Zcash (ZEC) currently ranks 49th in terms of total market cap, with a market cap of approximately $3 billion. Despite a decrease in mining rewards and an increase in mining difficulty, Zcash remains a popular choice for crypto miners due to its exponential market price growth. It is particularly favored by blockchain developers, who frequently update the Zcash repository.
This comprehensive guide will walk you through the process of mining Zcash, covering the basics and explaining why Zcash mining hardware primarily consists of ASIC miner farms.
Zcash Mining Basics
Similar to Bitcoin mining, Zcash uses a proof of work algorithm. However, ZEC mining incorporates the “Equihash” algorithm, which runs on the ewbf miner. The Equihash algorithm was chosen because it reduces the mining difficulty associated with GPU or CPU hardware.
This makes the Zcash network ideal for new miners looking to join without making significant upfront investments, similar to the early days of Ethereum mining. To get started, all you need is a simple GPU miner, a Zcash mining pool, and mining software such as ewbf’s cuda zcash miner or the versatile Nicehash miner.
Additionally, some mining farms offer cloud mining contracts, providing a predetermined Zcash cloud mining hashrate for a specific duration.
What is Zcash?
Originally known as the Zerocash Protocol, this altcoin started as a Bitcoin fork. Over time, the blockchain community changed its name to Zerocash and eventually settled on Zcash in 2016. Unlike Bitcoin, Zcash falls into the category of privacy coins, along with Monero and Dash. Privacy and transparency are the key differentiating factors for Zcash.
The blockchain securely encrypts all transactional information, including payment destination, transaction existence, and even the amount of money involved.
How to Mine Zcash
Pool Mining
Pool mining involves combining the efforts of individual GPU and CPU miners with others. Rewards for successfully verifying blocks are shared among all miners in the pool, based on the computing power contributed by each miner.
Although the reward may decrease depending on the number of miners in a pool, the chances of successfully verifying blocks are high. However, participants usually have to pay a fee to join a mining pool. One popular and user-friendly solution available is NiceHash EQM.
Solo Mining
Solo mining has become nearly obsolete in the era of profitable mining, as advanced GPU technology has significantly increased the network hash rate. Low processing power equipment can hardly generate any profits due to this aggregated processing power among participants. Rewards are distributed evenly based on the hashing power provided.
Block Rewards
The Zcash blockchain issues a reward of 3,125 ZEC after verifying each block. Block verification occurs approximately every 75 seconds. In mining pools, the block reward is divided among members based on the computing power they used to mine the block.
What You Need to Start Mining Zcash
Hardware and software are crucial prerequisites for any mining venture. The software must run on suitable hardware, as both factors directly impact the mining algorithm’s yield. To understand the requirements for getting started, it’s important to differentiate among the three types of computation power used in crypto mining.
GPU Mining
Graphics Processing Units (GPUs) are designed to process computer graphics at a faster rate. Most GPU users are individuals who prefer flexibility compared to the rigidity of CPUs and ASIC processors.
ASIC Mining
Zcash excludes ASIC-mining hardware by utilizing the Equihash algorithm, unlike Bitcoin. ASIC chips are specifically developed for mining Bitcoin and have a different hashing method to accommodate CPU or GPU mining.
ASIC chips are built to perform at the highest processing speed possible. It’s worth noting that they are customized for a specific coin, but they are not necessary for mining Zcash. It’s important to differentiate them from GPU and CPU mining hardware.
Choosing the Right Hardware for Zcash Mining
Selecting the appropriate hardware is crucial, as it directly affects the profits you can generate. Equihash relies heavily on Random Access Memory (RAM), leaving you with two options: GPUs or CPUs.
If you choose to mine Zcash with CPUs, ensure you have adequate cooling mechanisms in place to prevent overheating. CPU mining offers the advantage of not requiring a high initial investment, unlike Bitcoin mining.
For GPU enthusiasts, investing a bit more in mining units is necessary. The level of investment depends on the desired hash rate, which directly affects the profits. GPUs tend to generate a significant amount of heat and, therefore, require proper cooling units.
Which Software to Use for Zcash Mining?
A wide range of mining software options is available. Most of them are free and easy to download, with tutorials readily available online.
Zcash provides its community software called Zcash Miner, allowing anyone to run a full node, use CPU mining, and withdraw to an inbuilt wallet. However, this official Zcash chip is limited to CPU mining. If your mining rig is optimized with GPU chips, consider exploring other mining software options.
Step-by-Step Guide to Mining Zcash on Your PC
1. Install Drivers
For AMD GPU Miners:
Go to www.AMD.com, click on “Support & Drivers,” enter your GPU details, and click “Display Results.” Download the latest drivers by clicking the “Download” button. If you prefer an older version, click on “Previous Drivers & Software.” We recommend using the latest miner drivers for the latest cards.
For Nvidia GPU Mining:
Visit the NVIDIA website to download the latest drivers that support Nvidia GPUs. Enter your GPU rig details in the search bar and click the green “Search” button. Download the latest drivers from the top results.
After installing the drivers, reboot your PC and check the Device Manager to ensure that each driver is installed correctly and recognized by your Windows system.
2. Get a Zcash Wallet
You need a secure place to store your coins once you earn them. Using a hardware wallet is a safe option. There are three types of wallets available: Internet Wallets, Exchange Wallets, and Hardware Wallets. Visit the official Zcash website to find the Zcash client wallet. However, the safest option is a hardware wallet such as Trezor or Ledger Nano S.
3. Download Mining Software
Go to Bitcointalk.com and download the EWFB Zcash Mining Program for Zcash. Ensure that you download from an official Bitcointalk thread to avoid malware. Look for the latest version, which should be in a zipped file.
4. Adjust Windows Settings
Disable Windows Sleep Mode to prevent your PC from sleeping during mining. Modify the system settings to allocate 16GB/16384MB. Disable all Windows updates, as they may interfere with Zcash mining software. Also, ensure that Windows Defender does not flag the EWFB program as malware.
5. Join a Pool
Most solo miners join mining pools to ensure stable profits. There are several Zcash mining pools available, but in this guide, we will focus on Flypool. Visit their website and follow the help section instructions on how to mine with EWFB.
6. Configure BAT File to Start Your Miner
Create a BAT file based on your PC and GPU type. Find the miner script on the Windows-Nvidia tab and paste it into a folder in the EWFB miner program labeled “Flypool bat file.” A BAT file contains the commands to run and execute the mining software. Include your Zcash wallet address in the BAT file and save it with a .bat extension.
How Much Can You Earn?
The Zcash mining reward depends on various factors. The equipment and electricity supply in your area significantly influence the reward amount. Another crucial factor is whether you mine solo or join a mining pool.
Cryptocompare.com offers a calculator where you can input power consumption, hash rate, and electricity cost per hour to determine the profit ratio per month and per day. This calculation will help you make informed decisions about hardware and software purchases. It will also help determine whether your capital investment is worth the potential profit.
Conclusion
Zcash mining has been popular for years as an alternative to Bitcoin or Ethereum mining. While mining has become increasingly difficult due to the hardware power required, the basic setup remains the same. We hope that this guide has provided you with the necessary information to start mining Zcash.
