Crypto mining has been in the rage for some time because of the lucrativeness seen in it. So, it is the same for Siacoin (SC). It is also crypto that can lead to one good fortune. To mine Siacoin, it is required to understand the steps and use the right technology. The increasing market for cryptocurrencies needs miners to enhance their work for more production.
If some mines Siacoin, they can surely gain profits by engaging in it. But before stepping into it, one needs to know the proper process, and we are here to provide it to you. This will give you enough details that you need to know about mining Siacoin and Siacoin mining pools.
Table of contents
What is Siacoin?
Siacoin is the cryptocurrency of Sia, a blockchain-based storage platform that gives a solution for decentralized cloud storage. Sia stores and encrypts data and spreads it across its decentralized network. Anyone can use the Sia platform to access and host encrypted storage and have all of their storage proofs, transactions, and contracts verified by the public ledger of Sia’s blockchain.
Sia is one of the main competitors for centralized cloud storage platforms like Google Drive, Dropbox, and Amazon Cloud. However, there are many variations between Sia and these storage options. What mainly sets Sia apart is that it guarantees the data is filed in a decentralized blockchain.
Also, it allows users to profit from being part of the decentralized network. For example, instead of leasing hard drive space from centralized providers, the peers on Sia’s network can rent it from one another. Not only does this make Sia more secure by spreading data across an entire network, but it also decreases costs drastically.
Moreover, if you are part of Sia’s network, you can rent out your unused hard drive space to other network members. As a result, you can receive compensation for your storage space in the form of Siacoin. In the simplest terms, Sia can equate to Airbnb for hard drives.
Siacoin Price Prediction
The Siacoin project was launched back in 2015. At that time, people were not much interested in storing their data on platforms like Siacoin. In fact, the project did not attract many users in a couple of years. Also, blockchain was very new to everyone, so moving their private data to an unknown platform was risky for them.
Luckily, the people started getting aware of this project, and Saicoin started showing upward trends mid 2017. Looking back on 1st of April 2017, the price of Siacoin was $0.0006655, and at the start of 2018, its price surged by 16684% and reached $0.1117. That was the period where all the crypto was actually touching the moon. Few months later, the market once again crashes, and so is the price of Siacoin. This coin showed neutral trends for the next two years since then.
At the start of 2021, Siacoin started showing some upward trends again. This time, the market started showing a bullish trend.Siacoin price reached $0.0506 with a growth rate of 1437%. Although there have been market crashes from here and then this platform is proving more positive marks compared to the previous time. Also, you can check the Siacoin price prediction for 2021 from our crypto analyst.
How to Mine Siacoin
The supply of Siacoin is unlimited, and it matches the effectively unlimited data that can be created and stored. Moreover, there are 48,092,512,992 SC tokens in circulation at the time of writing, and the price is $0.01031.
As we have seen, one way to gain Siacoin is by renting your excess storage space to the Sia network. But you can mine Siacoin and earn SC tokens to keep the Sia network safe and running.
According to its founders, the Sia blockchain is protected using the Proof-of-Work consensus algorithm. Also, it is the best way to protect the network because it ties the ability of a malicious actor to attack the network to the huge power requirements and hardware overhead.
Furthermore, Siacoin, like other cryptocurrencies, distributes block rewards as an incentive to miners who contribute their computational power to the operation and maintenance of the network. Siacoins are paid to the miners who mined the block when a block is successfully verified or solved.
Tools You Need to Mine Siacoin
Siacoin works on the Blake2b mining algorithm, and you can mine it with a GPU or an ASIC. However, you will need to use an ASIC miner identical to Antminer A3 to gain a profit. Therefore, make sure that your power supply can produce the amount of power your ASIC miner needs.
Besides obtaining an ASIC miner, you will need to join the Siacoin mining pools to enhance your chances of getting a block reward. When the pool members combine their hashing power, they improve their ability to solve the puzzle and earn block rewards.
Once you receive a block reward, you will need a wallet to save your SC. To prepare a Siacoin wallet, download Sia-UI and install it on your computer. Also, you should invest in a durable and reliable internet connection. Your internet should operate 24/7 for successful mining.
To keep your mining rig working smoothly, you should give proper ventilation to cool it. Furthermore, you can place fans for extra cooling. Lastly, you should set up your rig in an isolated area or a soundproof room because it will create a lot of noise.
Siacoin Mining Setup Process
Once you have obtained all the tools you need, you can begin the setup process by following the steps below.
- Step 1
Connect the cables from the power supply to the miner’s hashing and control boards. Next, connect the power cable to the power supply unit and power outlet.
- Step 2
Connect the router’s LAN cable to the ASIC miner. The Ethernet port of the miner is on the control board.
- Step 3
Join the Siacoin mining pools of your choice. When deciding, consider the mining pool fees, the reward system, and the server locations. To join Siacoin mining pools, create an account to register.
- Step 4
Look for the ASIC miner’s IP address by locating your internet router’s admin interface. Moreover, you can get the IP Reporter tool from the ASIC miner’s website. To locate the IP address with this tool, select “Run” then click “Start.” Next, press the “IP Report” button on your ASIC miner’s control board, and the IP address will appear on your screen.
- Step 5
Now that you have the IP address, put it on your browser and press “Enter.” A sign-in dialog box will appear to type in the default username and password as provided on the miner’s manual. Click “Sign In” when done.
- Step 6
Once you are already logged into your miner, Click “Miner Configuration” then “General Settings.” Next, type in the Siacoin mining pools information where the URL is the pool’s address, the worker is your Siacoin wallet address, and the key is “123” if you are using an Antminer. However, you can leave the password blank if you want. Additionally, enter the information of other pools in the different fields to ensure that your rig will keep running even though one pool fails.
- Step 7
Save the changes and implement them for your miner to restart. After the restart is finished, go to the status surface to view the mining movement. Your miner is working if you can see the hash rate.
How to Calculate Siacoin Mining Profits
The Siacoin (SC) Mining Calculator works on the simple principle of getting different inputs related to the mining hardware setup and applying the Siacoin (SC) Mining algorithm over it and calculates the amount of Siacoin (SC) generated.
You can use this Siacoin calculator and input all the parameters like the hash rate of your mining hardware rig. Then, you can pool the commission percentage of the Siacoin mining pools which you are going to join in the mining. For example, the difficulty of the Siacoin (SC) network, the number of blocks rewarded, and the price of Siacoin (SC). Once you click calculate, it will estimate the hourly, daily, weekly, monthly, and yearly profit of the entire mining setup.
Siacoin Mining Pools
Siacoin mining pool has become somewhat centralized as of September 2018, but you can help by mining with pools with a smaller amount of hash power. Below are the top Siacoin mining pools you can use to mine Siacoin:
If you want an easy, fast mining pool, then Luxor might be the perfect fit. Even better than the fact that it’s quick, trustworthy, and reliable. Besides, the team behind Luxor promises to donate 10% of its profits to the Sia community. However, the gesture is made to help the community become more successful. So, likewise, that means not only will you be earning, but you’ll also be giving back to the Sia community.
Moreover, you can double-check the promise of a 10% donation by looking at the Sia blockchain explorer. In fact, Luxor is sending the 10% to the cold storage address of Nebulous Labs. In contrast, it is the company that employs all the core developers for Siacoin.
One of the downsides to using Luxor is the small number of miners. Currently, the pool has 1% of the total hash power. Besides, they offset this somewhat by using a PPS payment scheme. Also, you have to remember you’re also supporting Siacoin and decentralization by using Luxor.
Siamining.com is the most famous Siacoin mining pool, controlling 55.5% of the hash power on the network. In fact, this is a bad thing since it promotes a centralized blockchain. But if you can avoid using Siamining.com, it will be perfect for the network.
However, if you have to follow the masses, you can expect to pay a 3% PPS fee at Siamining.com. But, you can expect optimal results from their ASIC optimized mining pool. Notably, Siamining.com was the first-ever Siacoin mining pool. At the same time, you can mine anonymously with nothing more than a wallet address.
Clearly, the Siacoin mining pool is reliable and trustworthy, and you won’t find any hidden fees. Plus, the minimum daily payout of 500 SC.
Nanopool is also a popular option for mining Siacoin, with more than 1,000 miners active. Even so, it controls less than 1% of the total hash power, which makes it an even better choice. But, if you’re just getting started mining, choosing Nanopool will spread out the hash power. Also, it helps the network be more secure and decentralizes.
In addition, the fee at Nanopool is 2% with a PPLNS payment scheme. Moreover, they do payout several times a day with a minimum payout amount of 1,000 SC. Also, they provide anonymous mining, and there’s no need to create an account at Nanopool to mine Siacoin.
F2Pool is one of the biggest integrated mining pools in the world. Besides, it is also the second-largest Siacoin mining pool, controlling roughly 30% of the hashing power. That alone makes it a wrong choice as a pool since using F2Pool will only increase the centralization and decrease the network’s security.
Moreover, it is also not great to continue anonymously because you have to register an account to mine with F2Pool. On the upside, the least payout at F2Pool is just 100 SC, and they payout once a day. Even so, it isn’t a recommended pool for mining Siacoin. However, even the Siacoin team itself asks you not to mine with F2pool to help the network.
Antpool belongs to the larger Siacoin mining pools. But it isn’t too large as it measures roughly 5% of the network hash power. That’s a bit surprising since Bitmain owns Antpool. In addition, the company that makes the Antminer A3 ASIC rig is used for mining Siacoin. As one of the biggest pools, Antpool has firm reliability and is considered trustworthy among the cryptocurrency mining community.
Unfortunately, you do require to register an account at Antpool, so anonymity is out the window. However, one benefit is that they seldom run promotions where they waive the fees. The most recent one ended on September 18, 2018. Currently, Siacoin mining costs are 2%, and payouts are made daily with a minimum of 100 SC.
You can mine Siacoin with an ASIC miner to obtain the best achievable profit.
Siacoin works on the Blake2b algorithm for mining.
It depends on the value and your project expectations.
You can regularly check your profitability in our Siacoin mining calculator.
Disclaimer: The views and opinions expressed in this article are solely the author’s and do not necessarily reflect the views of CoinQuora. No information in this article should be interpreted as investment advice. CoinQuora encourages all users to do their own research before investing in cryptocurrencies.