Dogecoin is a fun, new and rapidly growing form of digital currency.
The Coinpursuit site explains in more detail: SHA-256 and Scrypt are the two most common algorithm systems used by cryptocurrency miners in order to authenticate blocks of transaction data.
The system used, unfortunately, is not up to the miners; it's set by the developers of a given type of currency.
When you go to cryptocurrency discussion boards and forums, you'll find there's a vigorous debate between the two algorithms.
We'll look at the two types, and the arguments being made for and against them.
Before jumping into that, however, let's talk hash in a little more detail.
The term refers to complex mathematical computations that are required in order for successful mining to take place, and you'll often see "hash rates" listed along with hardware created for digital currency mining.
The higher the hash rate required for successful mining, the longer and more difficult the process will be for miners; this is expressed as the "hash difficulty" of a given type of currency.
Here are some of the hash rate abbreviations you'll see, and what they mean: When you start counting in the quadrillions (that's a one followed by fifteen zeroes, or 1,000,000,000,000,000), you're talking about almost incomprehensible numbers-and that many computations will take some serious machinery, well beyond the capability of desktop and laptop computers.
Generally speaking, once the hash difficulty is up in the GH/s territory or higher, the energy, time and resource dedication required can become prohibitive for many individual miners.
As a result, they'll need to consider either application-specific integrated circuits (ASICs), which are chips and dedicated units that exist solely for mining purposes and can be attached to existing computers, or separate high-power mining machines altogether.
As hash difficulty increases, so do the hash rates required in order to successfully mine coins.