Blake2b + SHA3 Algorithm

The Blake2b + SHA3 algorithm powers Handshake’s Proof of Work (PoW) consensus mechanism, ensuring the security and integrity of the blockchain. This algorithm is optimized for ASIC mining, providing efficiency and high-performance capabilities while maintaining a decentralized and secure network. Introduced with the Handshake mainnet launch in February 2020, the Blake2b + SHA3 algorithm is a cornerstone of Handshake’s innovative approach to decentralized domain name services.

What is Blake2b + SHA3?

Blake2b + SHA3 is a hybrid cryptographic hashing algorithm that combines the strengths of two widely recognized algorithms:

1. Blake2b: Known for its high speed and energy efficiency, Blake2b is a cryptographic hash function that has been adopted in various blockchain projects. It is optimized for modern hardware and provides fast and secure hashing.

2. SHA3: A cryptographic standard developed by the National Institute of Standards and Technology (NIST), SHA3 is renowned for its robust security features and resistance to collision and preimage attacks.

By integrating these two algorithms, Handshake achieves a balance of security, efficiency, and ASIC optimization, ensuring the network remains decentralized and tamper-proof.

How Blake2b + SHA3 Works in Handshake

The Blake2b + SHA3 algorithm functions as the backbone of Handshake’s mining process. Here’s how it works:

1. Hash Calculation:
   Miners process block headers containing transaction data, the hash of the previous block, and a random nonce. The Blake2b + SHA3 algorithm generates a cryptographic hash from this data.

2. Proof of Work:
   Miners aim to find a hash that meets the network’s difficulty target, which is dynamically adjusted based on the network’s hash rate to maintain consistent block times.

3. Validation and Security:
   Once a miner discovers a valid hash, the solution is broadcast to the network. Nodes verify the hash and, if valid, append the corresponding block to the blockchain. The Blake2b + SHA3 algorithm ensures that this process is secure and resistant to manipulation.

4. ASIC Mining Optimization:
   While initially compatible with GPUs, Blake2b + SHA3 has become predominantly mined with ASIC hardware, which offers higher efficiency and performance. This transition supports the network’s scalability and overall security.

When Was Blake2b + SHA3 Introduced?

The Blake2b + SHA3 algorithm was introduced with Handshake’s mainnet launch in February 2020. Its selection reflected Handshake’s emphasis on balancing energy efficiency, mining accessibility, and robust security for its decentralized DNS system.

Handshake Mining Rewards and Halving Schedule

Handshake incentivizes miners with HNS tokens as block rewards. These rewards are gradually reduced over time through a halving mechanism to control inflation and ensure a finite supply.

Mining Rewards and Halvings:

• Initial Reward (2020): 2,000 HNS per block.

• First Halving (2024): 1,000 HNS per block.

• Subsequent Halvings: Rewards halve approximately every four years.

• Total Supply Cap: 2.04 billion HNS tokens.

This reward structure incentivizes miners while ensuring long-term sustainability for the Handshake network.

Benefits of Blake2b + SHA3

1. High Efficiency:
   Blake2b + SHA3 delivers fast and energy-efficient hashing, optimizing resource usage during the mining process.

2. Robust Security:
   The combination of two cryptographic standards ensures strong resistance to attacks, safeguarding the blockchain.

3. ASIC Compatibility:
   The algorithm supports ASIC mining, enabling high-performance mining and securing the network against potential threats.

4. Decentralization:
   While ASIC miners dominate the network, the algorithm’s design promotes decentralization by maintaining broad participation among mining entities.

Challenges of Blake2b + SHA3 in Handshake Mining

1. Transition to ASIC Mining:
   Although initially GPU-compatible, the algorithm has become dominated by ASIC miners, which can centralize mining power among larger entities.

2. Hardware Barriers:
   The need for specialized ASIC hardware can exclude smaller miners, potentially reducing accessibility.

3. Network Scalability:
   As mining rewards decrease through halvings, the network must ensure sufficient incentives to maintain security and participation.

Conclusion

The Blake2b + SHA3 algorithm is a fundamental component of Handshake’s blockchain, enabling secure and efficient mining while supporting the network’s decentralized DNS infrastructure. By combining the strengths of two cryptographic standards, Blake2b + SHA3 ensures robust security and scalability for the Handshake ecosystem. As the Handshake network evolves, this algorithm will remain critical to its mission of decentralizing the internet’s naming system and empowering users with greater control over their online identities.