Scrypt Mineable Coins
What is Scrypt
In cryptography, scrypt (pronounced “ess crypt”) is a password-based key derivation function created by Colin Percival, originally for the Tarsnap online backup service.
The algorithm was specifically designed to make it costly to perform large-scale custom hardware attacks by requiring large amounts of memory. In 2016, the scrypt algorithm was published by IETF as RFC 7914.
A simplified version of scrypt is used as a proof-of-work scheme by a number of cryptocurrencies, first implemented by an anonymous programmer called ArtForz in Tenebrix and followed by Fairbrix and Litecoin soon after.
General information of Scrypt
Scrypt is used in many cryptocurrencies as a proof-of-work algorithm. It was first implemented for Tenebrix (released in September 2011) and served as the basis for Litecoin and Dogecoin, which also adopted its scrypt algorithm.
Mining of cryptocurrencies that use scrypt is often performed on graphics processing units (GPUs) since GPUs tend to have significantly more processing power (for some algorithms) compared to the CPU. This led to shortages of high end GPUs due to the rising price of these currencies in the months of November and December 2013.
As of May 2014, specialized ASIC mining hardware is available for scrypt-based cryptocurrencies.[As of 2016, InnoSilicon claims to have 14 nm technology with an efficiency of 1.5 watts/megahash-second.
Scrypt is the quicker and more simple algorithm of the two, and as new digital currencies are being introduced, more of them are favoring it over SHA-256. Scrypt is much easier to run on an already-existing CPU, and tends to use up less energy than using SHA-256; as a result, it’s favored by most individual miners.
In comparison to SHA-256, Scrypt’s hash rates for successful coin mining generally range in the kilohashes per second (KH/s) or megahashes per second (MH/s) areas of difficulty, which can be achieved with regular computers without the need of ASICs or other hardware.
Some argue this simpler system is more susceptible to security issues, since fast transaction turnaround times can mean the system is taking a less thorough look at the data. Its advocates point out, however, that hasn’t as of yet presented a real-world problem.