What is cryptonote currency and cryptonight algorithm?

CryptoNote is an application layer protocol that powers several decentralized privacy oriented digital currencies.

Cryptonote aims to be an evolution in cryptocurrency and to Bitcoin.

Cryptonote Currencies

What is it?

CryptoNote currencies use a distributed public ledger that records all balances and transactions of its in-built currency like Bitcoin, but unlike Bitcoin, cryptonotes transactions cannot be followed through the blockchain in a way that reveals who sent or received the currency.

In this type of currencies the only people with access to the whole set of data about a transaction are the sender or the receiver of the transaction and the person who possesses one or both secret keys.

Currencies

The most knowned Cryptonote currency is Monero XMR and has ongoing support from the community, it was forked from Bytecoin in April 2014.

Bytecoin (BCN)

Monero (XMR)

Karbo (KRB)

Boolberry (BBR)

Forks tree for CryptoNote coins

 

Cryptonote Profit calculator

CryptUnit is an interesting  service that offers up to date data for Cryptonote-based altcoins you can mine.

It gives you profitability data  with more details about each of the supported coins.

Just enter your Cryptonight hashrate and the service will calculate what is the most profitable coin to mine at the moment and give you some extra useful information such as pools and exchanges.

Profitability varies all the time, so things change and the most profitable coins can vary all the time.

The service covers  at this time 16 different Cryptonote coins that you can mine with CPU or GPU (AMD or Nvidia).

The people most interested in this service are probably going to be the ones with AMD-based video cards especially RX VEGA 56/64 due to their very high mining performance especially in the Cryptonight algorithm.

CryptoNight

CryptoNight is a proof-of-work algorithm that is designed to be used on ordinary PC CPUs.

CryptoNight was originally implemented in the CryptoNote codebase.

Principles

CryptoNight relies on random access to the slow memory and emphasizes latency dependence. Each new block depends on all the previous blocks (unlike, for example, scrypt). The algorithm requires about 2 Mb per instance:

It fits in the L3 cache (per core) of modern processors.

A megabyte of internal memory is almost unacceptable for the modern ASICs.

GPUs may run hundreds of concurrent instances, but they are limited in other ways. GDDR5 memory is slower than the CPU L3 cache and remarkable for its bandwidth, not random access speed.

Significant expansion of the scratchpad would require an increase in iterations, which in turn implies an overall time increase. “Heavy” calls in a trustless p2p network may lead to serious vulnerabilities, because nodes are obliged to check every new block’s proof-of-work.

If a node spends a considerable amount of time on each hash evaluation, it can be easily DDoSed by a flood of fake objects with arbitrary work data (nonce values).

How to start mining?

So by now you must be asking your self  how to mine cryptocurrency Monero, Bytecoin etc. on this CryptoNight algorithm.

  • 1st you will need a program for mining so go to Minergate.com
  • Register
  • Go to Downloads
  • Choose one of three options «GUI miners», «Console miners», «Admin edition» and download the program for mining.  For the beginners it is better to choose the«GUI miners» tab.
  • Install the program on your computer according to your operating system, run the program and enter your login and password.
  • Go to the “Miner” tab and choose the currency you want to mine. In “СPU cores” choose the number of processor cores that will work for mining.

Load up all the cores is not recommended , because the computer will work very slow.

You can also connect a video card to help the processor.

That’s all. The mining starts.

In the “Dashboard” tab on the website you will be able to see the indices of your mining.

 

Please check also our article Is the Radeon™ RX VEGA 64 8G good for mining Ethereum?

Did you learned About What is cryptonote currency and cryptonight algorithm?

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