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 >>
For Pool Mining, What Exactly Is A Share?
For pool mining, what exactly is a share? Can someone please explain exactly what a share is in the context of pool mining? I have a superficial understanding of testing random nonces to find a hash under the current difficulty. I also understand that mining pools set a custom easier difficulty to target a relatively easy to attain share difficulty (~10 minutes). What I don't understand is how those shares translate to finding real blocks. Say one out of a thousand shares is a valid real new block. Why wouldn't miners just submit that hash themselves, and send the rest of the easier shares to the pool? I'm sure I have a fundamental misunderstanding, but can't figure out what it is. I guess somehow the pool has some secret that it can combine w/ the submitted shares to see if that share matches a block, but that is a guess. You guess right, as a pool client you can't figure if a work package contains something valuable. Only the pool knows and is the real client of the Ethereum network. You only do blind computation. Nicolas Massart Jun 2 '16 at 10:15 THis is not an answer but more on the question, I might have misunderstood the responses but no one layed out what a "share" is exactly. I know its a piece of work submitted but what value does it have and what kind of work is it, for it to be useful to the pool or the block being found. cdc285 Aug 13 '16 at 4:24 Lots of answers here, but none of them has actually answered the question "what is a share?" In almost all mining pools, a share is a block "solution" not quite good enough to be published as an actual block, but still good enough that it's really hard to find them. This means that shares can be used to measure how much work you're doing, but just with much finer and more consistent granularity than actual block s Continue reading >>
How To Mine Ethereum
Register for the ICOs and Regulation Webinar on March 22nd at 11AM EST Now that you know " How Ethereum Mining Works ", you may want to know how to compete in the race to mine ether yourself. To recap, mining is the glue that holds ethereum's 'decentralized app store' together by ensuring that it comes to consensus on each change to any of the applications (dapps) running on the network. Take the online notebook described in " What is Ethereum? ". The network would not come to consensus about the 'state' of the notebook (say, if a note is added or deleted) without the computational power to process the changes. Miners set computers loose to solve cryptographic puzzles in an attempt to win ether, and they need to try a huge number of computational problems until one unlocks a new batch of the asset. One of the interesting things about open blockchains is that, in theory, anyone can set their computers to focus on these cryptographic puzzles as a way to win rewards. The catch is that mining on major public blockchains tends to require more and more power over time, as more people invest inmore powerful hardware. In this day and age, those mining with low-powered setups are unlikely to win, but it's still a viable past-time for hobbyists and enthusiasts alike. Before getting started, you will need special computer hardware to dedicate full-time to mining. There are two types of mining hardware: CPUs and GPUs. GPUs boast a higher hash rate, meaning they can guess puzzle answers more quickly. At time of writing, GPUs are now the only option for ether miners. Settling on a GPU is a complextask and you can browse plenty of advice about which ones are the most profitable based on hash rate performance, power consumption and the initial expense of the card. You probably want to Continue reading >>
How To Mine Ethereum In 5min
Surprisingly, all you need is an AWS EC2 instance to start mining Ethereum. Im sure youve already heard of the cryptocurrency craze way before reading this post. Cryptocurrencies are slowly and quietly revolutionizing the way financial systems and transactions work (and should work in my opinion). With Bitcoin hitting its $6K mark not awhile ago, a current total of $158B in market cap and hundreds of ICOs (Initial Coin Offering) conducted since August, its sure to say theres a bubble in the cryptocurrency space. Whats more, is that it doesnt seem this bubble is going anywhere, anytime soon. As you can see in the graph below, the total market cap of cryptocurrencies has grown from under $50B to over $150 in under a year! So what would be the best way to enter this space and enjoy the growth? Im not a cryptocurrency expert, however, from my research Ive found that the answer is pretty clear across all opinions: If youre looking for quick earnings, just invest incoins. However, due to this ever-growing crypto market, mining in the short term could lead to significant earnings in the long term. Personally, Im very interested in Ethereum , and have found an effortless way to start mining it quickly on AWS! This post will walk you through the process. But before we start, lets go over some basics. If youre already familiar with them, just scroll down. Ethereum is an open software platform based on the blockchain technology that enables developers to build and deploy decentralized applications. The advantage of Ethereum over Bitcoin, is that it can support many different types of decentralized applications. Ethereum has the second largest market cap after Bitcoin, and has gained massive growth in the last year with over 230% as you can see below: However, increasing growth in 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 >>
Build An Ethereum Mining Rig
Radeon R9 290x 28 MH/s using 280 watts As I mentioned above, you can choose to build your mining rig with a nice custom built case or you can save money and use a plastic storage crate or milk crate . Both work equally as well except one wont look nearly as good. But if you want something cool and professional looking, you can buy mining cases such as this one . The standard power supply in a desktop computer can be anywhere from 300W-500W. But when your mining and you are powering up to 6/7 GPUs, you want to make sure you have enough power. 1200W+ is what youre looking for and you want to make sure that it is Gold or better certified for efficiency. Also, modular power supplies allow you toconfigure your cables individually which helps greatly when building out your rig. Single 4GB DDR3 1600Mhz RAM is all you need. Nothing more. In order to mount the GPUs within the crate or case, youll need riser PCI cables to extend the PCI-e connection from the motherboard. Get as many PCI Express 1X to 16X Powered RiserCables as you can to match up with the number of GPUs you have. There are many different variants, like this one or this or this . Get a basic 60GB SSD or 120GB SSD drive for installing the OS and running your mining software. Youll need a basic Monitor and Mouse/ Keyboard combo to configure all the software and mining settings. Also, dont forget about a Kill A Watt usage monitor. Youll need at least one box fan per rig to make sure the GPUs do not overheat. If youre into Linux, Eth OS is a 64-bit Linux OS that mines Ethereum, Zcash, Monero, and other GPU-minable coins. If youre a windows guy, here is Windows 10 . If youre going to be using Windows, youll need mining software. Take a look at this Ethereum Mining on a Windows PC guide. Build an Ethereum Mining RigSte 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 >>
Were Mining Ethereum Again This Is How Much We Are Making
Were mining Ethereum again This is how much we are making Toward the end of 2017, we switched the software on our GPU mining rig from Claymore mining Ethereum to NiceHash. Our returns with Ethereum had been dropping rapidly , and the amount of time it took to mine 1 ETH had grown from just over 200 hours to 800 hours in three months. With the price of Bitcoin rising as our Ethereum returns dropped, we switched to NiceHash which let us mine altcoins which were then exchanged for Bitcoin. All was grand from there, until the massive NiceHash hack in December 2017. NiceHash was taken offline while the hack was investigated and our 6x RX580 rig was left idle. This proved fortuitous, however, as the start of our Ethereum mining coincided with a sharp rise in the cryptocurrencys price. When we started mining Ethereum in June 2017, it was worth around $360 and we made 1 ETH in under 10 days. This slowed to 1 ETH every 33 days around the middle of September 2017 when Ethereum had dropped to $260. With the returns dropping both in terms of Ethereum and US dollars and therefore rand we switched to NiceHash to bring in Bitcoin. After the NiceHash hack in December where we lost around $50 worth of Bitcoin at the time, as it was in the NiceHash wallet we downloaded the latest version of Claymore. The plan was to mine Ethereum in the interim while NiceHash was secured and brought back online. NiceHash has since come back online, but our rig is still humming to the sound of Ethereum mining thanks to its rise in price. Our Ethereum returns are still low, and we currently average a bit under 0.5 ETH per month with the rig performing at 120Mh/s. However, as Ethereum is sitting above the $1,200 mark (at the time of writing), our US dollar returns and by extension, our rand returns are muc 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 >>
How To Mine Ethereum On A Windows Pc?
You can also mine Ethereum Classic (ETC) if you start your geth in Step 7with the param --oppose-dao-fork. Read this ifyou want to understand what Ethereum Classic is . Running a CPU you might be able to generate 0.15 Mega Hashes whilst with a decent GPU with enough memory you could be doing upwards 25 Mega Hashes ( you can choose a GPU to mine ether here and use our guide on how to choose a GPUto mine ether ). So in terms of total efficiency, taking into account electrical costs, a GPU is definitely worth it even if it costs you $200. You can also try buying a cloud mining contract with Hashflare or Genesis Mining . Part 1 - Installing GETH, Syncing the Blockchain & creating your own address! Step 1: The first thing you need to do is go to this link download Geth . Geth is the program that communicates with the Ethereum Network and acts as the a relay between your computer, its hardware and the rest of the ethereum network computers so if a block is mined by another computer your Geth program will pick it up and then pass on the new information onto your GPU or CPU for mining. Step 2: You need to unzip the GETH file and move it to a location on your hard drive. In this case we'll move it to the hard drive, usually (C:) - which will make the next step easier. All you need to do is copy the file you have downloaded and unzipped and move it to the hard drive folder. Step 3:Now you need to run the program you just downloaded. To do this you need to run Command Prompt. You can do this by searching in the search function in Windows for "CMD" and then clicking on it when it shows up. Step 4: Command Prompt is now open - and can look terrifying to people who aren't familiar with it. The Command Prompt box usually has C:\Users\Username>showing in it - where Username is your us Continue reading >>
How To Mine Ethereum "the Easy Way" - An Ethereum Mining Contract?
How to mine Ethereum "the Easy Way" - an Ethereum Mining Contract? How to mine Ethereum "the Easy Way" - an Ethereum Mining Contract? Ethereum is quite difficult to mine on your standard PC as there are quite a few step to go through as can be seen in our comprehensive guide here . If you aren't tech savvy or willing to give a bit of time to getting it up and running yourself, thereis another way. This is where you pay someone else to do it for you and get them to run the mining equipment on your behalf. You can compare all Bitcoin and Ethereum cloud mining contracts here . You can buy your first cloud mining contract with Genesis Mining here . This is called cloud mining. It has been happening for a long time with Bitcoin and a number of reputable providers have come to the fore where you can trust their reputation for them not to run off with your money. This is especially true of Genesis Mining who are the first to set up a batch of Ethereum Mining contracts where all you do is pay them some cash and your up and running as an Ethereum miner - as simple as that - no hassle no playing around with downloading Geth and using command prompt - and most importantly you don't have to maintain it yourself which can be a big issue if you have to keep going to restart your computer. So it saves your time! The reason Ethereum Cloud miners can get better deals is two fold. Firstly they buy in bulk, so they get a discount on all their graphics cards. Secondly they can put their mining machines in low cost locations such as Iceland. This severely reduces the operating costs of running an ethereum mining contract which means they can pass on these savings to you. In fact Genesis mining run their contracts off green energy - so you can say your being green whilst being in the avant- 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 >>
How To Mine Ethereum On Your Pc
Hoover up some Ether using your home computer The cryptocurrency revolution is largely down to enthusiastic 'miners', who build or use their own machines to perform the complex proof of work algorithms to process data blocks, creating more of their chosen currency such as Bitcoin and Ethereum. Specialized mining equipment is available online and you can even rent processing power from companies such as Genesis Mining (weve got a guide on how to do this here ). However, if your home computer is powerful enough there's no reason you can't get started mining Ethereum today. In this guide, you'll learn how to use the friendly MinerGate client. This handy program quickly and easily connects you to MinerGate's mining pool from where you can share some of your machines resources, and then subsequently share in the rewards of generating Ether. Before you begin, remember that the actual amount of hard cash you'll make from doing this will vary depending on the mining difficulty, the fluctuating price of Ether and how powerful your hardware is. MinerGate has a built-in benchmarking tool to give you a rough idea how much you stand to make per year, although this doesn't take into account the electricity used by your machine. Open your browser and navigate to . Click on the button marked Download Miner & Start Mining. If you're using Microsoft Edge, you can click Run to launch the installer at this stage. Windows 10 will ask you to confirm that you wish to allow MinerGate to make changes to your system. Click Yes. Setup will now launch. Close down any other open apps and agree to the license agreement. On the next screen (Install Options), select Add MinerGate to the system PATH for current user as well as Create MinerGate Desktop Icon. Click Next, then Install. Once MinerGate has Continue reading >>
Ethereum: What Is Ethereum Mining? - The Economic Times
The maximum number of bitcoins are capped at 21 million while the total ether supply has no such cap Ethereum mining is fundamentally similar to bitcoin mining. Both use proof of work (PoW). PoW is a competitive activity that miners undertake to write transactions to a new block that will be added to the blockchain . A miner successfully mines a new block while competing with fellow miners by running a hashing script. Karan Bharadwaj, CTO of XinFin said, The specific scripts used in mining for bitcoin and ethereum are SHA-256(based script) and Ethash. Each block mined on ethereum also gives a payout of 5 ether to the miner. The bitcoin payout per block mined is 12.5 BTC that is set to halve to 6.25 in 2020. The maximum number of bitcoins are capped at 21 million while the total ether supply has no such cap. The developers behind the ethereum blockchain are working on shifting the mining algorithm from Proof of Work to Proof of Stake (PoS). PoS allows for the creation of new blocks with the expensive process of PoW mining. In PoS, each node participates in the consensus mechanism in a proportional manner to the stake (of the Ethereum blockchain) held by it, said Bharadwaj. With this shift to PoS, the block reward goes away and the miners are paid only in the form of transaction fees. This shift to PoS is going to remove the wasteful energy intensive process of mining while introducing additional security benefits to an already robust protocol. However, it is important to note that this is a very challenging implementation and not without complications. Rachit Chawla, CEO, Finway Capital said, Somewhat similar to bitcoin, Ethereum is also a popular cryptocurrency and ethereum mining is the process of mining ether; platform-specific cryptographic token, or simply, a uniqu 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 >>