Thursday, June 13, 2024
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Cryptocurrency Mining Hash Algorithms

Different Types Of Cryptocurrency Algorithms

Several different types of cryptocurrency algorithms are used to secure and validate transactions on a blockchain network. Some of the most commonly used algorithms include:

Proof-of-Work (PoW):

This is the most widely used algorithm in the cryptocurrency world, and is the algorithm that is used by Bitcoin. In a PoW system, miners compete to solve complex mathematical problems in order to validate transactions and create new blocks on the blockchain. The first miner to solve the problem is rewarded with a block reward, which is usually a certain amount of cryptocurrency.

Proof-of-Stake (PoS):

This algorithm is an alternative to PoW that aims to address some of the issues with PoW, such as high energy consumption. In a PoS system, instead of competing to solve mathematical problems, validators are chosen to create new blocks based on the amount of cryptocurrency they hold and are willing to “stake”. This means that the more cryptocurrency an individual holds, the higher their chances are of being chosen to validate a transaction and earn the block reward.

Delegated Proof-of-Stake (DPoS):

This is a variation of the PoS algorithm that allows token holders to vote for delegates who will validate transactions and create new blocks on their behalf. The delegates are usually chosen based on their reputation, stake and the number of votes they receive.

Proof-of-Authority (PoA):

This algorithm is designed for private networks and it’s based on the identity of the validators. It’s commonly used in enterprise blockchain solutions and it’s a more secure and efficient alternative to PoW and PoS.

Proof-of-Burn (PoB):

This algorithm is a relatively new concept and it’s still in an experimental phase. In a PoB system, a miner sends a certain amount of cryptocurrency to an unspendable address, effectively “burning” it. This act of burning the cryptocurrency is used as a proof of work in order to secure the network and validate transactions.

Each of these algorithms has its own set of advantages and disadvantages and can be suitable for different types of blockchain networks and use cases. It’s important to note that some of the newer algorithms like PoS and DPoS are designed to be more energy efficient than PoW and also to increase decentralization and security.

Let’s understand Hash

First, we need to understand what is “Hash”?
Hash is a “message digest” – a number generated from a string of text, the hash itself is smaller than the text, so it is almost not possible to generate another string of text with the same hash value. Learn more about hashes

Second, we need to understand what is it “Mining Hashing Algorithm”
A hashing algorithm is a cryptographic hash function, the mathematical algorithm that maps data of arbitrary size to a hash of a fixed size. Hashing algorithm is being used for digital signatures and authentication.

The Most Common Cryptocurrency Mining Algorithms

 What cryptocurrency uses SHA256?

SHA stands for “Secure hash Algorithm” (SHA-256) generates a unique 256-bit (32-byte) signature for a text string. Block processing time for SHA-256 generally ranges from six to ten minutes and requires hash rates at the Giga hashes per second (GH/s). SHA-256 hash rate is measured by GH/s: Gigahashes per second, or one billion hash computations per second. SHA-256 algorithm mining can be performed on an ASIC hardware (application-specific integrated circuit)
The SHA -256 cryptocurrency algorithm is used to mine:

Namecoin (NMC)
NuBits (USNBT)
Scotcoin (SCOT)
CarpeDiem (EDC)
Paccoin (PAC)
Tigercoin (TGC)
Mazacoin (MZC)
eMark (DEM)
Titcoin (TIT)
Neoscoin (NEO)
Saffroncoin (SFR)
Curecoin (CURE)
Zetacoin (ZET)
Acoin (ACOIN)
TEKcoin (TEK)
Unobtanium (UNO)
Blakecoin (BLC)
Reikicoin (RKC)
Ixcoin (IXC)
Bytecoin (BCN)

Scrypt Algorithm:

Mining Scrypt Algorithm
Mining Scrypt Algorithm

Scrypt algorithm requires large amounts of memory and there was a need to design it to perform large-scale custom hardware attacks. The Scrypt algorithm is more simple and quicker than the SHA-256 algorithm.
Scrypt’s hash rate is measured by KH/s: Kilohashes per second, or one thousand hash computations per second.

Scrypt algorithm mining can be performed on a computer CPU, Graphics Processing Unit (GPU), there is some ASICs hardware that is available for Scrypt mining.
The Scrypt cryptocurrency algorithm is used to mine:

Auroracoin (AUR)
Coinye (COINYE)
Synereo (AMP)
Syscoin (STP)
GameCredits (GAME)
Dogecoin (DOGE)
Litecoin (LTE)
Potcoin (POT)
Starcoin (STR)
Teslacoin (TES)
Nucoin (NUC)
Topcoin (TOP)
Pesetacoin (PTC)
Smartcoin (SMC)
Xivra (XIV)
Zedcoin (FIRO)
Stockcoin (STC)
Foxcoin (FOX)
Worldcoin (WDC)
Reddcoin (RDD)

X11 Algorithm:

The X11 hashing algorithm created by Dash core developer Evan Duffield. The X11 uses a sequence of eleven scientific hashing algorithms for the proof-of-work. One of the biggest benefits of using X11 algorithm is energy efficiency, GPUs require approximately 30% less wattage and run 30-50% cooler than they do with Scrypt.
X11’s hash rate is measured by MH/s: mega hashes per second, or one million hash computations per second.
The X11 cryptocurrency algorithm is used to mine:

Dash (DASH)
Crevacoin (CREVA)
Fuelcoin (FC2)
Startcoin (START)
Adzcoin (ADZ)
Influxcoin (INFX)
Cannabiscoin (CANN)
Hirocoin (HIRO)
X11coin (XC)
Smartcoin (SMC)
Hatch (HATCH)

Cryptonight Algorithm:

The Cryptonight algorithm is a cryptographic hashing algorithm designed for use in Proof of Work (PoW) consensus mechanisms within blockchain networks. Cryptonight’s focus on privacy and resistance to ASIC (Application-Specific Integrated Circuit) mining is widely recognized. Initially designed to be memory-bound, Cryptonight is suited for mining with consumer-grade hardware like CPUs and GPUs rather than specialized mining hardware.

The algorithm is used by several cryptocurrencies, most notably Monero (XMR). Cryptonight employs a memory-intensive approach to prevent the development of efficient ASIC miners, aiming to maintain a more decentralized mining landscape. This algorithm incorporates elements such as the CryptoNote protocol, which provides enhanced privacy features like ring signatures and stealth addresses, making it challenging to trace transaction details on the blockchain.

Cryptonight’s commitment to privacy and resistance to centralization align with the principles of many privacy-focused cryptocurrencies, emphasizing inclusivity and accessibility in the mining process. The constant evolution of algorithms and mining strategies is a response to the ongoing quest for secure, decentralized, and accessible blockchain networks.

The Cryptonight cryptocurrency algorithm is used to mine:

Monero (XMR)
Bytecoin (BCN)
Boolberry (BBR)
Dashcoin (DSH)
DigitalNote (XDN)
DarkNetCoin (DNC)
FantomCoin (FCN)
Pebblecoin (XPB)
Quazarcoin (QCN)
Beldex  (BDX)
Electroneum (ETN)
DinastyCoin (DCY)
uPlexa (UPX)
Conceal (CCX)
Sumokoin (SUMO)
Masari (MSR)
Arqma (ARQ)
Bitcoal (COAL)
Electronero (ETNX)
ParsiCoin (PARS)
Geldum (GDM)
MarketCash (MKT)
Leviar (XKC)
BipCoin (BIP)
Safex Token (SFT)
TFT Network (TFTN)
Torque (XTC)
Zelerius (ZLS)

Dagger Hashimoto – Ethash Algorithm:

Dagger Hashimoto is a proposed spec for the mining algorithm for Ethereum and builds on two key pieces of previous work:

1. Dagger: algorithm by Vitalik Buterin, Dagger was meant to be an alternative to existing memory-hard algorithms like Scrypt, which are memory-hard but are also very hard to verify when their memory-hardness is increased to genuinely secure levels. However, Dagger was proven to be vulnerable to shared memory hardware acceleration by Sergio Lerner and was then dropped in favor of other avenues of research.

2. Hashimoto: algorithm by Thaddeus Dryja which intends to achieve ASIC resistance by being IO-bound, ie. making memory reads the limiting factor in the mining process. Hashimoto uses the blockchain as a source of data, simultaneously satisfying.

(source: “Etherum / WIKI“)

Dagger Hashimoto’s hash rate is measured by MH/s: mega hashes per second, or one million hash computations per second.
The Dagger Hashimoto – Ethash algorithm is used to mine:

Ethereum (ETH)
Ethereum Classic (ETC)
Expanse (EXP)
Ubiq (UBQ)
DubaiCoin (DBIX)

Lyra2REv2 Algorithm:

The Lyra2REv2 algorithm is a cryptographic hashing algorithm designed for use in Proof of Work (PoW) consensus mechanisms within blockchain networks. Initially introduced as an enhancement to its predecessor, Lyra2RE, Lyra2REv2 aims to improve security and resistance to certain types of attacks. It is characterized by its use of multiple hashing functions and a chained structure, adding complexity to the mining process.

Lyra2REv2’s memory-intensive nature is what makes it more resilient against specialized mining hardware known as ASICs (Application-Specific Integrated Circuits). Cryptocurrencies like Vertcoin (VTC) have adopted the Lyra2REv2 algorithm to promote decentralization and democratize the mining process by allowing a broader range of participants to engage in mining activities using consumer-grade hardware.

This algorithm’s focus on both security and accessibility aligns with the principles of decentralized and community-driven blockchain networks.

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The Lyra2REv2 algorithm is used to mine:

Vertcoin (VTC)
MonaCoin (MONA)
Rupee (RUP)
Straks (STAK)
Verge (XVG)
Shield (XSH)
Galactrum (ORE)

NeoScrypt Algorithm:

NeoScrypt is an offshoot of Scrypt algorithm. It was originally designed for a new cryptocurrency called Feathercoin. The predominant feature is the rate of awards accrual: 60-90 coins per block on average. The mining complexity is relatively low, making it a relatively profitable algorithm.
Another feature is the fast transaction times. The network can process transactions relatively quickly even at peak times. The network’s authentication enables quicker transactions. It creates an individual hash that is not related to the user, but users can still use it to self-identify.

(source: “WIKI“)

The NeoScrypt algorithm is used to mine:

Feathercoin (FTC)
Guncoin (GUN)
GoByte (GBX)
01coin (ZOC)
Bitcoin Monster
Mogwai (MOG)
Dinero (DIN)

X15 Algorithm:

The X15 algorithm, a cryptographic hashing algorithm, is specifically designed for use in Proof of Work (PoW) consensus mechanisms within blockchain networks. It was introduced to bolster security and resist certain types of cryptographic attacks. The algorithm achieves this by employing a sequence of 15 different cryptographic hashing functions. This multi-algorithmic approach aims to provide a balanced and diversified solution, making it more resistant to specialized mining hardware and improving overall network stability. Popularized by cryptocurrencies like BitSend (BSD) and Aero (AERO), the X15 algorithm has become notable for its attempts to address specific vulnerabilities associated with single-hashing algorithms, contributing to a more robust and secure blockchain environment. Whirlpool.

The X15 algorithm is used to mine:

EverGreenCoin (EGC)
Kobocoin (KOBO)
Halcyon (HAL)
Firecoin (FIRE)

SHA-3 Algorithm:

SHA-3 or Keccak was written in 2008 by a team lead by Yoan Dimen. In 2015 it became accepted as the new FIPS standard. It is a unidirectional function for generating digital prints of the selected length (the standard accepts 224, 256, 384 or 512 bits) from input data of any size.

With the aim of achieving cryptographic stability and a high-performance level, the Keccak algorithm had multiple configurable parameters such as block size, algorithm state size, number of rounds in the f function, etc). The SHA-3 has made some changes to this original algorithm. It simplified the algorithm of filling. It discarded slow modes c=768 and c=1024.

(source: “WIKI“)

The X15 algorithm is used to mine:

Nexus (NXS)
MaxCoin (MAX)
Bitcoin Classic Token (BCT)
Cruzbit (CRUZ)

What algorithm is Auroracoin?

Auroracoin launched in early 2014 as a crypto alternative to the Icelandic króna as well as a Bitcoin alternative. The creators (or creators) remain unknown. The name the creator used was Baldur Friggjar Óðinsson. The creator’s based the coin on Litecoin originally. The aim was to be an alternative to the long-term instability and very limited króna.

The creator claimed they would release 50% of Auroracoin to everyone registered in the Iceland Nation ID system free of charge. The massive national distribution system catalyzed the development of the airdrop system, which would be used for the distribution.

The Aurorcoin Foundation began operating in 2015 with the goal of promoting the widespread use of Auroracoin in Iceland. However, the legal status of this cryptocurrency remains uncertain, and this uncertainty continues to affect the value of the crypto to this day.

Proof of History (PoH)

Proof of History (PoH) is a groundbreaking concept introduced by Solana to enhance the efficiency of its blockchain’s consensus mechanism. Instead of relying solely on traditional time-stamping methods, PoH acts as a cryptographic clock, providing a verifiable and transparent record of the chronological order of events on the Solana network. This unique approach helps Solana achieve faster and more precise consensus among its decentralized participants. By leveraging PoH, Solana enhances the overall speed and scalability of its blockchain, creating a foundation for high-performance decentralized applications and smart contracts.