Question

How does Litecoin's Scrypt algorithm differ from Bitcoin's SHA-256 algorithm?

Answer 1

The primary difference between Litecoin's Scrypt algorithm and Bitcoin's SHA-256 algorithm lies in their computational complexity and memory requirements.

1. Scrypt Algorithm (Litecoin):

• Scrypt is a memory-hard algorithm designed to be resistant to specialized hardware, such as ASIC miners.
• It requires a large amount of memory to perform mining calculations, making it more accessible to individual miners using consumer-grade hardware.
• Scrypt aims to promote a more decentralized mining ecosystem by leveling the playing field between miners.

1. SHA-256 Algorithm (Bitcoin):

• SHA-256 is a computationally intensive algorithm that is well-suited for ASIC mining hardware.
• It focuses on fast computation and is less memory-intensive_