Today’s PoW Mining Marvels: Scrypt Takes the Throne as 2024’s Top Algorithm

Today’s PoW Mining Marvels: Scrypt Takes the Throne as 2024’s Top Algorithm

Mining Algorithms Push Limits in a Historic Year

As 2024 draws to a close, Scrypt has emerged as the most profitable proof-of-work (PoW) algorithm, outperforming other mining methodologies. Initially introduced by Colin Percival in 2009, Scrypt gained recognition in 2011 when integrated into Tenebrix by anonymous developer Artforz. It later became the backbone of Litecoin (LTC) and Dogecoin (DOGE), offering miners dual-mining opportunities with optimized hardware.

The Shifting Landscape of Mining Profitability

At the start of 2024, the Kheavyhash algorithm—used for mining kaspa (KAS)—dominated profitability charts. By December, Scrypt took the top spot, with Blake3 and SHA256 ranking second and third, respectively. Blake3 supports the mining of decred (DCR) and alephium (ALPH), while SHA256 remains integral to Bitcoin (BTC).

Blake2S, which powers Kadena (KDA) mining, held the third position earlier in the year but now ranks fourth. Following it, Kheavyhash’s returns have declined, placing it fifth, while Eaglesong—used for nervos (CKB)—holds sixth place. Ethash and Blake2B-Sia remain noteworthy contenders, offering steady profitability for miners leveraging robust hashrates.

Technological Innovations Driving Change

The hardware landscape continues to evolve, with companies like Bitmain and Microbt introducing cutting-edge mining rigs. Among these, Bitmain’s upcoming Antminer S21e XP Hydro 3U is anticipated to significantly impact profitability rankings. With an SHA256 hashrate of 860 terahash per second (TH/s), it is expected to propel Bitcoin mining to new heights.

Record-Breaking Hashrates

This year witnessed remarkable growth in network computational power:

• Litecoin achieved a record-high hashrate of 2.09 petahash per second (PH/s) on Dec. 26 at block height 2,816,431.

• Dogecoin reached 4.89 PH/s on Dec. 23 at block height 5,515,256.

• Alephium hit an all-time high of 33.67 PH/s on Dec. 28.

• Bitcoin surpassed 805 exahash per second (EH/s) in mid-December.

• Kadena set its own records, further cementing its role in the PoW ecosystem.

The Future of PoW Mining

The dynamic shifts in profitability underscore the resilience and adaptability of the PoW ecosystem. Miners are poised to benefit from continued advancements in hardware and algorithm optimization. As new equipment enters the market and network hashrates rise, the competition among algorithms will intensify, shaping the future of decentralized systems.

As 2025 approaches, the focus remains on efficiency and innovation. Whether through breakthroughs in mining algorithms or the expansion of network capacities, the PoW industry stands ready to achieve new milestones in blockchain technology.