How Ethereum mining works and different ways of mining Ethereum

Ethereum mining is the process by which new Ethereum are put into the market. It also enables the network to confirm recent transactions and is an important component of the blockchain ledger's maintenance and development. “Mining” is done by using sophisticated hardware that solves complex math problems.

 

Cryptocurrency mining is done by specialized computer, also known as mining rigs or nodes, confirms blockchain transactions for a particular cryptocoin and, in turn, gets some reward for their computational effort. 

 

The Ethereum incentives that miner receive motivates the miners to contribute to the main purpose of mining: to monitor and legitimize Ethereum transactions, checking their validity. Because a lot of users all over the world take part in this activities, Ethereum is a “decentralized” cryptocurrency, one that does not rely on any central authority like a government or central bank to oversee its activities.

 

However, before you invest the equipment and time, you have to know whether mining is really for you or not.

 

HOW TO MINE ETHEREUM

 

When you are mining Ethereum, you need to choose a mining method. There are different methods that miners can follow.

 

SOLO MINING 

 

Solo Mining is when you are mining on your own, there is no need to pay any pool fees, the rewards are personal and there is no need to share it. To be able to solve cryptographic puzzles in a reasonable amount of time, you need to have dozens of GPU.

 

CLOUD MINING

 

cloud mining requires you to pay someone else to mine for you. Instead of running and owning mining hardware yourself, you rent a third party computing power and let them do the work for you. In return, you will receive the mining rewards. Take note: cloud mining is risky and it requires in the counterparty. Therefore,  it is advisable to do cloud mining through long-established cloud mining platforms.

Comments
Israel - Jun 16, 2022, 8:49 PM - Add Reply

Nice

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Oleksii - Jun 18, 2022, 10:42 PM - Add Reply

good review of cripto ming in two words ;)

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