Blockchain mining algorithms are proof-of-work computations: miners spend computing resources to find a valid block proof, while the network checks that proof much more cheaply. The specific algorithm belongs to a particular network and can change over time. Bitcoin currently uses proof of work; Ethereum Mainnet no longer mines blocks.
What a blockchain mining algorithm does
A mining algorithm defines the work a participant must perform to propose a proof for a candidate block. In proof of work, the search is deliberately resource-intensive, but checking a proposed answer should be inexpensive. Monero’s documentation describes the design goal as “strong asymmetry for work vs verification resources” in its Proof of Work documentation.
This is different from a transaction-signature algorithm or a hash function used elsewhere in a blockchain. Mining is one way to reach consensus, not a feature of every blockchain. Algorithm properties also do not determine which network currently uses an algorithm: adoption and consensus rules are network-specific.
How the main examples compare
| Algorithm or approach | Work and resource emphasis | Verification | Specialized hardware and current status |
|---|---|---|---|
| Bitcoin proof of work | Repeated cryptographic hashing of block-header candidates until a hash is below the network’s target. Miners vary a nonce or other header fields to try again. | Checking whether a hash meets the target is much cheaper than searching for one. | Specialized mining hardware exists; the cited guide does not establish current hardware models or profitability. Bitcoin currently uses proof of work. |
| Ethash | Memory-intensive work using a nonce- and header-dependent dataset known as a DAG. Miners read random slices of the dataset. | The proposed result can be checked without repeating the full search. | Ethash ASICs were eventually developed, so ASIC resistance was not a permanent guarantee. Ethereum Mainnet’s use of Ethash is historical: the network switched to proof of stake. |
The comparison describes design and history, not a ranking of mining opportunities. Profitability depends on the current network, equipment, and operating conditions; it cannot be inferred from an algorithm’s name.
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What Bitcoin mining does
Bitcoin miners search for a block-header hash below a target, changing the nonce or other header fields to generate new attempts. Bitcoin’s Developer Guide to mining says the difficulty adjusts every 2,016 blocks, using timestamps to target an ideal interval of two weeks. That is a protocol target, not a promise that each adjustment period will take exactly two weeks.
Each accepted block links to the one before it. Rewriting an earlier block would require reproducing its proof of work and the work in the blocks that follow, which is why the chain makes past history increasingly costly to alter.
Why Ethash is historical for Ethereum Mainnet
Ethash was Ethereum Mainnet’s proof-of-work algorithm. An earlier research implementation, Dagger-Hashimoto, was not the algorithm used by Mainnet. Ethash relied on a dataset called a DAG, with miners reading random slices; Ethereum’s documentation describes the dataset as updating every 30,000 blocks, an interval called an epoch. See Ethereum.org’s Ethash documentation.
Ethereum Mainnet switched off proof of work and is secured by proof of stake. Ethash therefore describes a historical phase of Ethereum Mainnet, not a way to mine its current blocks. Ethereum.org notes that other proof-of-work networks use Ethash, but the cited documentation does not establish a current list of those networks.
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What to check before comparing mining options
- Confirm the network and its current consensus. A familiar algorithm name does not establish that a network still uses mining.
- Identify the work primitive. Repeated hashing and memory-intensive dataset access place different demands on hardware.
- Check specialized-hardware history. A design intended to make ASICs less advantageous is not proof that specialized hardware cannot emerge.
- Separate compatibility from economics. Algorithm compatibility alone does not tell you whether mining is profitable; that also depends on equipment and operating conditions.
This is a comparison of selected examples, not an exhaustive catalog of mining algorithms. Current device models, power use, network adoption for every algorithm, and comparable profitability figures are not established here.
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