While most people will have probably heard about Vertcoin, not everyone is aware they have recently changed their mining algorithm. Vertcoin has always prided itself on being an ASIC-resistant digital currency, and therefore launched with the Scrypt-N algorithm, which reduces mining efficiency over time.
As digital currencies need to keep evolving over time in order to stay relevant and ahead of the curve, the VTC developers felt a change in mining algorithm was in order. And not just to a regular mining algorithm we have all heard about, but they chose for the Lyra2RE algorithm. Lyra2RE is a new Proof-of-Work algorithm for an ASIC-free future.
Lyra2RE – A Brief Description
There is a certain similarity between the Scrypt-N and Lyra2RE mining algorithms, as they both reduce (mining) efficiency over time. However, Lyra2RE is NIST5-based , and comes with customizable parameters which come in handy when making Vertcoin ASIC-proof now, and in the future.
Several of our readers might be wondering why the change in mining algorithm was necessary. Even though Scrypt-N was ASIC-proof when it was implemented as Vertcoin’s mining algorithms, mining hardware has evolved ever since. As a result of the mining hardware weapons race, there are Scrypt-N ASICs available on the market.
On top of that, Lyra2RE offers another major advantage over Scrypt-N, as it consumes far less power, and offers lower GPU temperatures to boot. Furthermore, Lyra2 allows the Vertcoin developers to change memory usage and time cost independently.
Most mining algorithms are chained algorithms, consisting of different hash functions. For example, X13 has 13 different hash functions, X15 has 15 hash functions, X11 has 11 hash functions, and so forth. Lyra2RE consists of 5 different hash functions : Keccak, Skein, Groestl, Blake and Lyra2.
The big difference between Scrypt-N and Lyra2RE is that Lyra2RE will not be using an “N schedule” at this point in time, simply because we have no idea what the (near) future will have in store for cryptocurrency enthusiasts. In the event that implementing an “N schedule” would become necessary, Lyra2 offers that flexibility.
For more information, make sure to check out the Lyra2RE whitepaper :