diff --git a/docs/_posts/2019-05-06-Obtaining-Monero-And-Running-The-Network.md b/docs/_posts/2019-05-06-Obtaining-Monero-And-Running-The-Network.md new file mode 100644 index 0000000..7eefc4d --- /dev/null +++ b/docs/_posts/2019-05-06-Obtaining-Monero-And-Running-The-Network.md @@ -0,0 +1,194 @@ +--- +layout: post +title: Obtaining Monero and Running The Network +subtitle: How are coins gained +tags: [coins, network, mining, pools ] +gh-badge: [star, fork, follow] +--- +## 7 Obtaining Monero and Running the Network + +Monero mining is a process done by miners to verify transactions on +the network and add them to the blockchain together in the form of a +block. This results for them in a reward in the form of new coins that +are emitted as a reward for block solving. +Network speed is mainly determined by the average time between +individual blocks. This results in the transaction process that takes up +to 130s (request =<1s, broadcast =<5s and max. time between blocks +=<120 seconds). The transaction process is shown in the Figure 7.3. + +Transaction request +generated by the client +transfer ADDRESS AMOUNT + +Request broadcast to +network nodes, shown +showtransfers pool + +Transaction is added to +the block waiting to be +mined. + +Miners are verifying +transactions in the +pending block. + +Every 2 minutes new +Monero block is mined +and added to the +blockchain. + +Miners are rewarded by +block reward. + +Receiving party’s wallet +becomes aware of the +transaction. + + +7. Obtaining Monero and Running the Network + +### 7.1 Mining nodes + + +As was mentioned at the beginning of the Chapter 7, mining is the +main reason for transaction processing in Monero network, and as the +mining process has rewards for successfully solving the block, this +encourages many different entities to mine. + +Mining in pools + +Very often, miners combine their computational resources into one +of the pools on the network. Due to the higher total hash rate, there +is a greater chance of solving the block thus gaining the reward of +newly emitted coins. After solving each block, the reward is distributed +equally to miners connected to the pool according to PPS (per-per- +share) or PPLNS (per-per-last-number-of-shares) system [61]. +As of 09.29.2018 total hash rate of the network was 577.72 Mh/s +(100%), in known pools 530.79 Mh/s (91.88%) and unknown part +of the network 46.93 Mh/s (8.12%). Unknown part represents either +pools that are not listed or solo miners on the network. + +Solo mining + +Represents "all or nothing" approach when it comes to the rewarding +system. As solo miner’s hash rate has to compete against all other solo +miners as well as big pools, the chance of solving the block is rather +small [62]. +On the other side, when solo miner solves the block successfully, +the whole block reward is assigned to the mining address. With high- +end, multiple GPU setup, the miner can achieve about 3.2 Kh/s; this +would mean chance about 0.46 % of gaining the block reward. + +Web mining + +CryptoNight algorithm mining stands out above others in the way how +cryptocurrency can be mined. For Monero there are JavaScript-based +miners like CoinHive available, that results in individual websites +embedding this script and mining using the visitor’s resources. +This can result up to 300 hashes per second for users with powerful +CPUs and is a viable alternative to advertisements when visitors spend +more than 10 minutes on the website [63]. Typical examples of this +approach are warez websites offering free online movies and torrent +trackers. + +Botnet mining + +Using other peoples resources for mining, often also called crypto +jacking (a more broad term for hidden cryptocurrency mining without +users approval), have become increasingly popular in Monero. As the +cryptocurrency provides privacy features as well as a wide range of +mining software that is available for every major platform. +In the current cloud era of computing, this represents vast prob- +lems for both service providers and their customers. Providers experi- +ence increased power consumption, cooling requirements, customers, +on the other hand, are required to pay more for consumed system +resources [64]. + +Cloud mining + +Represents managed services by specialists that offer mining power us- +ing cloud service providers. Due to managed service providers (MSP) +markup, this way of mining is not as profitable and not recommended +among Monero community in general. +Arrows indicate flow of the resources: +Payment for service; Payment for compute time; Delivered hashrate + + +### 7.2 Mining software + +Official + +Can be obtained at the official web of the Monero cryptocurrency +project athttps://getmonero.org/downloads/. This is an official wal- +let software that includes solo mining client and cannot be used for +pool mining. + +Community-driven + +Is a category that incorporates open-source mining software projects +that have source code published on the Github. Mostly used are: + +- XMR Stak + **-** Consolidates CPU, AMD and Nvidia GPU mining under + one multiplatform application with integrated webserver + and autoconfiguration capability. + **-** URL:https://github.com/fireice-uk/xmr-stak + +- XMRig +**-** Three separately released miners with autoconfiguration +GPU and CPU capability. +**-** AMD:https://github.com/xmrig/xmrig-amd +**-** Nvidia:https://github.com/xmrig/xmrig-nvidia +**-** CPU:https://github.com/xmrig/xmrig +- CCminer - Nvidia CUDA miner +**-** URL:https://github.com/tpruvot/ccminer/ + +Proprietary + +Having closed source code that community cannot inspect, mining +software of this category has less reputation compared to the community- +driven. This is caused mainly by the fact that the exact produced hash +rate and client reported hash rate differed in the past at least regarding +the MinerGate miner available athttps://minergate.com/download +s/gui. + +### 7.3 Mining malware + +As Monero algorithm is designed to be memory demanding, it is +suitable to mine it using both CPU and GPU as mining software offers +support for both hardware components as mentioned in the Section +7.2. + +The fact that Monero can be effectively CPU mined means for +malware miners much easier way how to gain any profit from infected +computer as they do not need to have any specific GPU drivers or +features implemented. Because of this, they are easier to deploy on a +wide range of devices [65]. + +Monero position in the malware world + +When malicious software developer considers the cryptocurrency +technology to build on, cryptocurrency features are one of the most +important aspects that drive this decision. +In the case of Monero, its features are as much important for its +users as for the malware developers. The main reason for using Mon- +ero is that it offers private features as well as support for mining on +almost every device available [66]. +Thanks to its features and active development, Monero is one of the +most active cryptocurrencies that are used in the malware world with +more than 57 million USD already mined. As of 2019, Monero is iden- +tified to have the most active malware campaigns per cryptocurrency, +followed by Bitcoin and zCash [67]. + + +Types of malware miners + +Main categories of malware miners are derived from the way how the +unwanted software is delivered to the target device. Most common +ways of ingestion are: + +- Website with JavaScript miner software, also known as Crypto- + jacking as mentioned in the Figure 4.4. +- Exploiting vulnerabilities in the operating system or application + software. +- Bundled in legitimate software.