The main task of the Cryptonight project is not to create a gap between PC users and owners of specialized ASIC devices during mining. Abadi and other cryptographers have developed memory-sensitive algorithms. The main idea is to allocate a large block of data (Notepad) to RAM with an unpredictable sequence in it. The block should be large enough to make data storage more convenient than computing it every time it is accessed. The algorithm also needs to prevent internal parallelism, i.e., N simultaneous threads should require N times more memory at once.
The popular Scrypt algorithm also uses memory, but leaves the possibility of building powerful and relatively inexpensive computing devices for calculating this algorithm. In the case of CryptoNote, unlike Scrypt, each new block (64 bytes) depends on all the previous ones. The new algorithm requires about 2 MB of RAM, which is the minimum size of the L3 cache of modern processors. At the same time, this amount of RAM excludes the use of ASIC. We must distinguish between CryptoNote and CryptoNight. CryptoNight is one of the implementations of the CryptoNote Protocol.
CryptoNight algorithm is notable for the fact that it is relatively well calculated on processors. Specifically at this moment Intel Xeon E3 gives me about a quarter of a dollar a day (comparable figures for the Intel Core I7). Funny earnings, but the crypto investor any machine should beckon at least in the background.
At the end of 2017, the CryptoNight algorithm became sufficiently expanded for mining on GPU from AMD, it is used by such cryptocurrencies as:
AMD GPUs work with CryptoNight better than Nvidia, especially the latest AMD Radeon RX Vega GPUs. The software supplied with them is not devoid of shortcomings and can cause a headache when setting up mining, but the GPUs themselves give a really good performance if you use the CryptoNight algorithm.
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:
The CryptoNote Protocol is the highest level of anonymity.
The most important parameter for electronic currencies is confidentiality. The redistribution of payments without the exchange of data with third parties — this is the difference between the crypto operations from the Bank.
According to the criteria described by Okamoto and Ohta, secure electronic cash must necessarily be anonymous. The details of monetary transactions between the customer and the seller should not be known to anyone else. In order to guarantee the confidentiality of the user, the currency must meet such parameters:
CryptoNote - a scheme that can guarantee anonymity to respondents when making a payment. The Protocol is implemented using a ring signature system that allows you to sign private messages with the group name.
The presence of a signature indicates only that a transaction was made by one of the group members, but they are all indistinguishable from each other. Not available to anyone conducting the same transactions twice. A cryptographic Protocol of exchange between the parties via an open communication channel is used.
The main advantages of mining: