If you are looking to mine Nem, keep in mind that before you do so, invest some
time into researching if your setup will actually generate you any profit. Nems
price can fluctuate and the amount of miners also plays a great deal in your chances of
making a profit. At the current price of XEM, consider how much worth it setting up a
mining rig would be. Hardware that would be most powerful for mining would be ASICs
which are unfortunately nowadays extremely pricey. If mining with a computer, a GPU
won’t generate a large turnout but it might be something for the start when mining
Nem. Mining profitability charts can show you how much USD you can make for 1 Mh/s
of hash rate. These charts also have the electricity expenses covered. Mining difficulty increases by the number of miners and every time the
demand for a larger hash rate increases. Your hash rate is basically how much computing
power you are providing for mining new blocks. This takes what is called "block time".
How to mine Nem
What is an ASIC miner? ASIC mining rigs are machines made of a motherboard, ASIC chip and
a cooling system. They're designed specifically to mine a certain cryptocurrency and
they do it well. This hardwares purpose is to solve as many cryptographic puzzles at a
time. The primary investment into one of these could get paid for in a few months, but
there is still a large problem with noise, heat and power demand of these machines
besides, they do break down and as the machine runs 24/7, they do wear out.
What is a hashrate. A hash rate is basically a scale of how many guesses for the puzzle
your mining setup can make in a given amount of time. The rate is in hashes per second
(h/s) and can be decadically moved up (KH/s, MH/s,...).
Ethash is used for encrypting Ethereum and Ethereum Classic. Ethash was built to be
ASIC-resistant through memory-hardness (by requiring large memory, standart ASICs
couldn’t decrypt the puzzles). Unfortunately for graphics miners, in early 2018 the
first ASIC miners for Ethash were introduced on the market and Ethereum eventually lost
its decentralization similarly like Bitcoin.
SHA256 (or Secure Hash Algorithm) was originally designed by the NSA back in 2002. Later
the algorithm found use within the Bitcoin cryptocurrency and is what runs all Bitcoin
based coins. SHA256 is a hash of 256 bits and is what miners decrypt using their mining
setups which eventually validates blocks, for what miners are rewarded.
The Scrypt algorithm similarly to Ethash was designed to be ASIC-resistant, but
unfortunately ASIC miners for Scrypt have entered the market and cryptocurrencies like
Litecoin expect the same fate as Bitcoin or Ethereum.
Cryptocurrencies like bitcoin are already ASICs mined so nowadays mining these with a GPU
is useless. If you consider that one of the best GPUs on the market go for around $400
and will give you only about 1 GH/s of power and an Antminer U2 which you’re able to get
for around $20 on ebay will provide 2 GH/s, the difference is huge. Always calculate if
your desired cryptocurrency is still worth mining on your type of setup.
GPUs are far better at handling parallel processing than CPUs. These computations are
basically simple math problems at which GPUs are far better at solving. A CPU is
nowadays only usable for mining coins which haven’t been destroyed by ASICs miners. Try
calculating your turnout using online calculators like WhatToMine.
The DAG Epoch is what the Ethereum mining difficulty is called. In time, as the currency
grows and the amount of miners increases, the mining difficulty grows. As the difficulty
increases, also the memory requirements do. Mining with smaller GPUs has become
impossible due to this feature which prevents ASICs mining.
Certain mining programs allow mining two cryptocurrencies like Ethereum and Pascal,
Decred, etc. simultaneously. This allows you to maintain efficiency while mining both
coins. When mining for example Eth+sia, mining both has almost no impact on the Ethereum
hashrate. You’re basically getting two coins at once for the same power you provide.
Proof of Importance (PoI)
Proof of Importance was first developed for the NEM blockchain platform. Similarly like the PoS network, the nodes compete on who will verify the next block. This is determined with the “importance” of each node. The importance score contains factors like amount of the blockchains coins held, amount of transactions in the last month, and more. This provides a positive difference opposed from PoS where the argument could be it benefits mainly crypto hoarders.