It was developed in 2014 by Evan Duffield, the main developer of the Darkcoin cryptocurrency (later Dash). Initially, he set himself the task to create an algorithm that would make cryptocurrencies protected from specialized mining devices of ASICs, which are considered to be the killers of decentralization.
X11’s chained hashing algorithm utilizes a sequence of eleven scientific hashing algorithms for the proof-of-work. This is so that the processing distribution is fair and coins will be distributed in much the same way Bitcoin’s were originally. X11 was intended to make
ASICs much more difficult to create, thus giving the currency plenty of time to develop before mining centralization became a threat. This approach was largely successful; as of early 2016, ASICs for X11 now exist and comprise a significant portion of the network hashrate, but have not resulted in the level of centralization present in Bitcoin.
X11 is the name of the chained Proof-of-work (PoW) algorithm that was introduced in Dash (launched January 2014 as “Xcoin”). It was partially inspired by the chained-hashing approach of Quark, adding further “depth” and complexity by increasing the number of hashes, yet it differs from Quark in that the rounds of hashes are determined a priori instead of having some hashes being randomly picked.
X11 is an algorithm for mining cryptocurrency which uses 11 different hash functions. X11 was well received by the mining community due to its energy-efficiency when mining with a home rig. It isn’t a secret that X11 is more complicated than a SHA-256 algorithm, which prevented the use of ASIC miners for a time.
To do this, Evan Duffield combined 11 different hash functions in one algorithm: Blake, BMW, Groestl, JH, Keccak, Skein, Luffa, Cubehash, Shavite, Simd, Echo.
Increased confidence and safety for currencies
The increased complexity and sophistication of the chained algorithm provides enhanced levels of security and less uncertainty for a digital currency, compared to single-hash PoW solutions that are not protected against security risks like SPOF (Single Point Of Failure).
For example, a possible but not probable computing breakthrough that “breaks” the SHA256 hash could jeopardize the entire Bitcoin network until the network shifts through a hard fork to another cryptographic hash.
In the event of a similar computing breakthrough, a digital currency using the X11 PoW would continue to function securely unless all 11 hashes were broken simultaneously. Even if some of the 11 hashes were to prove unreliable, there would be adequate warning for a currency using X11 to take measures and replace the problematic hashes with other more reliable hashing algorithms.
Given the speculative nature of digital currencies and their inherent uncertainties as a new field, the X11 algorithm can provide increased confidence for its users and potential investors that single-hash approaches cannot.
The main feature of cryptocurrency mining on X11 is financial profitability in comparison with other algorithms
Mining efficiency is expressed in three components:
For example, AMD Radeon 6930 graphics card produces 1800 Kh/s, if you use the same module for cryptocurrency mining on the Scrypt algorithm, the indicator will decrease almost three times. Video cards of other models show approximately such ratio of change of power.
When choosing mining equipment, you should prefer a model with an impressive number of Shader processes and a high frequency of the graphics core. If we talk about Radeon graphics cards, pay attention to 7950 and 7970. Nvidia also has analogues to these models.
As for CPU-mining, AMD processors with 6-8 cores or Intel i5/i7 demonstrate not the highest level of performance, but also consume much less electricity.