Each cryptocurrency uses its own specific encryption algorithm that is decrypted by the mining equipment that ensures the proper functioning of the blockchain and processing of the transaction and gets rewarded with certain cryptocurrency coins.
Some algorithms are more popular and are used for several different cryptocurrencies. Currently, the most popular cryptographic encryption algorithms are the following: DaggerHashimoto, Scrypt, SHA256, ScryptNf, X11, X13, Keccak, X15, Nist5, NeoScrypt, Lyra2RE, WhirlpoolX, Qubit, Quark, Axiom, Lyra2REv2, ScryptJaneNf16, Blake256r8, Blake256r14, Blake256r8vnl, Hodl, Decred, CryptoNight, Skunk, Lbry, Equihash, Pascal, X11Gost, Sia, Blake2s.
As you can see, the list of algorithms is very large, so we are going to tell you more about the most popular and reliable ones:
SHA256. This particular algorithm served as a basis for the classic bitcoin. The GPU mining on this algorithm is no longer relevant because the Chinese have developed a special device called ASIC (Application Specific Integrated Circuit). Many other cryptocurrencies, which are similar to Bitcoin (for instance, the newly emerged Bitcoin Cash) are based on this algorithm.
Scrypt is an algorithm of Litecoin, which is also known as “digital silver”. During the times when ASIC operated only on SHA256, this algorithm served as a good alternative. However, with the emergence of Scrypt-ASIC, this algorithm became inaccessible for the majority of miners.
Ethash (DaggerHashimoto). This encryption algorithm was applied in Ethereum. It works efficiently with graphics cards with plenty of RAM, preferably in combination with AMD microprocessors, though Nvidia of the 10th series is also able to handle DaggerHashimoto.
X11. Used in Dash, accessible only for state-of-the-art graphics cards. The first ASIC miner for Dash will appear on the market at the beginning of 2018.
Decred. The modification of Blake256 algorithm; used in Decred. It is possible to mine on graphics cards using this algorithm. The Decred mining is usually launched simultaneously with DaggerHashimoto using Claymore’s Dual Miner software.
CryptoNight. Monery is the cryptocurrency that works on this algorithm. The significance of this algorithm lies in the fact that it is rather easily mined on processors. As of now, Inter Xeon E3 generates around 25 cents a day (comparable to the output of Intel Core i7). The profit is pathetic, though it is important for a crypto investor to make sure that all of his/her devices are engaged in mining, even in the background mode.
Equihash. The basis for Zcash which is a popular cryptocurrency among those who are engaged in GPU mining due to the fact that the difficulty of the Ethereum network (the leading currency for GPU mining) has rapidly increased.
X11Gost. This algorithm is the basis for Sibcoin, which is also called “Siberian Chervonets”. In essence, it is a fork, the Russian equivalent of Dash. Without going into details about cryptography, we would like to note that this algorithm is based on a hash function that complies with GOST R 34.11-2012.
Cryptocurrency encryption algorithms
Bitcoin. The leader among other digital currencies which is recognized by a plethora of legal entities, even the European Union.
Ethereum. The main concept is to create the computing capacities that will provide means for realization of almost any digital project.
Steemit. Multimedia content that can be posted from other web hosts.
Ripple. Cryptocurrency that was created for banks to make transactions faster and more secure.
DigiByte. Designed to eliminate the flaws of Bitcoin & Litecoin.
Monero. Designed for anonymous cash transactions.
Siacoin. The main concept is data storage.
Litecoin. In essence, Litecoin is a clone of Bitcoin, only with faster transactions.
Ethereum Classic. No different from Ethereum, only costs a lot less. Perhaps the guys from the initial Ethereum team had some sort of grudge between them and decided to part ways.
Dogecoin. Its algorithm is a total copy of Litecoin with some minor alterations. This coin has gained popularity due to large investments in advertising as well as its symbol which depicts a dog that is famous in narrow circles.
NEM. This cryptocurrency provides its own notarial certification service and allows users to make instant payments and money transfers around the world without high fees. All wallets are well-protected, which excludes the chance of unauthorized access.
Syscoin. The most unusual encryption algorithm which is designed for decentralized trade. Syscoin is not a cryptocurrency plus a platform, it is a platform that is integrated into a cryptocurrency.
Augur. Uses computing capacities to make financial forecasts.
Dash. Allows to fully exclude the possibility of tracking down the sender. The user can choose not to use this coin and carry out transactions on a direct basis.
Bytecoin. Protects the user’s funds with the most up-to-date and secure algorithms which are impossible to hack. Even an attemptde hacking would require a huge consumption of expensive electricity and the processing power that is incidental only to supercomputers. Only you can have the access to your wallet, at least, that’s what developers say.
BelaCoin. Allows you to get paid for the publication of photographs.
IbryCoin. Ibry allows users to create and share such content as music, movies, art, etc. While downloading content on the platform, the user can set a fee for the access to this content.
Radium. The objective of Radium is to use the blockchain capabilities to provide various 100% decentralized services.
Decred. A hybrid PoW/PoS consensus system which is aimed at installing the balance between PoW miners and PoS voters in order to create a more credible definition of consensus.
Einsteinium. Similar to Kickstarter, only aimed at scientific start-ups.
Gridcoin. The system that helps resolve different issues in medicine, biology, mathematics, climatology, astrophysics, and other areas of science by uniting the computing capacities.
VertCoin. Positions itself as a fork that is fully protected from ASIC miners. Stands against the monopolization of mining.
Dashcoin. An anonymous cryptocurrency of the next generation: it’s network code always updates itself with minimal development costs and almost 0% protocol errors.
Potcoin. Represents the legal marijuana industry.
Peercoin. Provides an interesting opportunity acquiring the coin not only through GPU mining but also by generating new coins from the ones already stored in the wallet.
Namecoin. Censorship is the main area of usage of Namecoin, or a stable upper-level domain name .bit which is functionally similar to .com and .net, though not dependable on ICANN, the main regulator of domain names.
Nautiluscoin. The main objective of this coin is to prove that digital currencies can become reliable investment assets.
Expanse. The idea behind Expanse is to use the most innovative blockchain technology to create everything that the community and the team can provide. It can be achieved by employing the decentralized autonomous organization with the self-financing design that will adhere to the concept of true decentralization.
PinkCoin. The cryptocurrency that was created on the Ethereum platform and backed by the colored diamonds which is perceived as a stable asset.
FoldingCoin. Uses your computer to simulate the process of protein folding in the human body. The results of this research will be used for the production of new medications and development of new treatment methods. Perhaps you will contribute to making discoveries in medicine, and protein studies in particular, as well as the treatment of deadly diseases.
Navcoin. With the additional use of NAVTech and Tor, you can protect your identity when making private purchases on the Internet.
Dnotes. It is a peer-to-peer decentralized cryptocurrency for online transactions which provides means for making immediate payments to anyone anywhere in the world. The developers say that it is fast and secure with minimal fees.
Vcash. This cryptocurrency is considered to be innovative and promising. It prevents eavesdropping and censorship and facilitates decentralized, energy efficient and instantaneous network transactions.