The SHA-256 hashing algorithm is one of the foundational technologies underpinning modern blockchain systems, most notably Bitcoin. Originally developed by the U.S. National Security Agency (NSA) and published by the National Institute of Standards and Technology (NIST), SHA-256 has evolved into a critical component in securing digital data across various platforms—from cybersecurity protocols to decentralized networks.
For cryptocurrency miners, understanding SHA-256 is essential, especially if you're using ASIC mining hardware like Bitmain’s Antminer series. While Bitcoin dominates the SHA-256 mining landscape, several other cryptocurrencies also rely on this robust proof-of-work algorithm, offering alternative mining opportunities.
This guide explores the technical aspects of SHA-256, its role in blockchain technology, and provides a curated list of mineable SHA-256-based cryptocurrencies—focusing only on those with active trading volume and network relevance.
What Is the SHA-256 Hashing Algorithm?
SHA stands for Secure Hash Algorithm, and SHA-256 is a specific variant within the SHA-2 family. It takes an input of any size and produces a fixed-length output: a 256-bit (32-byte) hash represented as a 64-character hexadecimal string.
Key properties of SHA-256 include:
- Deterministic: The same input always generates the same hash.
- One-way function: It's computationally infeasible to reverse-engineer the original data from the hash.
- Collision-resistant: It's extremely unlikely that two different inputs will produce the same hash.
- Fixed output size: Regardless of input length, the output is always 256 bits.
These characteristics make SHA-256 ideal for ensuring data integrity, digital signatures, password storage, and—most famously—blockchain consensus mechanisms.
👉 Discover how secure blockchain networks use advanced cryptography like SHA-256
How SHA-256 Powers Bitcoin and Blockchain
Bitcoin was the first cryptocurrency to implement SHA-256 in its core protocol. The algorithm plays two vital roles:
- Proof of Work (PoW) Mining
Miners compete to solve complex cryptographic puzzles using SHA-256. The first to find a valid hash below a target threshold gets to add a new block to the blockchain and receives BTC rewards. - Address Generation & Transaction Security
SHA-256 is used in creating Bitcoin wallet addresses (in combination with RIPEMD-160) and verifying transaction integrity across the network.
Because of Bitcoin’s success, many forks and alternative projects adopted SHA-256 for consistency and security. However, unlike early days when CPUs and GPUs could mine profitably, today’s SHA-256 mining is dominated by ASICs (Application-Specific Integrated Circuits) due to their superior efficiency and hash power.
Is SHA-256 Mining Still Profitable?
While hobbyist mining has largely faded due to rising energy costs and hardware demands, institutional-scale mining remains active—especially during bull cycles. If you already own a modern ASIC miner such as the Antminer S21 Pro, MicroBT M66S, or Canaan Avalon A1566, mining SHA-256 coins can still yield returns.
Profitability depends on:
- Electricity cost
- Hardware efficiency (J/TH)
- Network difficulty
- Coin price and trading volume
Tools like WhatToMine or NiceHash help identify the most profitable coin to mine at any given time. Alternatively, renting out your hash power via platforms can provide steady BTC-denominated income without managing individual altcoins.
Top SHA-256 Based Cryptocurrencies
Below is a list of well-known, actively traded cryptocurrencies that use the SHA-256 algorithm for their proof-of-work consensus. We’ve excluded obscure or abandoned projects with negligible trading volume.
1. Bitcoin (BTC)
The original and most valuable cryptocurrency. With the highest network hashrate and global adoption, BTC remains the top choice for SHA-256 miners.
Mining Pools:
Slush Pool, F2Pool, AntPool, ViaBTC, BTC.com
2. Bitcoin Cash (BCH)
A 2017 fork of Bitcoin aimed at increasing block size for faster transactions. Still maintains a strong developer community and exchange presence.
Mining Pools:
BTC.com, F2Pool, ViaBTC, Bitcoin.com
3. Bitcoin SV (BSV)
Short for "Bitcoin Satoshi Vision," BSV split from Bitcoin Cash with a focus on massive scalability and enterprise applications.
Mining Pools:
SVPool
4. DigiByte (DGB)
A fast, decentralized blockchain emphasizing security and low fees. Uses multi-algorithm mining but includes SHA-256 as one of five supported algorithms.
Mining Pools:
F2Pool, Zpool
5. Peercoin (PPC)
One of the earliest altcoins, Peercoin combines PoW (SHA-256) with proof-of-stake to reduce energy consumption over time.
Mining Pools:
Zpool
6. Namecoin (NMC)
Launched in 2011, Namecoin was designed to decentralize domain name registration (.bit domains). Though niche, it remains operational and mineable.
Mining Pools:
Namecoin.org
Other SHA-256 Coins – Proceed with Caution
Many lesser-known SHA-256 coins exist, but most suffer from:
- Extremely low trading volume
- No exchange listings
- Abandoned development
- Difficulty converting mined coins to fiat or BTC
Examples include:
- Litecoin Cash (LCC)
- Syscoin (SYS)
- Super Bitcoin (SBTC)
- Terracoin (TRC)
- Myriad (XMY) – multi-algo coin including SHA-256
Mining these offers little financial return and high liquidity risk. Always verify market depth before allocating resources.
👉 Explore real-time crypto markets to assess coin viability before mining
Frequently Asked Questions (FAQ)
Q: Can I mine SHA-256 coins with a GPU or CPU?
A: Technically yes, but it's no longer profitable. Modern ASIC miners outperform general-purpose hardware by orders of magnitude in both speed and efficiency.
Q: Is Bitcoin the only profitable SHA-256 coin to mine?
A: Not necessarily. During certain market conditions, coins like BCH or BSV may offer better returns due to lower network difficulty or price spikes. Always use a profitability calculator before switching.
Q: Can I mine multiple SHA-256 coins simultaneously?
A: No. Your miner must target one blockchain at a time. However, services like NiceHash automatically switch to the most profitable SHA-256 coin and pay you in BTC.
Q: Does mining damage my ASIC hardware?
A: Continuous operation generates heat and wear. Proper cooling, voltage settings, and maintenance are crucial to extend your miner’s lifespan.
Q: Are there any new SHA-256-based projects launching?
A: Rarely. Most innovation now focuses on proof-of-stake or hybrid models. However, some Bitcoin forks continue to emerge—though few gain long-term traction.
Q: How do I check if a mined coin is tradable?
A: Check major exchanges like OKX, Binance, or Kraken for listing status. Also review 24-hour trading volume; anything below $100,000/day indicates poor liquidity.
Final Thoughts
SHA-256 remains one of the most secure and widely trusted cryptographic algorithms in existence. While Bitcoin dominates its ecosystem, alternative coins like Bitcoin Cash, DigiByte, and Peercoin offer diversification options for miners with compatible ASIC rigs.
However, profitability hinges on smart decision-making: choosing the right coin, joining reliable pools, monitoring electricity costs, and staying informed about market trends.
Whether you're running a single Antminer or managing a large-scale operation, leveraging tools and real-time data ensures optimal returns in today’s competitive mining environment.
👉 Stay ahead in crypto mining with real-time market insights and secure trading tools