Equihash

Gain clarity on crypto terminology specifically for equity crowdfunding, highlighting key terms and concepts that shape this innovative investment landscape.

Equihash is a proof-of-work algorithm used for mining cryptocurrencies, notably Zcash. It is designed to be memory-hard, which means it requires significant amounts of memory to operate effectively. This feature makes it challenging to develop specialized mining hardware (ASICs), promoting more decentralized mining by allowing ordinary users with consumer-grade hardware to participate.The algorithm relies on the use of a unique data structure called a hash table. Miners must find solutions to computational puzzles that involve large sets of random numbers. The process is based on the concept of solving a multi-dimensional graph, making it memory-intensive and less dependent on raw computing power.Equihash has several advantages, including resistance to centralization and SIP protection (symmetric input protection), which helps maintain the integrity of the network. Overall, its design promotes fairer participation and distribution of mining rewards among users.

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