When Will Ethereum Mining End?
In August of this year (2017), Vitalik Buterin, creator of Ethereum , released the implementation guide for the first version of Casper. As a hybrid proof-of-stake (PoS)/proof-of-work (PoW) algorithm, Casper v1 is going to decrease (and eventually end) the profitability for Ethereum miners . The release date is estimated to be sometime in 2018 as part of the Constantinople hard fork and theres a lot to learn before this happens: Casper is a PoS algorithm thats projected to be released on the Ethereum network sometime in 2018. Beginning as a hybrid with the current PoW algorithm, the first version of Casper will only use a PoS consensus to validate every 100th block, called checkpoints. Once a checkpoint is validated, theres no way to go back and use a chain without it. Even if 99% of miners support a chain that doesnt include a checkpoint block, all clients in the network will still continue to use the one with the checkpoints. This removes a lot of the power that miners currently have. The Ethereum community hypothesizes that the switch to PoS will help with the scaling issues that the network is currently facing. The algorithm should enable new blocks to be created more quickly while allowing the network to scale more efficiently through sharding. Sharding is a horizontal partitioning of a large database into smaller and more easily managed parts. Beyond that, PoS algorithms also use less energy to run the network, reduce centralization, and make 51% attacks more difficult. With the upcoming hard fork, there could potentially be three forks of Ethereum: And, if youre a miner, you may be thinking, No big deal, Ill just continue to mine and give support to the Ethereum PoW fork. The Ethereum developers have stated that theyll be releasing what they call the difficulty Continue reading >>
Ethereum Mining 101: Your Complete Guide
The world has gone digital, from the development of smart homes to the development of innovations that promote seamless transactions. Every industry is feeling the impact of technology now more than ever. In every part of the world, the technologically driven goals remain the same: the maximization of profit and the promotion of sustainable development in all spheres of life. It is this yearning to make life as easy as possible that brought about the birth of cryptocurrency . Ethereum seeks to make these aspirations come true. The platform boasts of several applications that help users carry out everyday tasks in a simple fashion. What is Mining, Ethereum Mining and Where Does Ether Come From? Mining is a computationally intensive work that requires a lot of processing power and time. Mining is the act of participating in a given peer distributed cryptocurrency network in consensus. The miner is subsequently rewarded for providing solutions to challenging math problems. It is done by putting the computer's hardware to use with mining applications. All the information on cryptocurrency transactions must be embedded in data blocks. Each block is linked internally to several other blocks. This creates the blockchain . These blocks must be analyzed as fast as possible to ensure a smooth running of transactions on the platform. However, the issuers of such currencies do not have the processing capabilities to handle this alone. It is where miners come in. A miner is an investor that devotes time, computer space and energy to sorting through blocks. When the mining process hits the right harsh, they will submit their solutions to the issuer. After verification, the issuer of the currency offers rewards which are portions of the transactions they helped in verifying. They als Continue reading >>
Proof Of Work Vs Proof Of Stake: Basic Mining Guide
Proof of Work vs Proof of Stake: Basic Mining Guide Angel Investors, Startups & Blockchain developers... Recently you might have heard about the idea to move from an Ethereum consensus based on the Proof of Work (PoW) system to one based on the so-called Proof of Stake. In this article, I will explain to you the main differences between Proof of Work vs Proof of Stake and I will provide you a definition of mining, or the process new digital currencies are released through the network. Also, what will change regarding mining techniques if the Ethereum community decides to do the transition from work to stake? This article wants to be a basic guide to understanding the problem above. First of all, lets start with basic definitions. Proof of work is a protocol that has the main goal of deterring cyber-attacks such as a distributed denial-of-service attack (DDoS) which has the purpose of exhausting the resources of a computer system by sending multiple fake requests. The Proof of work concept existed even before bitcoin , but Satoshi Nakamoto applied this technique to his/her we still dont know who Nakamoto really is digital currency revolutionizing the way traditional transactions are set. In fact, PoW idea was originally published by Cynthia Dwork and Moni Naor back in 1993, but the term proof of work was coined by Markus Jakobsson and Ari Juels in a document published in 1999. But, returning to date, Proof of work is maybe the biggest idea behind the Nakamotos Bitcoin white paper published back in 2008 because it allows trustless and distributed consensus. Whats trustless and distributed consensus? A trustless and distributed consensus system means that if you want to send and/or receive money from someone you dont need to trust in third-party services. When you use tra Continue reading >>
What Is Ethereum? What Is Ethereum Mining & How Does It Work?
What is Ethereum? What is Ethereum Mining? Jordan Tuwiner Last updated July 13, 2017 Ethereum is more than a cryptocurrency. Its an open source shared world computing platform. A world computer that allows for the decentralized verification of transactions for any Turing-viable implementation. Thanks to Ethereum, Blockchain technologies are now easy to employ without having to reinvent the wheel. It is clear that Ethereum grew out of desire to apply Bitcoin/Blockchain concepts to realms outside of money. As a result, it provides open source platform to developers who seek to write decentralized applications. This appeals to developers who seek an easy introduction to Blockchain projects A series of innovative features definite Ethereum. As a result of its extended capabilities, Ethereum comes with two types of accounts . EOA, or Externally Owned Accounts, provide bitcoin-like capabilities such as providing a balance that is secured by private keys. Contract Accounts provide the Turing Complete room for application development that makes the protocol so desirable. These accounts are used as holding objects to constitute Smart-contracts which provide Ethereums capability for accommodating decentralized autonomous organizations; a way of structuring organizations without a vulnerable center. Most importantly, Ethereum capitalizes on the realization that consensus allows for currency and currency allows for consensus by providing economic incentive. As such, verifications are paid for on a pay-per-use basis, a system that replaces mining as we know it from Bitcoin. Ethereum right now uses PoW mining to secure its chain. Vitalik Buterin, the creator of Ethereum, stressed that his idea was fueled by the desire to [Avoid] the swiss-army knife protocol . That is to say that us Continue reading >>
How Ethereum Mining Works
Today, miners play an important role in making sure ethereum works. This role isn't immediately obvious, though. Many new users think that the sole purpose of mining is to generate ethers in a way that doesn't require a central issuer (seeour guide" What is Ether? "). This is true. Ethereum's tokens are created through the process of mining at a rate of 5 ether per mined block. But mining also has another at least asimportant role. Usually, banks are in charge of keeping accurate records of transactions. They ensure that money isn't created out of thin air, and that users don't cheat and spend their money more than once. Blockchains, though, introduce an entirely new way of record-keeping, one where the entire network, rather than an intermediary, verifies transactions and adds them to the public ledger. Although a 'trustless' or 'trust-minimizing' monetary system is the goal, someone still needs to securethe financial records, ensuring that no one cheats. Mining is one innovation that makes decentralized record-keeping possible. Miners come to consensus about the transaction history while preventing fraud (notably the double spending of ethers) an interesting problem that hadnt been solved in decentralized currencies before proof-of-work blockchains. Although ethereum is looking into other methods of coming to consensus about the validity of transactions, mining currently holds the platform together. Today, ethereum's mining process is almost the same as bitcoins . For each block of transactions, miners use computers to repeatedly and very quickly guess answers to a puzzle until one of them wins. More specifically, the miners will run the blocks unique header metadata (including timestamp and software version) through a hash function (which will return a fixed-length, Continue reading >>
Consensus - What Proof Of Work Function Does Ethereum Use? - Ethereum Stack Exchange
What proof of work function does Ethereum use? The Ethereum frontier network currently uses a proof of work (PoW) based consensus algorithm. But which specific PoW function does that algorithm use, and why was it chosen? The PoW algorithm used in Frontier and Homestead is called Ethash , and it was created specifically for Ethereum. The primary reason for constructing a new proof of work function instead of using an existing one was to attack the problem of mining centralisation , where a small group of hardware companies or mining operations acquire a disproportionately large amount of power to impact or manipulate the network (should they so choose). The economic forces within existing networks (such as Bitcoin and Litecoin) make centralisation of mining efforts highly profitable, in part due to the possibility for producing ASICs , specialised chips specifically designed to outperform standardised computer hardware by many orders of magnitude in hashing performance. Other factors that promote mining centralisation, such as handling of orphaned blocks, are tackled separately within the Ethereum protocol. By specifically designing an "ASIC-resistant" PoW algorithm, the Ethereum team hopes to reduce economic incentives for mining centralisation in Ethereum, at least until a secure PoS algorithm can be designed and deployed . The way that Ethash aims to provide a PoW algorithm for which commodity hardware is already highly optimised (and hence creation of an ASIC, which is expensive, will yield very little advantage over simply using the latest commodity hardware) is by emphasising a property called memory hardness . Memory hardness essentially means that your performance is limited by how fast your computer can move data around in memory rather than by how fast it can Continue reading >>
What Is Ether?
Ether is a necessary element a fuel for operating the distributed application platform Ethereum. It is a form of payment made by the clients of the platform to the machines executing the requested operations. To put it another way, ether is the incentive ensuring that developers write quality applications (wasteful code costs more), and that the network remains healthy (people are compensated for their contributed resources). If you just want to test the technology, you probably don't need real ether. Download the latest Wallet app and switch to the Test Network Check your ether presale balance safely here: The total supply of ether and its rate of issuance was decided by the donations gathered on the 2014 presale. The results were roughly: 60 million ether created to contributors of the presale 12 Million (20% of the above) were created to the development fund, most of it going to early contributors and developers and the remaining to the Ethereum Foundation 5 ethers are created every block (roughly 15 seconds) to the miner of the block 2-3 ethers are sometimes sent to another miner if they were also able to find a solution but his block wasn't included (called uncle/aunt reward) Note that after the Byzantium update is implemented, the mining and uncle reward is reduced to 3 ethers and 0.625-2.625 ethers, respectively. No. According to the terms agreed by all parties on the 2014 presale, issuance of ether is capped at 18 million ether per year (this number equals 25% of the initial supply). This means that while the absolute issuance is fixed, the relative inflation is decreased every year. In theory if this issuance was kept indefinitely then at some point the rate of new tokens created every year would reach the average amount lost yearly (by misuse, accidental key Continue reading >>
Ethereum (ether) Mining
Blocks are generated on average every 12 seconds. The block reward is 5 ETH. Genesis Mining is the largest Ether cloud mining provider. Ethereum cloud mining contracts are available for purchase and the prices are as follows: You can also read this cloud mining guide to learn how to mine Ether using Amazons cloud servers. As with any cryptocurrency, Ethereum mining profitability depends on many factors. The hash rate of your miners in relation to the total network hash rate will determine your share of earnings. Your earnings can also vary depending on Ethers price relative to fiat currencies like the US dollar. More efficient mining hardware will also increase profitability. The more efficient your hardware can convert electricity to Ether, the higher your profit margins. An Ethereum mining profitability calculator can be used to determine a rough estimate of your earnings based on your hash rate, the network hash rate, block time, and the price of one ETH. Two examples of calculators can be found at EtherScan and Badmofo . Although Ethereum has only recently gained popularity, there are already a few Ethereum mining pools. The two most popular pools are: Continue reading >>
Ethereum - Wikipedia
This article has multiple issues. Please help improve it or discuss these issues on the talk page . This article relies too much on references to primary sources . Please improve this by adding secondary or tertiary sources . Some of this article's listed sources may not be reliable . Please help this article by looking for better, more reliable sources. Unreliable citations may be challenged or deleted. The Ethereum Project's logo, first used in 2014 Ethereum is an open-source , public, blockchain -based distributed computing platform featuring smart contract (scripting) functionality.  It provides a decentralized Turing-complete virtual machine , the Ethereum Virtual Machine (EVM), which can execute scripts using an international network of public nodes. Ethereum also provides a cryptocurrency token called "ether", which can be transferred between accounts and used to compensate participant nodes for computations performed.  "Gas", an internal transaction pricing mechanism, is used to mitigate spam and allocate resources on the network.   Ethereum was proposed in late 2013 by Vitalik Buterin , a cryptocurrency researcher and programmer. Development was funded by an online crowdsale between July and August 2014.  The system went live on 30 July 2015, with 11.9 million coins "premined" for the crowdsale.  This accounts for approximately 13 percent of the total circulating supply. In 2016, as a result of the collapse of The DAO project, Ethereum was forked into two separate blockchains - the new forked version became Ethereum (ETH), and the original continued as Ethereum Classic (ETC).    Ethereum was initially described in a white paper by Vitalik Buterin ,  a programmer involved with Bitcoin Magazine , in late 2013 with a goal of buildin Continue reading >>
Ethereum Mining - Mining Guides On Nicehash
Home > Help > Help for sellers > Mining guides > Ethereum mining The algorithm for mining Ethereum is DaggerHashimoto. You can download the DaggerHashimoto (Ethereum) mining software here: Connection settings for ethminer using AMD GPUs ethminer -SP 2 -G -S daggerhashimoto.LOCATION.nicehash.com:3353 -O YOUR-BITCOIN-ADDRESS.WORKER-NAME:x Connection settings for ethminer using NVIDIA GPUs ethminer -SP 2 -U -S daggerhashimoto.LOCATION.nicehash.com:3353 -O YOUR_BTC_ADDRESS_HERE.WORKER-NAME:x Where LOCATION is "eu", "usa", "hk", "jp", "in", or "br" (see also this ), YOUR-BITCOIN-ADDRESS is your Bitcoin address, used for mining, WORKER-NAME is optional to name your rig. Example: Mining with 2x AMD 280X GPUs on EU location ethminer -SP 2 -G -S daggerhashimoto.eu.nicehash.com:3353 -O 1DQ4bZpFTDiSNk2CWLEFWK9K96rBFP2Hv.amdrig Example: Mining with 1x NVIDIA GTX 970 GPU on USA location ethminer -SP 2 -U -S daggerhashimoto.usa.nicehash.com:3353 -O 1DQ4bZpFTDiSNk2CWLEFWK9K96rBFP2Hv.gtx970 Ensure that you have installed AMD drivers for AMD GPUs or NVIDIA drivers and CUDA for NVIDIA GPUs, and then issue the following commands. sudo apt-get -y install software-properties-common sudo add-apt-repository -y ppa:ethereum/ethereum sudo apt-get install git cmake libcryptopp-dev libleveldb-dev libjsoncpp-dev libjson-rpc-cpp-dev libboost-all-dev libgmp-dev libreadline-dev libcurl4-gnutls-dev ocl-icd-libopencl1 opencl-headers mesa-common-dev libmicrohttpd-dev build-essential -y # for Ubuntu 16 also install package "libjsonrpccpp-dev" git clone -b 110 Continue reading >>
Beginner's Guide To Ethereum Mining In 2017 - How To Mine Ethereum On Your Pc?
Last updated on August 15th, 2017 at 11:06 pm Getting Started with Ethereum Mining the video guide The good news is that getting started with Ethereum Mining is now easier than ever. You do not need to download the full Ethereum blockchain, which is now over 20+ GBs and still growing! You also do not need to manage clunky command line miners with manual instructions. For purposes of this guide, we are going to do a detailed walk-through of setting up and using the very popular Claymore Miner. Get the current version here from Claymores original Bitcointalk thread and then follow along with the steps in this video. The whole process of getting a wallet setup, downloading your miner, configuring things in Windows and setting up your batch file to run should take less than 10 minutes: If youre new to mining Ethereum , this guide covers all the important facts in a simple, low-jargon way. Lets start with some short answers to common questions about Ethereum mining: Q: Whyshould Imine Ethereum tokens (aka ether or ETH)? doesnt mining Ether take up a lot of electricity? A: If done properly, more money is earned by selling mined ETH than is spent on electricity. In other words, its profitable! You can check out the profitability with our Ethereum mining calculator . Q: Can I mine with my CPU (Personal computersprocessor) instead ofan expensive graphics card (GPU)? A: GPUs are so much faster that CPU-mining is no longer profitable or worthwhile. Even entry-level GPUs are about 200 times faster than CPUs for mining purposes. Q: Whats the best GPU to use for getting the most ETH for the least electricity? A: AMD cards tend to edge out similarly-priced NVidia cards in terms of efficiency. We cover the best cards to get under the heading GPU Hardware further down in this post. Q: Continue reading >>
Asic, Gpu, And Cpu Mining
Rather than a rehash (pun intended) of the advantages and disadvantages of Proof of Work versus Proof of stake , were here to break down how CPUs, GPUs, and ASICs all play a key role in the mining process. Understanding the hardware behind Proof of Work is essential for analyzing the sustainability and level of decentralization of different coins. Well go over the advantages and disadvantages of each hardware and how theyre relevant to the most popular cryptocurrencies and hard forks. An ASIC is an application specific integrated circuit. In the context of cryptocurrency, its a microchip specifically designed to execute a hashing algorithm as quickly as possible. Lets give you some perspective on how powerful these ASICS can be. A Bitcoin ASIC can calculate hashes 100,000 times faster than even the best CPU. ASICs are custom built for a single hash algorithm. Therefore, you would need to buy different ASICs for each coin that you wanted to mine. Currently, there are several companies, such as Bitmain and Canaan, that design ASICs. Due to their custom nature and niche application, a powerful ASIC isnt cheap. For high-end hash power, a single ASIC could run you $3000 . That ASIC might earn you 10 dollars profit in the first month. Though due to the constant arms race of acquiring hashing power, your profits would decrease each subsequent month. Heres a look at the increasing Bitcoin hash rate over the last year. Performing trillions of hashes per second come with some downsides. Due to the intensehashing, these ASICs give off some serious heat and require proper cooling. In order to cool the chips effectively, thats going to require fans and a lot of noise. Just take a listen. And with great power comes great electricity. These ASICs will cost you a significant amount of Continue reading >>
How To Mine Ethereum: Complete Beginners Guide
First you need a computer, or graphics card, that is capable of computing an algorithm that it attempts to solve in order to generate some Ether. For Ethereum, the block that your video cards are attempting to find generates on average every 15 seconds. That means every 15 seconds, the Ethereum network pays to whomever found the block, 5 Ethereum (this value may change over time). It should be noted that at some point in the future, Ethereum will be switching over to proof of stake with their Casper Fork which will mean it can no longer be mined. There are currently many options for Ethereum Miners depending on the type of Video Card, the amount of video cards you want on one motherboard, and the power requirements. 6x Video Cards (Minimum 3GB, 4GB recommended) Best Hash/Price Recommendation: Radeon RX 570 4GB Ethernet cable (do not run wifi), power button for motherboard, fans for cooling With this setup, youd find on average around 0.5Eth per month. This will change depending on the Ethereum Mining Difficulty, you can use the website WhatToMine to make calculations of your earnings or find other profitable coins to mine. It is important to consider the difficulty to measure whether to continue mining Ethereum, or whether to switch to another algorithm or coin to mine. Unfortunately, for someone looking at building just a few mining rigs, they may never find a block solo-mining. Therefore it is necessary to join a mining pool. A mining pool combines the hashrate of all the miners, and vastly increases the chances that the group is able to find a block. This therefore allows you to get a steady payout from the pool, even if you yourself never find a block. There are some choices for Ethereum mining pools which vary depending on how their overall hashrate, the fee struc Continue reading >>
Ethash Ethereum/wiki Wiki Github
This spec is REVISION 23. Whenever you substantively (ie. not clarifications) update the algorithm, please update the revision number in this sentence. Also, in all implementations please include a spec revision number Ethash is the planned PoW algorithm for Ethereum 1.0. It is the latest version of Dagger-Hashimoto, although it can no longer appropriately be called that since many of the original features of both algorithms have been drastically changed in the last month of research and development. See for the original version. The general route that the algorithm takes is as follows: There exists a seed which can be computed for each block by scanning through the block headers up until that point. From the seed, one can compute a 16 MB pseudorandom cache. Light clients store the cache. From the cache, we can generate a 1 GB dataset, with the property that each item in the dataset depends on only a small number of items from the cache. Full clients and miners store the dataset. The dataset grows linearly with time. Mining involves grabbing random slices of the dataset and hashing them together. Verification can be done with low memory by using the cache to regenerate the specific pieces of the dataset that you need, so you only need to store the cache. The large dataset is updated once every 30000 blocks, so the vast majority of a miner's effort will be reading the dataset, not making changes to it. See for design rationale considerations for this algorithm. WORD_BYTES = 4 # bytes in wordDATASET_BYTES_INIT = 2**30 # bytes in dataset at genesisDATASET_BYTES_GROWTH = 2**23 # dataset growth per epochCACHE_BYTES_INIT = 2**24 # bytes in cache at genesisCACHE_BYTES_GROWTH = 2**17 # cache growth per epochCACHE_MULTIPLIER=1024 # Size of the DAG relative to the cacheEPOCH_LEN Continue reading >>
Mining Ethereum/wiki Wiki Github
The word mining originates in the context of the gold analogy for crypto currencies. Gold or precious metals are scarce, so are digital tokens, and the only way to increase the total volume is through mining it. This is appropriate to the extent that in Ethereum too, the only mode of issuance post launch is via the mining. Unlike these examples however, mining is also the way to secure the network by creating, verifying, publishing and propagating blocks in the blockchain. Mining Ether = Securing the network = verify computation Ethereum Frontier like all blockchain technologies uses an incentive-driven model of security. Consensus is based on choosing the block with the highest total difficulty.Miners produce blocks which the others check for validity. Among other well-formedness criteria, a block is only valid if it contains proof of work (PoW) of a given difficulty.Note that in Ethereum 1.1, this is likely going to be replaced by a proof of stake model. The proof of work algorithm used is called Ethash (a modified version of Dagger-Hashimoto ) involves finding a nonce input to the algorithm so that the result is below a certain threshold depending on the difficulty. The point in PoW algorithms is that there is no better strategy to find such a nonce than enumerating the possibilities while verification of a solution is trivial and cheap. If outputs have a uniform distribution, then we can guarantee that on average the time needed to find a nonce depends on the difficulty threshold, making it possible to control the time of finding a new block just by manipulating difficulty. The difficulty dynamically adjusts so that on average one block is produced by the entire network every 12 seconds (ie., 12 s block time). This heartbeat basically punctuates the synchronisation Continue reading >>