Anyone who has tried to mine digital currency sooner or later came across the term SHA256. What does this abbreviation mean, what features does it have, how does it work? We will talk about all this in this material.
Decryption SHA256 - short for Secure Hashing Algorithm - is a current hashing algorithm created by the National Security Agency - the US National Security Agency. The task of this algorithm is to perform certain values from a random set of data with a length that is fixed. This length is an identifier. The resulting value is compared with duplicates of the original data, which cannot be obtained.
The emission of the money supply in many crypto projects is provided by miners, while crypto mining not only ensures the generation of new coins, but is also the main element of protecting the peer-to-peer network. The digital printing press operates strictly according to a given encryption algorithm, which can only be changed by a general vote of network participants (fork).
The sha256 algorithm, on which mining of the patriarch of cryptocurrencies, Bitcoin (BTC), is based, was not created out of the blue. It is based on the SHA-2 hashing algorithm, which is used to create data transfer protocols on the Global Network (TCP/IP).
The sha256 algorithm is one of the SHA-2 hash functions. In this review, we will tell you how sha-256 mining works and what are the pros and cons of this crypto protocol.
What is the SHA-256 encryption algorithm?
The acronym SHA stands for " secure hash calculation ". This method of calculation ensures the protection of cryptographic data sets. After all, without a special code, which only the owner has, it is impossible to gain access to encrypted information.
The SHA-2 algorithm, of which SHA-256 is a subtype, was developed at the beginning of the third millennium by the US National Security Agency. The number 256 indicates the number of fragments that make up this cryptographic code.
A few years after its release, the Agency patented the second release of the SHA-2 algorithm under a Royalty-free , thanks to which the technology could be directed into a peaceful direction.
Namecoin
Namecoin is an experimental, open-source technology that improves the decentralization, security, censorship protection, privacy, and speed of certain Internet infrastructure components such as DNS and identity. Essentially, Namecoin is a key/value pair registration and transfer system based on Bitcoin technology.
If Bitcoin frees up money, Namecoin frees up DNS, identity and other technologies.
Features of the SHA-256 protocol
There is not a single method for optimizing the selection of a hash sum. The SHA-256 protocol, accepting certain ones, produces a completely unpredictable result. The search for the desired option is carried out by simply searching through all possible combinations. Finding the right hash is a matter of chance, but the greater the power of the computing equipment, the higher the chances that you will find it faster than other participants in the process.
To complete the story, let's add some complex technical information. The SHA-256 protocol fragments data into 256 shares, each containing 512 bits (64 bytes). The shares are mixed according to a certain cryptographic scheme, which is embedded in the algorithm, and as a result a special hash code of 256 bits is formed. Mixing information is repeated 64 times. It must be said that this is not so much compared to new crypto algorithms.
Technical parameters of SHA-256:
- Information block size: 64 bytes;
- Allowed length of one message: 33 bytes;
- Block hash signature size: 32 bytes;
- Number of mixes per round: 64;
- Network data transfer speed: about 140 MiB/s.
The algorithm is based on the Merkle-Damgaard ; the information array is divided into separate blocks, each of which has 16 parts. After completing 64 shuffles, the system outputs the correct hash sum, which serves as the starting point for processing the next block. The process is continuous and interconnected; it is absolutely impossible to obtain the code of a single cryptoblock without data about its predecessor.
Equihash
Anonymous cryptocurrency algorithm Equihash
Equihash
is an anonymous cryptocurrency algorithm that was released in 2016. The first cryptocurrency to use Equihash as a base was Zcash. Block creation takes 150 seconds and hashrate is measured in Megahash per second (MH/s). This algorithm is based on a hash function, which is built on the principle of the “Birthday Paradox” - this is a mathematical pattern that is used to calculate probability. The rule says:
If there are 23 people in a room, there is a 50% chance that at least two of them have the same birthday. Based on this pattern, the probability of finding a nonce during the mining process is 2, raised to the power N and divided by 2.
Peculiarities
This cryptocurrency algorithm was developed by Alexander Biryukov and Dmitry Khovratovich, scientists at the University of Luxembourg who are part of the CryptoLUX research group. In 2016, the development was presented to a wide range of people.
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Equihash is demanding on the amount of RAM, and not on the processing speed of mathematical calculations.
This makes mining “AI-resistant” and the network more decentralized. For mining cryptocurrencies running on Equihash, video cards with a minimum memory capacity of 2 GB
. The best results were shown by using NVidia brand GPUs.
However, ASIC devices have also been developed for Equihash mining. Today, the most popular are two models: Antminer Z9 mini from Bitmain and A9 ZMaster from the lesser-known company Innosilicon. Unlike the Monero team, the Zcash developers did not take any action to protect their cryptocurrency from centralized mining, but only expressed their disappointment.
We recommend an interesting video about mining using the Equihash algorithm:
Mining using the Equihash algorithm
Equihash Algorithm Coins
Cryptocurrencies of the Equihash algorithm
The most popular cryptocurrencies operating on the Equihash algorithm:
Zcash (ZEC).
Bitcoin Gold (BTG).
Komodo (KMD).
ZClassic (ZCL).
ZenCash (ZEN).
Bitcoin Private (BTCP).
How does hashing work?
Hashing is the conversion of any amount of incoming information into a digital code according to a predetermined scheme. The outgoing value is unique; with its help, you can always identify this particular array of information. The algorithm for creating an encrypted string (hash code) is called a hash function.
A valid number in the encrypted signature line of a Bitcoin cryptoblock must contain a certain number of zeros. At the time of writing the review, the number of zeros in the hash code of digital gold had already exceeded 17. Therefore, decoding sha256 is more difficult than searching for a specific grain of sand located at an arbitrary point on the globe.
Important! In principle, you can encrypt anything, even Lermontov’s poem “ Prisoner of the Caucasus ,” and the result will be a hexadecimal code like: c8ba7865a9x924590dcc54a6f227859z .
Encryption does not have retroactive effect; it will not be possible to convert the text from alphanumeric typing, but if at least one dot or space is changed in the poem itself, then the hash code of the work will be completely different. You can see this for yourself by visiting the site for automatic encryption https://crypt-online.ru/crypts/sha256/.
Dependency of blocks in the Bitcoin network
In the network of each cryptocurrency, including Bitcoin, blocks are an array of information about fund transfers for a certain period. Each of them has a unique hash code (signature).
As already mentioned, the cryptographic signature of the subsequent one follows from the hash code of the previous one, forming an integral system in which nothing can be changed or forged. Miners are constantly busy calculating the signature of a new block, and receive a reward only for the result.
Where is SHA256 used?
The SHA256 hashing algorithm generates a unique 256-bit hash of a fixed size. This function allows you to check the integrity of data.
It is used in various applications such as: digital signatures, password verification, hash code authentication, hacking protection and blockchain.
READ:
Why blockchain and cryptocurrency are not interchangeable terms. How does a private blockchain differ from a public one?
Using this algorithm, you can determine the integrity of the data. That is, the user can make sure that the downloaded data does not change and is in its original state.
For example:
Let's say you downloaded a Bitcoin wallet. You want to make sure it's original. To do this, you can simply compare your wallet hashes with the original one provided by the developer.
The algorithm is also implemented in some popular security applications and encryption protocols. One widely used application is TLS and SSL certificates for websites. In addition, it is used in SSH, PGP, IPsec and S/MIME.
Pros and cons of the algorithm
SHA256 has some advantages over other algorithms. This is the most popular mining algorithm among all existing ones. It has proven itself to be resistant to hacking (which does not happen often) and an effective algorithm for both mining tasks and other purposes.
There are also disadvantages:
- The main disadvantage of SHA256 currency is control by miners.
- Those with enormous computing power receive the bulk of the crypto, which eliminates one of the main principles of virtual money - decentralization.
- As investments began to be made in computing power for industrial mining of Bitcoin, the difficulty of mining increased significantly and began to require exceptional computing power. This disadvantage is corrected in other protocols, the most innovative and “tailored” for use in the mining of digital currencies, such as Script (for the Litecoin cryptocurrency).
Cryptocurrencies SHA256, like SHA512, are most protected from this negative point, but there is still a possibility of risk development. Miner on SHA256, like any other hashing, is the process of solving some complex cryptographic problem that is generated by a mining program based on information received from blocks.
Mining using the SHA256 hash function can be carried out in 3 methods:
- CPU.
- GPU
- ASIC.
In mining, the hash sum is used as an identifier of blocks that are already present, and the creation of new ones based on those that are available. The mining process is reflected in the interface as “accepted f33ae3bc9...”. Where f33ae3bc9 is the hashed amount, the part of the data that is required for decryption. The main block includes a huge number of hash sums of this kind.
That is, mining with the SHA256 algorithm means selecting the correct value of the hashed amount without stopping, enumerating numbers in order to create the next block. The more powerful the equipment, the greater the chances of becoming the owner of that very correct block: the speed of sorting through various kinds of amounts depends on the capacity. Because Bitcoin is built on the SHA256 algorithm, competitive mining on it requires extremely large computing power.
This is due to the fact that the production of ASICs, namely a special circuit for a special purpose, is enough to mine cryptocurrency. ASICS make it possible to mine Bitcoins and other cryptocurrencies using the SHA-256 hash function more quickly, efficiently and inexpensively.
SHA256 coins
Here is a list of popular cryptocurrencies for SHA256 mining. We rated them by popularity and network hashrate.
| Coin | Website | Pool |
| Bitcoin (BTC) | bitcoin.org | pool.btc.com F2Pool antpool.com |
| Bitcoin Cash (BCH) | bitcoincash.org | BTC.com bitcoin.com |
| Bitcoin SV (BSV) | bitcoinsv.io | emcd.io viabtc.com |
| DigiByte (DGB) | digibyte.io | F2Pool |
| Syscoin (SYS) | syscoin.org | mining-dutch.nl |
| Namecoin (NMC) | namecoin.org | F2pool |
| Peercoin (PPC) | peercoin.net | ZPOOL Zergpool |
Other SHA-256 based coins
Note: The coins below have very low 24-hour trading volume. They are rarely traded on exchanges and are difficult to sell.
- Litecoin Cash (LCC)
- Bitcoin Classic (BXC)
- Elastos (ELA)
- Auroracoin (AUR)
- Bitcoin Vault (BTCV)
- Super Bitcoin (SBTC)
- Pyrk (PYRK)
- EmerCoin (EMC)
- HTMLCOIN (HTML)
- Terracoin (TRC)
- Myriad (XMY) – Multi Algo
