Hello All,
This announcement has caused a run-up in the Siacoin price, as this Hardfork is considered positive for their blockchain.
The hardfork is expected to take place on December 6.
Why does Sia require a hardfork?
Sia, like many other tokens, uses a PoW (Proof-of-Work) algorithm to secure the network and to prevent double spending. PoW requires a DAA (Difficulty Adjustment Algorithm) to adjust the mining difficulty on a regular basis to ensure that blocks are mined every 10 minutes on average. This is especially important for Sia since file contracts use the blockheight as a measure of time.
While Sia’s DAA has done a good job so far, it’s not without its flaws. Currently this is not a problem, but it might become a threat to the network’s security once ASICs are released, causing an enormous spike in hashrate. For that reason, we introduced a new DAA in Sia v1.3.0 which is triggered at block 135,000. The new DAA adjusts the difficulty every block and will be able to keep the network stable during sudden spikes in hashrate.
Frequently asked question
Were there any other changes? e.g. block reward or number of Siacoins/Siafunds?
No, only the DAA was upgraded. We didn’t change any other consensus rules, move tokens, change the amount of tokens, change the inflation rate of the tokens or create or redistribute Siafunds. This means absolutely nothing changed except for the DAA.
Will there be a new token? Do my coins double like in the Bitcoin or Ethereum hardforks?
No, there won’t be a new token. Chain splits only take place during contentious hardforks. This hardfork is not contentious in nature.
When does the hardfork trigger?
The hardfork triggers at block 135,000 which is estimated to be mined on Wednesday the 6th of December.
What does that mean for existing Siacoin holders? What do I need to do?
If you are holding the coins in the Sia-UI wallet you have to make sure to update to the latest version before the hardfork. If you have all your coins in a paper wallet or on exchanges you don’t need to do anything.
How do I update Sia-UI?
Just download the latest version from our website and follow the guide on our wiki.
What happens if I can’t update in time?
Don’t worry. Just update Sia to the latest version.
Will my coins cease to exist? Will I lose coins?
No, update your wallet and you will still have all your coins on the new chain.
Does the new DAA increase difficulty?
Not right away. The difficulty will stay the same for now. It will only increase if the network hashrate increases.
Is GPU mining still possible?
Yes, GPU mining is still possible, but will probably not be profitable anymore once ASICs start mining.
Best,
CryptoLiveLeak