If you've looked into mining Dogecoin or Litecoin, you've run into the term Scrypt. It appears under "algorithm" on every compatible miner spec sheet, just as SHA-256 appears on Bitcoin miners. But Scrypt isn't just a label — it reflects a fundamentally different approach to proof-of-work, with real consequences for the hardware you need and how mining works in practice.
This guide explains what Scrypt is, how it differs from SHA-256, and what it means for anyone considering Dogecoin or Litecoin mining in Australia.
What Is Scrypt?
Scrypt is a cryptographic proof-of-work algorithm originally designed by security researcher Colin Percival in 2009. It was developed as a password-hashing function with a specific goal: to be deliberately memory-intensive, making it expensive to run at scale using custom hardware.
Litecoin adopted Scrypt as its mining algorithm when it launched in 2011, explicitly to differentiate itself from Bitcoin's SHA-256. Dogecoin launched in 2013 using the same algorithm. Today, both coins are mined using Scrypt, and because Dogecoin and Litecoin merged their mining in 2014 through a process called merge mining, the same hardware and the same mining session can earn both simultaneously.
How Scrypt Differs from SHA-256
To understand Scrypt, it helps to first understand what it was designed to counter. Bitcoin's SHA-256 algorithm is computationally intensive but not memory-intensive — a SHA-256 calculation requires very little RAM. This made it straightforward to build highly specialised silicon (ASICs) that perform SHA-256 calculations with extreme efficiency, crowding out general-purpose hardware entirely.
Scrypt was designed to require significant memory bandwidth alongside computation. The algorithm generates a large pseudo-random sequence of data — called the scrypt scratchpad — that must be stored in and repeatedly accessed from memory during each hashing operation. This memory requirement was intended to make Scrypt "ASIC-resistant": if a chip has to carry large amounts of fast RAM alongside its compute cores, the efficiency advantage of custom silicon narrows.
In practice, ASIC resistance didn't hold indefinitely. By the mid-2010s, manufacturers had built Scrypt ASICs that incorporated the necessary memory on-chip. Today, dedicated Scrypt ASICs mine Dogecoin and Litecoin far more efficiently than any GPU. But the memory requirement does mean Scrypt ASICs are architecturally different from SHA-256 ASICs — the two are not interchangeable, and a Bitcoin miner cannot mine Scrypt coins.
For a detailed look at how SHA-256 works by comparison, see: What Is SHA-256 and How Does It Work? The Algorithm Behind Bitcoin Mining
How Scrypt Mining Works
The Scrypt mining process follows the same broad structure as any proof-of-work system, with the memory-intensive hashing at its core.
Step 1 — A candidate block is assembled
Pending Dogecoin or Litecoin transactions are gathered into a candidate block. The block header includes transaction data, a timestamp, a reference to the previous block, and a nonce — a number the miner can freely vary.
Step 2 — Scrypt hashing is applied
The miner applies the Scrypt function to the block header. Unlike SHA-256's relatively simple sequential computation, Scrypt first fills a large memory buffer with pseudo-random data derived from the input, then performs a series of read-and-write operations across that buffer before producing the final hash output. This memory access pattern is what makes Scrypt expensive to parallelise without on-chip RAM.
Step 3 — The output is checked against the difficulty target
Like Bitcoin, Dogecoin and Litecoin set a difficulty target — the hash output must begin with a required number of leading zeros. If the hash doesn't meet the target, the nonce is incremented and the process repeats. Litecoin's network targets a 2.5-minute block time; Dogecoin targets 1 minute.
Step 4 — A valid hash is found and broadcast
When a miner finds a nonce that produces a valid Scrypt hash, the completed block is broadcast to the network. Other nodes verify it and add it to the chain. The winning miner receives the block reward — currently 12.5 LTC per Litecoin block, and 10,000 DOGE per Dogecoin block.
Merge Mining: One Miner, Two Rewards
Since 2014, Dogecoin has used Auxiliary Proof-of-Work (AuxPoW), which allows Scrypt miners to submit valid Litecoin block solutions to the Dogecoin network simultaneously. In practice, this means a single Scrypt ASIC pointed at a merge-mining pool earns both LTC and DOGE rewards from the same hashing work, at no additional power cost. Most Scrypt mining pools today support merge mining by default.
Scrypt ASIC Miners Available in Australia
Every miner in our Altcoin Miners collection that targets Scrypt runs the same algorithm. Here's a breakdown of the current Scrypt options we stock:
Fluminer L1 — 5.3 GH/s | 1200W
The Fluminer L1 is a current-generation Scrypt ASIC built for Dogecoin and Litecoin mining. At 5.3 GH/s and 1,200W, it delivers competitive hashrate at reasonable power draw for a commercial Scrypt miner — an efficiency figure that puts it among the better options available in 2026 for operators with access to manageable electricity rates.
The L1 features a compact tower form factor with a built-in digital display for real-time monitoring, and supports both standard pool mining and merge mining configurations. It's the highest-hashrate Scrypt miner in our range and the natural choice for operators treating Dogecoin and Litecoin mining as a serious yield strategy rather than a hobby setup.
Best for: Operators with dedicated mining space and access to electricity rates where 1,200W continuous draw is financially viable. Those targeting maximum Scrypt hashrate from a single unit.
Bitmain Antminer L3++ — 580 MH/s | 942W
The Bitmain Antminer L3++ is a proven Scrypt workhorse from Bitmain's Litecoin-focused ASIC line. At 580 MH/s and 942W, it's a lower-hashrate, lower-cost entry into Scrypt mining — an older generation machine that remains in active use globally due to its reliability and relatively accessible acquisition price.
The L3++ comes with Bitmain's APW7 PSU and cable included, making it a more complete out-of-the-box setup than some competing units. It supports merge mining and connects to all major Scrypt pools. At its hashrate tier, it suits miners looking to start Scrypt mining at lower upfront cost while accepting a longer path to meaningful returns.
Best for: Budget-conscious miners entering the Scrypt space for the first time. Those who want a known, field-tested machine with low acquisition cost and straightforward setup.
Goldshell Mini Doge III — 700 MH/s | 400W
The Goldshell Mini Doge III occupies a distinct niche: a Scrypt ASIC explicitly designed for home environments. At 700 MH/s and 400W — and rated at just 35 dB — it's one of the quietest Scrypt miners available, with a compact desktop form factor and Wi-Fi connectivity that makes it genuinely suitable for running in a living space or home office.
At 400W, monthly electricity cost at Australian residential rates ($0.30/kWh) is approximately $86–$90 per month. That's a meaningful ongoing cost that needs to be weighed against current Dogecoin and Litecoin mining revenue — but it's significantly more manageable than the 942W–1,200W draw of the L3++ or Fluminer L1. The Mini Doge III includes its PSU and supports merge mining out of the box.
Best for: Home miners who want a near-silent Scrypt ASIC that can run in a shared space. Those targeting Dogecoin and Litecoin mining without dedicated mining infrastructure.
Scrypt Mining and Australian Electricity Rates
The same electricity rate challenge that affects Bitcoin mining applies to Scrypt, and in some ways more acutely: Scrypt miners tend to be less efficient (in J/GH terms) than leading SHA-256 machines, and Dogecoin and Litecoin's market caps are smaller than Bitcoin's, meaning revenue per unit of hashrate is generally lower.
The practical implication for Australian home miners is that Scrypt mining at 942W–1,200W on residential electricity at $0.28–$0.35/kWh is challenging to run profitably without careful modelling. The Goldshell Mini Doge III's 400W draw is more manageable, and some miners run it as a lower-cost introduction to Scrypt mining while monitoring profitability against live coin prices.
Always run your specific numbers — current DOGE and LTC prices, your exact electricity rate, and the hashrate of the specific machine — through a mining profitability calculator before purchasing. Merge mining both DOGE and LTC simultaneously does improve the combined revenue picture versus mining either coin alone.
For a detailed look at Australian electricity rates and how they affect mining economics across different hardware tiers, see: Electricity Prices in Australia and the Real Cost of Crypto Mining in 2026
Can You Mine Scrypt with a GPU?
Technically yes — GPUs can run the Scrypt algorithm. But dedicated Scrypt ASICs are orders of magnitude more efficient, and have been since the mid-2010s. Mining Dogecoin or Litecoin with a GPU in 2026 is not economically competitive against the global ASIC fleet. If your goal is Scrypt mining yield, ASIC hardware is the only practical path.
GPU mining does remain relevant for certain other algorithms where ASICs haven't yet dominated — but Scrypt is not one of them. For a broader look at where GPU mining still makes sense in 2026, see our comparison: ASIC Mining vs GPU Mining in 2026: Which Is Right for You?
Scrypt vs Other Altcoin Algorithms
Scrypt is one of several proof-of-work algorithms used by altcoins, and each requires dedicated hardware. A Scrypt ASIC cannot mine coins on other algorithms:
- SHA-256 (Bitcoin, Bitcoin Cash) — Requires dedicated SHA-256 ASICs. Not compatible with Scrypt hardware.
- KHeavyHash (Kaspa) — A newer memory-hard algorithm used by Kaspa, requiring its own dedicated ASICs such as the IceRiver KS series.
- ETCHash / EtHash (Ethereum Classic) — Used by Ethereum Classic, mined by dedicated ETC ASICs.
- Blake3 / Eaglesong / others — Various smaller coins use their own algorithms, each with their own hardware ecosystems.
This algorithm specificity is fundamental to ASIC hardware. When choosing a miner, your coin target determines your algorithm, which determines your hardware. Browse the full range of altcoin-focused ASIC miners in our Altcoin Miners collection.
Getting Started with Scrypt Mining in Australia
If you're new to mining and want to understand the broader setup process — from choosing a pool to configuring your miner — our beginner setup guide is a useful starting point: How to Set Up Your First Bitcoin Miner in Australia. While it's written around Bitcoin, the pool configuration and network setup steps apply equally to Scrypt mining.
To browse the Scrypt miners we have available for Australian delivery, visit our Altcoin Miners collection. If you have questions about which Scrypt miner suits your setup and electricity situation, get in touch — we're based in Perth and happy to help.
