May 16, 2018 14:32

Each cryptocurrency uses its specific cryptographic algorithm, which is decrypted by mining equipment in order to ensure blockchain functionality, transaction processing and to receive therefore a remuneration in form of certain cryptocurrency coins.

Each cryptocurrency uses its specific cryptographic algorithm, which is decrypted by mining equipment in order to ensure blockchain functionality, transaction processing and to receive therefore a remuneration in form of certain cryptocurrency coins. Some algorithms are more popular and are used for several different cryptocurrencies (blockchains).

The most popular cryptographic encryption algorithms
today are as follows: 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 quite
extensive, we'll tell you more about the most popular and reliable ones:

SHA256 is the base algorithm of the classic bitcoin,
video cards are no longer enough to work with this algorithm, because the
Chinese have invented a special equipment for it, ASIC (application specific
integrated circuit). Many bitcoin copying cryptocurrencies, for example, the
recently introduced BitcoinCash, are based on this algorithm.

Scrypt – Litecoin, the ‘digital silver’, is based on
this algorithm. At one time this algorithm was an excellent alternative, when
ASICs were designed for SHA256 only. But time is getting on, new Scrypt-ASICs
have appeared, and this algorithm is also unavailable for most miners.

Ethash (DaggerHashimoto) is the encryption algorithm
which is applied for Ethereum cryptocurrency. To work effectively, it is
necessary to have a video card with a large RAM capacity preferably based on
AMD microprocessors, although Nvidia 10 series copes with DaggerHashimoto. X11
is used in Dash coin and is available for modern video cards. However, at the
end of 2017 — at the beginning of 2018, first series of ASIC miners for Dash
will appear.

Decred is a modification of Blake256 algorithm applied
in Decred cryptocurrency. Mining on video cards is possible. In most cases,
Decred mining is launched in parallel with DaggerHashimoto in the Claymore’s
Dual Miner program.

CryptoNight – Monero works based on this algorithm.
The algorithm is notable for the fact that it is relatively well calculated on
processors. Specifically for the moment, Intel Xeon E3 processor brings me
about a quarter of a dollar a day (comparable figures for Intel Core I7). It’s
a funny money, but a crypto investor should keep any machine mining at least in
the background.

Equihash is the base for Zcash currency, which is
nowadays quite popular among video card miners, due to the fact that the
Ethereum (leader among GPU miners) network complexity increased greatly.

X11Gost is the base algorithm of Sibcoin
cryptocurrency, which is also called ‘Siberian Chervonets’. In fact it is a
fork, the Russian equivalent of the Dash currency. I will not go in
cryptography, but just note that the algorithm is based on a hash function in
accordance with GOST R 34.11-2012.