Groestlcoin is mined utilizing the Groestl algorithm, which was selected as one of the five finalists in the NIST hash function competition. It employs the same S-box as AES in a custom construction. This cryptocurrency functions as open source software, following a peer-to-peer model where transactions occur directly between the payer and the payee. This eliminates the need for a trusted intermediary like a bank or PayPal to verify sender and receiver details. Instead, transactions are authenticated by nodes, which comprise a network of computers and users distributed globally, and are subsequently recorded in an open ledger.