Although the current Proof of Work mining system used in Bitcoin and other cryptocurrencies provides them with unparalleled protection, it’s a highly inefficient method that can be bad both for the environment and for the decentralization of the cryptocurrency itself. Furthermore, the creation of powerful ASICs has also driven the casual enthusiast out of mining, a practice that has become highly industrialized.
So what is the alternative? Proof of Stake cryptocurrencies have proven throughout the time that they can be a secure solution that is both environmentally sustainable and inclusive for ordinary cryptocurrency users who want to earn coins and contribute to the network. Coins like DMD Diamond are not only user-friendly, they can also be highly profitable. Today, we’re going to learn how you can earn DMD by staking your coins or by creating a masternode.
What is DiamondCoin?
DMD Diamond is a Proof of Stake cryptocurrency that allows people to send money anywhere in the world instantly, securely and at near zero cost. Although DMD previously relied on a combination of Proof of Work and Proof of Stake, the current 3.0 version uses the latter in combination with a second-layer network of masternodes.
Live since 2013, DMD Diamond Coin was designed to be a highly scarce decentralized cryptocurrency free of government control and has become one of the oldest cryptocurrency with an impeccable reputation.. According to the white paper, “DMD Diamond Coin focuses on creating a multi entry, high rewards monetary system that empowers people to achieve financial freedom through blockchain based technology”.
Staking your DMD coins
As previously mentioned, Proof of Stake has proven to be a viable alternative to Proof of Work mining. It’s a mechanism that allows the network to confirm transactions and prevent fraud but does not require users to spend large amounts of computing power and electricity. Instead, users are required to hold Diamond coins (DMD) and to be connected to the network, leaving their wallet open and receiving interest on their balance for confirming transactions.
DMD Diamond features a high-reward PoS system where users can expect an yearly return of over 20%. However, the reward will decrease over time to ensure a scarce and low-inflation cryptocurrency. DMD Diamond staking rewards also depend on the number of coins one uses for staking, the more coins brings more rewards.
If you want to mine DMD Diamond Coin through Proof of Stake, simply purchase your DMD at an exchange like Bittrex or Livecoin. Then, download the DMD wallet at https://bit.diamonds/ and install it. Once your wallet has been installed, move your coins to the wallet and let the PoS system do its magic.
Running a MasternodeAlthough PoS is functional, DiamondCoin also relies on a second-layer network of Masternodes, computers that are constantly connected to the Diamond Network and that allow it to provide additional services, including near-instant and private transactions.
Masternodes not only provide a valuable service to the users of DMD, they also present themselves as an opportunity to earn DMD. Masternodes are required to stake at least 10000 DMD and to be connected to the network at all times. In exchange, they are rewarded with 65% of the block rewards. Currently this translates into close to 25% annual interest from running a masternode but the actual reward depends on the number of active masternodes.
The 10000 DMD collateral required by DiamondCoin ensures that masternodes’ best interests are aligned with those of the network, punishing in monetarily if he was to purposely disrupt the wellbeing of the network.
DMD Cloud: Cloud Mining
If you want to bet on DMD mining but you don’t want to try staking or masternode mining by yourself, you can always contribute your coins towards DMD Diamond cloud in order to earn earn additional Diamonds this way.
By doing this, you can receive regular cloud payments send directly to your DMD address.
Try out Cloud Mining here
PoW Mining: Diamond Multipool
Although DMD cannot be mined directly through PoW anymore, it is possible to use your GPU or ASIC miner to mine other cryptocurrencies whose payouts are automatically converted to Diamond. According to the team, this is one of the most cost effective ways of getting your hands on DMD. This option is perfect for PoW miners who find DMD interesting
DMD multipool mining is provided through NiceHash service and has no additional fees. Any BTC (including Nicehash Payouts) sent to your DMD Multipool BTC address is converted to DMD send to your DMD address.
Go to Multipool here
DMD scarcity and future plans
That’s it! Now that you are versed in DMD Diamond Coin mining, you can start earning DMD at any time. Keeping DMD may be a great idea given its scarcity feature which makes it one of the rarest crypto asset out there. The issuance model ensures that inflation will be very limited and, eventually, non-existent.
DMD Diamond Coin has excellent coin mechanics, great rollout plan and multiple ways of earning but any future growth of value must be backed by continuous technological development. All DMD development is led by a team of experienced crypto veterans who has several improvements in the pipeline for 2018. As always security is paramount, a never ending process of refining to stay one step ahead of adversaries, that’s why DMD will feature new long Diamond addresses that significantly increase resistance to quantum computing attacks. What’s more recently introduced Masternodes are planned to gain additional service abilities that would add utility to the Diamond platform. Also DMD will joining a family of SegWit enabled coins that in the future would offer possibility of cross chain transactions and further decentralise the way people exchange value, away from centralised exchanges and institutions that are prone to catastrophic failures. DMD team is constantly assessing latest blockchain technologies and developments and would integrate them into the Diamond system as long as they are safe, tested and bring value to DMD Diamond coin holders.
At that time, users will also be able to benefit from Treasure Digging. Treasure Digging will give them the ability to search for Unspent Transaction Outputs (UTXO) that have been inactive for 10 years and claim part of their balance as a reward while the rest of the coins are burned.
Additionally Treasure Digging will be a security mechanism that will eliminate obsolete short DMD addresses that could become a liability in the age of quantum computers.
If you would like to know more about DMD Diamond, you can request DMD Diamond Slack invite here. DMD Slack community is quite strong and vibrant, joining it is an excellent way to stay up to date with DMD development.