Ethereum: Understanding the bases of mining bitcoin operating algorithms

When it comes to extracting cryptocurrencies, the understanding of the basic algorithms is crucial to any investor or passionate about understanding the technical aspects of blockchain technology. An aspect that is often neglected is the Bitcoin mining algorithm used by Ethereum. In this article, we will immerse ourselves in the basis of the Mining Bitcoin algorithm and how to compare ourselves with its cousin, Ethereum.

Bitcoin operating algorithm **

Bitcoin’s mining algorithm was designed to solve complex mathematical problems, which contributed to checking transactions on the net and creating new blocks. The algorithm is known as the Sha-256 (Second 256 sales algorithm). Here is a simplified process of process:

• Creating the block : A miner creates a block containing a number of unconfirmed transactions.

• Hash

  function: Miner generates a unique hash for each block, acting as a fingerprint.

• Proof of works : Miners compete to find a hash that meets the specific requirements (for example, a certain number of main zeros). This is known as work proof (POW).

• Validation of the block : Once a valid hash, the miner transmits it on the net and creates a new block.

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Ethereum mining algorithm

Ethereum, on the other hand, uses a more complex algorithm called ETHASH (also known as Keccak-256). This algorithm is designed to be more energy and scalable of the SH-256 of Bitcoin. Here is a high -level overall image of the Ethereum extraction process:

• Creating the block : A miner creates a block containing a number of unconfirmed transactions.

• Hash function: Miner generates a unique hash using the Ethash algorithm, which is based on the Hashing Kecak-256 algorithm.

• Proof of works : Miners compete to find a hash that meets the specific requirements (for example, a certain number of main zeros). This is known as work proof (POW).

• Validation of the block : Once a valid hash, the miner transmits it on the net and creates a new block.

• Reward : Miner who created the block is rewarded with new -invented

Comparison

While both Bitcoin and Ethereum use Sha-256 as a mining algorithm, there are some key differences:

* Energy efficiency : Ethash is more energy efficient in Bitcoin, which makes it a better choice for performing processing environments.

* Scalability

: The time of creating the Ethereum block is faster (about 14 seconds) compared to that of bitcoin (about 10 minutes).

* Adjusting difficulty : Ethereum can adjust its difficulty in real time, while the difficulty of bitcoin is fixed.

In summary, the Mining Bitcoin algorithm is easier and more efficient in terms of Ethash’s ethhash. However, the time of creating the Ethereum block and the general performance make it a more practicable choice for certain cases of use. As in the case of any cryptocurrency, understanding the basic mechanics of the algorithm can help investors and fans to make the knowledge of their investments.

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