This article will share with you how to mine DigiByte (DGB) and all of the little quirks that come with it. We begin by giving you some background information about DigiByte, followed by the different requirements to start your mining adventure.
Mining cryptocurrency is one of the most important activities in the crypto space. While many cryptocurrencies today do not require mining on their network, a great majority of the Top 10 cryptocurrencies by market capitalization still do.
In fact, the top two cryptocurrencies, Bitcoin and Ethereum, both require cryptocurrency mining for their blockchain's proper functioning. Digital assets that are mined are considered the most secure and most decentralized in the industry.
Digibyte Mining Algorithm Comparison Table
|DigiHash, TheBlocksFactory, Suprnova.cc|
What is DigiByte
The DigiByte (DGB) Blockchain focuses on providing its users with cutting edge high-speed security. Through cryptographically secure decentralization network and transaction times that are 40 times faster than Bitcoin's.
Digibyte's Blockchain can be broken down into 3 layers:
- Applications / DigiAssets Layer – utilized by most users in the ecosystem for their day to day applications. DGB also provides the DigiAssets layer here to build on.
- Digital asset / public ledger layer – are the DGB tokens, which incentivizes the community to mine and develop the project and, most importantly, secure DGB.
- Core Communications Protocol / Global Network Layer – supports all DigiByte infrastructure.
Miners operate in the second layer, securing DigiByte with multiple algorithms. This is done by processing new transactions on the immutable public ledger and earning DGB as their reward to solve the current block successfully. Let's begin to explore how you can become a miner and join this amazing part of the blockchain ecosystem.
DigiByte DGB Wallets
Before you start mining, you need to familiarise yourself with a DigiByte wallet. Mined coins have to be sent to a mining address after they have been successfully mined.
We recommend reviewing several, looking for reviews and previous issues. Wherever possible, we recommend using a hardware wallet, as this adds the maximum level of security. An exchange address can always be used, but we strongly advise against doing this.
DigiByte DGB Mining
The first thing you need to think about is how you will mine Digibyte. DGB is quite a unique blockchain as it can be mined with 6 mining algorithms; Skein, Groestl, SHA-256, Scrypt, Qubit, and Odocrypt. Skein and Groestl are used for GPU mining, Qubit, SHA-256, and Scrypt are dominated by ASIC miners, and Odocrypt is used for FPGA mining.
While you can use CPUs to mine DGB with Qubit, SHA-256, and Scrypt, it would be a waste of time and money but could be a good exercise before spending large amounts of money on a dedicated mining rig. Immersing yourself in the entire ecosystem of a project is the best use of your research time before committing to financial investment.
Mining calculators are a must if the aim is to be profitable. WhatToMine has some amazing calculators for each algorithm Skein, SHA-256, Scrypt, Qubit, and Odocrypt. It’s interesting to note Groestl is not supported.
Using Graphics Cards
There are simple and complex answers on how to mine DigiByte with Nvidia graphics cards. The simple one is to install Skein connect to a Skein mining pool and collect the DGB as they are mined. On the other hand, the complex one involves asking questions about time and money if this the most profitable coin to mine and will the mined coins cover the cost of electricity.
Generating a profit is a secondary concern compared to covering costs and not reinvesting monthly on electricity costs.
Always use a mining calculator and divide the profit in half for 2 reasons:
- Firstly, cryptocurrency mining is highly speculative, with cryptocurrency values fluctuating violently;
- Secondly, mining rigs fail to deliver as promised due to uptime. The mining rigs environment, environmental temperature, and airflow are the 2 biggest concerns. An increase in temperature will cause circuit boards to overheat and not operate at their optimum performance.
If you're running more than just 1 DigiByte mining rig, you have to consider sound and attracting unwanted attention to your mining activities. Multiple concerns are withdrawing unnecessary attention.
These 3 most pressing are extreme cases but are legitimate risks that need to be thought of and mitigated: theft of your mining equipment, kidnapping for ransom, or being held hostage and being forced to transfer all your digital assets.
Use Groestl and a Groestl Mining Pool if you want to mine DGB with an AMD graphics card that has all the above-mentioned complexities as Nvidia needs to be taken into consideration. When setting up a mining machine, always follow the step by step guides as small errors could cause massive issues later on.
AMD and Nvidia are unique in their setup, and any graphics card won’t be as profitable as the next. The DGB wiki has a list of supported GPU cards.
Mining DigiByte with ASIC Machines
If you want to get serious about DGB mining, ASIC mining is one of the most effective ways to start mining as a business. Mining can generate a passive income if you can maintain the correct ratios of cost and profit. ASIC miner profitability is highly correlated to the coins market value and age of the machine. Do a lot of research before buying a second-hand machine.
ASIC mining is dominated by ASIC manufactures and large mining farms with first rights to new hardware first. They have an unfair advantage of economy of scale as larger farms are offered reduced pricing for larger batches, thus centralizing most blockchain networks (even if in a limited way, the network was ultimately weakened).
These practices limit small farms' abilities to diversify and extend the return on investment (ROI) period, ultimately resulting in less investment into ASIC coins due to better ROIs elsewhere. The only coin that can truly survive this is Bitcoin.
Mining DigiByte with FPGA machines
FPGA mining has an added benefit to it apart from being profitable; it brings back the distributed nature of decentralized blockchains. FPGA is not immune to its own problems; they are complex computing graphics cards that require a good IT understanding to operate successfully.
There are many resources to look into, we recommend starting with the DigiByte wiki and BitcoinTalk. Each card can be further optimized by adding a bitstream, which overclocks the FPGA card and could result in failure in a few hours if not correctly configured. For FPGA hardware and bitstreams, we recommend fpga.guide. The DGB wiki has a few suggested FPGA cards too.
Mining using a mining pool is not mandatory, but the opportunity cost of solo mining is not worth the risk unless you're going to operate a large mining farm from day 1 of mining operations. Solo Mining is the equivalent of entering the lottery and akin to gambling unless you do it right with DGB.
We recommend mining pools as they leverage a large number of small operations into a large force to be reckoned with. This is where a mining calculator comes into play, as you can predict, with reasonable certainty, what your earning will be from your DGB mining operation.
GPU Mining Pools
Groestl Mining Pools
Skein Mining Pools
ASIC Mining Pools
Qubit Mining Pools
Scrypt Mining Pools
SHA256 Mining Pools
FPGA Mining Pools
Odocrypt Mining Pools
For additional pool information, DigiByte has set up a list of mining pools, review each mining pool carefully and figure out for yourself if they are scams or not.
DigiByte Cloud Mining
Cloud mining is the quick and easy solution to get professional miners to mine coins for you. Both HashFlare and NiceHash have decent enough reputations to recommend them, we ultimately prefer NiceHash, but HashFlare is equally capable.
Cloud mining, however, has its own risks. While you don’t have to maintain any equipment, you are liable for the contract cost and may not recoup your initial investment if the market dips below your cost price.
DigiByte One-Click Miner
DigiByte developers have developed a one-click miner. No debugging or complex setups, install and run.
They have a GitHub repository for both Windows and Linux. The program is simple and easy to use. DBG has lowered the entry barrier to anyone with access to a computer with an Nvidia or AMD graphics card or cards.
DigiByte Free Mining
Mining doesn’t mean free coins, a lot of work has to be invested in research, planning, and layout. Each of the available methods has some costs. If you already have an idle computer or laptop, you could mine via CPU or GPU.
This, however, has a daily electricity cost and will shorten the life of your machines as mining is physically intensive for computers to perform. This doesn’t mean you shouldn’t try mining on DGB or your favorite coin. The knowledge gained can’t be read and acquired, it needs to be practiced.
Mining is both a labor of love and for profit. DigiByte has a solid community that will help you if you need it. The DigiByte telegram mining group holds a wealth of information and, more importantly, people willing to help you become a miner or a better miner.
If you’ve never mined before, start with a mid-range gaming machine, treat mining as a hobby, not for profit, to gauge if this is something you really want to do. While you get into the swing of things, the experience will be gathered as mining has a host of interesting problems to contend with.
Most problems require the creative use of search engines to find a similar issue in the past. If not, BitcoinTalk almost always has a solution for almost any problem. If they do not, someone might brainstorm the problem with you.
Never invest more than you are willing to lose outright. Any mining machine can be damaged beyond fiscally responsible economic repair by one power surge or a cup of morning coffee.
Despite these risks, blockchains need to be mined, or all decentralized proof of work blockchains will cease to exist. Proof of stake coins are not decentralized enough to withstand government regulatory intervention with a fiat airdrop into these projects.