Scrypt Algorithm Development Company
In the crypto space, most of the cryptocurrencies that are mined by super-fast computers use PoW consensus algorithms, developed to make them prove that they have provided the computing energy in creating the new coins. Bitcoin uses SHA-256, but most of the altcoins use easiest and familiarized system, called Scrypt.
Scrypt is one of the primary cryptocurrency mining algorithm, which is a promising mining algorithm in the cryptocurrency development process. In this article, we'll deal with a brief definition of Scrypt Algorithm Development, how it was originally built, how scrypt algorithm based cryptocurrency mining is done, what are the benefits, and many more.
Let’s start the guide on Scrypt Algorithm and its mining –
What is Scrypt?
Scrypt is one kind of cryptographic algorithm and is used by Litecoin.
Scrypt, a memory-intensive algorithm, is used by many cryptocurrencies as PoW. Scrypt mining is mostly performed using GPUs rather than CPUs since they have the extra processing power, ideal to manage the more memory requirements of Scrypt.
From May 2014, specific ASIC mining hardware is available for Scrypt algorithm-based cryptocurrencies.
What is the use of it?
Scrypt algorithm is executed for the cryptocurrency mining, which allows making it more complicated for the specialized ASIC miners.
Some Interesting Facts About Scrypt:
- The scrypt algorithm was created by Colin Percival
- Scrypt algorithm is being used among other cryptocurrencies, like ProsperCoin, CashCoin, MonaCoin, Mooncoin, and many others altcoins.
How Scrypt Algorithm Works?
Scrypt is a simple algorithm and helps to calculate blocks rapidly within a time. Most of the cryptocurrencies are using this algorithm and Scrypt mining is a new way of acquiring more crypto coins. At first, this process of mining was introduced to make Litecoin immune to specialized ASIC machines. But later, processors were created to produce Scrypt hashes more aptly. From start to now, Litecoin is minable with GPU devices, though with less potential rewards.
Scrypt is a memory-hard key-derivation function. Memory hard functions need a large amount of RAM to be solved. It means that a standard ASIC hardware chip used for solving the Bitcoin SHA-256 PoW would require to store a certain amount of chip space for RAM rather of pure hashing power.
Scrypt is adjusting the number of random variables that require to be stored compared to SHA-256.
Scrypt creates a lot of pseudorandom numbers that need to be stored in a RAM. The Scrypt algorithm is accessed these numbers a few times before returning a result. The main advantage of scrypt is that it lowers the benefit of ASIC Bitcoin miners in the network. From these benefits it allows more miners to join the network and contributing effectively to make it worth their while. Another prospect is there is less energy or power use as the entire network power is very less.
Why Scrypt Algorithm?
Scrypt is a memory-hard function. Colin Percival argued with professional after that only they are accepting in creating an ASIC for Scrypt would be more expensive. To compared with Sha-256, the Scrypt algorithms also works as a proof-of-work system. The key difference is that Scrypt checks ASICs and GPU mining, which were very effective for mining Bitcoin, from having any dynamic power over Scrypt. In April 2014, Litecoin reached a market cap of $270 million and attained a network strength of 100GH/s. This equates to 100 TH/s for Bitcoin due to the power that Scrypt imposes on the hardware mining it. Because Scrypt is natively more difficult to perform computationally, many Altcoins have adopted it as the proof-of-work scheme.
Benefits of Scrypt Algorithms:
There are some key benefits of Scrypt Algorithm are explained:
- Scrypt Algorithm is specifically designed to use high-speed RAM (memory) which confirms cryptocurrencies transaction quickly.
- Scrypt is capable of handling transactions in bulk & can mine block instantly.
- Twined with the facts, fast transaction & transaction confirmation, it is widely accepted by the merchants around the world.
SHA 256 vs Scrypt:
SHA 256 Algorithm:
- SHA 256 cryptographic hash Algorithm. SHA 256 was first released IN 2001 by US, National Security Council.
- SHA-256 is used for Bitcoin mining. It supports bitcoin blockchain network through proof of work.
- At first, Bitcoin was mined with CPUs then gradually hashing power added to the Bitcoin network & with ongoing time, the hash rate increased manifold.
- Bitcoin mining with CPUs became obsolete. More computational power also reduced GPUs mining. Heavy powers hardware (Application Specific Integrated Circuits) ASIC miners which consume lots of energy are used to mine Bitcoin.
- SHA 256 hash rate measurement: It is measured by Giga hashes per second (GH/s) or 1 billion has computations per second.
- Scrypt algorithm launched in Litecoin in 2001 with a purpose to make it more expensive to perform heavy hardware attacks using high-speed Random Accessed Memory (RAM).
- Scrypt Algorithm implements quick transaction & block generate quickly as compared to the SHA 256 algorithm.
- It is a distinctive feature of Litecoin that it uses Scrypt algorithm which is very helpful for the mining of Litecoin.
- The Litecoin miners do not need to use more energy or powers for mining purpose as like Bitcoin miners use (ASIC) to mine Bitcoins. But Litecoin did not remain ASIC resistant however, Litecoin miners are able to mine coins in an easiest way of using CPUs & GPUs.
- Scrypt hash rate measurement: It is measured by Kilo hashes per second (KH/s) or 1 thousand has computations per second.
Some current crypto coins mined utilizing this algorithm:
- YOU COIN
- Matrix AI Network
- Hi Mutual Society
- Beetle Coin
Do you want to create your own crypto coin like Litecoin? Or want to make your cryptocurrency mining more secure using robust scrypt algorithm?
Developcoins is an expert in Scrypt Algorithm Development!
As a leading cryptocurrency development company, Developcoins offers Scrypt algorithm development services and solutions to enterprises those who are looking for world-class development services for altcoin creations. Our altcoin development platform is offered at the most affordable rate with industry-leading outstanding features.
How much does it cost to create an altcoin using scrypt algorithm?
A best-in-class altcoin creation services require expertise as well as efforts with reasonable price. The cost completely depends on the custom altcoin creation process that you wish to embed in your cryptocurrency project. Talk to our experts to know the price range of our crypto coin development!
Do you want to create your own cryptocurrency to be developed from scratch using by scrypt algorithm?
Our experts and blockchain developers are eager to hear about your coin creation project and would love to provide you with the best solutions.