Hard fork’s in the crypto sphere are now commonplace, as Bitcoin had several blockchains splits over the past year. In February, Litecoin forked amid a lot of controversies, much of which came from the founder of the original.
Forks also tend to draw in those looking for a quick buck on the price jump or some free coins from the airdrop which usually happens after the split. The latest hard fork generating a buzz is the anonymous cryptocurrency Monero.
The XMR coin of Monero is widely regarded as the choice of the hacker, due to its anonymity. Virtually, all stories about crypto mining malware have involved Monero, and it also remains the crypto to obtain on the sly.
This is mostly a testament to its success as a private, as well as untraceable digital asset. Monero has also been one of the better performing altcoins in February, climbing about 20% during the month.
Prices are still likely to continue upwards as the hard fork approaches block 1529810 around the 14th of March. From then on, MoneroV is going to be born out of the blockchain and holders of XMR will get a ten times airdrop of XMV coins if they have them in Monero wallet.
Exchanges are also unlikely to support the fork as was the case with Litecoin Cash. Also, as with LCC, there have also been some concerns about entering private keys into the new wallet which could permit access to crypto stored in the original one.
MoneroV has also limited supply of coins while the coin supply of Monero is infinite, and MoneroV is going to implement new protocols which are going to solve the scaling problems facing Monero, as well as some other cryptocurrencies, according to the blurb on its website.
With a capped supply of about 256 million XMV, as well as a release of 158 million at the fork, it is expected that prices are going to rise. But, MoneroV is also entering an increasingly crowded anonymous altcoin market which already includes Dash, Zcash, Zcoin, Pivx, Komodo, and Verge.
Centralized mining threat.
The concern with Monero at the moment is the possible centralization of mining operations using some proof of work. If there is enough hashing power with a large enough network, one group can theoretically control the entire network. One specific location or a type of hardware for mining could also create centralization.
According to reports, a hard fork is going to change the CryptoNight proof-of-work algorithm of Monero, to stop it from being effectively mined by application specific integrated circuit (ASIC) hardware.
Too many ASIC miners could potentially centralize the network. The Monero team also explained that the threat of centralization in a lengthy blog post last month, and it also warned against the reuse of Monero keys for forked versions.