Mining Dash in 2018: a complete guide

Dash is one of the most popular and successful altcoin to date. Formerly called "Xcoin" when it was launched for the first time in 2014, it later became "Darkcoin", before arriving at the name we know today, Dash.

Dash was the first self-financing and autonomous protocol, as one of the first DAOs, short for decentralized autonomous organizations. Developed to solve most of the problems usually associated with Bitcoin, its main selling points are instant transactions (InstantSend) improved privacy (PrivateSend) and security (transactions are confirmed by a 200 TerraHash algorithm).

At the time of writing this article, Dash (DASH) is ranked 15 th on CoinMarketCap, with a total market capitalization of $ 1,654,703,119, a current price of $ 200.73 and a & # 39; circulating offer of 8,243,632 coins DASH. Dash has been developed in such a way that there can be a total stock of 18 million coins. The company hopes to reach the milestone of 18 million around the year 2030.

Below, users can find a guide that explains how Dash is extracted, as well as all the hardware and the software needed to complete this process.

Dash & # 39; s Consensus Mechanism

Dash uses a Proof of Work (PoW) consent mechanism and a hash algorithm called X11. Developed by Dash's chief developer, Evan Duffield, the algorithm takes its name from all 11 sequential hashing algorithms it uses. The main advantage of this algorithm was that it required less computing power and energy consumption than the Bitcoin SHA-256 PoW algorithm.

Dash Mining Explained

If PoW sounds familiar, it is because it is the same used by Bitcoin. The same basic principle applies: in order for miners to earn prizes during extraction, they have to solve complex mathematical problems, which must then be approved by others on the same network. This can be achieved by using a combination of specialized software and hardware elements.

Another noteworthy aspect of Dash is the fact that it uses an open source algorithm that constantly adjusts the extraction difficulty, called DGW, abbreviation of Dark Gravity Wave. This algorithm ensures that the difficulty level is adjusted for each block and not once every block of 2016, as in the case of Bitcoin. The coin has a variable clock that is set to decrease at a rate of around 7.1% per annum.

The DGW system has evolved over the years to its third version and has been updated to solve most of the problems usually associated with time-deforming exploitation, floating-point accuracy and difficulty retargeting.

On the two-level network of Dash, the miner will share the block's reward with the masternodes and the system. The miner will receive 45%, the masternodes will also have 45% and the rest of 10% will support the system. 10% is used to pay for network contracts that seek to develop and invest in the Dash ecosystem. Nodes are used to maintain and protect the network by performing transaction checks and currency creations.

As you can imagine, the masternodes are very important to the Dash ecosystem. To configure and execute a masternode, users must ensure that they own and store 1000 DASH coins, which have a Virtual Private Server (VPS) or a Linux server, as well as a DASH Wallet. The 1000 coins must always remain in your wallet to perform the masternode, as with less than the number above, your masternode will be removed from the Dash network.

Dash Mining Hardware

Just like most other cryptocurrencies Dash can also be extracted. Although in the early days it was possible to dig with a simple computer, today the extraction of CPUs and GPUs is no longer profitable.

To dig Dash, users require a specialized ASIC miner. One of the best Dash miners is the Antminer D3 developed and released by Bitmain in 2017. It uses the same algorithm as Dash (X11), has a hashing power of 19.3 Gh / s and a consumption of about 1350W. In addition to the real miner, users are also required to purchase a power supply, power unit.

Dash Cloud Mining

Of course, buying all this specialized hardware comes at a cost. Another alternative, cheaper, comes in the form of cloud mining. Usually, processing power is provided by various PCs located in low-cost countries. Users can therefore rent hash energy from these companies in exchange for fiat currency. Some of the most reliable cloud mining providers are Bitminer, MinerGate, CoinMine, Zpool, Supernova, MiningRigrentals, Genesis Mining, HashFlare and NiceHash.

Dash Wallets

Buying your own hardware mining equipment or entering a mining pool is only part of the entire mining process. To extract Dash, users also require a wallet to hold Dash coins. Some of the best Dash wallets, as recommended by the official website, are Dash Core, Dash Electrum, Exodus and Jaxx for desktop and Dash Wallet, Dash Core iOS, Edge Wallet (Android and iOS), Coinomi and Jaxx (Android and iOS) for devices furnishings.

Experienced security users can also choose from various hardware portfolios, such as Ledger Nano S and Trezor.

How profitable is Dash Mining today?

The global hashrate for Dash has seen its ups and downs in the last two years. Profitability is not as high as it was in the early years. However, the X11 algorithm is a relatively easy algorithm to extract compared to other cryptos out there, and the hash rate is correlated to the price of the coin.

Final considerations

To conclude, Dash mining can still be profitable, as long as users take the time necessary to thoroughly research the required mining equipment and to calculate the total cost and profit potential. Read as much as possible about Dash mining and make sure you do not get caught up in fast-paced schemes. Do not forget, Dash mining is safe if you're using the right channels and the right equipment.

For more information on the Dash extraction, do not hesitate to visit the dedicated section on the official website of the platform.

Source link