Bitcoin mining is one of the most complex systems in cryptocurrency. And given its aim is to incentivize crypto users, it has become more and more difficult with time. Therefore, people had to come up with new and more performant software solutions to keep up with the numerous crypto users on the blockchain.
However, choosing the right type of mining software isn’t that easy. Depending on your experience level, you may need specific programs and specs that will allow you to gain coins while protecting your wallet. At the same time, you might want to choose sustainable software solutions in order to consume less energy. Bitcoin has already developed a sustainable protocol in this regard, which we’ll discuss in the following paragraphs, along with crypto mining software tips.
What is software used for?
Mining Bitcoin requires you to be wary of two essential factors: the mining hardware and software. The mining software is the key to communicating between the hardware that you use and the blockchain. This technology also connects with a mining pool if you’re part of one to ensure a smooth mining process. On the other hand, the hardware part drives software to manage the mining process, so they work interdependently.
Regarding pooling, it is one of the most common ways of mining since it’s more advantageous than mining on your own. So, bitcoin mining software can help you manage your pooling better and achieve the desired output faster in terms of gaining coins. But let’s see how these technologies can help you.
Examples of Bitcoin mining software
Mining software has the purpose of distributing the output of the mining hardware across the blockchain and retrieving the finished work from other miners, which is why it benefits mining pools. Given the complexity of the process, you may want to use simpler mining software that is also compatible with other mining equipment. Therefore, let’s analyze a few software examples:
- CGMiner is an open-source mining program that can run on almost any device, from Windows, Mac and Linux and is the best to independently distribute your power to different pools to find the most profitable combination.
- MultiMiner is another software program that supports direct access to the mining engine and API settings. It is beginner-friendly and can automatically start mining when you open your computer, so it’s less of a hassle to use.
- KryptexMiner is made only for Windows, but it can be helpful for beginners as well as professional miners. Depending on your computer, using this software can be more or less profitable since you can barely make $95 per month with a gaming PC, while a mining rig can get you to $615 per month.
Of course, before investing in such expensive programs and solutions, you might want to know what is the price of bitcoin and if it’s worth trying to overcome all the expenses of computational power and a computer’s graphic processing units (GPU) to facilitate block mining. Take into consideration that the price frequently changes because the market is highly volatile. There are many factors that contribute to this, from media coverage and investor sentiments, but you need to be prepared to mine continuously while faced with high or low bitcoin prices.
Regardless of the software solution, hardware is the most expensive part of the whole process. To mine in a productive and assimilating way, you need to have an application-specific integrated circuit (ASIC) that can support a piece of powerful computer equipment since bitcoin mining hardware is almost entirely made up of ASIC machines.
Bitcoin sustainable protocol
Regarding sustainability, bitcoin has made an important step towards it, rewarding miners that use clean energy resources. Given that mining’s energy consumption is equivalent to 80% of the world’s electricity use, it’s highly recommended that we do something about it. Mining is not only about releasing new cryptocurrencies into the system and being incentivized for it; it’s also about the environment.
Unfortunately, the case of cryptocurrencies is similar to any other industry. By maintaining blockchains and issuing unlimited tokens, we risk natural habitats. However, people are aware of this fact, which is why bitcoin acted. The protocol aims to assure investors that by adding “proof of sustainable mining” to their holdings, they can make the bitcoin network easier to manage regarding being green.
Why the mining process needs more sustainability
Software solutions can help with less environmental impact by minimizing waste. Although newer cryptocurrencies are no longer using mining as a method to reward users, bitcoin is less likely to change, which is why the new protocol is a step forward for a better future for cryptocurrencies.
The problem with mining is that users need to use a high amount of energy to remain profitable, which is something that only contributes to climate change issues. At the same time, the three top countries that mine the most are also the ones that are heavily dependent on fossil fuels, which is the consequence of mining getting harder to process by the year.
How can we mine more sustainably?
Newer cryptocurrencies adopted green practices as a way to slow down climate change concerns. They are using hydropower and solar to incentivize miners. Still, some things need to be considered when approaching this practice:
- Crypto needs to be more transparent about environmental impacts regarding mining operations that require fossil fuel energy sources;
- Mining firms can collaborate with carbon offset programs that minimize their emissions and energy usage;
- Offering better-tailored software solutions for miners (for example, Intel offers blockchain accelerators that increase computational speeds while consuming lower energy);
- Changing the mining procedure to proof-of-history or proof-of-burn, which are known to use less energy in the mining process.
Mining is what keeps the blockchain on its feet, but it seems like it becomes more challenging to perform. It’s also affecting the environment by consuming tremendous amounts of energy. Therefore, when investing in crypto, you need to choose your software mining program wisely if you want to contribute to saving nature.