What is a hashing algorithm?

Introduction

Put simply the hashing algorithm is the cryptographic hash function that maps data of any size, performs a mathematical operation on it and returns the output data of a fixed size.  This process is what is used to perform cryptographic transactions while authenticating and documenting the transaction in the blockchain.

Miners are what runs these operations with certain types of hashing algorithms that correspond with a certain coin.

Here are some of the most common hashing algorithms available:

SHA-256 Algorithm (GH/s)

SHA or “Secure Hash Algorithm” is a family of cryptographic hash functions that was published by the National Institute of Standards and Technology as a U.S. Federal Information Processing Standard.

256 refers to the specific family of hash functions that operates while using the block size of 32-bit words at a rate measured in GH/s: Gigahashes per second.  This algorithm mining can be performed on an ASIC hardware (application-specific integrated circuit).

Some current coins mined utilizing this algorithm:

  • BitcoinCash (BCH)
  • Bitcoin (BTC)
  • Universal(UNIT)
  • 21Coin (21)
  • Peercoin (PPC)
  • Namecoin (NMC)
  • Unobtanium (UNO)
  • Betacoin (BET)
  • Bytecoin (BTE)
  • Joulecoin (XJO)
  • Devcoin (DVC)
  • Ixcoin (IXC)
  • Terracoin (TRC)

Scrypt Algorithm (KH/s)

The Scrypt Algorithm is used as a “proof-of-work” algorithm which typically is performed on GPU: graphics processing units.  Due to it’s focused use of GPU’s, miners running this algorithm will tend to have a faster processing time than CPU’s: central processing units.  Scrypt’s hash rate is measured by KH/s: Kilohashes per second.

Some current coins mined utilizing this algorithm:

  • Litecoin (LTC)
  • Einsteinium(EMC2)
  • DGB-Scrypt(DGB)
  • Viacoin(VIA)
  • Novacoin (NVC)
  • Verge-Scrypt(XVG)
  • WorldCoin (WDC)
  • Latium (LAT)
  • FeatherCoin (FRC)
  • Bitmark (BTM)
  • TagCoin (TAG)
  • Ekrona (KRN)
  • MidasCoin (MID)
  • DigitalCoin (DGC)
  • Elacoin (ELC)
  • Anoncoin (ANC)
  • PandaCoins (PND)
  • GoldCoin (GLD)

X11 Algorithm (MH/s)

The X11 hashing algorithm is another proof-of-work algorithm that is measured by MH/s: Megashashes per second.  One of the main benefits of running this algorithm is that it is one of the more energy efficient that run 30-50% cooler and require less wattage.

Some current coins mined utilizing this algorithm:

  • Dash (DASH)
  • CannabisCoin (CANN)
  • DigitalpriceClassic(DPC)
  • AUR-Scrypt(AUR)
  • StartCoin (START)
  • MonetaryUnit (MUE)
  • Karmacoin (Karma)
  • XCurrency (XC)

Cryptonight Algorithm (H/s)

The Cryptonight Algorithm is specifically designed to be suitable for ordinary PC CPU’s and can only be CPU-mined.  Unlike Scrypt, Cryptonight depends on all the previous blocks for each new block.  The hash rate is measured by H/s: Hashes per second.

Some current coins mined utilizing this algorithm:

  • Bytecoin(BCN)
  • Monero (XMR)
  • Sumokoin(SUMO)
  • Boolberry (BBR)
  • Dashcoin (DSH)
  • DigitalNote (XDN)
  • DarkNetCoin (DNC)
  • FantomCoin (FCN)
  • Pebblecoin (XPB)
  • Quazarcoin (QCN)

Dagger Hasimoto – Ethash Algorithm (MH/s)

Dagger Hashimoto is a combination of two algorithms to mine Ethereum.  Measured in MH/s: Megahashes per second.

Current coins mined utilizing this algorithm:

  • Ethereum (ETH)
  • Ethereum Classic (ETC)
  • Ubiq(UBQ)
  • Expanse (EXP)
  • Musicoin(MUSIC)
  • Pirl(PIRL)
  • Ellaism(ELLA)
  • Nicehash-Ethash

Equihash (H/s)

Another proof-of-work algorithm which is memory orientated and it’s mining capabilities is mostly determined by the amount of RAM you have.  Measured in H/s: Hashes per second.

Current coins mined utilizing this algorithm:

  • Zhash (SEC)
  • Nicehash-Equihash
  • Zencash (ZEN)
  • Zclassic (ZCL)
  • Hush (HUSH)
  • BitcoinGold (BTG)
  • Komodo (KMD)

Hashing Algorithm Profitability

There are quite a few resources that can be used to determine which hashing algorithm is used and the amount of profit per cryptocurrency that can be expected when mined.   This way you can maximize your profits per miner.

Here are a few that we recommend:

www.whattomine.com

www.Coinwarz.com

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