Ethereum Mining; What You Should Know
Cryptocurrency in this modern era has become the new method of cash all in digital asset that it has become as an online medium of exchange. They are slowly and revolutionizing the way financial systems and transactions work.
However, you might wonder how these digital currencies remain in circulation. It is through a process called mining. This article explores the mining of a particular cryptocurrency; Ethereum.
In case you don’t know what Ethereum is
Due to the popular demand for Cryptocurrency, Ethereum was introduced into the digital market to compete with others in 2013s and it has been growing steadily since.
This particular digital currency, which was proposed by Vitalik Buterin, is an open source blockchain based on computing platform featuring scripting functionality.
What it does is that; It provides a cryptocurrency token called ether which can be transferred between accounts and used to compensate participate nodes for computations performance
Ethereum creates a blockchain based platform on which developers can build applications. This runs on its own digital token which has become the second largest cryptocurrency by the market value of 32 billion dollars according to coinmarketcap.com and the second most valued cryptocurrency in the digital fortress behind Bitcoin.
So, tell me, why you won’t mine for Ethereum.
Cryptocurrency mining is a process of solving complex math problems. Miners are people that spend time and energy solving these math problems by providing solutions to the issuers who verify it by rewarding the miners with a block of Ether.
To start mining for Ethereum, you will need an Ethereum wallet to join the mining league.
Generating a wallet, log in to www.myetherwallet.com and follow the steps, by the end of the process you will receive a wallet address
Draft pool still remains one of the best mining tools you can use. Ethminer is an Ethereum GPU mining worker, entering your email address allows you to receive notifications on payouts
To mine, you need to install the mining software once installed, your node will officially play a part in securing the Ethereum network.
JOINING THE MINING POOL
As a miner, you’re unlikely to be able to mine ether on your own as you will need a partner. For this simple reason, miners pool together their computational power into mining pools to improve and increase their chances of solving mining puzzles and earning cryptocurrency.
There are many factors to consider when joining a mining pool. One of the most important point you have to keep in mind if joining a mining pool is the pay-out structures. Different mining pools have different pay-out structure. Another thing you should readily accept is the fact that you would be sharing risks and reward.
Mining pools have different signup processes on the website so that miners can connect to the pool and begin mining.
Also, keep in mind that the mining world is subject to change. The tools that you pick up now might be old as time changes, and mining pools might fall away while others will rise. So, it is always good if you are alert to the industry shifts.
The world is gradually evolving from paper currency to a digital currency that cuts across borders and boundaries and Ethereum is here to play a cryptocurrency role in the globe as it emerges gradually to become the globe’s number one cryptocurrency. This makes Ethereum mining not an entirely bad idea. Just be smart about it.