Now Ethereum is taking the second place as the most dominant cryptocurrency. But Ethereum is not just a cryptocurrency. It uses difficult technology. With its help, it is possible to create decentralized apps and internet-services on the blockchain base. The Ethereum establishes by the bitcoin cryptographic code but differs from the BTC in many ways. That is why Ethereum mining is more difficult that Bitcoin, in some way, because Bitcoin miners use a set of algorithms. Its initial function was in the payment of internal services of the Ethereum platform.
Ethereum performs the function of calculation, and at the same time, we can use it for the resources exchange and the implementation of the so-called "smart contracts" — safe and binding contracts.
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Many people ask questions about how to mine Ethereum, configure, and start to make a profit.
The main facts about ETH
- the source code and the concept of Ethereum network developer is Vitalik Buterin (Canadian-Russian programmer);
- the capitalization of the currency is approaching the mark of 40 billion dollars;
- the number of Ethereums is not unlimited, unlike the BTC, which has only 21 million;
- the value of 1 ETH at this moment is about $360.
Features of blockchain technology
Blockchain technology allows to allocate blocks of information, transmit it from the sender to the receiver through many stages. The peculiarity of the method lies in the fact that in the transmission of info it is impossible to track the sender, the recipient, and it is impossible to steal money or to get them through a fraudulent scheme.
Ethereum mining ways
There are two ways of Ethereum mining – solo or in the pool. Solo-mining in 2017 is not popular anymore. It's marginal, challenging and accessible only to those who have a lot of hash rate – capacity units for calculations. It is easier to be a member of the mining pool where the profit is distributed more evenly and reduces the chance factor.
How to mine Ethereum GPUs?
BTC and ETH mining procedure differ only in the order of registration and choice of a pool. The rest of the structure of the system remains the same:
- Method #1: register on the website of the cryptocurrency and enter your info there. After that on the pool's website download the program. But first, configure the Ethereum purse.
- Method #2: during "Ethereum classic" registration or in other pools you need to enter the email, and come up with a code value, then create a purse account in the existing profile. It is necessary if you want to connect several computers for the cryptocurrency mining.
Ethereum mining software
The primary purpose of this program lays in the use of the capacity of processor and GPU to create a hash rate that forms the currency from around the world. Every program has different interface and structure.
The list of the best programs for amateur and professional mining:
- 50Miner;
- BFGMiner;
- CGMiner.
Registration
Before mining Ethereum, you need to register. On the website, it does not take more than 5 minutes. The procedure is similar to that offered when you visit other portals. It's easy – enter the e-mail, create a password and confirm that you are not a robot. On the website, you can choose pool to change the data in the settings. There is also guidance if it is necessary.
The purse creation
Any miner has to store the digital coins in the particular account. You can use many of independent services. Your purse's address specified later in the program for the mining procedure. For beginners, there are instructions on the purse sites. First, you need to register with the help of instructions.
Here is a list of standard purses:
- Mist
- MyEtherWallet
- EthereumWallet
What about mining pools?
The pool is a community of miners, created to reduce the random factor during mining. Typically, the pools are designed for the extraction of a particular cryptocurrency.
Ethereum is young. However, there are lots of pools for mining. It is possible that soon ETH will be more popular than BTK, especially because mining bitcoins becomes almost impossible.
When you choose a community, look at the following indicators:
- the total power (capacity) of the pool;
- popularity among miners;
- the reviews on the forums;
- the accrual of profits to the miners;
- the convenience of withdrawal for your country;
- the size of the commission.
TOP 3 mining pools
The choice of pool depends on the profitability of the entire enterprise. Pools with a capacity shortage, for example, which began work last Tuesday, will bring nothing but disappointment. Choose verified one.
- 1. Ethpool/Ethermine (24.7%) Ethpool and Ethermine are two different sites although they appear to be a kind of the same pool. They are currently the largest Ether mining pool with about 25% of the network’s hash rate. Also, good pools for single miners to reduce their risks and increase profits. The principle of work is standard – you register, download the mining program and start to mine cryptocurrency.
- 2. DwarfPool (13.3%) Multi-currency service that allows beginners and professionals of mining to produce not only ETH but also many other cryptocurrencies like Dash and Monero. The pool provides anonymity (no registration required) and regular payments after finding a block. The remuneration distributed according to the hash rate of each participant.
- 3. Ethfans (8.6%) Chinese pool with about 8.6% of the network hash rate.
Ethereum presents a universal application of blockchain technology. The currency is the icing on the cake. Miners and investors have made large sums of money on Ethereum’s sudden uprise. You have already known lots of the Ethereum core aspects. Now only you can decide whether to start mining or not.
