Mining in the context of cryptocurrency such as Dash refers to the process of searching for solutions to cryptographically difficult problems as a method of securing blocks on the blockchain. The process of mining creates new currency tokens as a reward to the miner. Mining is possible on a range of hardware. Dash implements an algorithm known as X11, which the miner must solve in order to earn rewards.
The simplest and most general hardware available for mining is the general purpose CPU present in every computer. A CPU is designed to be versatile but offers less efficiency than a GPU, which is designed to rapidly calculate millions of vectors in parallel. While specific CPU instruction enhancements related to cryptography such as AES or AVX can provide a decent boost, GPUs offer a significant performance increase due to their multiple pipelines for predictable calculations of the type involved with mining. Finally, ASICs can perform a single operation only. A number of X11 ASICs are now available on the market, which are quickly making CPU and GPU mining uneconomic due to the increased difficulty of hashing arising from the rapidly increasing hash rate. The result is a currency, which is more secure against brute force attacks on the Dash blockchain.
Many people don’t know that the Dash features such as anonymity and transaction speed, are implemented on top of a network dedicated servers knows as masternodes. Masternodes are known only because of Dash in the crypto world and they are necessary for achieving the speed and privacy which Dash offers. Masternodes:
- features inludes the anynomous and instant transactions,
- also the governance of the development of the Dash network though a monthly budget and voting,
- masternode provides crucial services to the network,
- system is referred to as Proof of Service (PoSe)
In fact, the entire network is overseen by the masternodes, which have the power to reject improperly formed blocks from miners. If a miner tried to take the entire block reward for themselves or tried to run an old version of the Dash software, the masternode network would orphan that block, and it would not be added to the blockchain.
Masternode versus Mining
Because Dash is two tier cryptocurrency, miners power the first tier – basic sending and receiving of funds and prevention of doublespending. Masternodes power the second tier which provide added features that make Dash different from the other cryptocurrencies. Mining computers cannot serve as masternodes and vice versa. Each masternodes is secured by 1000 DASH.
The proof-of-work system/protocol which is used by Dash, was first used in the mid-1990's for fighting spam emails. The idea never found a truly useful cause until 2009 when bitcoin was created. Bitcoin itself utilizes this protocol in its transaction blockchain and thanks to this we can witness the growth in bitcoin mining.
The base idea of this lies in a challenge and proof (or response). The challenge is a transaction, which is a specific cryptographic puzzle. The proof is that a miners computer cracks the puzzle, so the transaction goes through. And that is proof of the miners' work and him providing his hardware for the validation of transactions. The more hash power a miner can provide for validating transactions, the bigger his Dash reward for the service is.
The problem with PoW is that mining has become so large that miners are investing into giant A.S.I.C. hardware which is highly energy consuming. Many mining farms are built around the globe as bitcoin has risen in value.
The Dash block is mined every ASIC. But this block is then divided between all miners. How long does it take to mine 1 block of Dash for yourself depends on your hash rate, which is basically how powerful your mining setup is. For mining Dash you will get the best results with using asic.
It is difficult to say how much does it cost to mine 1 block of Dash because it depends on the price of your electricity. But in general, if you want to be profitable, you have to invest in specialized mining setups called ASIC. They are created for mining cryptocurrencies, and because of that, they have perfect parameters for this job together with high efficiency.
Although it is entirely possible to mine Dash on your computer, you should consider investing in the ASIC mining setup if you are serious about cryptocurrency mining. Actually, the best way how to mine Dash is the asic. Anyway, if you really want to go with the computer way, try to join some miner pool.
In the beginning, you can try mining Dash at home with your computer. Once you get more experienced in mining, you can invest in asic. That is the best way how to mine Dash. But make sure to check mining profitability charts, so you are not just burning money.
Mining Dash on Android is straightforward. All you need to do is install an application called MinerGate. After you have installed it from Google Play Store, create an account, and you are ready to mine Dash on your Android.
Unfortunately, it's not possible to mine Dash on iPhone. Apple restricts it because mining caused damage to hardware. All the applications that were mining Dash drained battery generated excessive heat, or put unnecessary strain on device resources, what is the reason it's now forbidden.
If you want to be a serious Dash miner, the first step you should do is join a miner pool. They will help you with your setup and guide you in the beginnings. Then it would be best if you bought, of course, some asic to get as much value as possible.
It's complicated to say how profitable is Dash mining because it varies person from person. It depends on many variables like the cost of electricity, cost of a mining setup, taxes, etc. The best way you can do is to check the Dash profitability charts. They will tell you how profitable is Dash mining in your location.
A Dash miner is just a computer. The main criterium you should look for is efficiency compared to electricity cost. Anyway, it's usually better to buy specialized, professional miners called ASIC. Or you can use asic, which is the best way how to mine Dash.
The best way to start with Dash is to start from the beginning - that means mining. This way, you get your hands dirty and get some super relevant experience with this cryptocurrency. For mining Dash, we recommend asic as the best way how to mine.