Best ETHASH Cloud Mining Companies
What is Ethash algorithm?
Ethash is the hashing algorithm used for the Ethereum-based blockchain currencies. It is using an alternative version of SHA3-256 and SHA3-512 hashing algorithms and it has been designed in a way to be ASIC-resistant but still easily verifiable for the network. Ethash is a Proof of Work algorithm which claims that the algorithm is ASIC resistant due to the high memory need of the calculation process.
For each block of the transaction, computers are hashing repeatedly. This is similar to guessing the correct solution. If the miner finds a hash that matches the current target, the miner will be awarded Ether. Ethereum is currently using Proof of Work algorithm, but later on, ETH will use Proof of Stake which could mean that distributed consensus can be achieved with fewer resources. This could have an effect on the cryptocurrency mining.
Ethash is part of the SHA algorithm family which stands for Secure Hash Algorithm. The documentation of Ethash is very good and maintained up to date, so it is easy to build new applications based on it.
Which coins are using ETHASH?
The most popular cryptocurrency using Ethash algorithm is Ether. Ethereum was designed by Vitalik Buterin who had the vision to build decentralized applications on a network of computers. The value token of the Ethereum blockchain is called Ether.
With the help of the Ethereum Virtual Machine and smart contracts, hundreds of Ethereum based ERC-20 tokens exists now which are using the same Ethash algorithm as the Ether.
Ethereum also had a hard fork event in 2016, when a chain split has created Ethereum Classic, a new cryptocurrency, which has different features compared to Ethereum, but still using the same Ethash hashing algorithm.
Which hardware can you use for mining with ETHASH algorithm?
Although it is possible to build ASIC Miners for running Ethash algorithm it but it is not efficient currently mining based on this because of the high memory usage.
CPU and GPU based mining rigs with sufficient amount of RAM provide profitable cryptocurrency mining solutions.
It is important to take note of the future development of Ethereum which is expected to change from Proof of Work system to Proof of Stake. During the PoW setup, a lot of computational power is used to solve the problems based on the Ethash algorithm for creating the blockchain. The miners’ rewards are depending on the amount of work, so how quickly the transaction hash was calculated as the quickest gets the block reward. However with the PoS system, the transaction validation moves away from solving problems, it instead will be based on how much Ethereum you own through the creation of master nodes. This will change the way Ethereum is being mined in the future, the exact date of the Proof of Stake system is still unknown.
- efficient ASIC miners are not currently available
- suitable for homemade mining rigs
- need special knowledge to assemble a mining rig
- proof-of-work vs proof-of-stake future development to happen