One of the interesting altcoins with privacy and anonymity enabled features is Zcoin (XZC) or alternatively Zerocoin. The main technology behind Zcoin’s privacy protocols is the so called zero-knowledge proof. If you choose to mine this cryptocurrency, you will be pleased that unlike many others, there is a solid developers team behind this project.
Just like bitcoin, the number of XZC ever released will be 21 million. Presently, there is about 3.4 million XZC in circulation. New block is mined every 10 minutes, with 50 Zcoins released to the miners. Currently ranked 72, with market cap of $180 million, this is a respectable position with a lot of room to grow.
Currently you can mine Zcoin with the lyra2z algo with your GPU, which we will describe down below. In the future, both CPU and GPU mining will be supported, which will favor much better decentralization. This will be enabled by a unique proof of work called Merkle Tree Proof, or MTP. This algorithm was developed entirely from scratch following an academic paper. Considered by some an ideal proof of work for a cryptocurrency, you can check the basic idea of this algorithm here.
This switch from lyra2z to MTP that will occur soon. If you are into GPU mining, this is something you would definitely want to follow closely.
I was attracted to Zcoin when I was checking the available altcoin alternatives for NVidia GTX 1080 Ti GPU. Zcoin can be mined with Nvidia and AMD graphic cards. If you have a decent GPU, the profit can be OK, although a lot depends on the current network hashrate, difficulty, and ultimately how large your electricity bill is.
You can check what the estimated profitability for your graphic card is if you visit whattomine.com or crypto-coinz.net. Put your hashrate in the lyra2z field, or simply select your graphic card. For my Nvidia model the hashrate is between 3 and 3,3 MH/s.
So, Zcoin is among the coins that are currently very profitable. However, most people would have to join a pool, as their hashing power won’t be enough to find a block in a reasonable amount of time on their own.
As stated on the official blog pages, the best way to mine Zcoin is:
- to use the CCminer for Nvidia GPU created by tpruvot
- or to use theSGminer if you have AMD GPU created by djm34
How to Mine ZCoin with Nvidia
This guide is for you if you have an Nvidia GPU. As already mentioned, you can use sgminer if you have AMD based graphic cards.
- In order to mine XZC, first thing you have to do is to get their wallet. For Windows and other operating systems, you can get the Zcoin official wallet from here. We recommend installing the electrum ZCoin wallet. Once you download the wallet, just select the installation directory and when the installation is over you can run the “electrum-xzc-version-number.exe”). It may ask for network permissions, and then you can create your new default_wallet.
- Choose a Standard wallet and create a New Seed. Memorize the seed, or write it down on a piece of paper. Choose a password to encrypt the wallet if you wish, which is a wise move in any case. Click on Receive, like in the image below and record your Receiving address. You would use this address to set up your miner and collect the coins you have mined.
- Now, it’s time to download the Nvidia ccminer. You can download it from here.
- Next, you have to create a simple text file with the extension BAT in the same directory as ccminer. You can give it a name, for example, “my-XZC-miner.bat”. There should be one line of code in this file. For example like this:
ccminer.exe -a lyra2z -o stratum+tcp://us-east.lyra2z-hub.miningpoolhub.com:20581 -u USERNAME.WORKERNAME -p xHere, you would have to go to miningpoolhub.com and register first with your username, and if you wish create a new worker (but you don’t have to). Then enter your username before running the bat file.
- The part -a lyra2z means that you want your ccminer to mine using the lyra2z algorithm. The part
-o stratum+tcp://...indicates the mining pool, which in this case means you will use the MPH mining pool. You are free to choose any other pool from the list of pools below. The URL and port number will change from pool to pool. Each mining pool usually provides detailed instructions how to connect and join the pool of miners. For MPH you would have to register first and then enter your user name in the
-ufield. The password field is not required.
- You can now connect to the stratum and mine. Don’t forget to enter you wallet address (as Receiving Address) in the corresponding field in your account settings on the MPH website.
List of ZCoin Pools
What Graphic to Use?
Lyra2z coins like ZCoin do good with the Nvidia Graphic Cards of the latest generation. If you currently don’t own a GPU and if you are looking for a good model, our recommendation is GTX 1080 Ti.
Once you have enough ZCoins in your wallet, you may decide to keep them or exchange them. Currently XZC is supported on the following exchanges:
Where to Learn More about Zcoin?
If this post was useful to you, consider buying me some pizza, XZC address: aHHS6ZVbMEtdhmKdfMx2RNGTduhKLDNtT5