How to mine Ethereum
Ethereum is a smart contract platform with which developers can create new Dapps applications.
Dapps applications have a large number of uses: creation of new currencies, applications and decentralized organizations. Anyone can connect to the ethereum network and become part of a larger team.
The essence of Ethereum is the development of an open-source blockchain platform.
In the ethereum blockchain, the smart contract is a computer program that is automatically executed when assigned conditions are met. Blockchain eth runs the smart-contract code exactly as it is programmed.
There is such a thing as “Gas” in the Ethereum network. Gas are transactions on the network that are responsible for executing various transactions across the entire ethereum network. So you need to use Ether (gas) in order to make changes to the network.
Any computational function can be implemented on ethereum’s internal code.
Ethereum mining is a whole sector of the crypto industry, which employs tens of thousands of people.
Ethereum mining is based on the PoW (Ethash) algorithm. By the end of 2022, ethereum 2.0 is scheduled to be released and switch to PoS.
After the transition to the updated Ethereum 2.0 blockchain, ethereum tokens will be mined using stacking. Of course, this does not mean that POW-mining of ETH will immediately stop. For a long time (at least another year), the Ethereum 1.0 network and Ethereum 2.0 will exist in parallel to each other. Each user will be able to exchange coins mined in the Ethereum 1.0 network for tokens of the updated system (no reverse conversion is possible). So traditional Ethereum mining is still relevant. In the future, the two blockchains will merge and support for the Proof-of-Work algorithm will be completely discontinued.
How to start mining Ethereum
Four years ago, it was possible to mine Ethereum on CPUs, but now this method is not profitable because of the high complexity of calculations. For a long time, Ethereum mining was the prerogative of GPU-rig owners, but in 2018, Chinese engineers created ASICs for mining ETH, and now they are already sold in the CIS.
Nevertheless, Ethereum mining with video cards is still relevant. Of course, not every graphic gas pedal will do. Mining, requires a lot of processing power and volume, and is demanding to the memory of the device.
At the moment, both asics and powerful video cards are suitable for mining Ethereum.
Thus, in order to start mining Ethereum you need:
- Choose the right equipment or video cards for mining.
- Connect the equipment to your computer.
- Choose a mining pool that is suitable for you and connect your equipment to it.
- Start mining.
What mining equipment should I use, top Ethereum mining equipment:
You can mine ether using video cards (GPUs) and asics.
Ether mining on video cards will be profitable if you have a farm of 6 or more video cards.
Asics for ethereum mining:
- Bitmain and Innosilicon have special equipment for ethereum mining.
Bitmain. Antminer E3 is a model released in 2018.
Hashrate – 180 MH/s.
Power consumption – 800 w.
- Innosilicon. Innosilicon A10 – model released in 2018. There is also an advanced model – Innosilicon A10 PRO.
Hashrate – 485 MH/s.
Power consumption – 850 w.
Prices for ethereum asics vary greatly in price and depend on the chosen supplier and mining hardware.
Video cards for Ethereum mining:
The world’s largest GPU vendors are AMD and Nvidia.
The best models of video cards from these vendors:
- AMD Radeon RX. Choose no older than RX470 and RX Vega 56.
- Nvidia GeForce GTX. Choose at 1060 or newer.
Comparing the price to quality ratio, the two best options are Radeon RX580 (8 GB) and GeForce GTX 1080 Ti (11 GB).
Older models of video cards make no sense to use, they will not bring you profit.
When choosing a ETH mining pool, pay attention to the following characteristics:
- Functionality and geographical location of the pool (Check the usability of the platform, technical characteristics, protection against hacking).
- Available cryptocurrencies on the pools.
- Payment options and types of premiums for miners (Most common: PPS, PPS+, PPLNS, FPPS, PROP).
- Power requirements (Often pool commission depends on how much power you have.)
- Commissions (Pool commissions range from 1% to 5%).
The website miningpoolstats.stream will also help you choose the best mining pool. On it you can see the statistics of the mining pools, the actual hashrate and power of the pool.