certify
Home arrow Article arrow Article Detail

Things you must know about PoW-based mining algorithms

Profile Image

Crypto Business World Follow

INDIA

Nov, 12 2020

Nov, 12 2020

likes | comments 0

Article Image

Over the past few years, Bitcoin has gained quite a lot of popularity. People across the world are literally using it for investment purposes. There are some classic models of the existence of cryptocurrency. Iis a reward that maintains the blockchain networking. Blockchain networking is a ledger of decentralized. To maintain the blockchain along with getting the cryptocurrency is known as mining. It demands the better performance of the hardware. 


However, there are still a few things that are missing in the model. Talking of which it is the method and consensus mechanism that needs to be worked on. The consensus is focused at reaching a fair deal amongst the parties that are involved. It does all the crucial things that make sure the validity of the next block is possible in the blockchain. It also focuses on solving the problem called the Byzantine Generals which is quite common in the system of decentralized peer-to-peer currency. 

There are some networks if cryptocurrencies and blockchain which are now relying on the proof of work mechanism. It strives for adding another block in the chain for solving the issues and problems. the one that achieves and solves it first gets awarded for the efforts in the mined coins. Its principle is simple. It is called the longest chain winner. This shows that the chain that comes with better productive miners would grow at a faster pace and is extremely reliable too. 


Different Algorithms that are used: 

But this does not change the fact that different blockchain’s uses other mining algorithms. They depend on the similar consensus way. One of which is the PoW mining algorithms SHA-256. It is one classic bulletproof hashing algorithm with a significant con – ASIC-tolerance. Other than this, Ethash is a PoW-based hashing algorithm that is used in the Ethereum network. Lastly comes the CryptoNight which is a hashing algorithm introduced by the Bitcoin developers. It offers better security and network privacy. 

But the world of cryptocurrency is never constant. There will be more hashing algorithm that would appear in this field. There are so many other new algorithms as well that depends on the mechanism of the Proof of Work consensus. However, the trending one is the PoW based which offers scalability and privacyGrin coin and its hashing algorithm called MimbleWimble is the finest example of the same that offers high level of security, privacy, and scalability. 


likes | comments 0

Profile Image

Crypto Business World

CBW - External Analyst

INDIA

Comments
Data Centre Construction - World First artificial intelligence AI-Tech Utility Token
banner
Article
WMG team up with OpenSea to expand Web3 opportunities 

WMG?team up?with OpenSea?to expand?Web3 opportunities for artists. This platform will enable artists to?build and extend their fanbase in the Web3 community. The nonfungible token (NFT) marketplace..;

Disclaimer: The information is for informational purposes only.​ This advertisement does not constitute financial advice or any other advice. You should consult with a financial professional to determine what may be best for your individual needs. None of the information and/or content available through this advertisement is intended as an offer or solicitation of an offer to buy or sell, or as a recommendation, endorsement, or sponsorship of any company, financial product, security or commodity. To the maximum extent permitted by law, we disclaim any and all liability in the event any information, commentary, analysis, opinions, advice and/or recommendations prove to be inaccurate, incomplete or unreliable or result in any investment or other losses. In Making the investment decision, investors must rely on their own examination of the issuer and the terms of the offerings, including the merits and risks involved. Investments are speculative, illiquid, and involve a high degree of risk , including the possible loss of investment.