In a previous text, we explained what Safex Blockchain is, now we are explaining how it works. So far, you know Safex Blockchain is privacy-oriented, based on Proof-of-Work mining, has two cryptocurrencies, and all with the purpose to serve Safex Marketplace - the marketplace of the modern age. You know Safex uses the RandomSFX algorithm for mining and has a specific egalitarian coin distribution curve. But let's go back and understand why Safex uses the Proof-of-Work consensus mechanism.
Proof-of-Work consensus mechanism
Safex developers believe the Proof-of-Work way of supporting the network is the best way to ensure a decentralized block consensus. Participants have to perform some work - mining - to offer the solution to an algorithmic puzzle. The miner who first gives the correct answer will open the block, some amount of the pending transactions will get processed in the block, and that miner will get the reward in Safex Cash, as well as network fee from the transactions included in that block. This algorithmic puzzle you can imagine is like sudoku - each sudoku has only one correct solution when it's solved - it's effortless to check out if it is accurate or not, without a doubt.
Why is mining important?
Mining is essential to ensure consensus. When one miner solves the puzzle, other miners will see if the solution is correct or not. If it is accurate - miners have no motive to continue focussing on that block any further. They accept the resolved block, as long as it's correct and first given. Miners then continue looking for solutions for the following block. On the other hand, if the solution some miner offered is not correct - they would recognize it and continue looking for the correct answer.
As a fork of Monero, Safex modified their mining algorithm and are using the RandomSFX algorithm. At this moment, the block reward is 200 Safex Cash per block. Safex Cash is a CPU mineable cryptocurrency, and is intentionally designed so that regular home computers are best able to mine it. With Safex Cash, you do not need fancy purpose-built mining devices to earn Safex Cash and support the network.
Safex is an ASIC-resistant cryptocurrency
ASIC-resistant cryptocurrencies aim to preserve and increase their underlying PoW blockchain's degree of decentralization. While it was possible to profitably mine Bitcoin with a CPU after its launch, times have changed, and specially designed hardware has taken over for certain mining algorithms. The technical parameters of the RandomSFX algorithm make it entirely inefficient for ASIC devices to mine. Safex will keep focusing on simple mining so everyone can start mining and support the network with their home PC.
Keep in mind that most cryptocurrencies that support Proof-of-Work have already been mined by the earliest participants. This will not be the case with Safex. Why? Because Safex has carefully designed the distribution of Safex Cash via mining. This distribution curve, called S-curve, follows the rate of adoption of innovation and by this design gives people who will discover coins later equal rights in mining. When you compare distribution curves of some other coins, you will see that Bitcoin, Monero, and Litecoin have very similar emission rates (yet, Monero has the most unfavorable) and that those who recognized them first (innovators) benefited the very most. However, with Safex, it's very different: a fair chance not only for the early adopters, but also the early majority. Even the late majority will be in a much better position than in comparison to other coins.
Some additional information:
Block Time is the time needed to mine one block. In the case of Safex Cash, this is approximately two minutes.
Difficulty determines how difficult it will be to mine the next block. The difficulty is a measure of how many hashes (statistically) must be generated to find a valid solution to solve the block in the process of mining. As more machines and their hashing power is added into mining, the difficulty must increase to ensure blocks are not being generated too quickly and too easily. This means that difficulty is constantly changing depending on hash power. These changes are called difficulty retargeting, and with Safex, they are at every block (based on the last 60 blocks (2h)).
Safex Block Size is dynamic, not static, which is the case for some cryptocurrencies like Bitcoin. Safex block size adjusts automatically, according to the rule: Double max size is the double value of the median for the last 100 blocks.
Start mining Safex Cash
If you want to start mining Safex Cash, several software options currently exist for pool mining of Safex Cash:
- Assemble the components and install the custom (Linux-based) SFXOS operating system. The software can be found here. A helpful tutorial for building a dedicated CPU mining rig and setting it up can be found here.
- Use xmrig mining software on your Home PC: The RandomSFX algorithm has been integrated into the xmrig mining software, the latest release of which can be found at this link.
- Additionally, a 1- click miner is being developed, which will allow regular 'mom and pop' home PC users the ability to quickly and easily set their computers to mining Safex Cash, without the need to understand the more advanced setup techniques, as required for using xmrig.
While not considered standard practice, it is also possible to solo mine directly with the integrated mining function (within safexd) on a Full Node, and no other mining software is required. In this instance, the rewards for any blocks found are sent directly to the wallet address specified when the mining command was issued to the node. Since the total hash rate on the Safex network is already quite high, it is advisable to rather join a mining pool than to solo mine, because the rewards will be more consistent within time.