What is processor mining
Cryptocurrency mining today is at the peak of popularity and every day more and more people decide to try themselves in this area. However, it is difficult to deny that the mining industry is a rather complicated business, because in addition to the fact that a novice miner must have an entrepreneurial spirit and understand the basics of doing business, he must also understand all the technical issues and details of the process.
For a beginner, understanding this topic is sometimes very difficult, because the variety of obscure terms is sometimes confusing. If you want to start as soon as possible, without investing money and time in buying equipment and studying the intricacies of the process, try cloud mining. Now this method is financially more profitable, but if you want to get acquainted with independent CPU mining, then this article is for you.
Cryptocurrency mining is the process of conducting a series of complex calculations with enumerating parameters to find a hash with specified properties. This process is quite complicated; accordingly, it requires impressive computing power.
Surely everyone heard that mining on asic miners and video cards (or GPUs) is a great option for passive earnings, but you probably only heard about mining on processors that this option is far from the most profitable.
In past years, when the complexity of the network was different, it was enough to use a conventional central processor to extract cryptocurrencies. Now the situation has changed and this option, as a rule, is not considered by miners at all, due to its low profitability.
For serious earnings, the CPU is hardly enough, but for small altcoins, CPU mining takes place, because in the context of the ratio “initial investment size” / “profitability” this option is the most optimal. Please note, if you are aimed at big profits, you will need to develop your business and switch to more efficient equipment in time, or invest in cloud mining.
So, the central processor (or CPU) is an integrated circuit, which is the main part of the hardware of a personal computer or any other equipment.
Currently, any modern, high-performance computer is equipped with a powerful central processor with a high frequency of operation and several cores. Accordingly, if you have a good personal computer, you do not have to invest hundreds or thousands of dollars in equipment.
The success of mining on the central processor is also determined by the cryptocurrency that you intend to mine. Of course, mining Bitcoin on a CPU is absolutely pointless, but there are digital currencies whose hashing algorithms are “tuned” for mining on processors, so it will be easier for your CPU to get them. These digital currencies include: Monero, ZCash, Dogecoin, Litecoin, Dash, Sibcoin, etc.
Currently, there are the following types of cryptocurrency mining on the processor:
- Solo mining is a cryptocurrency mining process using exclusively its own computing power without involving other miners;
- Work through the pool. Mining pool is a server that provides miners with the opportunity to jointly mine digital currencies (the computing power of miners in this case is combined, and the reward for block closure is distributed among the participants in the pool in proportion to their “contribution” to the pool);
- Multipool is a server that allows you to mine several virtual currencies and switch between different cryptocurrencies, depending on their profitability (for example, Minergate, Nicehash, Zpool).
What cryptocurrency can be mined by the processor
Currently, you can get the greatest income if you mine coins that work on the basis of the Cryptonight cryptocurrency algorithm: Monero XMR, Bytecoin, Electroneum, DigitalNote, etc. In addition to this algorithm, the central processor is able to decrypt the following algorithms:
- SHA-256 (Bitcoin, Bitcoin Cash, Syscoin, Peercoin, Namecoin, etc.);
- X11 (currencies Dash, Pura, etc.);
- Ethash (currencies Ethereum ETH, Ethereum Classic, Metaverse ETP, Ubiq, etc.);
- Scrypt (currencies Litecoin, Dogecoin, etc.);
- Equihash (Zcash, Komodo, etc.).
In general, as of right now, it is best to consider mining options for Monero, ZEC and Dogecoin.
Which processor to choose for mining
Unfortunately, a clear answer to this question simply does not exist. The choice of processor depends on too many factors, respectively, this process must be approached individually. One thing is safe to say – the more powerful the processor you choose, the higher the hashrate, which means that the performance of your mining equipment will be high and the mining process itself cost-effective. This suggests that when choosing a processor, you should pay due attention to the following characteristics of the central processor:
- Clock frequency;
- Number of Cores.
It is these parameters that will determine the hashrate. Currently, it is believed that one of the most promising options is the central processor of the Xeon line. Also, a processor from the manufacturer AMD or Intel (i3, i5, i7 series) will be a good option. Below is a table of processor performance that should help you choose the right hardware.
How to choose a program for mining on the processor
As a rule, insufficient attention is paid to the selection of software, but believe me, the right mining program is a very important detail in the context of mining profitability and half of your success.
For those who do not understand what is at stake, we will clarify the situation. A cryptocurrency mining program is specially designed software that allows you to use the computing power of your equipment. The main objective of this kind of program is to carry out calculations to get rewards for developing blocks.
It makes sense to select software for mining digital currencies only after you have decided exactly which cryptocurrency you will be mining. Miner programs are designed specifically for mining a specific (or several) virtual currencies (see table below). All programs are freely available on the network, so, for example, you can download software from the Github website. (In addition, there are programs that allow for simultaneous mining on the processor and video card).
How to configure mining on the processor
In order to start mining any cryptocurrency on the processor, you will need to perform certain actions in a specific sequence. Setting up will not take you much time and is not particularly difficult, which means that even a beginner can easily cope with this task. So, the whole process goes through four stages:
- Processor selection;
- Installing a cryptocurrency wallet;
- Selection and installation of the program;
- Create a bat file and run.
At the first stage, you will need to choose a powerful central processor. How to properly approach this issue has already been mentioned. You should also choose a good motherboard, high-speed RAM, connect a hard drive, power supply and monitor. When choosing a processor, you must necessarily pay attention to how much electricity your processor will consume, because it is precisely from this parameter that the profitability of production will depend. If your CPU is uneconomical in terms of electricity consumption, then, alas, most likely, you will not be able to earn a penny, or even you will go negative. Pay attention to the eight- and sixteen-core processors from AMD with a high clock speed; Mining on a server processor will increase your chances of profit (see the table of CPU performance above). Look for additional information on the network (on forums, for example), view the rating of processors in terms of their performance and energy efficiency.
In the second stage, you will need to install a cryptocurrency wallet. To do this, you will need to go to the official website of your cryptocurrency and download a special wallet program from this website. It is in this wallet that your coins will be sent, and then you can either store this digital money in this wallet, or withdraw it. On official sites, as a rule, there are links to download the wallet for different software, you will need to select the exact file that suits you, click on the link and the download will start automatically. After you download and install your wallet program, you will need to synchronize it with the network and find out the address of your wallet.
In the third stage, you have to choose and install the miner program. We already spoke about how to choose the right software. Please note that your miner program should be suitable for your chosen virtual currency. You can download this software from the network, for example, from the Github website. Download links will be placed there, you will need to select the version of software you are interested in, click on the link and the program will start downloading automatically. Then you install the program on your personal computer. Now all you have to do is configure your software.
In the fourth step, you will need to create a file with the bat extension and start mining. A file with the bat extension is a file in which the basic parameters of the digital currency mining process are written, and which is responsible for launching the miner program with the given configurations. In particular, the following parameters are written in this file: path to the program exe file, pool address, port, wallet address, type of computing architecture, getter number, password, etc. For various programs and pools, the list of characteristics, as a rule, differs, but not dramatically.
You can create a file with the bat extension in the Notepad program. You work with a standard text file, prescribe all the settings, and then save this file in bat format.
Mining Monero on the processor
So, as we have already found out the most optimal option – mining cryptocurrency Monero. In order to start mining Monero on the CPU, you need:
- The central processor itself;
- Cryptocurrency wallet, where the coins you mined will be sent to;
- Mining pool;
- Software (miner program).
Suppose that you have already selected iron. Now you have to choose a cryptocurrency wallet. You can use a local wallet, or you can use a wallet on the exchange. The second option is more preferable, since you can quickly withdraw coins that you mined in fiat, or buy another cryptocurrency. Choose exchanges with a convenient interface, convenient deposit and withdrawal of funds, as well as built-in withdrawal methods to a card or qiwi wallet. You can choose the option that suits you using our list of exchanges. You will need to register on the exchange and in your personal account you can copy the wallet address.
Then you will need to select a mining pool. You can choose any pool that suits you in terms of commission and capacity. Register in the pool, add a new worker and enter the address of your wallet.
Now you just have to download the necessary software. Earlier, we wrote what programs you can use for Monero. You will need to download the miner program of your choice, unzip it to a place convenient for you and open the config.txt file. In notepad you should write the following text:
‘-O and further the address of your pool. -u and after your wallet address. -p and then the password, for almost all pools you need to leave x ‘.
Then you will need to save this file with the bat extension and run the bat file. If you did everything right, then mining on the processor has already gone. After waiting a little time, you can see the statistics of mining. To do this, you will need to go to the site of your pool, drive the address of your wallet and you will see a graph on which the production statistics will be displayed: your current hashrate, balance, etc.
Configure Dogecoin mining on the processor
Dogecoin mining setup is done in a similar way. First you need to get a wallet and find out its address. Then you will need to register on one of the pools, add a new worker, enter the wallet address and update your account. Now it remains only to choose the appropriate miner program, download it, install it on your personal computer and configure it. To do this, you will need to create a file with the extension .bat with the following text:
‘Minerd —url \u003d stratum + tcp: //fast-pool.com: 3333 —userpass \u003d Weblogin.Worker: Worker password.’
Save the file, launch the software, and if you did everything correctly, the process will be started.
CPU mining Zcash
Another digital currency that you can mine on the processor is the Zcash cryptocurrency. The logic of the organization of the process remains the same. First, you select a wallet and find out its address. Then select the pool, register there, indicate in your personal account the address of your wallet and update your account. Next, go to the choice of software, download the program and install it on your computer. The best option in the context of Zcash mining is nheqminer. You can download this software from the Github website, for example. Now you will need to proceed to editing the bat-file. Your file should contain the following text:
‘Nheqminer.exe -l -u
Save the changes, run the bat-file and, if you did everything correctly, the process will be launched.
CPU and GPU mining: the main differences
As mentioned many times before, mining on the CPU in most cases is low-profit and in many respects inferior to mining on the GPU. For beginners, the question may arise: what is the difference between the CPU and GPU, if the first and second are processors?
Theoretically, both the CPU and the GPU are processors, but these are two different types of processors that serve different kinds of tasks.
A CPU (or central processing unit) is a part of the hardware of a personal computer or any other equipment that is responsible for performing software tasks and which controls all other components of a personal computer or any other equipment. This is a kind of leader who makes decisions and issues commands.
A GPU (or graphics processor) is a part of the hardware of a personal computer or any other equipment that is responsible for processing graphics and displaying a picture on a user’s monitor of a personal computer or any other equipment. This is a kind of simple hard worker who does a ton of work.
Accordingly, as you may have noticed, these two types of processors are sharpened for tasks of varying complexity, which leads to a difference in the performance of both types of processors. So, the CPU core can process four 32-bit instructions per clock (SSE), or eight 32-bit instructions per clock (AVX), while the GPU processes 3200 32-bit instructions per clock (using its 3200 ALU or Shaders). Therefore, the performance of the GPU is hundreds of times higher than the performance of the central processor, and in the context of mining, even a small difference matters, not that it is so huge.
In addition to performance, the central processor differs from the GPU in the way it accesses memory (we will not go into technical details). In addition, the GPU, unlike the central one, does not need a large cache. Also, the significant difference is that the GPU uses a faster type of memory, which means that the throughput of such a processor will be an order of magnitude higher, which is very important for parallel computing. So, the central processor is able to carry out only one or two streams of calculations on one core, while the GPU is able to conduct thousands of threads on each multiprocessor (and there are several of them in the chip!).
So, from a technical point of view, the difference between these two types of processors is simply enormous, which leads to a similar difference in the performance of this iron in the context of cryptocurrency mining.
CPU mining profitability
Then a completely logical question arises: is there any sense in mining on a central processor? In order to get an answer to this question, you need to calculate the yield.
In general, the following parameters affect the profitability of production on the processor:
- The performance of your equipment (in this case, the central processor);
- The cost of equipment (if you will purchase specific equipment specifically for your purpose, then you will definitely need to take this amount into account when calculating the payback of your business);
- Electricity tariff (it makes sense to start only if there is cheap electricity);
- The price of the cryptocurrency that you are going to mine;
- The complexity of the cryptocurrency network you intend to mine.
Of course, you won’t have to do the calculations yourself. You can significantly simplify your task and use the mining profitability calculator. You will need to indicate the name of the desired cryptocurrency, the hash of your device and your electricity tariff. The calculator will calculate the profit that you can get on a particular processor.
In general, we can safely say that you should not expect huge profits. For example, mining Monero cryptocurrency on top-end powerful processors can bring you about 10 to 40 cents per day, provided that the cost of electricity in your country (or your region) is quite low. Litecoin mining on high-performance processors in general can bring only less than a dollar a month. Of course, such a profit is so insignificant that the process itself loses its meaning. For lightcoins, it is better to choose other equipment – an ASIC miner or assemble a farm.
Accordingly, only after accurate calculations, you can answer the question – is the game worth the candle or not.
The relevance of CPU mining in 2020
Somehow the language does not turn out to call mining on the central processor relevant in 2019. Yes, at the initial stage of the formation and development of the cryptocurrency industry, mining on the CPU was a very profitable business. Today, this option has lost the lion’s share of its efficiency and profitability.
Currently, it makes sense to mine only new, not very popular cryptocurrencies, because the complexity of the network of such cryptocurrencies is usually quite low (which means the central processor can quite cope with it), and competition among miners is insignificant (which is also important, because the whole point of the process is to find a solution first, which means you can be in time to become the first even if you use a central processor).
Today there are hundreds of newcomer altcoins and you will be able to pick up something for yourself among all this diversity. In addition, you should take into account the fact that the value of the cryptocurrency you have chosen should gradually grow. However, how interesting this option is for you is up to you. If you are interested in top cryptocurrencies, then this option is unlikely to suit you and it is worth considering more successful methods – mining on a video card or on an ASIC miner.
At the moment, cloud mining is the most relevant and brings a good profit. An interesting option is the service of smart cloud mining IQ Mining. He will mine the most profitable altcoins for you, then trade them on bitcoin at the best rate. Thus, you receive income in a stable cryptocurrency, which can be withdrawn to your account daily with minimal investment (from $ 17 per contract).
Cloud mining is much more profitable than hidden CPU mining, which occurs using other people’s computing power without the consent of their owner. In addition to the fact that this scheme is initially a fraud, you shouldn’t get a lot of money – a hidden miner will mine a couple of dollars a month at best.
So, let’s summarize all of the above and formulate the pros and cons of mining on the central processor.
So, based on all of the above, it is hardly possible to call mining on the central processor an excellent option. Its effectiveness decreases every year, giving way to cloud mining and specialized expensive equipment.
In our opinion, considering it as the main source of income is definitely not the best idea, because the profit that you can get is incredibly low.
In general, at present, it is possible to mine only beginner cryptocurrencies or promising cryptocurrencies that operate on the basis of the CryptoNight algorithm, such as Monero, for example. But you must be aware that even the extraction of such digital currencies will not be able to bring you good profit, therefore, if you are aimed at impressive amounts, then this option is definitely not for you.
Also note that buying a central processor specifically for mining definitely does not make sense, therefore, if you do not have a powerful processor, then you should definitely refuse mining on the processor.
Accordingly, before starting the process, carefully weigh the pros and cons and decide for yourself how appropriate it is to spend time and money on this idea.