Docs - Obtaining Monero and Running The Network

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.