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In 2017 Sia entered the mining space by selling ASICs for the SIA blockchain. What ensued was the yearlong saga of a cutthroat industry where anyone will betray their partner for profit.
In mid-2017, Sia, a blockchain based file-storage protocol, announced the sale of ASIC miners dedicated to securing the Sia blockchain and mining Sia. Called Obelisk, the ASIC cost 1 Bitcoin, at the time about $2,000. Estimated delivery of the ASIC was 1 year.
Initially all looked well. The Obelisk would be produced by an American-owned chip maker in China. They estimated delivery well ahead of schedule and even realized they could make ASIC miners for Decred, another blockchain that used a nearly identical hashing algorithm.
Then Bitmain, an established ASIC producer, announced they would also produce and sell a Sia ASIC. Suddenly Sia's chip maker canceled their contract in the 11th hour. Sia's ASIC was back to the drawing board and Sia lost $2 million.
To make matters worse, Bitcoin had ballooned in value to $20,000. Obelisk buyers demanded their Bitcoin back as it was now worth 10x more and they had no ASIC to show for it.
Ultimately Sia found another chip producer. A producer that would make the chip special with a secret, extra, hash-function. Sia was going to take revenge.
Bitmain, and a 2nd producer Halong, sold-out their miners well before the Obelisk came to market. For months the new ASICs dominated Sia hash-rate and earned outsized block rewards. Then Sia released the Obelisk with its poison pill.
Shortly after the Obelisks were delivered Sia announced a change in the Sia hashing algorithm. The change would be unnoticeable for Obelisk miners but would turn Bitmain and Halong miners into expensive paper weights. Those ASICs would never be able to mine Sia again.
Sia intentionally nerfed the competing ASICs to ensure the success of their Obelisk ASIC. Obelisk buyers were able to recoup their capital and most turned a small profit.
Crypto is the ultimate every man for himself environment. Everyone is your adversary as everything has a price. Watch your back in The Dark Forest.
https://blog.sia.tech/the-state-of-cryptocurrency-mining-538004a37f9b
In 2017 Sia entered the mining space by selling ASICs for the SIA blockchain. What ensued was the yearlong saga of a cutthroat industry where anyone will betray their partner for profit.
In mid-2017, Sia, a blockchain based file-storage protocol, announced the sale of ASIC miners dedicated to securing the Sia blockchain and mining Sia. Called Obelisk, the ASIC cost 1 Bitcoin, at the time about $2,000. Estimated delivery of the ASIC was 1 year.
Initially all looked well. The Obelisk would be produced by an American-owned chip maker in China. They estimated delivery well ahead of schedule and even realized they could make ASIC miners for Decred, another blockchain that used a nearly identical hashing algorithm.
Then Bitmain, an established ASIC producer, announced they would also produce and sell a Sia ASIC. Suddenly Sia's chip maker canceled their contract in the 11th hour. Sia's ASIC was back to the drawing board and Sia lost $2 million.
To make matters worse, Bitcoin had ballooned in value to $20,000. Obelisk buyers demanded their Bitcoin back as it was now worth 10x more and they had no ASIC to show for it.
Ultimately Sia found another chip producer. A producer that would make the chip special with a secret, extra, hash-function. Sia was going to take revenge.
Bitmain, and a 2nd producer Halong, sold-out their miners well before the Obelisk came to market. For months the new ASICs dominated Sia hash-rate and earned outsized block rewards. Then Sia released the Obelisk with its poison pill.
Shortly after the Obelisks were delivered Sia announced a change in the Sia hashing algorithm. The change would be unnoticeable for Obelisk miners but would turn Bitmain and Halong miners into expensive paper weights. Those ASICs would never be able to mine Sia again.
Sia intentionally nerfed the competing ASICs to ensure the success of their Obelisk ASIC. Obelisk buyers were able to recoup their capital and most turned a small profit.
Crypto is the ultimate every man for himself environment. Everyone is your adversary as everything has a price. Watch your back in The Dark Forest.
https://blog.sia.tech/the-state-of-cryptocurrency-mining-538004a37f9b
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