How to Mine DigiByte: All you Need to Know
DigiByte manages to combine the best from Bitcoin and the most innovative cryptocurrency and blockchain technologies. The DigiByte project was launched back in 2013 with the aim to provide miners with an independent mining environment on a secure and fast blockchain.
The DigiByte network can process over 1,000 transactions per second, and the block confirmation takes around 15 seconds only.
DigiByte is mineable. It uses the Proof-of-Work protocol. However, its main difference from similar PoW coins is that it utilizes five different hashing algorithms:
- SHA-256
- Skrypt
- Skein
- Qubit
- Groestl
- Odocrypt
Therefore, it can be mined with:
- ASIC
- FPGA
- GPU (not profitable anymore)
It attracts many miners from multiple rigs of different types by enabling the complete decentralization of DGB mining. Even though GPU mining is not profitable anymore, and thus, not recommended if you consider crypto-mining seriously, it doesn’t mean that you cannot use it. By joining a GPU mining pool, you can still get some income from DGB mining. Also, crypto-enthusiasts are looking forward to the implementation of ProgPoW. It will make GPU mining profitable again.
What Do I Need to Start Mining DigiByte?
To mine DGB, you need to prepare all the needed equipment:
Make sure your devices have a stable internet connection to provide you with stable access to the DGB blockchain.
Among mining hardware options, we suggest the following:
- Bitmain - Antminer S9i (SHA-256, ASIC)
- Bitmain Antminer L3++ (Scrypt, ASIC)
- GTX 1080 Ti (Skein, GPU)
- BlackMiner F1Mini (Skein, FPGA)
The selection of the mining algorithm will depend on the hardware you use.
DigiByte Cloud Mining
If purchasing the mining hardware is not in your plans, you can opt for DGB cloud mining. You sign a contract with a provider, and the provider does all the work. The main benefit of cloud mining is that you earn coins without being involved in all the mining activities. The main drawback is the fee that you pay. Also, some providers may operate your coins on your behalf.
Solo vs Pool Mining
You can mine DGB solo or in a pool. Now, joining pools is popular because there, miners can count on a lower but consistent profit.
When selecting a pool, you shall consider a lot of details to get some profit from your mining activities. The rewards are split among the pool participants based on the resources they contribute to the pool.
Also, do not forget that the selection of a mining pool will depend on the selected mining protocol and equipment.
If you are mining solo, all the rewards belong to you. But at this stage, it is very difficult for a solo miner to compete with mining pools. The mining difficulty is very high, therefore, a probability that you can confirm a block first can be compared to a probability of winning a lottery.
How Much Can I Earn on DigiByte Mining?
Now the block reward is 629.32 DGB. If you confirm a block alone, you get the entire sum. If you work in a pool, the reward will be split among the participants based on their hashrate contribution.
However, do not forget to consider such factors as the initial cost of mining equipment, pool rates, fees, and electricity bills.
To assess your earning opportunities correctly, use a mining calculator online. The tool will help you to determine whether it is worth investing in mining in your case or it is better to look for more profitable options.
FAQ
How many DigiByte coins are mined?
The DGB maximum supply is limited to 21 bln coins. By 2035, miners are expected to mine all the coins, and from then on, they will be rewarded with transaction fees only. Now, approx, 15 bln of DGB coins are in circulation, and this number is growing constantly.
Can I mine DigiByte on my laptop?
Theoretically, you can still do it. However, the investment in equipment, paying electricity bills, time spent doesn’t pay off if you mine DGB on your laptop.
How much DigiByte can you mine in a day?
It depends on the selected mining option. So, if you use Antminer, you can count on mining one coin every 2-3 days. So, during one day, you can mine approx. 0.4 DGB.