Mining 101 (noob) Questions

Hi,

I've successfully setup a mining node (using this guide: https://github.com/zcash/zcash/wiki/1.0-User-Guide) and I've ran the 'zcashed' daemon. Output on my screen:

Thank you for running a Zcash node!
:
Block height | 96433
Connections | 8
Network solution rate | 54153989 Sol/s
Mining is paused while downloading blocks.

Since starting this node 1 hours, 16 minutes, 35 seconds ago:
- You have validated 1128455 transactions!
- You have completed 0 Equihash solver runs.

[Press Ctrl+C to exit] [Set 'showmetrics=0' to hide]

-------------- and the cmd " zcash-cli getinfo" shows ---------------

{
"version": 1001051,
"protocolversion": 170002,
"walletversion": 60000,
"balance": 0.00000000,
"blocks": 99982,
"timeoffset": 0,
"connections": 2,
"proxy": "",
"difficulty": 1120644.750538564,
"testnet": false,
"keypoololdest": 1500122205,
"keypoolsize": 101,
"paytxfee": 0.00000000,
"relayfee": 0.00000100,
"errors": ""
}

Questions:

  1. Does this mean that my node has already started the mining process?
  2. I've not created any wallet yet - so, where will the mined coin be stored?
    (or does the zcashd automatically create a wallet to store the coin?)
  3. To join a mining pool,what is the process? Is there a readme/guide that I can refer to?

Many thanks!

Are you looking to just mine ZEC? The Zcash node is not needed to mine. Vice versa, mining does not require a node. We'll be able to point you in the right direction if you tell us what your goal here is :slight_smile:

If you're looking to mine with a CPU, you're going to be horribly disappointed as the Zcash network is long passed that stage. You're going to need a fairly recent GPU (most likely multiple GPUs) in order to get any sort of profit. You'll also want to note that crypto currency is currently in the middle of a correction. You're not going to see the insane profits from 2 months ago right now.

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Hi Nekkidtruth,

Thanks for responding. I'm complete noob :slight_smile: ... I've a few spare VPS machines lying around (no GPU unfortunately), so I thought I of just trying out some mining activities.

You mentioned it is not needed to be a 'node' in order to mine - so what is a 'node' ?

Which is more "profitable" ? Join a mining pool or being a 'node' (which I've no idea what it is at the moment :slight_smile:

Thanks!

Some food for thought...

The current network hashrate is 239541873 Sol/s (or 239 MSol/s). Depending on your CPU, you'll be lucky to get above 10 Sol/s which rounded off works to about 0% of the whole network's hashrate.

You would be better off joining a pool and using miners. That being said, with a CPU you're still not going to get much because they're just too slow to provide solutions in a timely manor and your share rate would be superbly low. You would be burning more electricity than you would be making in ZEC. Throw in the pool fee (average 1%) and you're left with pretty much nothing.

https://whattomine.com/coins/166-zec-equihash?utf8=%E2%9C%93&hr=10.0&p=100.0&fee=1&cost=0.1&hcost=0.0&commit=Calculate

I strongly suggest you do some research on what mining entails. Running a node is all well and good if you're wanting to keep the Zcash network healthy (which is great btw), however running a node and mining are really 2 different things. I think you're looking for profit and your current setup isn't going to do that for you.

Edit to add:

For comparison sake, an average recent GPU will do between 200-400 Sol/s.

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Thanks for your input, and the link. Appreciate it very much!
Re: running a node - besides keeping the network healthy, are there any other benefits?

Many thanks!

There are other benefits to running a node, but the bulk of it is helping keep the network healthy. For one, you now have your own personal wallet running without third-party involvement. So you are in essence in charge of keeping your funds safe and not relying on someone else to do it for you. If I'm missing anything I'm sure others will chime in as well.

I like that you're asking these questions because it means you want to learn more. It's a refreshing distraction from the influx of "I WANT PROFIT$!" posts. I'm sure your intent is to make money (who doesn't want to make money?), but you also have the inkling to learn and ask more questions :slight_smile: Even if the answers aren't what you want to hear :wink:

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Thanks netkkidtruth! I'm just getting my feet wet in the crypto world - I only heard about bitcoin a few mths back and discounted it as a 'fad' - but when I started digging, the amount of different cryptocurrencies totally blew me away :slight_smile:

Absolutely. It's very overwhelming. There are a lot of people who are of the mindset that there can be only one crypto currency but that's not at all the case. However, you will definitely find there are only a few that will take off. My advice would be to look into as many as you can and find the one that suits your personal interests. Then find an alternative as well so you have something else to fall back on.

I personally have started buying some of the other more obscure coins that fit my bill in an effort to diversify. I'm by no means an expert, but I am learning and thankfully rather quickly. Zcash is where my heart is set overall though.

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