Dash mining is the process used for mining the cryptocurrency Dash, just like Bitcoin mining. It is also based upon a decentralized blockchain technology which is secured via a consensus mechanism, the Proof of Work. So, miners will try to solve complex mathematical problems using specialized computers and if they can solve these; they will be able to add new blocks to the existing blockchain. Dash will make use of the X11 algorithm which also needs greater computing power as compared to the Bitcoin that uses the SHA-256 PoW algorithm.
How does Dash Mining work?
Dash mining takes place through two layers of networking, namely Masternodes and miners. So, Dash will use standard nodes for maintaining and securing the network through transaction verifications. The Masternodes will carry out specialized functions called InstantSend for instantaneous transactions. Dash mining is executed with the help of ASICs or specialized mining hardware which alone can solve the PoW problems with utmost efficiency. CPU and GPU mining of Dash are no longer found to be effective. Software used for Dash mining will not be the same as that of the other altcoins. Since mining solo is not very profitable, miners prefer to join mining pools to improve their chances of earning rewards. A Dash mining calculator will also help you understand whether it is profitable for you to mine this cryptocurrency or not. For this, you will need to provide details like hash rate, difficulty level, current prices of the coins, power costs, mining pool fees etc and the online calculator will give you an estimate.
What is Dash cloud mining?
When the miners do not wish to handle costs and problems associated with mining this cryptocurrency by buying mining equipments, they choose cloud mining. You can do some research into the background of the cloud mining providers before signing contracts with these. Here, shared processing power from various miners is used to mine Dash. Because of the high energy costs involved, many of the mining farms are now based in countries which have low power costs.
Dash mining should be done only after ascertaining its profitability. Hash rate is linked with prices of the coins and the difficulty levels will track the hash rate. The X11 algorithm is believed to be simpler than algorithms used by other cryptocurrencies but Dash mining may not be as profit-making as it was prior to the ASIC miners. New Dash miners are all set to enter the market and this is expected to increase the hash rate and profitability for Dash. Difficulty levels basically indicate the amount of computing power which will be needed in order to solve blocks successfully.
Sure?
Dash mining offers some key benefits like anonymity and obscurity. This is because all transactions here are anonymous and one cannot trace the destination or origin of these transactions, unlike the Bitcoins where all transactions can be viewed by all. Unlike the Bitcoin, Dash transactions are confirmed instantly. Finally, transaction fees are far lower for Dash as compared to the Bitcoin. Mining Dash is safe on the whole provided you do not fall prey to fake websites and you make use of the right channels and right hardware. Sites promising fast returns are best avoided because these are likely to be scam websites.
