NeoScrypt ALGORITHM

NeoScrypt is an ASIC resistant Proof-of-Work algorithm designed to replace Scrypt that was announced in June 2014. Neoscrypt was developed as an improvement to the Scrypt algorithm and password-based derivation function (KDF). NeoScrypt was made to increase the security, performance, and costs associated with the Scrypt algorithm. Miners capable of mining cryptocurrencies using NeoScrypt include the NeoScrypt OpenCL GPU Miner, Claymore’s NeoScrypt AMD GPU Miner, and ccMiner.

What is NeoScrypt? Core Features NeoScrypt is a successor to the Scrypt algorithm and password-based key derivation function (KDF) created by Colin Percival, originally constructed to combat large-scale hardware attacks by requiring mass amounts of memory for an attacker. Scrypt is also commonly used as the Proof-of-Work (PoW) algorithm for a good portion of cryptocurrencies in today’s space, and ultimately has served as the foundation for Litecoin and Dogecoin (notably).

Effectively, password based key derivation function is what’s known as a deterministic algorithm, which derives a cryptographic key from "an input datum known as a password." One of the most common uses of KDFs is in "key stretching," where the length of a user’s password is lengthened, ultimately preventing against brute force attacks. Unfortunately, PBKDF2, a popular KDF utilized by cryptocurrencies, does not use significant amounts of memory to operate or complex logic, making it susceptible to brute force attacks via general purpose hardware, such as custom design (ASICs) and GPUs (all at a relatively low cost).

Cue NeoScrypt, NeoScrypt is a further development of Scrypt, addressing the aforementioned issues and geared towards:

• Increased security,

• Better performance, and

• Low costs.