Learning how to mine IOTA takes a little research and patience. This is because the cryptocurrency is unique in many aspects. Unlike most cryptocurrencies, IOTA doesn’t utilize a blockchain network or require miners to validate transactions. Additionally, you never pay transaction fees. All of these factors and more make IOTA an attractive option for cryptocurrency investors and miners alike. The only problem is that it takes some effort to learn how to mine IOTA without dedicating your entire PC.
Brief History of IOTA
IOTA officially entered the crypto space in 2015. The project’s director is the IOTA Foundation. This non-profit organization is responsible for the continual development of the network, including forming strategic partnerships. To date, the company has created partnerships with some of the largest firms in the world including Fujitsu, Samsung, Bosch, and Volkswagen.
Internet of Things
One of the most amazing things about IOTA is that it doesn’t require a blockchain network or miners to retain network security. Instead, the coin’s network is comprised of the Internet of Things. The Internet of Things is a network of billions of online electronic devices. These devices include software, sensors, actuators, home appliances, and even vehicles.
Tangle, the coin’s network, incorporates a relatively new form of consensus called directed acyclic graph (DAG). In the IOTA network, the sender handles the consensus mechanism. Senders actively participate by validating the past two transactions on the network before validating their own transaction. When compared to Bitcoin’s PoW protocol, this form of consensus appears to be more cost-efficient, scalable, decentralized, and best of all, transactions are free.
The Tangle DAG consensus eliminates many of the headaches encountered by cryptocurrencies. Unlike Bitcoin, the more users present in the IOTA network, the quicker transactions complete. A report released by analyst Gartner calculates that around 8.4 billion IoT devices were in use during 2017. The same report estimates that by 2020 IoT usage will reach 20.4 billion. This growth boasts positive developments for IOTA network in the future.
By integrating the consensus mechanism into the sender’s protocol, IOTA eliminates the need for mining altogether. So you are probably wondering a few things at this moment, such as, if IOTA doesn’t use miners, how do I mine IOTA?
Well, technically speaking, mining IOTA is impossible, since all of the IOTA were sold during the coin’s release. You can run a full node and receive some MIOTA for your services, but this isn’t the same as mining the crypto. Luckily, with a little creativity and the help of some unique mining platforms, you can second-hand mine this one-of-a-kind cryptocurrency.
Mining the Elusive Coin
The concept of mining IOTA is an exciting prospect that captured the attention of crypto enthusiasts ever since this blockchain-less coin entered the market in early 2015. In 2017, a Reddit user by the name u/czechcryptomania posted an alternative method of attaining IOTA via a mining platform.
In this process, you provide computing power to a Monero mining pool. The rewards of your efforts are then calculated and transferred to you in IOTA. The upside is you don’t have to invest in any expensive mining material, and your efforts are leveraged by the computing power of the entire mining pool.
Mining pools are the best way to get results from a normal PC. If you attempt to mine the coin solo, it could be years before you see any returns. By working in a mining pool, everyone combines their efforts and splits the profits accordingly.
Mine Without Running a Full Node
Step one, go to the IOTA GitHub page. Scroll down until you see IOTA Wallet 2.5.7.dmg (MAC) and IOTA.Wallet.Setup.2.5.7.exe (Windows). Download the specific one for your operating system.
After the download completes, begin installing the wallet. The wallet installation will ask you if you want to run a full or light node. Select the light node option. You will be prompted to enter in your IOTA seed phrase. This is the phrase that proves you own an IOTA wallet.
If you already have an IOTA wallet you can use that seed. Otherwise, you can generate a new seed here. Creating a new IOTA seed requires you to move your mouse until the percentage meter reaches 100 percent. Much like your private keys with Bitcoin, you need to make a copy of your seed and store it in a safe place. If someone gets access to your seed, they have access to your cryptocurrency.
Attach to Tangle
Now you are ready to attach to IOTA. You do this by clicking the Attach to Tangle button located directly under the 3D barcode. This will produce an address. Copy the address.
Now that you have an address you are ready to go to the IOTA faucet website. This website pays in IOTA for your Monero mining efforts. You will need to paste the copied address in the appropriate location and click Submit.
Your PC will pull up the verification prompt. Verify that you want to mine, and pow, you are now mining. You will want to tweak the IOTA faucet platform to prevent your PC from struggling. With the right settings, you can mine thousands of IOTA while going about your normal computer activities.
Withdraw Your Coins
To cash out on your mining efforts you need to click the withdraw button located on the right of the screen. This will place you in the payment queue. There is no minimum withdrawal amount, and you can use the withdraw feature anytime you like. You can verify your payment is in route with the Tangle Explorer.
How Not to Tangle Up Your PC power
This process of mining IOTA is one of the easiest and most cost-effective methods available. You don’t need to invest in expensive mining hardware. You don’t even need to dedicate your PC fully to the mining process. Now, you can enjoy a steady stream of IOTAs into your wallet for (hopefully) years to come.