Ethereum (ETH) is an open-sourced and decentralized platform backed by blockchain technology designed by Vitalik Buterin, Gavin Wood, and Joseph Lubin. The decentralization refers to complete immunity from any outside interference and no control of any sort by any single authority. It is basically focussed at distributed applications (dApps) by facilitating smart contracts. Ethereum’s major innovation is Ethereum Virtual Machine, which enables anybody to run and participate in the programme. The person can participate irrespective of the programming language. This innovation has saved enough time and memory for stakeholders on Ethereum network. Ethereum network issues digital currency with the token name ETH, which is the 2nd largest crypto coin in the global market.
Cryptocurrencies are heavily dependent on the mining process. Mining is nothing but solving complex mathematical problems. The time and energy utilized for the solution work as the ‘proof of work’ for the Network. Ethereum network is also operated this way. It should be noted that the mining process is the force behind the creation of new Ether tokens as Ether tokens are distributed as rewards after completion of a proof of work task. But this process is not as simple as it seems. With many more miners joining in the network, the mathematical problems become tougher to solve and it ultimately needs more time and effort in the form of computational power.
Before going into the details of mining Ether, we must be aware of some basic and unique things about the Ethereum’s Blockchain Network. Many market experts draw a line stating the similarity between Ethereum’s blockchain and Bitcoin’s blockchain. But there are some fundamental differences between these two.
Block addition on Ethereum blockchain is faster than block addition on Bitcoin platform. On Bitcoin, blocks can be added every 10 minutes whereas a block on Ethereum blockchain is added in every 15 seconds. The credit should rest with Ethereum’s Ghost Protocol.
On Ethereum blockchain platform miners are rewarded with 3 ETH along with fees for code processing. This is known as GAS on Ethereum Network. There is also a possible bonus system on this network.
Ethereum is one of the few crypto networks having its own Turing complete internal code. With enough time and computing power, anything can be calculated. Bitcoin lacks here.
For mining, a crypto network needs an efficient algorithm. Ethereum uses a hashing algorithm known as Ethash. On the other hand, Bitcoin relies on its own hashcash.
Ethereum’s Ethash is not supported by the special hashing hardware (ASIC) created by Bitcoin. Bitcoin’s creation is more inclined towards memory-hard algorithm, and Ethereum’s Ethash is basically best supported for GPU mining.
Requirements for Mining-
Mining Ethereum needs many perquisites like all other cryptocurrencies. Here are the details of the most important factors for making mining possible.
There are two kinds of hardware that can be used for mining Ethereum coins. One is the CPU (Central Processing Unit), and another one is GPU (Graphic Processing Unit). Mining through CPU means mining using your own PC or Laptop. And mining through GPU means mining after attaching an expensive external Graphic card. It should be noted that mining through GPU is more profitable as calculation becomes 200 times faster with Graphics card.