Proof of Work Algorithm

In ZCoin, we use Lyra2 with T=2, R=Block_Height_Number and C=256. 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:

The memory requirements for Zcoin's implementation of Lyra2 will increase as time goes on to account for increases in processing speed according to Moore's law.

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.

The developers of ZCoin are currently exploring alternative algorithms to use to secure the ZCoin blockchain.