Equihash was designed and created by Alex Biryukov and Dmitry Khovratovich. Alex Biryukov is a professor in Computer Science at the University of Luxembourg, Dmitry Khovratovich is a post-doctoral researcher specialized in hash functions and block ciphers.

The concept behind the Equihash algorithm is called generalized birthday problem. Generalized birthday problem explains that in a set of randomly chosen people, some pair of them will have the same birthday. The probability should reach 100% when the number of people reaches 367, however, 99.9% probability is already reached with just 70 people. Equihash uses this result in verifying the transactions on the blockchain through a successful optimization as the algorithm is not trying to achieve 100% confidence, just high enough to make sure the transaction is verified with just enough resources.

With the usage of Equihash algorithms, the cryptocurrency mining can be moved into a more decentralized path. Because of the high memory need of the process, the mining cannot be centralized in the hands of a few first-class miners who own specialized mining equipment and hardware. Thus Equihash is eventually contributing to the democratization of digital currencies and any cryptocurrencies which is based on this algorithm.

Which coins are using EQUIHASH algorithm?

Equihash has been developed as the hashing algorithm for Zcash cryptocurrency, which is a cryptocurrency aimed at using cryptography to provide enhanced privacy for its users compared to other altcoins. Originally started under the name of Zerocoin protocol it was subsequently improved and transformed into the Zerocash system and then developed into the Zcash cryptocurrency in 2016.

Although Zcash payments are published on a public blockchain just like in the case of many other cryptocurrencies, in this case, users have an additional feature to be able to use an optional privacy setting. This enables users to conceal the sender, recipient, and amount being transacted if they do not want to disclose this information. This is a great addition to the cryptocurrency universe where the decentralized public ledger is available for anyone to follow the chain of transactions.

Which hardware can you use for mining with EQUIHASH algorithm?

Equihash is a memory-oriented Proof of Work algorithm, which means the mining power of the hardware is based on how much RAM the system has. Around 1 GB of free RAM is needed per mining thread.

The creators of the algorithm think that it is very unlikely that anyone will be able to make a cost-effective ASIC miners for the Equihash algorithm in the near future. The reason behind this is that Equihash is a memory-hard problem, the mining based on this algorithm is more suitable for general-purpose computers with lots of memory than to special hardware chips. As ASIC miners do not have the required amount of memory to run the algorithm.

You can run Equihash algorithm on your home PC with CPUs and GPUs given that sufficient amount of memory is built into the system.

Pro:

efficient ASIC miners are not currently available
suitable for homemade mining rigs

Cons:

need special knowledge to assemble a mining rig
currently only available for Zcash mining