Key Mining Algorithm Change

Points systems are widely used to provide incentives for desired behaviors. The ScPrime system should be quite good

ScPrime mining algorithm change announcement

History

ScPrime was born out of issues relating to PoW decentralization and another team’s financial interests. When this project began, it was assumed there would be plenty of hashrate free and open using the original Blake2b algorithm abandoned by the project we all left. Without rehashing all the intrigue it wasn’t long before those assumptions were proven false and a majority of that hashrate and algo support went dark somewhere in China. When coin price shot up, the miners did appear and highlighting the dangerous situation if enough value accrued to project assets. Because of this, the community made a decision to fork to the algo where new miners were being built and there seemed to be an oversupply. This suggested we would have no issues gaining requisite hashrate but again, the forces at work made it difficult and coin price and hashrate crashed through the floor. At the same time, the founder of the best mining pool for our algorithm exited the business, selling to an anonymous entity who chainsplit the blockchain at the fork and never came back.

Direction

Because the storage product was still under development, the chain security issues were not paramount. Coin valuations do not currently lend themselves to mining attacks. We’ve noted that a more challenging scenario will occur when there is even more valuable storage on the network and adversaries choose a 51% attack vector coupled with a ransom demand on the smart contracting.

We have talked at length about the need to move the entire network to another L1 that has higher security and removes many of these concerns. We’re tentatively targeting the Solana blockchain for this, but events in April of 2024 highlight that under load, that blockchain is still working through scaling issues. Because of this, it would be imprudent to migrate our production network before we feel it is production-ready.

We are today committing to a period of at least 18-20 months and perhaps a bit longer for continued development of the network on our own blockchain using the new algorithm. We truly believe that on a solo algo, we can gain the amount of hashrate from miners that should afford sufficient security for project valuations envisioned over the next 2 years. Of course, even in two years as we migrate the storage network to another chain, there will likely be people who will continue to want to see this blockchain and software continue, so it is unlikely miners will be totally abandoned.

Because the number of current miners is low enough, we are making a decision to fork again, this time to an algorithm that is ASIC supported but not currently in use by any project. We expect this process to begin in the next 2-4 weeks with a mandatory update to the software daemon and a hard fork. The fork will first create an environment where both algorithms are compatible with the blockchain and current miners can continue until we achieve enough hashrate on the new algo. Once that occurs, a soft fork will remove the current Blake2b miners. A small incentives fund is contemplated to provide some bonus tokens for people who purchased miners after the last fork and can show proof they have mined SCP during that period.

Bookmark this post for an update soon on the algorithm chosen and a comprehensive calendar of events. We are also aware of some interesting potential in this move to partner with others in the industry and will keep the community abreast as we are able to reveal these.