Dutch version here
In this story an explanation is given about mining of the crypto currency Gulden.
From the start of the Gulden in 2014 the scrypt algorithm was in use for the mining of the Gulden, but it got so many disadvantages that it was decided to look for a suitable alternative for scrypt. The biggest disadvantage of the scrypt algorithm was the presence of scrypt jumppools. Jumppools are pools of miners that with a very large hashrate only love Gulden when the difficulty is low, so they can easily and quickly mine a number of blocks. As soon as the difficulty went up again she “jumped” to another coin to do the same trick. The behavior of these pools caused a very fluctuating hashrate and therefore a varying block time. It happened regularly that 5–6 blocks were found within a minute and then 15 minutes nothing. The Jump Pools dominated the Gulden Network and that was not good for the stability and decentrality of the network.
Since October 17, 2019, the Gulden team has implemented the Sigma algorithm and since then it is possible to mine Gulden solo without additional equipment.
Sigma is a proprietary algorithm based on the Argon algorithm. Sigma is ASIC and GPU resistant and can only be used for CPU mining. Sigma can be set, managed and activated via the desktop wallet of Gulden. With this, Gulden brings the crypto mining back to the normal user and the decentrality of Gulden has been improved again. The large base of miners also ensures a stable working network. At the moment of writing the number of miners is about 300 of which the largest miners has only 4% market share compared to about 40 in the scrypt era with 2–3 poolminers with 45% market share.
If you want to know more about the technical backgrounds of SIGMA and the reasons for choosing Sigma, I recommend this blog.
Other algorithms are often used in the form of pool mining. This is not (yet) possible with Sigma because of the simple fact that there are no pools that support the Sigma algorithm. In addition, it makes no technical sense to mine in a pool because your solomining is just as effective and even more profitable. You only have to wait a while to find a block against pools that often pay out in fractions of a block, but of course they take some of that in the form of fees. Pools have no advantage over the solominer.
How to get started
Actually very simple,
- Download the software for a desktop wallet
The software required is simply the standard Gulden wallet software. Please note that mining is only possible with the desktop version. So don’t choose the mobile version, because it doesn’t work. Install this and start the wallet software. Wait until the blockchain is fully loaded and synchronized before continuing. This process is one-off and can take up to an hour. The next time you start the wallet, the synchronization will be finished quickly. Don’t forget to write down your recovery sentence, in case of troubles you need it!!
- Create a mining account in the wallet
Do this in the order indicated below. The shared window with steps 2 and 3 opens after clicking on “+ Add account”.
- After a few seconds the mining screen will open where the mining parameters can be entered. Depending on the specification of your hardware, the number of threads and the memory usage may be different than in the picture.
- Threads and memory
You can customize the sliders of threads and memory to your own needs. Keep in mind that the more threads you use, the faster it will mine. However, choosing the maximum number of threads will cause you to do little more with your computer. In the above example, a setting of 6 threads is still workable to perform other tasks during the mining process.
The mining is designed to work optimally with 4096Mb of memory. So if your computer can handle it, it is advisable to leave the slider at 4096Mb. Less is possible but has a negative impact on performance.
- Then you can press the Start Mining button in the bottom right-hand corner and the start of the mining process can begin. You can also use two tick marks to make sure that the mining starts as soon as the wallet is started and a tick mark to leave the wallet open during mining.
The mining screen displays some statistics about your mining activities. The hashrate is tracked. For an average laptop, a value between 1 and 3 Mh/s is normal.
Profit or loss
Whether you make a profit or a loss depends on many factors, such as..:
- What is the hashrate of your installation?
- How many watts does your computer use effectively for mining?
- How much do you pay for electricity?
- Do you take into account the depreciation of your computer? (It may wear out a little more because it gets hot)
- How much hashrate is there in total on the Gulden Network?
- What is the price level of the mined Gulden?
So there is no clear answer to your question as to whether it makes sense for you to mine. To give you some idea: a laptop with an i7 processor and 4096Mb available memory mined with 6 threads approximately at a speed of 2Mh/s and finds +/-1 block (50 Gulden) per day and achieves nowadaus (October, 25 2019) a modest profit of €0.10 per day in the Netherlands.
I hope this explanation will help you. If you want to know more about Gulden you can visit the website of Gulden or you can participate in the Slack forum where you can find enthusiastic fellow users of Gulden.
Other articles of this author are:
The Recovery Phrase, Fail-Safe Or Not?
Miners, Blocktime and Orphans, a trinity.
Which crypto becomes the future payment system?
The Good, the Bad and the Ugly, Classifying the crypto-coins.
The white hat ethical investor
The nonsense of…. TPS (transactions per second)
Crypto ranked by numbers of users
Fact check Gulden website
Can the Bitcoin exchange rate reach $100,000?
Gulden, Blockchain as intended