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