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Ethereum: What is it and how to mine it?

May 30, 2019, 9:51 am

Ever heard of Ethereum? Or want to know about how to mine Ethereum? This is considered a more advanced technology than Bitcoin. As I know that many people want to buy Bitcoin, but still don’t have enough capital to get a lot of Bitcoin, in this article I will show you other cryptocurrencies that have lower unit values.

At present, there are 1801 crypto coins registered in the Coin Market Cap and all of these options are confusing and deter beginner investors. To facilitate your work, I will talk about Ethereum, and Ether mining too, which has the second largest market value in the world of crypto coins.

I have written more about Bitcoin:

I knew Ethereum and Ether mining at the beginning of 2016. Because at that time it was very difficult to produce Bitcoin, I would mine Ethereum during 2016. Look at the picture above, that my miner came to produce nearly 80 Ethereum at that time, but because I was very not experienced, I finally sold my Ethereum before it had good value (at that time it cost around 7 dollars each Ethereum).

Nowadays it is very difficult to produce Ethereum and it is no longer feasible. Energy expenditure is very high and ultimately the cheaper you buy Ethereum directly on the Exchange. Like Bitcoin, the price of Ethereum falls in 2019, but even so, the value of unit 1 Ethereum is much lower than Bitcoin. Anyway, this fact does not prevent many people from learning how to mine Ethereum.

Smart contract technology and tokens:

Smart contract technology is the main difference from Ethereum and with that, we can generate tokens. I am always confused by this explanation and therefore I study the subject in depth to explain to you in a more practical and easy way.

On the Blockchain Bitcoin, you cannot generate tokens. Tokens like game tokens. On Ethereum, through smart contracts, you can create your own list. There are many tokens on the market that are usually done by companies. For simplicity, crypto-mining is a complex process of solving mathematical problems, including in Ether mining. This is the basis of how to mine Ethereum.

Miners are basically the cornerstone of each cryptomoeda network because they spend their time and computing ability to solve these mathematical problems, providing “work tests” for networks, which verify Ether transactions. In addition, miners are responsible for making new Ether tokens through this process because they receive Ether prizes for successfully completing work inspection tasks.

The more miners gather, the problem automatically becomes more difficult to solve, which means that more time and computing power is needed to solve it and the results are smaller. However, because Ether values ​​continue to increase, the awards received by the Ethereum miner are still quite large. In addition, many people view mining as an ideological incentive, a tool that directly supports the network.

A little about mining Ethereum:

You need a comprehensive guide to understand how to mine Ethereum. For each transaction block, the miners apply their computing power to solve mathematical puzzles. To be more specific, miners use block unique header metadata, which includes records of date and time and software versions, through hash functions, which produce sequences of letters and random numbers that are case sensitive and lowercase. This string is called a hash, and if the Ethereum miner finds a hash that matches the current goal, the block is considered mined and passes through the entire network so that other nodes validate and add transactions to their Blockchain copy.

Hash – a unique sequence of random numbers, with a fixed length, which can be made from any size data.

Examples of hash inputs and outputs:

Although Bitcoin is still the dominant and most valued cryptocurrency, certain problems override the network. One such problem is the increasing centralization of Bitcoin mining. On the day the network first appeared, individual mining from a fairly powerful computer or even a laptop was a reality. However, at present, with the advancement of the ASIC mining platform, the only entity that can take advantage of this process is large companies that have large mining platforms.

This platform requires a lot of electricity to operate and is too expensive to install and repair. Today, people are increasingly interested in how to mine Ethereum. When it comes to Ether mining, the process is a little different. Ethereum rewards its miners based on a proof of work algorithm called Ethash, which actually encourages decentralized mining by individuals and does not support ASIC mining. Still, uniting a computer that is strong enough can be very expensive and your electricity bill will be much higher than usual.

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