50% Ethereum Network Hashrate Will Escape? DAG Issue is Rather Troublesome
The DAG file of Ethereum 4G graphics card is almost full, which means that 4G graphics card can no longer be used to mine. Ethereum may face the problem that 50% – 60% of its network hashrate will escape.
It may be the most concern of miners as it costs a lot to upgrade 4G video memory to 8G.
The miners is the most realistic group of people in the whole crypto industry. Whether to go or stay is only about interests, not faith.
The reason why Ethereum is not captured by ASIC mining machine is its consensus algorithm, Ethash, is very memory intensive. This memory-intensive algorithm makes ASIC chip, which is good at computing, have little advantage in mining Ethereum.
However, the Ethash algorithm also has disadvantages as it generates DAG files which will be stored in the memory. Each block will generate a new DAG file, and this file will contain the encrypted information of all blocks before.
Dag files grow by 520M every year. According to investoon.com, currently, the DAG file of Ethereum is 3.59G, and Ethereum’s is 3.67G. It is estimated that DAG files will reach 4G by the end of December 2020.
“At present, 4G graphics cards contributes more than 60% of Ethereum network hashrate. It is expected that from July to August, these 4G graphics cards will lose the mining capacity.”
Said an insider from a China-based Ethereum mining farm. At present, GPU mining machine has different operating systems, such as Windows 10, Windows 7 and Linux systems, and the occupancy rate of video memory decreases in turn. Linux system can last for about one month. That is to say, those GPU mining machines adopting Windows 10 system will first encounter the problem of being unable to mine.
Where will these obsolete 4G video cards go? It is estimated that most of them will return to the second-hand market and become high-performance game cards for cybercafe or individuals. Or it may also be recycled, with some of the available accessories being reused.
In fact, many project parties have focused on these eliminated network hashrate, but in fact, this is not smooth going.
First, although the application range of video card mining is relatively wide, the mining efficiency of different graphics card is not the same due to different algorithms of public chain. There are few small minerable coins that can be mined.
Second, 50% of Ethereum network hashrate is about 90T, which is very large and devastating for small coins. A large influx of computing power may lead to a sharp rise in production in a short period. The miners who have no loyalty may sell coins and directly suppress the price.
In the space of graphics card, the upgrading of chip is not as competitive as ASIC miner, and the upgrading speed of miner is relatively slow, especially with the ETH price falling from the high point, the new miner’s shipping volume slows down, or even almost stops. The replacement boom of GPU miner has strong relation to DAG documents.
At present, Ethereum supports almost the whole GPU video card mining market. So, even if so much computing power escape, security should not be a problem for Ethereum. In crypto space, no one can lay out in a short time to destroy Ethereum network hashrate.