What Is A Crypro Currency Algorithm? Short Explanation


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Introduction to mining algorithms

Each cryptocurrency uses its own specific encryption algorithm, and it is its mining equipment that decrypts it, ensuring the functioning of the blockchain, processing transactions and receiving a reward in the form of coins of a certain cryptocurrency.
Some algorithms are more popular and used for several different cryptocurrencies (blockchains).
The most popular encryption algorithms today put it: DaggerHashimoto, Scrypt, SHA256, ScryptNf, X11, X13, Keccak, X15, Nist5, NeoScrypt, Lyra2RE, WhirlpoolX, Qubit, Quark, Axiom, Lyra2REv2, ScryptJaneNf16, Blake256r8, Blake256r14, Blake256r8vnl, Hodl, Decred, CryptoNight, Skunk, Lbry, Equihash, Pascal, X11Gost, Sia, Blake2s.
As you can see the list of algorithms is very large, we will tell you more about the most popular and reliable of them:

SHA-256 Unlocks Bitcoin

SHA256 is the algorithm built on the classic bitcoin, to work with video cards has not been enough for a long time, because for him our brothers – the Chinese invented special equipment Asics (from the English abbreviation ASIC (application-specific integrated circuit an integrated circuit for a special purpose). At the same algorithm and multiple copies of the bitcoin cryptocurrency, for example, recently appeared BitcoinCash.

Scrypt: “digital silver” Litecoin works on this algorithm. At the time this algorithm was a great alternative when ASIC has been designed just for SHA256. But the days are coming, appeared Scrypt-ASIC and the algorithm most of the miners is also available.

Ethash (DaggerHashimoto) is an encryption algorithm that has found application in the Ethereum cryptocurrency. To work effectively you want to have a video card with more RAM and preferably based on microprocessors from AMD, although Nvidia 10-series copes with DaggerHashimoto.

X11-used in Dash coin, available for modern graphics cards. However, in late 2017 early 2018, will be the first batch of ASIC miners for Dash.
Decred – modification of the algorithm Blake256 used in cryptocurrency Decred. You can mine on video cards. Mining Decred often runs in parallel with DaggerHashimoto on the program Claymore’s Dual Miner.

CryptoNight on the basis of this algorithm is Monero. The algorithm is notable for the fact that it is relatively well calculated on processors. Specifically, at this moment, Intel Xeon E3 gives me about a quarter of a dollar a day (comparable figures for the Intel Core I7). Funny earnings, but any machine must mine at least in the background.

Equihash-is at the heart of the currency Zcash, quite popular nowadays among miners on video cards, due to the fact that the complexity of the Ethereum network (the leader in GPU miners) has greatly increased.

X11Gost algorithm is the basis of cryptomonad Sibcoin, which is also called “Siberian Guinea”. In fact, it is a fork, a Russian analog of the Dash currency. I will not go into cryptography, but I will note that the algorithm is based on a hash function in accordance with GOST R 34.11-20

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