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- 1 CryptoNight is a highly efficient PoW mining algorithm that has gained huge popularity lately.
- 2 Adapted by Monero first, the algorithm shares quite a few similarities with Bitcoin.
- 3 Experts shed light on the significance of this network in the advancements of crypto space.
Algorithms play a pivotal role in the digital space. They determine how a particular application is going to function. From the basic functionality to specific attributes, these sets of codes do all the decision-making. They become an instrumental player in the crypto domain as well. In the blockchain sphere, everyone calls these programs mining algorithms. The most common examples are Proof-of-Work (PoW) and Proof-of-Staking (PoS).
These two are the most prevalent mechanisms for crypto miners. But the decentralized space is evolving and the shift hasn’t left the algorithms untouched. As a result, the blockchain community is seeing some new and advanced mining algorithms today.
CryptoNight: In a Nutshell
CryptoNight is one of the fastest mining algorithms based on PoW. Developers created this ASIC-resistant program for CPU and GPU mining. It prevents the centralization of mining power and makes the process more efficient. The distinct protocol deploys a combination of hashing functions which are Keccak and CryptoNight. They are both cryptographic hash functions based on Advanced Encryption Standard (AES).
Notably, AES is a military-level algorithm that makes the blockchain indomitable. Consequently, CryptoNight has become a preferred network for those who prioritize security. Monero is the first coin that used this algorithm for its blockchain consensus. As Monero grew and prevailed, CryptoNight’s reputation also increased by leaps and bounds. The creator of CryptoNight is known by the pseudonym Nicolas van Saberhagen.
As per many blockchain experts, its creation is spectacular and it even reminds one of Bitcoin. Some even believe that the creator of Bitcoin and CryptoNight is the same person. What corroborates their claim is the release date of both networks i.e. December 12, 2012. CryptoNight is a part of the CryptoNote consensus protocol. The latter works as a privacy tool that facilitates ring signatures, and non-linkable and confidential transactions.
A Peep Into CryptoNight’s Working
CryptoNight works on the CryptoNote consensus protocol. The latter ensures the anonymity of the transaction while strengthening privacy. Though the former is GPU-mining friendly, it becomes a perfect choice for CPU mining. The 64-bit fast multipliers deliver maximum speed. With CPU architecture, the platform optimizes CPU cache usage and brings high efficacy.
It works in three easy steps that one must understand:
Creation of Scratchpad
In this step, the network stores a large memory with intermediate values during a hashing function. It hashes the first input data with the Keccak-1600 hashing function. It generates 200 bytes of random data.
Encryption Transformation
It then transforms the first 31 bytes of Keccak-1600 hashes into the encryption key for an AES-256 algorithm. This lot acquires the highest value within the AES family.
Final Hashing
The last step involves synchronizing the data created by AES-256 with the rest of the hash functions. The final hash contains a total of 64 characters or a 256-bit extension.
CryptoNight was introduced as an alternative to ASIC miners. It brought CPUs and GPUs to the fore while enhancing scalability and security. Besides Monero, Bytecoin, Electroneum (ETN) and many other projects are using this architecture. It certainly proposes positive changes that can change the game for the better.
Mr. Pratik chadhokar is an Indian Forex, Cryptocurrencies and Financial Market Advisor and analyst with a background in IT and Financial market Strategist. He specialises in market strategies and technical analysis and has spent over a year as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the Financial markets.
