Miners are responsible for processing transactions in distributed ledger systems that use the Proof-of-Work protection algorithm. They use computing equipment to solve complex cryptographic problems to find the hash function of a block. After successfully completing the work, the signed block takes its place in the blockchain, and the miner receives a reward with the network’s internal tokens.
There are ecosystems that use the Proof-of-Stake consensus algorithm. In them, validators are involved in checking transactions and creating new blocks. These are special nodes to which the community or the administration of the project has delegated the authority to protect the network. Such projects may, in general, not use mining to ensure emission, generating all coins at once when the network starts. Some networks integrate both consensus algorithms. In this review, we will tell you about the features of mining cryptocurrencies dash, available equipment and the best pools.
How to mine Dash – ways and features
In the dash payment network, mining takes place in the traditional way, that is, on computing devices, but since there is a second level of control, half of the block reward goes to the master nodes. How does it work in practice?
- The first level of the dash miner is POW (proof of work). Miners process transactions, sign blocks, and are responsible for protecting the system from double spending attacks.
- The second level of dash masternode works on the Proof of Service algorithm (proof of service), does not participate in the dash mining process, but has the right to cut off incorrect blocks. Master nodes control the operation of the system and respond to the functioning of the PrivateSend and InstantSend services.
Since the owners of masternodes earn money on a par with miners, you should talk about the features of their setup and maintenance.
Masternodes
The developers of the coin were the first in the crypto industry to launch a master node system, then other peer-to-peer networks began to use proof of service. Masternode, Unlike ASIC or a gpu farm for mining virtual coins does not consume a lot of electricity, but its launch is a serious investment in the crypto network.
A master node is a server with a complete copy of the Dash blockchain, which guarantees a specified minimum level of performance and functionality for performing certain tasks related to block validation, as well as PrivateSend and InstantSend mechanisms for confidential and instant transactions. Masternodes are rewarded for this service and are also allowed to vote on management and funding proposals. Each masternode receives one vote (yes / no / abstain) for each proposal submitted to the system. Thus, a sufficient level of decentralization is ensured. Mandatory requirement for 1000 dash does not allow one person to control a large number of master nodes. Coins must be stored in a certain way and the balance must be transparent to the entire network. In the event of a change of address or a waste of money, the master node will be blocked until the balance is restored.
Masternodes are paid money to support PrivateSend, InstantSend services and participate in network management. According to the distribution scheme, 45% of the block reward goes to the master nodes, another 45% is received by crypto-raters and 10% goes to the network development fund. But in reality, the owners of the rigs and masternodes divide the block reward in half, and every 16616 blocks (about once a month) one superblock is generated, the reward for which goes to fund new developments that have received community approval. Masternodes alternately participate in the maintenance of the network and, having received a reward, are shifted to the end of the list. At the time of writing this review, Dash has registered 4842 master nodes.
Setting up a masternode requires an understanding of how the Linux operating system and blockchain technology work. The user must carry out regular maintenance and observe safety measures, especially in the absence of a hardware safe. However, having 1000 Dash, which at the current exchange rate is equivalent to $ 53,000, and not buying a physical wallet at the price of $ 100 to ensure their safety, is simply ridiculous. The complete dash masternode setup guide is located at https://docs.dash.org/ru/stable/masternodes/setup.html… We will try to briefly explain the startup algorithm.
You can run a masternode on your PC and delegate the work of your node to one of the professional operators. Of course, this does not mean that the collateral money will be the same with him. When using hosting services, you only pay a certain percentage of the reward.
What you need to set up and run a masternode.
- Put 1000 DASH in hardware wallet or Dash Core.
- Install a Linux server on your PC, but it is better to use a VPS, so you will ensure uptime and a static IP address.
Setting procedure:
- Select a virtual server provider.
- Create an account and top up your balance.
- Add a new server and specify its location. Optimal server type Ubuntu 18.04 x64.
- Specify server size 60 GB and 2 GB RAM and add the paging file.
- Write the hostname and label for your server.
- After the installation is complete, click Manage and make a note of the IP address, username and password.
To connect to the server, install the PuTTY program on Windows. On Linux, just type in a terminal ssh root@
A Dash address with one unspent transaction output (UTXO) of exactly 1000 DASH is required for the master node to work. As soon as the money is sent to it, the transaction must be registered so that the master node can be included in the deterministic list.
If you are using a wallet Safe:
- Add a new account.
- Open Receive.
- Send exactly 1000 DASH to the displayed address.
After the transaction is displayed in the wallet, click on the QR code on the right to go to the blockchain explorer. While waiting for 15 confirmations, upload the latest Dash Masternode Tool (DMT) from GitHub… Unpack and run the file.
Click the third button from the left Check Dash Network Connection in the upper left corner of the startup screen to make sure the connection is working. Then connect to your Trezor device and click the next button Test Hardware Wallet Connectionto make sure the Trezor connection is working. After completing 15 confirmations, you need to create three private keys and register a new master node on the Dash network.
- Click Generate new in the window Dash Masternode Tool and save the keys;
- Click Register masternode. You can specify a different payment address and then click “Proceed».
- Please select Remote Dash RPC Node and confirm the next two messages.
The BLS private key must be specified in dash conf in order for the masternode to perform network maintenance tasks. Log into your master node using ssh or PuTTY, edit the config file and restart the server again.
Mining with a CPU or video card
Mining dash coin only for IC devices. Even if you received the hardware for free and you don’t need to worry about electricity bills, there are still more profitable coins for mining on graphics accelerators and cpu.
Dash mining on ASIC hardware
Devices work on the X11 algorithm, which is used for mining dash StrongU STU-U6 and FusionSilicon X7… ASIK companies Bitmain Antminer D5 can only be used with a free socket.
Unlike a mining farm on video cards, setting up an ASIC miner does not require special skills.
- Remove the miner from the package and turn it over several times to make sure the chips are securely attached.
- Connect the power supply.
- Connect the device to the mains and the Internet and press Start.
- Install the ASIC finder on your computer.
- Find a miner and fix the IP address.
- Enter the found IP into the search bar to go to your device’s configuration page.
- Specify the dash mining pool you need and add two backup ones.
- In the pool settings, specify the wallet for payments. If the pool requires registration, open its website on a PC, create an account and specify the login + password link in the ASIC miner configuration.
- Reboot your device.
Now your ASIK will mine dash on the selected pool, and in case of failures, it will switch to the reserve one. Production statistics can be monitored on the pool website or a special mobile application. When you start it for the first time, it will take about 15 minutes before the data appears. If after half an hour the miner is not found, check the configuration, contact the technical support of the service you have chosen. The dash WhatToMine mining calculator will help you calculate the profitability and determine the payback period of the device.
Best pools
The list of available servers is on the site https://miningpoolstats.stream/dash… In total, 18 dash mining pools are involved in mining, but almost half of the hash rate falls on cybtc… From the rest of the resources it should be noted f2pool.com, a multicurrency server with a convenient and intuitive interface and guaranteed payments. Almost all dash mining pools are Chinese, some do not even have an English interface. To work on any of them, you need to register via email or mobile phone.
Calculator for calculation
The best online dash mining profitability calculators are WhatToMine and Coinwarz… To calculate profitability, you need to know the hashrate and power consumption of your device, as well as the cost of electricity in your region and the size of the commission on the selected pool.
- Go to the website of the mining calculator;
- Choose a coin;
- Enter all the required details and click “Calculate».
The resource will display the possible profit for a certain period of time, without taking into account possible downtime and changes in the rate of the mined coin.
Cloud services
It is cheaper to buy ASIK than to invest in a masternode, but all the money is not small. In addition, the IC device cannot be operated in a residential building. You will need a mining hotel, or at least a garage. If you cannot afford it, conclude a contract with one of cloud mining services… This does not require significant investment and hassle of setting up hardware and software. But keep in mind that there are many scammers working in this niche of the crypto industry. In order not to lose your money
- Study reviews of the project on thematic forums and social networks;
- Read the terms of the contract carefully;
- Pay attention to the presence of photos of the data center with operating equipment.
And most importantly, never invest more than you are willing to lose.
Mining is a very exciting activity, you can type and then spend very real money. But still, this is primarily a business that requires considerable costs and special skills.
The era of the “Wild West” in the cryptoindustry is gradually ending and many states are trying to take control of the mining of virtual coins. Perhaps this is for the best, but it used to be much more interesting. If you plan to start mining virtual coins, carefully study the market situation, weigh the risks and do not rush to change the crypt for regular money. Good luck to you!
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