Monero (XMR) mining

Monero (XMR) is the most popular privacy focused cryptocurrency. It requires Proof Of Work (POW) to achieve distributed census on the blockchain. It employs a ring-CT algorithm, which is explained in the ‘What is Monero?‘. Monero can be used to send totally anonymous transactions across the network. The nodes or miners simultaneously lend their Hashing power to achieve distributed consensus. Monero (XMR) is currently the most profitable coin to mine using GPU units, it wins over Ethereum (ETH), Ethereum Classic (ETC) and Zcash (ZEC) which have lost more value than monero since January 2018 decline.

Monero (XMR) is currently the most profitable coin to mine using GPU units, it wins over Ethereum (ETH), Ethereum Classic (ETC) and Zcash (ZEC) which have lost more value than monero since January 2018 decline. Click To Tweet

GPU Mining: A truly decentralized mining niche

The proposed protocol is designed to resist Application Specific specialized devices used by miners, these up the ante for certain miners by deploying more efficient dedicated systems. Application Specific Integrated Circuit (ASIC) hardware miners promote centralization, which is not good for a peer-to-peer distributed payment network.
Monero can essentially be mined by using GPU units. These can however be set up in large numbers using various units to get more output. Furthermore, the cost of electricity and the cost of equipment increases proportionally.

The miners are usually profit-oriented hence provide Proof of Work (POW) only for networks which has the maximum value ergo popularity and usefulness. This incentivized initiative is the backbone of the distributed ledger peer-to-peer technology.

The decentralized group of miners hence like the owners of a bank of their own, confirming transactions on the Monero network. The GPU prices have gone up since the advent of GPU mining. Earlier in 2011 before the introduction of ASIC hardware, Bitcoin was mined using GPU cards, later the most popular coin being mined on GPU since then is Ethereum. Monero is at par with or fluctuates by a small percentage in terms of mining profitability related to Ethereum.

Current statistic and profitability

The Monero mining profitability can be calculated by estimating the reward proportional to their hashing power. The total Hash Rate of the network is 453 MH/s. The reward for solving a block on the Monero Blockchain is 3.65 Monero or ~385 USD at the current rate.

Globally, for minimalist profitable mining an ideal set of minimum 12 GPU units must be set up. However, if the coins cost are bared by the miners and cost of monero held by them increases, the entire process turns extremely profitable as it had during 2014-2017 period. The cost of their GPU units and their Monero would give stable and assured profits.

Making the right choice

The mining profitability according to hash and electricity rate can be calculated by using either cryptocompare.com or whattomine.com.

How to start Monero mining?

There are a plethora of coins that can be mined using GPU units. Ethereum, Ethereum Classic, Zcash and Decred are the most popular among them. Although these follow different algorithms to send and confirm transactions, the efforts of the miners are similar in all cases.

Screenshot from nanopool

E.g. to miner Monero, after installing the drivers for GPU, mining open source software must be downloaded from open-source listings on Bitcointalk.org or from the respective pools.

Then right click on the start.bat file after extracting from the folder and editing the text file. The address of the miner and a psuedo name for the node must be added to transfer the rewards. The miner is now ready to go and will service 24/7 to confirm the transactions.

The most popular mining pools to which the users can share their mining power include  Nanopool (120 MH/s) , supportXMR (91.9 MH/s), mineXMR (104.5 MH/s), MoneroHash(10.6 MH/s) and MinerGate(25/Mhs). Due to probabilistic advantages of solving more blocks by combining the total hash power and distributing the rewards, these pools are the molecules to the miners’ atoms. The largest pools are formed due to trust built by consistent payments and lower pool fees.

Mining using GPU is safer because of its versatility. Cryptocurrencies like Ethereuem Classic (ETC), Zcash (ZEC) and Monero (XMR) are usually the most profitable coins to mine which has attracted and produced a stable world-wide system of mining and rewards. The most popular wallets and pools are open source and hence trustworthy.

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