The most popular cryptocurrencies on SHA-256:
- Bitcoin Cash
Many people are interested in what are the basics of cryptocurrencies, but not everyone knows about cryptography. To understand the processes of the Bitcoin Protocol, you need to learn all the terminology of cryptography. We will understand the article in the classical cryptographic algorithm SHA-256. It is the basis of bitcoin mining.
What is this cryptographic algorithm
Due to the increasing demand for the cryptocurrency, there are more and more people willing to extract them. to date, there is a huge amount of electronic money. To earn coins, the challenge is to get a fixed length from an arbitrary set.
Engaged in the mining of cryptocurrencies by using a cryptographic algorithm SHA-256, it is possible to solve this problem, using CPUs or GPUs, or at least a dedicated processor. The program’s interface displays the conversion process, which is intended for mining. The hash, in this case, is, for example, 0aef41a3b, defined in the string “Accepted 0aef41a3b”.
This is the answer to why you have to solve a lot of problems with the help of search before you find a suitable hash to form a new block. We need one that starts with a certain number of zeros. You have a little chance that the randomly generated hash will have as many zeros as it suits us. Despite the fact that these zeros should be at the beginning of the series.
The process of mining cryptocurrency
How much exactly do we need zeros? This indicator should be determined by the complexity indicators set by the mining pool. It is impossible to determine prematurely, to get a suitable hash or not. This process is a bit like a lottery but in the virtual world. Here the machine calculates the winning combinations faster than men.
Some people think that it will require powerful equipment. There is some truth to this, because of the more powerful the software, the better the chances of getting coins. It is important to understand that you are not the only one who is engaged in such work. Some have the more powerful equipment. But do not give up prematurely, because everyone has a chance to win.
This can be compared to the person who bought one lottery ticket with another who has 10. In the second case, the chances are much higher, but the first player also has the opportunity to break the jackpot. But the more tickets (in our case, more powerful equipment), the higher the chances of success.
On the basis of this cryptographic algorithm, most ASIC miners and other equipment intended for mining cryptocurrency have been developed.