Zcash Mining on the Brink: Equihash Algorithm and ASIC Dominance

Zcash mining uses the Equihash algorithm to secure its blockchain network. The goal of this puzzle is to limit centralization in mining, but current network difficulty means ASICs are necessary for profitable mining. A new block arrives approximately every 75 seconds, with a block subsidy of 1.5625 ZEC, or about $12.50 at the time of writing.

Miners receive 80% of the subsidy, with the remaining 20% going towards community funding streams. Transaction fees are also earned by miners. The official profitability guidance recommends considering revenue, hardware cost, and operating costs when determining whether mining is profitable.

The next halving is expected around November 2028, which would cut the subsidy to 0.78125 ZEC. This reduction in rewards could make price volatility a significant risk for miners. Hardware and power costs are also major concerns, as ASICs can become outdated quickly and electricity bills can be substantial.