Crypto mining is reserved for blockchain projects that use the Proof-of-Work (PoW) consensus mechanism to create new blocks and to secure the overall network.
Bitcoin was the original cryptocurrency in addition to the first to employ a Proof-of-Work consensus mechanism. However, with the extreme mining difficulty of Bitcoin’s SHA-256 hash rates, Bitcoin mining requires a lot of computational power derived from extremely powerful Bitcoin mining equipment, which can be extremely expensive.
It also holds detrimental impacts for the environment with the use of electricity, which also increases the use of fossil fuels and results in higher electricity costs for miners, reducing mining profitability.
This prevents many prospective miners from joining the mining process unless they participate in cloud mining or in a trusted mining pool, which carries inherent risks.
Apart from Bitcoin, however, many other cryptocurrency projects employ PoW consensus, making their native coins mining-based, but these cryptocurrencies are much easier to mine as they tend to be ASIC-resistant and require a decent CPU or GPU to mine.
Monero is one of the best privacy-based cryptocurrency projects that use a Proof-of-Work algorithm, making it a minable coin. Monero employs RandomX, which makes the project and coin completely ASIC-resistant, which means that users can use GPU or CPU mining rigs.
The block mining reward that users can earn as of October, is 0.8238 XMR.
Litecoin is a peer-to-peer cryptocurrency project that is based on Bitcoin, but it uses an improved XIT/X11 protocol and Scrypt, which means that Litecoin is ASIC-resistant.
In addition to being a profitable coin to mine, Litecoin also offers faster crypto transactions and reduced transaction fees. The block reward for mining Litecoin is 12.5 LTC and it typically takes 45 days to mine 1 LTC, depending on the mining rig of the user.
Dogecoin is a popular cryptocurrency, and it is based on the same Scrypt algorithm that Litecoin uses, making it much easier to mine DOGE. Dogecoin is being driven by its community and by Elon Musk, who is the largest supporter of the coin.
Dogecoin can be mined using decent CPU or GPU rigs and the block reward for mining one block is 10,000 DOGE.
Zero Cash, more commonly known just as ZCash, is a cryptocurrency project that offers completely anonymous transactions. ZCash uses the Equihash algorithm, which means that mining operations rely heavily on the Random-Access Memory (RAM) of the miner’s rig, making it ASIC-resistant.
It takes about 12.9 days to mine 1 ZEC and the block reward is currently 3.125 ZEC, with a block being mined every 75 seconds.
Ethereum Classic (ETC)
Ethereum Classic is a smart contract platform where developers can build and use a wide range of decentralised applications (DApps). The native algorithm that Ethereum Classic uses is Keccak-256 and the block reward consists of a base reward (4 ETC), Uncle Rewards (which is an additional 3.125% of the base reward), and gas reward.
Ethereum is the second-largest alternative coin in the world. It is also the largest, most successful cryptocurrency and blockchain project that allows developers to create, run, and launch smart contracts and various decentralised applications (DApps).
While Ethereum is scheduled to go from a PoW to a Proof-of-Stake (PoS) consensus mechanism in 2022, for now, it remains on a minable PoW, with the hashing function Ethash.
The block mining reward for every Ethereum block that is mined, is 2 Ethereum.
You might also be interested in: How To Minimize Your Risks In The World Of Crypto Trading