What is the Ethash Algorithm & Top Ethash Coins to Mine?

Ethash Algorithm Explained

Originally designed to be memory-hard, the Ethash algorithm demands a significant amount of memory to conduct hashing operations. Its design is intended to make it ASIC-resistant, emphasizing a fairer distribution of mining rewards. For instance, ASICs have the excellent computational power to outperform general-purpose devices like CPUs or GPUs, but memory access is similar to that of GPUs.

However, along with technological advancements over the years, we now have advanced ASICs that are finely optimized for the Ethash algorithm. Those ASICs come with excellent hash rates and energy efficiency, enabling miners to solve complex cryptographic puzzles successfully within the stipulated time and mine Ethereum Classic (ETC) coins.

Origin of Ethash

To know more about Ethash and how it works, first, you need to understand its initial version of it, Dagger-Hashimoto. The two fundamental characteristics of Dagger-Hashimoto are (i) ASIC resistance and (ii) Highly efficient and readily verifiable.

The above said two significant factors determine Dagger-Hashimoto operations. Dagger-Hashimoto is the combination of two different algorithms. The dagger algorithm was developed by Vitalik Buterin, and the Hashimoto algorithm was developed by Thaddeus Dryja. It uses directed acrylic graphs (DAG) to construct a massive data structure. Though the structure used more than 1 GB of storage, now it needs around 4 to 5 GB.

The DAG structure allows a series of memory calculations to be executed that add a high level of work. Moreover, the structure facilitates the Hashimoto algorithm to run an efficient mining process. The Hashimoto algorithm further adds ASIC resistance while mining hash functions. It is achieved by making it have a high consumption of RAM as this is a limitation of ASICs.

The Hashimoto algorithm ideally takes the generated DAG then includes the network information, mining difficulty, and transactions, and generates a hash that identifies the block that is mined currently.

The combination of Dagger and Hashimoto algorithms gives a single algorithm that poses a challenge to ASIC miners with robust ASIC resistance. Additionally, the DAG structure is advanced and secure enough to be implemented as an alternative to the Scrypt algorithm.

Despite all the advanced features, Dragger-Hashimoto suffered some flaws that eventually led to the development of the Ethash algorithm.

How does the Ethash Algorithm Work?

The development team of Ethereum came up with the Ethash algorithm due to the limitations they faced with the Dagger-Hashimoto algorithm. Though the operation of the Ethash algorithm is different from the Dagger-Hashimoto, the basic principles are still the same. Now, let’s understand how Ethash works.

A calculated seed is produced based on the block headers through to where mining starts.
This seed is subsequently employed to compute and create a 16 MB pseudorandom cache.

This cache is subsequently utilized to create a data set of over 4 GB (the DAG). This data set is semi-permanent and refreshed every 30 thousand blocks. Thus, the DAG changes for every “mining season”.

After the DAG has been created, mining commences. This operation involves taking random values ​​from the DAG and merging them based on the data provided by the network and the transactions to be confirmed.

Lastly verification is performed with a process that rebuilds parts of the dataset with the aid of the cache memory, accelerating this process.

This is the operation that is currently being executed and is version number 23 of the algorithm. During the process, the Keccak-256 and Keccak-512 functions are utilized, an algorithm from which the SHA-3 standard was adapted.

Now, you may wonder why there are so many changes and revisions. The reason for that is that these changes are answering problem solutions, vulnerabilities, optimizations, and adjustments to make work more difficult for ASICs and more user-friendly. Hence, many miners say GPUs are ideal for Ethereum mining.

Characteristics of Ethash Algorithm

Ethash is well-known for preventing potential attacks while enhancing the security of the blockchain network. Here are some of the key characteristics of the Ethash algorithm.

• Memory-Hardness

  Ethash is a memory-hard algorithm that demands a significant amount of memory to validate ETC transactions and mine new blocks, which helps maintain a decentralized blockchain.

• Dagger-Hashimoto Structure

  Ethash is a combination of two algorithms, namely Dagger and Hashimoto. Thus, it is unique and gives the benefit of both algorithms. Simply put, it is a highly secure and efficient hashing algorithm.

• Directed Acyclic Graph

  Ethash generates a pseudo-random dataset called the Directed Acyclic Graph (DAG), which is updated frequently, like every 30,000 blocks, which takes around five days. That, in turn, prevents pre-computation attacks while ensuring the mining relies on memory.

• Mining Difficulty Modifications

  Ethash frequently regulates the mining difficulty to maintain a consistent block time. Thus, the network remains active to mining power regulations and maintains stable block times.

• ASIC Resistance

  The Ethash algorithm’s memory hardness makes it ASIC-resistant. The algorithm was initially designed to prevent the centralization of mining power. However, advanced ASICs finely programmed for the Ethash algorithms are now available to mine Ethash successfully.

What Makes the Ethash Algorithm Unique?

Here are some distinct features that make the Ethash algorithm unique.

1. It relies very much on operations in RAM, with high bandwidth usage. It is a protection against ASICs and is also fundamental to the normal operation of Ethash. Operations needed to construct the DAG and the Ethash working cache depend very much on these features.
2. It is a GPU-friendly algorithm. Of course, you are aware that modern graphics cards or GPUs possess a gigantic capacity. Actually, transferring graphics, such as those in modern games, demands enormous amounts of memory and unmatched parallel processing.This is an advantage if you mine using Ethash since you can utilize the GPU memory to store the whole DAG in memory and the cache and do all calculations in a fast workspace. Thus, you have the capacity to mine much faster.
3. It provides great verification functionality for thin clients. With approximately 16 MB of RAM, it is easy to design a thin client that can verify transactions quite easily and in a very short time. Besides this, a thin client can be installed and operational and carry out the verification process within 30 seconds.

Pros and Cons of the Ethash Algorithm

Ventajas

• The Ethash algorithm is simple, safe, and practical to implement. Its ASIC resistance nature makes the entire mining process more decentralized, encouraging everyone to participate in Ethash mining without sophisticated equipment like ASICS.
• It is much faster than other algorithms. Additionally, its DAG structure in memory, cache, and the Keccak function make the algorithm more efficient in block production. Thus, Ethereum can be flexible on production time depending on the needs of the network in real time, ensuring a perfect balance between security and scalability.

Contras

• The ASIC resistance was no longer a thing when Bitmain launched its first Ethash ASIC miner in 2018. However, many consensus mechanisms have been sought to further centralization of mining on Ethereum. Nevertheless, the construction of Ethereum 2.0 predicts the phasing out of the Proof of Work (PoW) and, with it, Ethash as a mining algorithm for a Proof of Participation (PoS).
• Your DAG’s high memory requirement makes it extremely hard to mine on more modest hardware.
• The manner in which he scales the difficulty of the algorithm has led Ethereum to the doorstep of the popular “Ice Eras.” A threshold where Ethash’s difficulty system would render mining unfeasible for any miner to attempt. This is a critical threat to the security of the Ethereum blockchain.

Ethash Use Cases

Ethash has significant advantages over other blockchain technologies, which makes it ideal for the following projects.

1. Smart Contracts

Smart contracts are digital contracts directly written in the blockchain and executed when predefined conditions are met. In short, they are self-executing automatic contracts that do not need third-party validation. Hence, smart contracts are decentralized, reliable, and secure on the Ethash blockchain.

2. Non-Fungible Tokens (NFTs)

Non-fungible tokens (NFTs) are assets tokenized on blockchain. They represent any asset from art, content, media, etc. Hence, artisans and content creators often leverage NFTs to acquire irreversible digital certificates. Ethash provides digital certificates for these assets, and the NFTs are traceable on the Ethash blockchain, representing ownership.

3. Decentralized Apps (dapps)

Ethash blockchain is well-known for decentralized apps. Dapp leverages smart contracts for its logic and Ethash blockchain for data storage. Ethash is the widely used blockchain for decentralized apps. Businesses prefer dapps for their privacy, zero downtime, irreversible ownership, security, and data integrity.

4. Payment Gateways

Ethash blockchain is ideal for daily transactions, allowing global transactions without charges. Payment gateways integrated with Ethash enable users to store their funds in the account and convert the tokens into fiat currency for transactions.

5. ICO Platforms

One of the most crucial use cases of the Ethash blockchain is crowdfunding through initial coin offerings (ICOs). Businesses have launched ICO platforms, helping users create new digital currencies. Thus, consumers, developers, and investors can leverage digital currencies for various purposes.

6. Digital Identity Management

Cyber threats and identity thefts are common in this digital age. Attackers steal sensitive information and misuse it. Ethash encourages users to create digital identity management through decentralized identifiers and embedded encryption.

Principales monedas de Ethash para extraer

Here are some of the top mineable Ethash coins, according to CoinLore.