Cryptocurrency markets

Cryptocurrency mining algorithm

Cryptocurrency mining algorithm
The mining algorithm (hashing algorithm) is needed to decrypt data clusters in the crypto network, determining their authenticity. Cryptographers create them. The mining algorithm scheme is based on hash processing. Various algorithms are used in cryptocurrency mining. Let's note the most famous of them.
SHA-256

First, it should be noted that SHA-256 is part of the SHA-2 algorithms introduced in 2001. This is the US NSA standard. SHA-256 gets its name because it creates message digests that are 256 bits in size.

All data that is encrypted is called "hash". The SHA-256 block when mining cryptocurrency is processed up to 10 minutes. This is the standard cryptocurrency mining algorithm. The correct hash is chosen, and when it is selected, the block is mined.

Scrypt mining algorithm

This algorithm runs through the SHA-256 hash process. It then uses the SALSA components to complete the hash generation. The process of guessing the hash is quite difficult, since there are numbers that are generated randomly. A password-based key generation standard is also used. It is difficult for fraudsters to find the code using the brute force method.

Scrpyt takes up more memory than SHA-256. However, it has less power requirements, so it is often used by miners. They can also change the hash size to a smaller value. Because of this, it works faster than the rest. It processes the block within 30 seconds. However, this processing speed is of concern to some, since there is a possibility of transactions being hacked. But this is only a probability so far, which has not yet been confirmed.

A modification of the algorithm has now been released - Scrypt-N. It uses the so-called Adaptive N-Factor. Due to the use of this system, small-sized farms that are engaged in currency mining can work.
Cryptocurrency mining algorithm

Cryptocurrency mining algorithm

Scrypt-jane algorithm

This algorithm also applies N-factor to increase memory. It employs SHA-256 in the form of an N-enhanced hashing function, and a number of hash function models. It also changes the applied functions parametrically.

X11 Algorithm

Created back in 2014. Developed the algorithm by Evan Duffield, who is known for being the main developer of the Darksoin cryptocurrency (modern Dash). At first, Duffield set out to create an algorithm that would make cryptocurrencies ASIC resistant. He combined 11 hash functions in an algorithm. The main advantages of this algorithm include the fact that it is fast enough, safe, and does not consume a significant amount of computing resources. However, it is already giving way to more modern ones, such as CryptoNight.
CryptoNight Algorithm

This is a PoW algorithm, it was created so that large mining farms do not have special privileges over small ones. The algorithm works as follows: first, a large data block is formed. It changes randomly. Internal parallelism is eliminated. CryptoNight has a lower level of anonymity than others, but it is enough to keep transactions private. The same algorithm is available so that you can mine on processors.

Lyra2Z Algorithm

This algorithm was designed to combat cloud mining and botnets. Lyra2Z uses Blake 256. It can be used for both video cards and processors. It belongs to the class of "cold" algorithms. Consumes a small amount of electricity.
Dagger-Hashimoto

This algorithm works as follows. There is a seed, it is calculated for blocks by scanning the headers to the points. A 16 MB cache is calculated from the seed. Then a data cluster is created, and their volume does not exceed 1 GB. Each of the miners stores clusters, and mining itself is capturing random parts of a data cluster and then connecting them to each other.

Equihach Algorithm

It was developed by A. Biryukov and D. Khovratovich. Introduced it 5 years ago. Created on the basis of the Wagner protocol and cryptographic components. Checks blocks extremely quickly. It mainly targets RAM, acts against ASICs. He is considered the most secure and confidential among the rest. NVIDIA graphics cards work well with it.
SH-3 Algorithm (Kessak)

Refers to the latest types of algorithms, combines a cluster of cryptographic functions, is an alternative to SHA-256. If you compare it with him, then it functions much faster. Security is also high. NVIDIA graphics cards work most efficiently with it.

In addition to the above algorithms, others work, and there are dozens of them. The ones that have been marked are considered the safest and most productive. New algorithms periodically appear on the market, and users can choose the most suitable one.

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