Ethereum Mining: How to Mine Ethereum

Ethereum mining: how to mine Eth

After the enormous success of Bitcoin, numerous other cryptocurrencies have been created in a few years. Some of these have been forgotten and abandoned.

Others, such as Ethereum , managed to quickly become popular and used all over the world.

Ethereum uses an innovative blockchain that allows it to be far superior to the first-born Bitcoin.

A question arises spontaneously: with what criteria is new money created? And through what procedure?

Index

Ethereum, brief historical notes

The history of Ethereum begins in 2013 . Ethereum was mentioned in a Bitcoin Magazine article by Vitalik Buterin , creator of the platform. Subsequently, the technical characteristics of Ethereum were contextualized in a White Paper compiled by Buterin himself.

ethereum mining
The innovative Ethereum system allows the creation of smart contracts, which can be used in infinite ways.

For the actual release of the final version of the platform, however, it was necessary to wait until July 2015.

The development path of Ethereum was characterized by the development of different programming languages.

Some of these, such as the Serpent and Mutan, are designed ad hoc to write smart contracts. This feature allows the Ethereum system to receive continuous updates.

Buterin, to raise funds, launched a public offer for the pre-sale of Ether. In about forty days, more than 31,000 Bitcoins were collected , a very high figure.

From that day forward, Ethereum’s popularity continued to increase, even a lecture was held at Harvard University.

Today Ethereum is used by millions of users every day in thirty different countries. In 2017, the Ethereum Enterprise Alliance was created , a consortium of large companies.

The ultimate goal is the implementation of this technology in corporate infrastructures. Among the companies that are part of the group we also find Intel, UBS, Microsoft and Jp Morgan .

Ethereum: characteristics and mining

The idea behind Ethereum was to design a tool to facilitate transactions between businesses. Within the network, it will in fact be possible to create and convey  smart contracts .

These smart contracts may have a different nature: from the insured contract to the crowfunding project.

Ethereum, exactly with bitcoin, is a cryptocurrency without central control by banks or government bodies . A contract, once stipulated and accepted by both parties, cannot be modified or censored by anyone.

You will therefore have the certainty of getting the deal concluded in the best possible way.

The already mentioned smart contracts are paid through a specific unit of account, which takes the name of Ether. Ethereum is therefore a broader system than the usual cryptocurrencies.

It is currently the most capitalized cryptocurrency in the world after Bitcoin.

Being a digital currency, there are no Ethereum coins or bills. The introduction of new money is done through the mining process .

The system, to work at its best, needs large computing powers. These come from the hardware of the users themselves. In practice, a user can decide to lend the computing power of their PC and, in return, receive Ether.

Ethereum: types of mining

As we have just seen, with the mining process, the system enters new money. This process is quite competitive as the amount of money entered is predetermined.

mining ethereum
The types of Ethereum mining are different and have different profit characteristics.

If there are too many miners, the difficulty increases and the revenues decrease for everyone. A high-end video card is therefore required for profitable mining.

Before you can start mining Ethereum, however, it is necessary to open an electronic wallet to contain the Ether.

There are different types of mining, described below.

Mining through your PC

This is the most easily accessible and easiest choice to make. By using your own CPU and the video card inside your PC, it will be possible to mine Ether.

It is advisable to have a medium to high beam computer to get profit. Otherwise, you risk having more costs (electricity) than revenues.

For Ether mining there is only one important parameter, that is the MH / s (Megahash per second, which would be the hashrate ) which corresponds to the number of hash checks that the video card performs in one second. The higher the MH / s value, the more profit you can have with mining.

To understand the hashrate value of your video card, you can consult the Nicehash page and select your hardware.

To have an optimal profit, it is therefore necessary to have an excellent video card that consumes as little as possible .

Thanks to the site just proposed it will be possible to check the daily and monthly earnings of mining, subtracting the energy consumption.

Obviously the profit is affected by the price of a single Ether. If this goes up, the gain will be greater. Conversely, you risk going at a loss.

To start mining Ethereum through your computer, you need to install the Geth application.

Mining using specialized hardware

On the net you can find hardware optimized for mining . These have the right proportions of power and electrical consumption.

mining ethereum
Using multiple video cards at the same time will achieve better results.

This choice is recommended for those who intend to invest heavily in Ethereum, as these computers have a considerable cost. There is talk of at least 1,500 euros of initial investment .

Obviously, more computing power equates to higher hardware cost.

This solution is certainly the most expensive, but it is also the most profitable in the long run. If you consider the ever-increasing price of Ethereum and the greater computing power offered, buying hardware mining is certainly the optimal solution.

If you are familiar with PC components, you can also decide to buy individual hardware and assemble them comfortably at home. On the net you can find numerous guides about it.

Mining through specialized pools

There are several companies that offer users the opportunity to rent their computing power for mining.

These companies have whole rooms full of computers optimized for the process and they “rent” a part of them. The user can then purchase the computing power and receive a monthly passive income.

Again, the higher the desired power, the higher the cost .

This solution is less profitable than mining using specialized hardware, but allows you to enter the Ethereum world with a smaller investment.

Through a quick search on the net it will be possible to find the most convenient site.

However, you must be very careful to avoid running into a well-organized scam.

In fact, there are several sites that, once the money has been paid, disappear without leaving any trace. Numerous are the users deceived with this technique. A quick search on the various cryptocurrency blogs can be used to get an idea of ​​the pool to use.

Conclusions

Thanks to its unique characteristics, Ethereum quickly became one of the major cryptocurrencies used.

The powerful and secure blockchain allows the exchange of smart contracts within the network, using the Ether token.

This coin can be obtained through the mining process. There are several different ways of mining, each with its own particularities.

Using your PC you can mine Ether without any initial investment, but you will only get a profit if you have a recent video card.

Through the purchase of optimized hardware, it will be possible to achieve greater profits, against a considerable initial investment. Finally, by subscribing to certain sites, it will be possible to rent computing power to be used for mining.

The final choice is up to the user, who can rely on the information just received to make a decision.

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