When looking at different algorithms in the whole world whether it’s in an application or software, it always will be highly complex with its programming and stability, and because of that it will be very hard to solve. Scrypt, which acts as a password-based key derivation is one of the highly intensive algorithms that came to improve traditional algorithms, like the SHA-256. It is highly complicated for unauthorized users, which will take them to solve this algorithm forever and at the same time it will be an easy operation for the authorized users.

This is also one of the reasons Scrypt was formed as an alternative to Bitcoin’s SHA-265 algorithm. We will be looking more into the definition of the Scrypt Algorithm, the workings of the Scrypt algorithm, some of the cryptocurrencies that use the Scrypt algorithm for mining, and the difference between SHA-256 and the Scrypt algorithm.

What Is Scrypt Algorithm?

It was developed by Colin Percival in 2009 and was built for ASIC resistance, not allowing any high-end miners to mine the network with their advanced mining hardware. It gives an extra layer of security to the network because of its highly intense algorithm. The Scrypt algorithm allows miners to mine in a highly intense process. This technology helps the miners to get more rewards by solving all the confirmed transactions.

Litecoin was the first cryptocurrency that used the Scrypt algorithm instead of the commonly used SHA-256 algorithm. In the beginning, Litecoin resisted the ASIC and then came into working with ASIC mining to enhance more stable security. Dogecoin later explained the flexibility of the Scrypt algorithm and started to use the algorithm which enhanced its acceptability.

The Working Of Scrypt Algorithm

A person with little knowledge about mining or who never heard of the word probably thinks mining is a process of just creating new coins every single day. It is not limited to that segment only, it also examines the transactions of cryptocurrency in a blockchain network. The important function of mining is that it does not allow overspending of the digital currency on the network. Cryptocurrencies are mined with higher computer processors with special software that is made exclusively to crack all the complicated equations.

The Scrypt algorithm is a mining algorithm that generates random numbers that are then placed in the Random Access Memory (RAM) of the processor and then before submitting these, it will be evaluated. With this working style, it becomes tougher for ASIC mining. To make the Scrypt function smooth the infamous technique is to increase key derivation through complex memory function.

The first process of Scrypt hash is to hashing the password which means to convert the password into an obscure version of itself. It is done to resist all attacks or any breaches against passwords. Then create a cryptographic key that needs to be authenticated with the data.

When compared to Bitcoin, which is the pioneer of all cryptocurrencies and uses the SHA-256 hashing algorithm, Litecoin doesn’t use Bitcoin’s algorithm even though both Bitcoin and Litecoin use Proof-of-Work (PoW). Litecoin uses the Scrypt hashing algorithm which is a less resource-intensive algorithm set up. With the help of the Scrypt algorithm, Litecoin becomes more resistant to advanced mining hardware and also gets better support for the security and decentralization of its network.

Litecoin is a cryptocurrency that is also mined along with other prominent cryptocurrencies. The ASICs are usually used to mine Litecoin along with personal computers, but using personal computers limits its capacity. To mine Litecoin it is always advisable to join a mining pool, even though there is an option to mine with ASIC which is compatible with Scrypt because it gives more rewards to its users even though there is splitting of these rewards between the members of the pool.

Cryptocurrencies That Use Scrypt Algorithm

• Litecoin-LTC: An open-source worldwide reachable decentralized network. It gives a faster transaction confirmation and makes the users capable of managing their finances.
• MonaCoin-MONA: Unlike any other payment system that is controlled by only one group, the payment systems are fully conceived by those who use the client application that is running on their computer. This was a stand-alone cryptocurrency that gained popularity only because of its active participation from its community.
• Einsteinium-EMC2: To help scientific research by funding them, and also enhancing the capabilities of cutting-edge IT and crypto projects, Einsteinium has become a PoW currency that has a lot of potential to achieve its missions.

SHA-256 Vs Scrypt

Even though both SHA-265 and Scrypt are cryptographic algorithms their purpose and characters are different from each other. Let’s look more closely at these differences

SHA-256

These are usually used for the integration of data, digital signatures, and cryptocurrencies. No matter what the size of the data of the input data, these produce the same fixed-size hash value which is 256 bits. These typically function as a hash with fast and efficient, which can be used for any number of applications also including blockchain technology. It defends against the unfortunate collision of two different inputs giving the same hash and also defends attacks from the complications of finding an input with hashes to a specific output.

Scrypt

It functions in a way with key derivation which is often used in cryptocurrency mining, majorly in Litecoin, password hashing, and also generating of security key. It is formed to be more powerful in memory usage to defend against hardware attacks, majorly against ASICs. It is typically slower than SHA-256 because of its memory set up which is necessary for its function to defend against major attacks. It performs well against all attacks because of the high-processing memory and computational power which shows its powerful security all along.

Conclusion

Many algorithms have been present in the digital world which performs highly intensive processes and these all are trying to be better than one other which also increases the competition. Even though the most used and famous one in the world of algorithms is SHA-256, after a certain point of time there has been a major change in the sprouting of newer algorithms with more efficiency than the prior. One of the interesting innovations was Scrypt, which started in a completely different direction it slowly came to the front end and found a place in the cryptocurrency market. A more secure and different experience altogether to safely store files, and wallets and create passwords for the applications, Scrypt became an alternative option for SHA-256 and conserving the integrity and security of online transactions.