What is Mining Algorithm?
Let's find out Mining Algorithm meaning, definition in crypto, what is Mining Algorithm, and all other detailed facts.
From a mining standpoint, a mining algorithm is a collection of rules or directives that a computer must comply with in order to generate a legitimate block. There are a number of mining algorithms created and each has its own advantages and disadvantages.
SHA-256, created by the U.S. National Security Agency (NSA), is one of the most popular algorithms. SHA refers to a “secure hash algorithm” and it is a 256-bit cryptographic hash function. The function of a cryptographic hash is a special type of mathematical algorithm that takes an input and outputs information in the form of a hash that is longer than the original input.
Other Popular Mining Algorithms
Besides SHA-256 there are other popular mining algorithms.
Litecoin, Dogecoin, and other cryptocurrencies also utilize Scrypt for Proof-of-Work (PoW) mining and password-based authentication.
Scrypt is a password-based key generation function (PBKDF) that includes significant protection for passwords. It was developed to offer key reinforcement in the setting of password-based authentication systems. It employs cryptographic hash algorithms and is a combinatorial hash, which means that it uses the fundamental hash function to input value continuously.
Equihash refers to a memory-based Proof-of-Work consensus algorithm. It was developed to be egalitarian, GPU, and ASIC-resistant. Alex Biryukow and Dmitry Khovratovich revealed it in 2016.
To make Equihash-based cryptocurrencies resistant to ASICs, the method was designed to demand a huge amount of memory and processing capacity, making it ideally fitting for usage with GPUs.
The algorithm depends on random entry to a big hash table which is created from nothing each time a nonce is discovered. In that regard, a number of other algorithms depend on the simultaneous method.
This includes Cryptonight, Cuckoo Cycle, and X11.
Ethash is a Proof-of-Work hashing algorithm employed by Ethereum. It is comparable to other algorithms such as Scrypt or SHA-256 in that it takes a huge quantity of storage and a high level of computer power to run.
The fundamental goal of Ethash was to develop a mining algorithm that does not enable ASICs (Application Specific Integrated Circuits). This was accomplished since Ethereum's creators wanted to guarantee that no one had more than 51% of the mining capacity, which might be exploited to harm the network.