Epic Cash: Proof Of Work Evolved

In the world of blockchain technology, consensus mechanisms play a central role in maintaining the integrity, decentralization, and security of networks. A fine balance between energy efficiency, security, and decentralization plays a critical role when weighing the advantages and disadvantages of various consensus mechanisms.

The advantages of PoW, namely the ability for all users with simple home computers to actively participate in the network, thus providing increasing decentralization while earning rewards, are no longer present in Bitcoin Core today. What has come to the fore are the cartelization, centralization, high energy consumption and electronic waste generated.  

Highly specialized mining hardware, known as ASICs, which must be replaced with newer devices every 3 years on average for profitability reasons, have completely displaced simple hardware for mining BTC. Older ASICs, that can no longer be put to any use other than mining, end up as non-recyclable and environmentally harmful electronic waste in hazardous waste landfills.

As-yet unnoticed by the masses, EPIC Cash has taken an evolutionary step in the further development of PoW. The well-known disadvantages of the PoW used by BTC, high energy consumption, environmentally harmful electronic waste, and creeping centralization of mining to larger and larger mining facilities, have been overcome with the development of polyphasic PoW.

Polyphasic PoW promotes further decentralization by significantly lowering the barrier to entry for mining. The use of different algorithms makes it possible to perform profitable mining with commodity hardware such as CPUs from laptops, desktops, and graphics cards (GPUs) . 

Discrete algorithms, each designed and optimized for specific types of hardware, alternate at different time intervals in a predefined percentage ratio. Currently, EPIC mining is available for CPUs, GPUs and ASICs, using three corresponding hashing algorithms with different percentage distributions:

• RandomX (CPU) 48%

• ProgPow (GPU) 48%

• CuckAToo31+ (ASIC) 4% 

The algorithms themselves and also the percentage distribution can be easily changed during operation without interruption or extended by further algorithms without affecting the integrity of the blockchain. This makes it possible to react easily and quickly to changes if necessary. (e.g. use of a quantum-resistant algorithm)

• Random X is a memory-bound PoW-algorithm optimized for general-purpose CPUs. Memory-bound means that the computational process depends heavily on memory access rather than pure computational power. This is intended to make the development of specialized hardware (ASICs) for mining more difficult and less efficient, since ASICs typically excel at computationally intensive tasks but struggle at memory-bound tasks.

• Programmatic Proof-of-Work (ProgPow) is an algorithm that depends on memory bandwidth and core computation of randomized mathematical sequences that makes optimal use of many of the computational functions of a GPU. A special "mix function" combines various mathematical operations such as addition, rotation, and bit manipulation. This mix function is designed to be memory intensive, meaning that it requires significant memory accesses to perform its operations. Memory intensity is an important aspect of ASIC resilience because ASICs typically have problems with memory-bound computations.

• CuckAToo31+ is an ASIC-friendly permutation of the Cuckoo Cycle algorithm developed by Dutch computer scientist John Tromp. It is a memory-bound task, meaning that the solution time is limited by memory bandwidth rather than processor or GPU speed. As a result, the Cuckoo Cycle algorithms generate less heat and consume significantly less energy than traditional PoW algorithms.

However, in the interest of decentralization, the ASIC friendly algorithm has been allocated only a small portion of the mining profits compared to CPUs and GPUs.

A fourth algorithm, quantum-resistant Crystals-Dilithium, is already running in testnet and will be deployed in the future.

In monophasic PoW, all mining hardware is busy mining around the clock (24/7) without interruption, which stresses the energy grid and generates significant amounts of heat. 

In contrast, in polyphasic PoW, not all devices are engaged in mining at the same time. During the different phases of algorithms that are not designed for this type of hardware, these devices are either in standby mode or performing other tasks, such as web browsing or server duties. 

The security of the network is not affected by this energy saving effect but, on the contrary, it is even increased. A 51% attack requires not only 51% of the total network hashrate, but 51% of the hashrate of each algorithm.

The time intervals between the different algorithms are too short to create a manipulated chain with 51% of the hashrate of a single algorithm. 

Additional environmentally harmful electronic waste is avoided by using existing, even older and otherwise unused commodity hardware (home- and gaming computers, etc.). In this way, unused hardware is put to a useful and profitable purpose and, additionally, decentralization and security are increased.

The benefits of polyphasic PoW are particularly evident in combination with a compact and well-scalable blockchain like EPIC Cash. The Mimblewimble protocol together with polyphasic PoW complement and optimize each other.

On its own, the Mimblewimble protocol offers many advantages due to its compact blockchain. However, when combined with polyphasic PoW, it shines in a very special way, as millions of commercially available and existing different home and gaming computers can participate in the mining process without being disadvantaged.

A lightweight and highly scalable Mimblewimble-based blockchain without polyphasic PoW has significantly fewer advantages in terms of decentralization if home and gaming computers are left without a chance in the mining process by the algorithm used. On the other hand, polyphasic PoW makes less sense if only the latest hardware can be used due to a huge blockchain and the older hardware remains without a chance.

Summary and Outlook

EPIC Cash has realized a logical evolutionary development of PoW with the implementation of a polyphasic PoW, which is so far unique in blockchain technology. Different mining algorithms, each optimized for different hardware, alternate in a predetermined percentage ratio at irregular intervals and in different order. This eliminates the often criticized negative characteristics of PoW and improves not only energy efficiency, network security and decentralization but also avoids additional electronic waste.

• Only the hardware designed for the respective algorithm is at work, the rest remains in stand-by mode until it is the turn of the corresponding algorithm. A considerable energy saving is the result.

• A 51% attack is made more difficult, since not only 51% of the total network hashrate, but 51% hashrate of each individual algorithm must be achieved.

• Decentralization is improved because a wide variety of hardware, including older commodity hardware, can be used for mining. 

• Additional electronic waste is thus avoided.

Considering a possible future threat from quantum computers, EPIC Cash is also preparing for such a scenario. A quantum resistant algorithm (Crystals-Dilithium) is already ready for use in EPIC Cash.

For more information, visit www.epiccash.com