Understanding Mining Algorithms
In cryptocurrency mining, mining algorithms are crucial in guiding miners in constructing new blocks.
Various mining algorithms have been developed, each with its advantages and limitations.
One widely adopted algorithm is SHA-256, created by the U.S. National Security Agency (NSA).
Different Algorithm
- SHA-256: SHA-256 is a cryptographic hash function with a 256-bit output. Developed by the NSA, SHA-256 stands for “secure hash algorithm 256”. It takes an input and produces a longer hash value than the original. This algorithm is commonly used in Bitcoin mining and other cryptocurrencies.
- Equihash: Equihash is a memory-oriented Proof of Work (PoW) algorithm introduced in 2016. It was designed to promote fairness resistance against specialized mining hardware (ASICs) and favor GPU mining. Equihash relies on random access to a large hash table and requires substantial memory and computational power.
- Ethash: Ethash is the mining algorithm employed by Ethereum. It is a memory-intensive PoW algorithm that discourages ASIC mining. Ethash was developed to prevent excessive concentration of mining power, ensuring a more decentralized network.
- Scrypt: Scrypt is a password-based key derivation function (PBKDF) that enhances password security. It is an iterated hash function that applies the underlying hash function multiple times. Scrypt is utilized in various cryptocurrencies, including Litecoin and Dogecoin, for proof-of-work mining and password-based authentication.