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:
- Electroneum (ETN),
- Monero (XMR);
- Sumokoin (SUMO);
- Karbowanec (KRB) and a number of other currencies.
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:
- 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).
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:
- The inability to track the transaction;
- The lack of relationship between transactions.
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:
- Smoothly decreasing emission.
- Small time intervals between blocks;
- The inability to mine on ASIC hardware.
- The use of bundles of CPU+GPU for greater performance.
- Fundamental differences from bitcoin, which contributes to the growth of interest in new cryptocurrencies.
- Innovation profitable CryptoNight coin isolated from most of the altcoins on the old algorithms.
- Profitability and expediency of production is higher than most other cryptocurrencies.
- Less heating of the graphics card and processor than when mining on other algorithms.
- A clear way to your private future
- An open-source technology and concepts for the cryptocurrencies of the future