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What is Dash Mining?
Dash is one of the many alternative cryptocurrencies. Alternative cryptocurrencies are any other digital currencies other than bitcoin. Dash was developed by Evan Duffield on bitcoin’s core code but with additional features such as quick transactions and privacy. The coin was initially known as XCoin as of January 18, 2014, and was later named “Darkcoin” before finally taking up the name Dash on 25 March 2015. Its developers believe that it will solve most of Bitcoin’s problems to become a truly decentralized digital currency. for more info on Dash, go to our Dash Guide.
The question that must be lingering in your mind now is, can you mine dash? The answer is – Yes, you can mine this coin like most other cryptocurrencies.
Dash developers have set it that there can only be a total supply of 18 million coins. At the moment, there are about 8 million coins in circulation. They intend to reach the 18 million mark by the year 2030.
The coin has a variable clock that is set to decrease at the rate of about 7.1% annually. It takes about 2.5 minutes to mine an average Dash block. There are various ways in which you can get these coins including mining and buying from exchange platforms.
- Dash uses the same procedure as most other cryptocurrencies and especially like Bitcoin.
- It is based on a decentralized platform called blockchain, that bases its security in a consensus.
- In this mechanism, miners are supposed to solve complex mathematical problems using specialized computers and software, then show Proof of Work (PoW) to a network of peers who then have to approve unanimously if the problem was solved correctly.
- If the network approves this, then the miners are allowed to add the block they have mined to the blockchain and receive Dash coins as a reward.
Let’s look at some of the Dash mining methods:
Initially, it was possible to mine Dash as long as you had a reliable computer. As of now, Dash mining hardware has developed becoming more than just your average computer.
Application Specific Integrated Circuits (ASICs) are specialized computers miners use to solve Dash’s cryptographic problems. These supercomputers are able to decrypt the cryptographic problems enabling miners to display their Proof of Work. Some examples of Dash dedicated supercomputers in the market are
- ASIC Pinidea X11 Miner DR-1,
- ASIC X11 Baikal Mini Miner,
- ASIC Baikal A900 X11 and
- ASIC iBelink DM384M X11.
Here is how to mine Dash:
- Dash has a two-tier network. The second tier is fully powered by master nodes.
- These nodes make financial privacy possible, enable instant transactions and decentralize the entire system.
- The masternode is a Proof of Service (PoSe) as they give important services to this network. They have the power to reject any improperly formed blocks.
- If for instance, a miner was to attempt to run an old version of the software or try to take up the entire block, the masternodes usually orphan such a block.
- Masternodes power the second tier as the miner powers the first.
This feature sets Dash apart from other digital currencies. A point to note is that the masternodes never mine and that no mining computer can serve as a masternode.
Masternodes get rewards every time miners discover a new block to add on to the blockchain. the distribution of reward is as follows:
- The miner gets 45% of the block reward.
- The masternodes receive 45%
- The budget system remains at 10%
DASH Cloud Mining
Dash cloud mining involves identifying a reliable provider to join to pool together processing power from different personal computers. There is a central data center that runs the mining process. You only need to identify a provider, register and then purchase some mining shares. Examples of these providers are:
You will need to keep yourself updated to ensure that your contracts continue earning. Read more about cloud mining.
Just after Dash was developed, it was possible to mine Dash without using specialized software. Dash developers intended to bring about democracy in the crypto world by allowing consumer hardware to mine the coins.
This approach would enable everyone to have a say making it a more decentralized coin. GPU is graphics Processing Unit that runs on more cores than a CPU. It is faster and more efficient. However, the introduction of ASICs has rendered Dash mining using GPUs unprofitable.
You can join a mining pool if you still cannot afford the specialized software and hardware as it is very expensive.
Mining pools are platforms you can join to help you mine Dash or any other crypto rather trying to do it yourself.
Being part of these pools will help you reduce your power consumption and thus your electricity expenses. Ensure that you do due diligence before joining any pool and always stay alert.
Some good pools include:
These are not the only pools but are some of the most reliable. Carry out some research to find out others that will enable you to mine profitably. Make sure you also have a dash core wallet to keep your coins. Do not leave them on the mining platforms!
What is POW?
POW means Proof of Work. It is a consensus mechanism used in Dash and Bitcoin decentralized ledger. In order for miners to earn a reward in terms of coins when mining, they have to solve difficult maths problems.
The miners have to post their solution in a network of people running this particular software. Everyone in the network has to agree that the problem was correctly solved to allow the miners or the miner who solved it to add a block to the blockchain and then get some coins.
In the case of Dash two-tier network, the miner will share the block reward with the masternodes and the system. The miner receives 45%, the masternodes get 45% and the rest goes to support the budget system.
The Dash system is special in that:
- Unlike with Bitcoin transactions where you can trace the users, Dash transactions remain anonymous.
- It is more decentralized as anyone with an internet connection can access the Dash coin blockchain.
- It prevents cases of double spending.
- Transactions are much faster than Bitcoin.
How Mining DASH Works?
DASH uses Proof of Work as a consensus mechanism. Miners have to solve complex mathematical problems that have to be approved by others on the same network. This approval is what is referred to as PoW. The miners or the miner is then allowed to add that block to the blockchain and then gets rewarded with DASH coins. This reward is divided between the miner, masternodes, and the system.
Here is a step by step guide on how to mine DASH Coin.
DASH uses the X11 algorithm. It uses eleven has functions making it very secure. The most efficient DASh miners currently are Bitmain Antiminer D3 and iBeLink DMG22. These are ASICs miners that have rendered mining DASH with GPU quite unprofitable. But let’s see what you need to do.
- The obvious first step is to purchase your miner
- Set up the miner and then download the Advanced IP Scanner tool.
- Note the IP address and use the word “root” for password and username
Currently, mining DASH isn’t as profitable as it was initially due to the expense of running the miners. It can take an estimated 8281 days just to mine one block of DASH doing it alone. This time period is obviously not viable for profit. You can use a Dash mining calculator to determine profitability.
How Safe is Mining DASH?
We’ve already covered the various ways you can mine DASH coins. You can join mining rigs or pools, or use your own specialized software and hardware which is very expensive, but which also has higher returns.
You may be wondering about taxes and other expenses. Like all other cryptocurrencies, DASH is still not accepted by most governments as a currency. The IRS (Internal Revenue Service) considers all digital money as assets that individuals should pay taxes for any capital gains. Even though DASH aims at being more anonymous than Bitcoin, the IRS would still require individuals to declare their gains and pay taxes as required.
Is Mining DASH Coin Safe?
Mining DASH is safe if you use the right channels and the right equipment. We’ve already given you detailed information of the various approaches you can take to mine DASH coins.
There are so many platforms and fake data centers that can lure you with handsome profits. Do not lose your hard-earned cash on such sites. All mining requires that you put in some work and effort. Any site promising quick returns is a fake and just out there to steal people’s money.
To Sum it up
Cryptocurrency and the blockchain technology is now the future. You either join the train now or run after it has already left. Don’t be left behind. These technologies are the future. As with mining, make sure you find the right hardware or the right platforms to join if you can’t afford the equipment. Never fall for alluring get rich quick schemes and always keep yourself informed and updated.
Thank you for checking out this article.
Make sure you explore our website to learn more about the world of cryptocurrencies.