Zcash is a digital currency created by a team of scientists from Purdue, MIT, Colombia University, and many more notable scientific and academic institutes on 28th October 2016. The original Bitcoin code base was used to build Zcash with privacy and protocol development improvements.
However, Zcash provides shielded addresses for financial privacy and confidential transactions, unlike Bitcoin. The latest upgrade to the Zcash framework is Unified Addresses which supports Zcash shielding by default and enhances interoperability and usability.
What is ZCASH mining?
Zcash mining refers to earning crypto by strengthening network security. The famous cryptographic method known as Proof of Work (PoW) is used to secure Zcash transactions. Unlike other cryptocurrencies like Bitcoin, Zcash uses the Equihash algorithm, which is more suited to GPU mining. The Equihash hashing algorithm defines a mathematical problem, and application-specific computers compete to solve it.
The computer or GPU which solves the problem first earns Zcash coins. This approach gives a fair chance to every participant to earn rewards. Zcash's difficulty increases with the increase in the number of miners on the network. You can assess the miner's performance by observing the network hash rate.
Why mine ZCASH
Zcash, known as the ‘HTTPS of Blockchains’, offers a unique benefit to you through anonymous transactions. Validators cannot access the personal details of the transactors. Being a Bitcoin (BTC) fork, the Zcash coin supply is limited to 21 million. Due to its limited supply, mining ZEC allows you to take advantage of any future price appreciation with minimum risk of investment loss.
As of 25 October 2022, the total number of ZEC coins in circulation is 13.03 million. Zcash has a market cap of over US$ 706 million and is traded at US$ 54.23. ZEC can be traded for BTC, so mining Zcash can be a cost-friendly way to collect the most valuable cryptocurrency of all time.
Profitability Or Economics of ZCASH rig
The Hashrate of your mining system is the key factor that decides the profitability of your Zcash rig. Other factors include electricity costs, pool fees, and power consumption. You can use the Minerstat mining calculator to determine your estimated costs, earnings, and profits for mining ZEC.
The ability to solve blockchain problems is reflected by the hash rate of your system. You can integrate your mining rig with an automated profit-switching system to avoid having to check the calculator all the time. Remember to conduct thorough research before investing, do not rely only on the calculator results as it is prone to errors.
Requirements to set up a Zcash rig
The majority of users prefer to mine ZEC using GPUs. The card selected for Zcash mining should have at least 1 GB of RAM, which is quite low compared to the requirements for mining other cryptos.
The best-performing GPUs for mining are from the Nvidia family. Although AMD graphic cards can also be used, they do not compare with the performance of Nvidia GPUs.
Nvidia GPUs have the options Gtx 1080 Ti, Gtx1080, Gtx 1070 Ti, Gtx1070, Gtx 1060(3GB/6GB), Gtx 1050 Ti, and Gtx 1050.
AMD GPUs have the Radeon™ RX 580X, Radeon™ RX 570X, Radeon™ RX 560X, Radeon™ RX 550X, and Radeon™ RX 540X.
A full-node wallet is required for mining Zcash. You can use one of the two full-node wallets, Zecwallet and Zcashd. You are acting as a bank for yourself in the decentralized financial system, however, unlike banks, there is no insurance that protects your assets. So the decision to select a wallet is the key to holding and storing your crypto.
You can choose between three options to opt for a Zcash wallet:
- Hardware wallets: These are considered the safest crypto wallets. However, they only support Zcash transparent addresses, which are relatively costly.
- Internet Wallets: These wallets provide applications compatible with mobile phones to store crypto.
- Exchange wallets: The simplest method to gain a wallet address is via exchange wallets. You have to set up a user account at the exchange; the rest is the exchange’s responsibility.
You should use a staking pool to start Zcash mining instead of starting an individual new node. Pool staking provides a simpler and cheaper way to start ZEC mining. Head to MiningPoolStats for ZEC to choose a mining pool.
Step-by-step guide for mining ZCASH on a PC
Once you complete the selection of the hardware and software, you can set up the ZEC mining rig and start mining by following these steps:
Update your drivers
To ensure optimal performance and security, updated GPU drivers are required. Before initiating the mining process, make sure to download the latest updates as released on the official GPU provider websites.
Mining software configuration
When mining with GPUs, You can use Bminer, EWBF miner, or DSTM miner software with Nvidia cards, while Claymore software is used for AMD cards for Zcash mining.
- Download the selected software from its website.
- Extract all files on your system and edit them as per your requirements.
- Algo - enter “Equihash” as the mining algorithm
- Server - enter the “pool address” from MiningPoolStats
- User - enter “Zcash wallet address” and “worker name.”
- Once the rig is set up, start your miner and earn ZEC coins.
With the rapid shift of businesses and organizational networks, miners are intrigued to adopt a cloud-based ZEC mining rig. Cloud mining platforms reduce initial installation costs and offer multiple GPUs to make your mining practice profitable.
Some of the best alternatives to traditional or on-premises mining rigs are the Genesis Mining and ViaBTC platforms. Genesis Mining platform has pre-installed mining rigs which you can use instantly to mine ZEC.
Zcash mining proves to be a good source of earning an adequate passive income. Many miners have moved to ZEC mining because it provides a steady income stream and offers security and privacy, unlike several other currencies.
Cloud platforms like Genesis Mining reduce the workload from your shoulders and alleviate the problems that are faced during personal mining rig setup. They effectively reduce the homework required for beginners to set up a mining rig.