In response to new ASIC mining devices from Bitmain, Halong and Pinidea hitting the market, developers have adjusted the XMR POW algorithm Cryptonight “to curb any potential threat of ASICs and preserve ASIC resistance.” Miners using CPU and GPU devices will need to update their mining software, as well as merchants and exchanges.
The fork has created a number of new coins based on the original XMR algorithm, and the updated network is currently experiencing a decline in hashrate. Hashrate will likely bounce back as miners update their software, giving “early adopters” of the fork a brief opportunity to mine XMR coins at a decreased difficulty.
Miners that have already invested in these new Cryptonight ASIC miners will likely continue mining the “classic” XMR chain, even though it’s currently trading far below the updated XMR coin. The Cryptonight algorithm is also used for a number or small-cap alt-coins such as SUMO and AEON. Existing miners of these compatible alt-coins should expect an increase in hashrate and network difficulty as ASIC miners look to maximize revenue.
The fork also includes an adjustment to XMR’s ring size, increasing the maximum from five to seven.