Scrypt in cryptography refers to password based key functions which were created for Tarsnap online by Colin Percival. This algorithm was designed in a manner to make it costly to carry out large-scale hardware attacks because they needed huge amount of memory. It is therefore a hard-key derivative function and any memory-hard function will need a great amount of RAM to get resolved.
The Scrypt will make many pseudorandom numbers for storing in RAM locations. The algorithm will access such numbers before they give results. Creating these numbers can be an intensive process because they have to be accessed few times. So, it is best to use RAM together with hashing power instead of creating them on-the-fly. Scrypt will reduce benefits of ASIC Bitcoin miners within the network. So, there will be better chances for greater numbers of miners to participate in the network. Another important advantage it offers is that there will reduce energy usage because the entire network power is low.
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