Proof of Work Algorithm

This is a legacy article. It may no longer be accurate or up to date.

Note: As of Dec 10th 2018 we have switched our Proof-of-Work algorithm to MTP

In ZCoin, we use Lyra2 with T=2, R=8192 and C=256 though we will be changing this to MTP (Merkle Tree Proof) in the near future. This implementation is different from other coins that use Lyra2 mixed with different algorithms and different parameters such as T=1, R=8, C=8 or T=1, R=4, C=4.

The Lyra2 algorithm:

ZCoin is not ASIC-proof, but rather ASIC-resistant. For example, if the network is at block 65536, and ASIC miners want to calculate the hash in memory-free mode, they have to have 65536 x 65536 = 4,294,967,296 times more processing power than a CPU in order to gain the same hash output as one CPU.

We are now working to be the first coin to implement the MTP proof of work algorithm and we are scheduled to go live with the new algorithm by end of Q2 2018. MTP was created by the same researchers who developed Equihash in order to solve certain perceived shortcomings of Equihash. MTP allows faster verification while remaining ASIC resistant. A fast verification time also prevents DoS attacks on verifiers. We are confident that with the implementation of MTP, we can create an egalitarian proof of work scheme whereby it is resistant to botnets and ASICS.

An improved version of MTP that solves previous attacks was released in January 2018 with research that was partly funded by Zcoin.