In this article you will find all the facts about the provider Coinhive, which has recently got much attention in the media as many website operators have secretly integrated this new technology called Coinhive agreement without informing visitors that they are used to mine cryptocurrencies through a part of their computing power during their visit.
Coinhive is an alternative type of revenue source that website operators can make use of to make money. Instead of annoying advertisements that are blocked by up to 36% of internet users by adblockers anyway, a part of the visitor’s performance is used in the background in order to mine Monero. The advantage of this is that website operators can earn money with their visitors without any advertising. Decisive for a good merit is how long the visitor stays on a website, and especially how many visitors get on a website per day.
Why Monero and how the System in the Background is working
With Monero, “Hashes” are “mined” with the so-called “cryptonight” algorithm, which was designed to run well on the average computer and “mines” Monero despite the severity and slowness of this algorithm.
In theory, there are also solutions to run the “cryptonight” algorithm over a GPU rather than the CPU for advanced users. However, the Mining advantage would only double, which would be very low, as opposed to other algorithms used by Bitcoin or Etherum, since the advantage of running the Mining over a GPU would be times ten thousand.
The Outrage about hidden Mining-Codes
Coin-Hive calls on website operators to deal transparently with this topic, and to inform visitors of websites about this type of revenue source. Unfortunately, many websites have not adhered to this agreement, and there have also been cases of hacking, where a script was installed by hundreds of popular sites, which enabled the mining of Monero without the knowledge of the website operator. According to estimates, thousands to millions of users have been ignorant of computing power for the generation of new Monero, which should have been especially smartphone users, since the battery empties faster through mining. Accordingly, the developers of adblockers have also responded, and are now blocking corresponding codes from sites that point to hidden mining.
However, one should not forget that behind the secret incorporation of Coinhive’s mining code were certainly not only bad intentions, but many web page operators probably were not aware of what mining might have as an impact on a smartphone battery, or what would happen if many tabs are open in the browser, and several web pages automatically start to mine.
How you can integrate Coinhive on your Website reasonably
To integrate Coinhive on your website, you should consider the following:
- The mining should never start automatically because only the visitor can know whether he can handle it with his device (remember the example with the several tabs, or the smartphone battery).
- The button for switching the Mining on and off should be easily accessible, and on every page (as I have solved it on My Global Door, for example).
- Alternatively, pop-ups such as Coinhive’s AuthedMine will work, which will prompt users to visit for Mining. For example, with AuthedMine this decision is valid for 24 hours until the user will be asked again.
If you look into these things, you will not get any problems with adblockers. In addition, with a Coinhive Account, short links can be created, which means that every user who gets to a website via your link automatically has “mined” a predefined hashrate per click (example below). And anyone who still doesn’t have enough trust is also able to exchange his Captcha against Coinhive’s “Proof of Work” Captcha, which also makes spam protection profitable and, above all, simpler!
But how does it behave with Google AdWords? Should you relinquish Ad Banners completely?
It is recommended by Coinhive, but there are possibilities to combine both systems in a user-friendly manner. Here are a few options:
- Restrict advertising banners to unsuitable smartphones and tablets, but allow mining instead of advertising banners on PCs and Macs.
- Give users the option to switch between the advertising banner and the mining banner
- Popups allow the visitor to choose between advertising banners and mining (similar to the AuthedMine popup, which remembers the decision for a conscience period).
As you can see, there are quite a few user-friendly combinations!
Link to the Website: Coinhive.com
Proof of Work Captcha:
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Alternatives for Coinhive
From what I know besides Coinhive there is still the relatively well-known offerer JSECoin, which also runs its own Coin “JSE”. However, at the current time, no recommendation can be pronounced, since the Coin is still in the presale and thus (in contrast to the Monero) no market results are present.
You can find more detailed background on the Monero in my article “Introduction in Bitcoin: 6 popular cryptocurrencies and how they work!“