy, even on the open-ledger of blockchain, is becoming an increased focus for the industry of cryptocurrency. TRON announced its intention to implement zk-SNARK transactions to TRX, allowing users of the network to conduct anonymous transactions. Just this week Ethereum co-founder Vitalik Buterin proposed a solution for anonymity in ‘one-off’ ETH transactions, which will allow Ethereum to compete with coins offering users the option of privacy.
Monero could find itself in the driving seat for a wave of adoption if private digital transactions become a focal point for cryptocurrency. While other competing coins exist on the market, XMR has managed to carve out a substantial place for itself in the field of anonymity-based cryptocurrencies.