BIP-110 Chain Seeks New Proof-of-Work Algorithm to Shake Off Dominant Miners
A minority Bitcoin chain, created after a contentious split from the main network in August, is now exploring ways to change its proof-of-work (PoW) algorithm. This decision aims to 'fire' miners who stayed with the dominant Bitcoin chain.
The BIP-110 chain split occurred on August 8, when nodes enforcing BIP-110 began rejecting blocks that did not signal support for the proposal. However, despite efforts from some mining pools, the minority chain struggled to find a valid block due to its significantly lower hashpower compared to the main Bitcoin chain.
The PoW algorithm change is seen as a way to escape dependence on SHA-256d miners, who remained with the dominant chain. By changing the algorithm, the BIP-110 chain could potentially attract new miners and increase its hashpower. However, this also raises concerns about the potential for a new concentration of power in mining.
Luke Dashjr, a Bitcoin developer involved in the BIP-110 proposal, has suggested using a deterministic random process to select a new PoW algorithm from a short list of viable candidates. This approach aims to prevent any miner or hardware manufacturer from gaining an unfair advantage by knowing which algorithm will be used.