Mining Algorithm Comparison

Compare SHA-256, Scrypt, Ethash, RandomX, and other mining algorithms. Learn which hardware each algorithm requires and which coins you can mine with ASIC, GPU, or CPU.

Every coin has a mining algorithm. Every algorithm has ideal hardware.
Compare SHA-256, Scrypt, Ethash, RandomX, and more at a glance.

Mining algorithms determine what type of hardware you need to mine a cryptocurrency. Some require specialized ASIC machines, others work best on GPUs, and a few are designed specifically for CPU mining. Understanding these algorithms is essential for choosing the right mining strategy and maximizing your return on investment.

Algorithm Overview

SHA-256

ASIC
Bitcoin Bitcoin Cash Bitcoin SV

Efficiency

20-30 J/TH

Hardware Cost

$2K-$15K

The original Bitcoin algorithm. Dominates the mining industry with the highest total hashrate. Latest ASICs achieve under 15 J/TH efficiency.

Scrypt

ASIC
Litecoin Dogecoin

Efficiency

0.5-1.5 W/MH

Hardware Cost

$3K-$20K

Memory-intensive algorithm supporting LTC+DOGE merge mining. Originally ASIC-resistant, now dominated by specialized hardware.

Ethash

GPU
Ethereum Classic

Efficiency

0.5-1 W/MH

Hardware Cost

$300-$2K

Memory-hard algorithm requiring large DAG files. Since Ethereum moved to PoS, Ethereum Classic is the primary Ethash chain for miners.

kHeavyHash

ASIC
Kaspa

Efficiency

10-20 J/TH

Hardware Cost

$5K-$25K

Kaspa's algorithm using optical matrix computation. Rapidly growing ASIC ecosystem with multiple manufacturers competing on efficiency.

RandomX

CPU
Monero

Efficiency

300-500 H/W

Hardware Cost

$200-$800

Designed to be ASIC-resistant by leveraging CPU instruction sets. Anyone with a modern CPU can mine Monero competitively.

Blake3

ASIC/GPU
Alephium

Efficiency

Varies

Hardware Cost

$300-$5K

Ultra-fast hashing algorithm. Currently mineable with both GPUs and emerging ASICs. Alephium uses a sharded UTXO model for scalability.

Equihash

ASIC
Zcash Horizen

Efficiency

10-20 Sol/W

Hardware Cost

$3K-$10K

Memory-hard algorithm based on the generalized birthday problem. ASICs now dominate, though different Equihash variants exist (200,9 for ZEC).

X11

ASIC
Dash

Efficiency

5-15 J/GH

Hardware Cost

$1K-$5K

Chains 11 different hash functions sequentially. Designed for energy efficiency compared to SHA-256. Now fully ASIC-dominated.

What Is a Mining Algorithm?

A mining algorithm is the cryptographic puzzle that miners must solve to add a new block to the blockchain. Each cryptocurrency chooses an algorithm based on its goals: some prioritize security and decentralization, others aim for energy efficiency or resistance to specialized hardware.

The algorithm defines the mathematical function that miners' hardware must compute billions of times per second. The first miner to find a valid solution wins the block reward. Different algorithms favor different types of hardware, which is why you can't use a Bitcoin ASIC to mine Monero, or a CPU to efficiently mine Bitcoin.

ASIC vs GPU vs CPU Mining

The three main categories of mining hardware serve different purposes and offer different trade-offs in cost, efficiency, and flexibility:

ASIC (Application-Specific Integrated Circuit)

Custom-built for one algorithm. Highest efficiency and hashrate, but zero flexibility — when the coin dies or the algorithm changes, the hardware becomes worthless. Dominates SHA-256, Scrypt, and most mature algorithms. NoxHash's fleet includes the latest ASIC miners for maximum efficiency.

GPU (Graphics Processing Unit)

Versatile hardware that can mine many different algorithms. Lower efficiency than ASICs but can switch between coins. Good for algorithms that are designed to be ASIC-resistant, like Ethash. Can also be resold to gamers if mining becomes unprofitable.

CPU (Central Processing Unit)

The most accessible option — every computer has a CPU. Only competitive for algorithms specifically designed for CPU mining (like RandomX for Monero). Lowest barrier to entry but also lowest earnings potential for most coins.

Choosing the Right Algorithm

Your choice of algorithm should be guided by several factors: the hardware you already own (or plan to buy), your electricity cost, the coins you want to mine, and your risk tolerance. ASIC mining offers the best efficiency but locks you into a specific algorithm. GPU mining offers flexibility but at lower efficiency. CPU mining has the lowest barrier to entry but the smallest profit margins.

For most serious miners, SHA-256 (Bitcoin) remains the most profitable algorithm due to Bitcoin's dominant market cap and price. For miners looking to diversify, Scrypt (Litecoin + Dogecoin merge mining) and kHeavyHash (Kaspa) offer compelling alternatives with growing ecosystems.

Frequently Asked Questions

Can I mine Bitcoin with a GPU?
Technically yes, but it's economically impossible. Bitcoin's SHA-256 algorithm is completely dominated by ASICs that are millions of times more efficient than GPUs. A single ASIC miner produces more hashrate than thousands of GPUs combined. If you have GPUs, mine GPU-friendly coins like Ethereum Classic (Ethash) or Alephium (Blake3) instead.
What does "ASIC-resistant" mean?
ASIC-resistant algorithms are designed to make it economically unfeasible to build specialized hardware. They achieve this by requiring large amounts of memory (making chips expensive) or by using CPU-specific instructions (like RandomX). The goal is to keep mining accessible to regular people with consumer hardware. However, "resistant" doesn't mean "proof" — Scrypt was ASIC-resistant until manufacturers found ways to build Scrypt ASICs.
Which algorithm is the most energy-efficient?
Energy efficiency depends on the hardware generation, not just the algorithm. The latest SHA-256 ASICs (like the Antminer S21 XP at 13.5 J/TH) are among the most efficient per unit of security provided. In general, algorithms with mature ASIC ecosystems have the most efficient hardware because manufacturers have had years to optimize. Newer algorithms may have less efficient hardware initially.
What is merge mining?
Merge mining allows mining two or more cryptocurrencies simultaneously using the same algorithm and hashrate. Litecoin and Dogecoin both use Scrypt, so Scrypt miners can earn both LTC and DOGE at the same time with no additional power cost. This effectively increases your revenue per hash without any extra work. Not all same-algorithm coins support merge mining — it requires specific protocol-level support.
Can an algorithm change after a coin launches?
Yes, but it's rare and disruptive. Monero has changed its algorithm multiple times to maintain ASIC resistance, ultimately settling on RandomX. Ethereum switched from proof-of-work (Ethash) to proof-of-stake entirely. Algorithm changes render existing mining hardware obsolete for that coin, which is why many miners prefer to mine coins with stable, established algorithms like SHA-256.
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