The realm of crypto has grown significantly in recent times, despite the fact that it is still fairly new. Cryptocurrency has grown in popularity and therefore is generally recognized as having a large potential for profit. Most people are undoubtedly already aware of how digital currencies are purchased and traded on exchanges, but remember that this isn’t the sole method to earn in the cryptocurrency space. Crypto mining is an option that demands the miner to solve mathematical problems as quickly as possible so that they can earn crypto coins. To authenticate each crypto trade and create a new block to the blockchain, crypto mining is necessary.
Crypto mining, though, is not as straightforward as buying coins. It requires specialized software, cutting-edge computer gear, and a robust algorithm, all of which are often costly and hard to obtain. Furthermore, becoming a miner entails competing with others to solve the problems first, otherwise, you will not get compensated. That’s why, in addition to choosing the right equipment, miners must grasp how blockchain and crypto mining function. Scrypt is among the cryptocurrency blockchain algorithms that are recognized for being more available and easy to operate. Well, what exactly is scrypt mining and how does it function?
Scrypt is a PoW (Proof-of-Work ) kind of algorithm. It’s essentially a variation to the SHA-256 algorithm, which is commonly employed in Bitcoin mining. Scrypt mining means the employment of specialized hardware to extract cryptocurrencies encrypted with the scrypt algorithm. Scrypt mining, like all other mining methods, entails tackling mathematical problems as well as cryptographic codes on a blockchain that supports scrypt to put a new block to the network and receive coins as a return.
Colin Percival came up with this algorithm in 2009. The technique was originally developed for Tarsnap, for operating systems such as LINUX. The simpler variation of the algorithm, on the other hand, was quickly adopted for crypto mining.
ArtForz, an unknown programmer, was the first one to use scrypt. Tenebrix, which was launched in 2011, was the first one to apply the Scrypt for mining. Eventually, LTC (Litecoin) and DOGE (Dogecoin) used it as the foundation for their blockchain mining algorithms.
Scrypt is built to enhance the SHA-256 hashing algorithm and appear as an option for network security. The scrypt method is less difficult than SHA-256, but it demands additional memory from the miner to solve problems efficiently. As a result, the scrypt method is frequently mined with a GPU (graphics processing unit), which generally has substantially more storage and processing capacity than CPUs.
How Does It Operate?
In essence, scrypt seeks to make the mining process more difficult by requiring additional key derivation. It uses “noise,” which is a collection of random values generated by the hash algorithm and kept in memory. The goal is to hide the true data from the algorithm, making it more difficult for miners to figure out the problem’s cryptographic answer. As a consequence, miners require more time to analyze and find a solution.
To be honest, several crypto developers have criticized this system, claiming that it favors miners with more resources, therefore, undermines decentralization. Nonetheless, it is quite helpful as a defense measure for preventing hackers and scammers from joining the blockchain. Because the task is more difficult to solve, it will take the hacker significant effort and time to break into the network.
ASIC vs. SCRYPT Miners
- They both seek to solve Proof-to-Work algorithms, however, they do so in distinct ways:
- The SHA-256 algorithm is used by ASIC miners, and it favors computers with the most processing capacity throughout the mining procedure.
- SCRYPT miners employ the scrypt algorithm, and that favors mining equipment with the most RAM.
- As a result, ASIC miners have the far greater processing power, while the latter have significantly higher RAM.
SEE ALSO: What Is an ASIC Miner?Share this article