Ethash Definition
Ethash is the proof-of-work (PoW) mining algorithm used in Ethereum-based blockchains. It is designed to resist the use of powerful mining machines like ASICs, which can lead to centralization of the network. Instead, Ethash encourages decentralized mining by individual participants or small mining pools.
Ethash Key Points
- Ethash is the PoW algorithm used by Ethereum and other Ethereum-based blockchains.
- It is resistant to ASICs, specialized mining machinery that can lead to centralization.
- Ethash promotes decentralized mining, reducing the risk of a small number of miners controlling too much of the network.
What is Ethash?
Ethash is the proof-of-work function in Ethereum, Ethereum Classic, and other compatible blockchains. Unlike some other algorithms, Ethash is designed to be ASIC-resistant. This means it is engineered to work most efficiently on the kind of computer hardware that regular users have, thus encouraging more decentralized and broad-based mining.
Who Uses Ethash?
Ethash is used by miners on Ethereum-based blockchains. The ASIC resistance of Ethash means that it can be used effectively by individual miners or small mining pools, instead of requiring massive mining farms.
When was Ethash Created?
Ethash was created as part of Ethereum’s launch in 2015. It was designed to solve some of the issues of Bitcoin’s mining algorithm, particularly the problem of mining centralization.
Why is Ethash Important?
Ethash is important because it preserves the decentralization and security of Ethereum-based blockchains. By preventing the dominance of large miners with powerful machinery, Ethash ensures that control over the network is spread among many miners. This reduces the risk of a 51% attack, where a single miner or mining pool gains control of over half the network’s mining power and can manipulate the blockchain.
How does Ethash work?
Ethash works by requiring miners to interact with a data set called a DAG (Directed Acyclic Graph). The DAG is generated for each new set of transactions, or “epoch”, which occurs approximately every 30,000 blocks on the Ethereum network. The need to constantly interact with this data set makes it inefficient to mine with ASICs, as the speed and power these machines offer is not advantageous. Instead, Ethash favours GPU mining, which can perform the necessary calculations faster and more efficiently.
