- What Is Pegnet?
- How Does Pegnet Mining Work?
- How To Mine Pegnet
- Step 1: Download and Install Factom Wallet
- Step 2: Download And Install Pegnet Miner
Here is our new guide to help miners get started on how to mine Pegnet. This coin is fairly new as it was recently launched in the middle of 2019 yet its community is growing rapidly each day.
Pegnet uses proof of work (PoW) protocols that are unlike most PoW based cryptocurrencies today.
Pegnet is also considered a stablecoin but with some unique features that truly put it in a class of its own. So for the purpose of this guide, we wanted to cover what Pegnet is, how to get started mining it, and some of the reasons why you might consider looking into it as well.
What Is Pegnet?
As stated earlier Pegnet is proof of work-based stablecoin but unlike other stablecoins, this one is pegged to well over 30 synthetic assets with 14 of them being the largest fiat currencies, another 14 being major cryptocurrencies, and the last two being silver and gold. This gives users of Pegnet the ability to trade in and out of these 30 assets within the network using its alpha wallet with very low fees of around 1/10 of a penny USD.
Pegnet solves the need to have a counterparty due to the fact that you’re within your own wallet and not dealing with anyone else. There is no need for sending a transaction out as you’re not trading with someone else on an order book as its all your own value inside your own wallet.
Instead, you deal with the oracles/miners inside your wallet to decide what assets you wish to hedge into. This makes pegnet something extremely unique that the crypto space has never seen before.
The project is open-sourced yet the team behind the development of this coin is largely made of members from the Factom and Ethereum dev communities. Pegnet uses the Factom chain for its consensus making it a layer 2 protocol that mimics as a decentralized application (Dapp) running on the Factom blockchain.
Lastly, we would like to mention the fact that Pegnet was part of a fair launch with NO ICO, Airdrop, or Premine.
How Does Pegnet Mining Work?
When it comes to how Pegnet mining works it’s very different in a lot of ways when compared to Bitcoin or Ethereum Mining. It does, however, follow the same 10 minute block times structure as Bitcoin yet its power consumption is far less.
Pegnet utilizes an LXR proof of work hashing algorithm. This hashing algo is a central processing unit (CPU) mining only as its mostly memory bound with 2 GB of memory being the minimum requirement. In fact, this algorithm is said to consume a mere 10% of what a CPU would normally use idling which makes it eco-friendly. This means more access to the normal person and truly decentralized currency.
How Pegnet mining works is by using the miners on the network as oracles to report the prices of these 30 major synthetic assets every 10 minutes. So basically the network is getting the average price of these synthetic assets every ten minutes from the miners.
This brings us back to one of the main reasons for proof of work being implicated in the project to ensure that the oracles remain true. The Pegnet Pow protocol requires miners to first submit prices of the assets through hash power.
For those that are new to Pow, it’s basically a way to make pieces of data difficult to generate yet easy to verify. Next miners on the network are graded on how close they are to the median price. Therefore in order for a miner to get the reward, they not only have to provide good data yet accurate data as well. This secures the network by ensuring the prices are correct.
Unlike Bitcoin Mining where only the lucky miner or pool gets the block reward, Pegnet rewards the top 25 miners who properly validate the prices of the 30 assets with proof of work. The native token that is rewarded to the miner is called Peg which is used as arbitrage in the system. Right now there is 5000 peg rewarded to the miner for every block as well 5000 available to the arbitragers for conversions. Therefore there is a predictable supply of 10000 Peg available for every block with 10-minute block times.
How To Mine Pegnet
In this guide, we will show you how to mine Pegnet on Windows 10. Due to the fact that this coin is gaining some serious momentum we recommend pool mining using the Orax Pool.
If you’re using an operating system other than Windows join the Pegnet Discord for assistance.
Step 1: Download and Install Factom Wallet
Step 1a: First, you will need to Download the Factom Enterprise wallet for Windows, Mac, or Linux. Make sure you download the correct one according to your operating system.
Step 1b: The next step is to “double-click” on the downloaded file to install the wallet. A Windows defender warning may pop up but go ahead and “select Run Anyway”.
Step 1c: Once installed click on “Secured Encrypted Wallet” from the options.
Step 1d: The next screen will request that you “create a password”. Make sure to backup and write down your password in a secure place so you can access your wallet.
Step 1e: On the next screen “select the Address Book tab on the left” to create a new wallet.
Step 1f: Once inside the Address Book menu “select the New address button” on the bottom right of the wallet.
Step 1g: Be sure to “give your wallet a proper nickname” to easily identify it later.
Step 1h: From here refresh the wallet by “double-clicking the Address Book” option from the tab menu.
You should now have a new wallet address to receive mining rewards that looks similar to the wallet address below. Make sure to copy your wallet address for the next steps.
Step 2: Download And Install Pegnet Miner
Step 2a: In order to set up the Pegnet Miner, you will first need to “create a folder on your computer’s home screen and name it Pegnet.”
Step 2b: Next, go over the Orax Mining Pool quickstart guide and “Download the Pegnet Miner”. Make sure to download the correct one for your operating system.
Step 2c: Once downloaded “move the file over to the Pegnet desktop folder” created in the previous step.
Step 2d: Next right-click on the file and rename it to “orax-cli” and then press ENTER to save.
Step 2e: Using your windows search bar in the bottom left of your screen type in Run or cmd.
From the pop-up menu choose the command prompt option by right-clicking on it and run as an administrator. You should now have a terminal window open that looks similar to the image below.
Step 2f: Next, you will need to change the directory in the command terminal to the folder where the miner is. This can be done in a number of ways but the easiest way we found is to go back to the folder where the miner is in and “right-click on the folder named Pegnet in top of the folder and click on copy address”. See the image below for help.
Step 2f: Then in the terminal window type in “cd” then SPACE and then right-click to paste in the copied address and press ENTER. See the image below for an example.
Step 2g: Next, you need to register your miner (only once) with the pool. To do this type “orax-cli.exe register” into the terminal window and press ENTER.
Then follow along by filling out your email and password making sure to save the password and correct email so you can log into the mining pool later.
When asked to enter a payout address copy and paste from the wallet address you created in the previous steps. Remember to right-click in the window to paste in the address.
Step 2h: Once registration is completed you can start the mining process by copying and pasting in the command “orax-cli.exe mine” and press ENTER.
Please note that the first time you run the miner that it takes around 5-30 minutes to run benchmarks and configure. Your screen should look similar to the image below.
By default, the miner uses all the available cores but this can be adjusted by adding a -n flag to the end of the mining command.
Here is an example command for 2 cores: orax-cli.exe mine -n 2
After the miner has completed the benchmarks and configuration you use the email and password you used to register the miner to login to the pool. Orax Pool Site
To add additional computers/miners to your pool you will need to repeat the registration process but instead of creating a new account when prompted in the terminal, you choose e for an existing account. Be sure to use the same email and password as before.
This concludes our Pegnet mining guide. If you have any questions please feel free to join us on FB to get more updates about new projects. HAPPY MINING!