Zcash Mining-What is it and How does it work?


Zcash mining is a cryptocurrency generator that creates new coins via the mining process, and Zcash is open foundation cryptography that ensures privacy. Zcash is a privacy-oriented cryptocurrency that uses zero-knowledge proofs to encrypt all the data between users safely. More so, encrypted dealings conceal the sender, the recipient and the sum being transferred in the blockchain, so it is almost unbearable to trade down the transaction. Just like bitcoin, there are different methods that a miner can mine Zcash. There are two primary methods for Zcash mining, i.e., pool mining and solo mining. Below is a brief analysis of the difference between solo mining and pool mining.

Pool Mining.

Zcash miningMining in a pool refers to a group of miners grouped pooled together to raise the capacity to mine a block. The miners then combine the profit for successfully mining the block and share the reward equally based on the power that each miner subsidized in the Zcash mining pool.
One can imagine the pool mining concept like a lottery pool. Therefore, the chances of winning a lottery are low. If a miner joins with other miners, then chances of winning more are high but your share of the winners’ decreases.

NB: If one joins a pool group, one may have to pay a mining subscription.

Solo mining.

It is the opposite to pool mining; solo mining does not force the miner to rest on other people to do the work. According to different sources, solo mining and pooled mining produce similar outcomes. In the past years, solo mining was lucrative for mining Zcash. However, the network hash speed is very high now. This factor is hindering some people away from solo mining. The network hash rate is viewed as a way to ration the processing power within the Zcash network. Since the network hash rate is high, it requires a lot of electricity and expensive hardware.

Regarding of whether you mining in a solo or you choose to go with pool mining, you will be paid for successfully mining a block. This is referred to as Block Reward.

Block Reward –explained.

The block reward issues a total of 50 Zcash every 10 minutes. This implies that for every successful block of mining that transpires, 50 Zcash will be granted. If a miner is part of the mining pool, the block reward will be shared between everyone in the pool based on the computational power that you used in mining the block. For instance, the miner who paid the most computational power will be given the most Zcash for successful mining completion.

Zcash miningIt should be of paramount significance to note that 10% of all coins mined will go to the Foundation reward. In other words, this is something precise to Zcash mining though other coins have the same structure. Therefore, founders reward is given to the developers who started Zcash mining. The deposit will be used for reasons such as current developments support of Zcash mining, and to create a non-profit organization within Zcash mining team.

What do you need to start Zcash mining?

Once you have chosen to start Zcash mining and have a good idea of what hardware you want to use the next step is to find the right software. There are several types of software that work with different hardware configuration. For a beginner, one would need Zcash mining hardware. Zcash mining is the machinery which a miner use to run the mining software. The miner should be in a position to differentiate between ASIC, CPU mining, and GPU mining.

There are three types of computational power which can be used for Zcash mining.

1) CPU Mining

This form of mining comprises the use of the computer CPU power to mine. The benefit of Zcash mining is that miners use the current CPU, unlike other cryptocurrencies such as bitcoin. In other words, CPU mining caters for processing all tasks that take place while the computer is running. It is a form of mining that was much more popular in the early days of bitcoin.

2) GPU Mining

Zcash miningGPU mining comprises of using computer graphic card to mine. The benefit of GPU mining is that it is efficient and faster than CPU mining.

Moreover, GPU mining is seen as being flexible amendments to CPU and ASIC chips.

3) ASIC mining

The ASIC process of mining comprises of a microchip specifically aimed at computer algorithms at the fastest speed possible. They can contest more than 100,000 times faster than a CPU. These models are custom built so miners need to purchase a new ASIC model for each new coin you would like to mine.

However, mining hardware directly affects potential mining profits, so it is crucial to understand all your options. Zcash mining uses the Equihash algorithm, which relies on high RAM requirements. Therefore, miners need to choose the right hardware to get favorable profits.

Is Zcash mining profitable?

The amount of reward depends on a variety of factors, including the equipment purchased, electricity costs and depends on the type of mining pool which the miner is investing. As the price presently stands, Zcash mining is profitable. Like other instruments though, you are of course taking a financial risk. If the cost of the Zcash coin falls overnight, your investment will suffer. It may look easy just to set up a rig and make a passive income, but do not underestimate the associated risk.

How Profitable Zcash Is

Moreover, a significant component in the profitability of all types of mining is the cost of electricity. This means, if your electricity rates are expensive, your profit is going to take a hit. Also, be sure to check what your local law official say about mining before you invest and purchase all of your equipment. Zcash mining depends on where you are, and you may have local compliances that you have to meet to start mining.

Zcash miningHowever, miners can figure out the unique situation by using a profit calculator. The profit calculator allows miners to input the hashing power, power consumption and cost per kW/h to determine the profit ratio per day and month. Before purchasing equipment, miners can use this type of calculator to determine whether the initial investment is worth the potential profit.


To sum up, the above, Zcash mining is at the core of Zcash network. In other words, if a miner posses the right equipment, Zcash mining tend to be a profitable investment. However, miners have to do thorough research before spending time and money in Zcash mining.