BitFury Becomes Desperate and Threatens to Sue Bitcoin Developers

When you thought things couldn’t get any more interesting, George Kikvadze, Vice Chairman of BitFury firing some shots on twitter. According to him, those that might possibly change the POW protocol for Bitcoin will get prosecuted to the fullest extent. It is obvious why BitFury is terrified of a POW change, the company raised over $90M in funding which could become futile if Bitcoin’s consensus mechanism is altered.

For the nontechnical people, Bitcoin currently uses the SHA256 algorithm in order to secure the network, this type of mechanism is called Proof of Work (POW). However, the POW protocol can be altered if the algorithm is changed from SHA256 to a different one. There are dozens of hashing algorithms all having their own pros and cons, some are more energy efficient, while others prevent ASICs from taking over the mining process. Recently, there have been some talks of possibly changing Bitcoin’s POW algorithm, which didn’t sit so well with the large conglomerate miners.

The idea started as luke-jr, a renowned Bitcoin Core developer proposed a Proof-of-Work upgrade initiative. This initiative sent shivers down major miners’ spines as their million dollar operations might become completely useless. The proposal looks to restructure the mining pool playing field as Bitcoin’s POW algorithm would be changed from the current SHA256, to a different possibly more secure algorithm. Effectively, the hundreds of hours used to research, create, and upgrade ASICs will all be put to waste as new miners and algorithms will be required moving forward.

Whether the proposal is positive or negative is up to debate, but the fact that miners’ like BitFury are using their millions to threaten lawsuits on open source developers is simply unethical. The reason for the Bitcoin Unlimited fork is that many users are tired of paying ridiculous mining fees. SegWit would alleviate the congestion causing the spike in fees, but not everybody agrees with that solution.

Bitcoin miners and users are becoming more and more frustrated with each other, and more and more proposals are popping up that are looking to fix the disconnect. Threatening lawsuits on developers as if the Bitcoin protocol belongs to you is not only useless, but also extremely detrimental to one’s reputation. It is understandable that one has to protect their investment, but one should resort to innovation instead of litigation.

Check out the full twitter rant here:

bitfury desperate

We contacted Bitfury and asked on what grounds would they sue developers, but they declined to comment.

Bitcoin is a decentralized network, the fact that it is controlled by the miners and not the users is not a positive trend by any means. After all, miners are the ones who are monetizing the network, while users are the one growing it. Changing the POW algorithm, or even switching to a POS consensus might be exactly what the network needs. Tell us whether or not you agree with George’s litigation threats, and whether or not they can be substantiated.

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  • Steve Lobs

    Now wait a minute, I thought BTC and block chain wasn’t about money , not about Fiat. lol. Oh how far this has come.

    • v

      That’s exactly the point and problem, Aaron. Miners (many but not all) are being exposed as interested in their fiat profits and not the real growth of bitcoin. They are intentionally holding the implementation back for their own gain and have been for a while. They can only delay the inevitable though, and fiat will fall in the end.

      • Brian447

        you both are pretty slow…if they change the PoW then the miner loses BITCOIN. Don’t worry, some people are just meant for the short bus. Nothing to be ashed about.

  • smd

    George being Georgian is a bit temperamental. SHA256 is secure enough and the eventual transition to something else will be announced beforehand or hashrate and developers’ assets will drop like rocks.

    • Brian447

      you need help with reading comprehension

  • i just love seeing that bitfury daddy rich get so angry

    who was threatening to sue his company for creating an ASIC chip distribution monopoly of sales to wealthy private mining groups in china while holding out on a large percentage of individual miners around the world? huh? huh? huh?

    eat it bitfury

    • Brian447

      you have daddy issues

  • victorizh

    Bitfury should be angry not at BItcoin Core developers but at miners should they carry out the attack. Changing PoW algo is the last resort option, to be chosen not because of malice, but because of desperate need to defend the original chain. Real criminals here are pool operators should they use accredited hashpower to perform an attack.