Nexa Monthly Newsletter August 2026: Redesign of the Mining Puzzle

The team keeps delivering, and August brought us news of major upcoming network changes and new algorithms. NexaPoW 2.0 was introduced to the community, and Bitcoin Unlimited’s President himself explained Nexa’s architecture. The network is being prepared for the next big protocol upgrade with ongoing developments.

One of the biggest challenges for the protocol currently is building a node in silicon. Nexa is prototyping the first fully functional hardware node capable of validating digital signatures required to verify transactions. The chip is currently in development and being tested, adjusted, and improved on the go.

In other areas, ecosystem development is going as expected. Many projects are reaching their final development stages and moving into testing phases, where they’ll be polished before release.

Find a webinar with Andrew Clifford where he explains Nexa’s architecture in more detail, with all the other monthly development news below.

Rethinking Proof of Work: Understanding Nexa’s Architecture with Andrew Clifford

Andrew Clifford joined Danielle Marie of EvolveH3r for a webinar on proof-of-work, where it came from, and what Nexa has done to advance it. After Danielle’s introduction to the fundamentals of blockchain, layer one, UTXOs, decentralization, and the blockchain trilemma, Andrew took those concepts and applied them to a functioning cryptocurrency, from the origins of proof-of-work in the early 1990s as an anti-spam mechanism to its role in Bitcoin mining and security, and on to NexaPoW and what users need to know about mining Nexa after its next algorithm upgrade. The full recording is above, and his presentation is recapped in text in the article below.

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A Node Made Of Wires

In the first article of this series, we explained why Nexa builds hardware. Proof-of-work spent seventeen years accelerating a computation that does nothing for the network’s capacity, and Nexa intends to point that same force at the work a money network actually needs. This article shows what that hardware actually is, a machine for validating money, built out of the simplest electrical parts there are.

Nexa Chief Scientist Dr. Peter Rizun is building a node as a circuit of digital logic gates. To see how a circuit can validate a money transaction with no software involved, you only need to meet six components.

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Monthly Development Updates: July 2026

The development news for July 2026 shows that acceleration. The month saw more than one hundred merges from thirteen repositories across Nexa GitLab. The most important delivery is Tailstorm protocol hardening, which is still in the extensive testing phase.

Continuous work is underway on the block explorer, Hodl vaults integration into LibNexaKotlin, and numerous updates to wallets and SDK infrastructure. NexScript playground is also moving toward planned updates and releases in the roadmap.

Notable developments are in the field of AI-assisted development, where the team is assembling skills and tools for AI agents.

There are a lot of other developments across the board in July’s update. Read the full monthly development update below.

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The Cellular Automaton: Inside Nexa’s Next Proof-of-Work

Nexa Proof-of-Work algorithm changes are already planned and being worked toward. A Cellular Automaton was already mentioned as part of the coming NexaPoW 2.0 upgrade. Andrew Clifford also briefly introduced a part of the new Nexa algorithm, and Dr. Peter Rizun released an article explaining why Nexa is redesigning the mining algorithm.

With the new NexaPoW 2.0 algorithm, a Cellular Automaton will be introduced that can change configuration too frequently and unpredictably for any dedicated ASICs to be deployed. This change in the mining algorithm will effectively make mining ASIC-resistant and limited to FPGAs.

To better understand these changes, it is worth getting deeper into the new engine. The Cellular Automaton is one of the simplest machines in computer science and can be understood in five minutes.

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Nexa: The Art of Building a Blockchain

We also want to revisit the ideology, goals, and legacy of the Nexa blockchain and the Bitcoin Unlimited team behind it. The journey began more than a decade ago, when a small group of passionate and enthusiastic people met on the BitcoinTalk forum. Since then, a lot has happened, a long road has been traveled, and much experience has been gathered.

This article won’t be technical, and for some industry veterans the story is well known, but for everyone else, grab a cup of tea and let’s review where Nexa is coming from and who is building it.

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To Wrap Up

Nexa is now well over four years into development and has passed the inaugural halving, which marked a major milestone for the network. The project is starting to mature into an innovative and original platform that will represent many years of the team’s hard work and dedication coming together.

It’s more than exciting to witness how the small team of blockchain enthusiasts is turning the electronic peer-to-peer cash vision into reality.

August was a month of important protocol upgrade presentations, focusing on how Nexa will be shaped in the coming months and years. Next month is promising to be no less exciting, so make sure to stick with Nexa as we shape the finance of tomorrow.

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