
And really, the bitcoin producing is very quickly shifted from CPU to graphic processing units (GPU), then onto programmable hardware (FPGA), and then were released specifically sharpened chips (ASIC). The high concentration of specialized ASIC-power is a problem for a decentralized currency.
The function of hashing the Scrypt was specifically designed to complicate the hardware implementation by increasing the number of resources required for computation. Therefore (at least in a theory) such concentration of mining resources as in bitcoin has not to happen, and it will remain decentralized.
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Ideally, the mining of coins based on the Scrypt should be carried out on one (or more) computers with lots of memory. Here a great importance is given to the graphics cards.
If you are considering buying GPUs for working using this protocol, then the best option would be to purchase products from the company ATI. Because of the architectural differences, the performance of mining on ATI video cards is now much higher than Nvidia, though in the future things can change.
Ultimately, it all boils down to this: protocols SHA-256 and Scrypt work for one purpose – to get a “beautiful hash” by a brute force, which will give us (or rather a pool, for which we work) the right to extend the blockchain and get a reward. They just solve one task in different ways.
The Scrypt Cloud Mining requires a large amount of memory. Accordingly, the performance depends on the size of random access memory (RAM) and graphics cards installed in the data center.
The most famous of altcoins which uses the Scrypt algorithm is Litecoin. There is Dogecoin, Digitalcoin, Franco, Bottlecaps and many others. The popularity of the crypto coins, especially Litecoin, increased significantly after the bitcoin mining massively migrated to ASIC and former miners with video cards were out of work – their equipment couldn’t compete with the specialized processors. So they have adapted their video cards for litecoin, or for other exotic coins.