What is Ethereum Mining, How is it done?

Along with the whole world, money is also becoming digital and digital currencies are becoming increasingly popular. So much so that some digital currencies are worth more than the official currency of many countries. One of these digital currencies is Ether, abbreviated as ETH. There are some question marks in the minds of users about ETH obtained with Ethereum mining.

Ether, obtained by Ethereum mining, is processed on a different blockchain from Bitcoin, namely the block chain. This blockchain has a different algorithm called Ethash. There are some important points and different hardware that those who want to mine Ethereum should know. We explained what you need to know about Ethereum mining for you.

What is Ethereum mining?

The method used to obtain Ether, ETH digital currency, is called Ethereum mining. In order to obtain Ether on the Ethereum blockchain, you must perform transactions in accordance with the unique algorithm called Ethash.

In order to mine Ethereum, you do not have to use the ASIC, which is in Bitcoin, ie special circuits. Even a standard Windows user can easily mine Ethereum. But the point to note is that you need very high GPU power when mining Ethereum.

What are the necessary hardware for Ethereum mining?

Since Ethereum mining is a process with extremely high dynamics, you will need high GPU power. 64-bit Windows 10 users are recommended to use a graphics card with at least 8 GB of memory. But even that may not be enough.

AMD graphics cards are among the most preferred brands in Ethereum mining. The high-priced but powerful enough AMD Radeon VII and AMD Radeon RX 580 models are some of the models that cope best with the Ethash algorithm. You should make sure that the drivers for all hardware used are up to date.

For Ethereum mining, at least Intel i3 CPU, at least 4 GB ram and a powerful SSD are absolutely necessary. Since you may need more than one GPU power, you need a chassis to keep all these hardware together and a cooling system to cope with even high temperatures. A strong electrical connection is also a must.

How is Ethereum mining done?

  • Step 1: Open the MyEtherWallet website from here.
  • Step 2: Click on the “New Wallet” button on the home page.
  • Step 3: Create an Ether wallet by choosing the method that works for you.
  • Step 4: Securely backup your wallet information.
  • Step 5: Download the Claymore Dual Miner program from here.
  • Step 6: Enter the complete information requested from you.
  • Step 7: A new file will be downloaded to your computer.
  • Step 8: Add this file inside the program file you first downloaded.
  • Step 9: Make sure your wallet number is written in the start.bat file in the folder.
  • Step 10: Done.

After these adjustments, every time you open the start.bat file, your computer will start mining Ethereum and your Etherler will be transferred to your wallet. You cannot start mining without opening an ether wallet.

With the Claymore Dual Miner program, you enter an Ethereum mining pool. The reason you are mining in a pool is to increase your earnings by working in partnership with different miners. The program can receive commissions at varying rates such as 1%, 2% on the Ether you extracted.

Is ETH mining profitable?

1 Ether obtained through Ethereum mining is currently worth an average of $ 200. After installing all these necessary hardware and starting mining, 4.21 Ether per year can be obtained with 180 MH / s power. Of course, this is not the net income item.

A block is generated every 15 seconds on the Ethereum blockchain, and the miner is awarded an average of 2 ETH per block. If two blocks are produced at the same time, one is added to the block chain, the un-added block is called the Uncle Block, and the miner receives a separate reward for this block.

Ethereum miners earn an average of $ 1,212 annually. When you consider the money spent for the electricity used, the expenditures for the necessary equipment and the extraction costs, you may not earn a large income in the first year. But if you look at this as an investment, you can have an increasing income in the following years.

For starters, we answered questions such as what is Ethereum mining and how it is done. The stronger your hardware, the more efficiently you will mine Ethereum. Remember, you should calculate the profit-loss ratios in digital money mining as well as in every investment.

Stay tuned to SinceCoin to learn more about Bitcoin and cryptocurrencies.

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