Miners are always on the lookout for the right cryptocurrency that they can mine and earn good profits from. One of the cryptocurrencies that has caught the attention of the mining community is Dash. We are not the only ones talking about Dash, as even crypto traders are bullish on Dash. If you are looking for the right guide on how to mine DASH cryptocurrency, then look no further and keep reading.
Launched in 2013, Dash is set to roll out changes that will facilitate the use of digital payments, in fact it is set to be the PayPal of the crypto world. In a recent news, Dash announced An SMS-Based crypto transaction service for Venezuela.
To understand if mining DASH is worth it, let’s first understand what is Dash cryptocurrency and how it works.
What is Dash?
The cryptocurrency was launched in 2013 as the X coin, consequently its name was changed to Darkcoin, and then to Dash. The infrastructure of DASH is two tiered and it relies on miners as well as masternodes. It uses the same consensus mechanism as Bitcoin, which is the Proof of Mining. The master node provides a proof of service layer, here the network nodes function as the transaction mixers as well as voting mechanism for currency’s governance.
Mining Dash cryptocurrency
As compared to other cryptocurrencies Dash has a strong value, but for miners it is very important to question that how hard it is to secure a reward. The process of mining Dash is identical to that of other digital currencies like Bitcoin and Ethereum. Read more about Ethereum mining on our Ethereum Mining Explained article, and for Bitcoin mining pool head over to our Bitcoin mining pool explained article. Specialized computers are used to solve complex mathematical problems, and once successful, a new Block is integrated into the chain. On successful verification of the solution, the miner earns a reward.
With its two tier system, the distribution of the reward is different in Dash as compared to other cryptocurrencies. As per the website of Dash, the masternodes are also rewarded when miners add new Blocks to the chain. The masternode system is referred to as Proof of Service algorithm since the entire network is overseen by the masternodes. These masternodes also have the power to reject incorrect Blocks.
When mining Dash cryptocurrency, the reward is distributed as 45 percent for the miners, 45 percent for the masternodes, and the remaining 10 percent is allocated for the budget where users can vote on the distribution of funds for the development of the ecosystem. The reward amount will decrease 7 percent every year, and the total number of Dash coins that will ever be produced is 18 million.
Equipment for mining Dash
To mine Dash and reap profits, it is very important that you select the right equipment and choose whether you will do it alone or join a mining pool. There are four options for mining Dash, respectively CPU, GPU, ASIC and mining pools. Your CPU core can find X11 solutions on the Windows platform, but the prevalence of ASIC and GPU miners makes CPU mining costly. Using a GPU to mine is another option which uses the X11 algorithm. The large number of ASIC miners in the Dash network also make GPU mining very expensive. When it comes to ASICs, they are a popular choice owing to the greater efficiency offered by them. Mining Pools are the option of choice for those new to mining. They help generate more rewards as compared to when you do it alone.