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Crypto mining machines utilize different algorithms to mine coins. As you may or may not know, Bitcoin uses the SHA256 algorithm for mining, while Litecoin relies on the scrypt algorithm for proof of work instead.

Scrypt is a sequential memory hard function, and it demands greater memory asymptotically than Bitcoin does. The SHA256 algorithm isn’t memory hard or leak proof.

As the Litecoin mining algorithm is scrypt rather than the SHA256 algorithm, those mining devices which comprise ASIC (application-specific integrated circuits) can be tough to put together. Sometimes, they may be even more expensive than Bitcoin-centric mining hardware.

The scrypt algorithm is a password-based key derivation function, which was originally designed by a man named Colin Percival. The initial intention for this was to serve as an online backup service known as Tarsnap.

Those behind the scrypt algorithm had a clear goal: to make it more expensive to run high-level hardware attacks due to the far bigger strain on memory resources.

Litecoin is recognized as one of the top cryptocurrencies utilizing scrypt for proof of work. The algorithm’s function was aimed to prohibit any attempts to launch an attack, by triggering the warning flag in place via the algorithm coding.

Scrypt’s high-resource demand means it’s tough for attackers to deploy a high number of resources, so the code will be protected from harm. Litecoin is heavily dependent upon the scrypt algorithm for mining, and that can interfere with the rate at which Litecoin is adopted in higher numbers.