How does Monero's mining algorithm differ from Bitcoin's?

Monero's mining algorithm differs from Bitcoin's in several key ways:

1. **Proof of Work Algorithm**: While both Monero and Bitcoin use proof of work (PoW) as their consensus mechanism, they employ different PoW algorithms. Bitcoin uses the SHA-256 algorithm, whereas Monero initially used CryptoNight as its PoW algorithm. However, Monero has since transitioned to a new PoW algorithm called RandomX, which is designed to be ASIC-resistant and promote decentralization by favoring CPU mining over specialized hardware.

2. **ASIC Resistance**: One of the primary motivations behind Monero's transition to the RandomX algorithm was to resist centralization of mining power by ASIC (Application-Specific Integrated Circuit) miners. ASICs are specialized hardware designed for optimal performance in mining specific PoW algorithms like SHA-256. By favoring CPU mining, which is more accessible to individual users, RandomX aims to maintain a more decentralized mining ecosystem and prevent ASIC dominance.

3. **Memory Intensive**: RandomX is a memory-hard algorithm, meaning that it requires a significant amount of random access memory (RAM) to perform mining calculations efficiently. This design choice makes RandomX less susceptible to optimization by ASICs, as ASICs typically excel at performing calculations quickly but may struggle with memory-intensive tasks. By requiring ample memory resources, RandomX levels the playing field for CPU miners and reduces the effectiveness of ASICs.

4. **Regular Algorithm Updates**: Monero's development team periodically updates the RandomX algorithm to maintain its ASIC resistance and adapt to evolving technological advancements. These algorithm updates help ensure that the mining ecosystem remains fair, competitive, and decentralized over time.

Overall, Monero's mining algorithm, particularly with the adoption of RandomX, is designed to prioritize decentralization, accessibility, and resistance to ASIC dominance. By favoring CPU mining and employing memory-intensive calculations, Monero aims to maintain a diverse and distributed network of miners while preserving the security and integrity of its blockchain.