Since the last few years, cryptocurrencies have been one of the most used digital assets for the medium of exchange using strong cryptography to verify the transfer of assets and make the financial transactions more secure than ever. Many of the central banks in countries like the USA, Canada, Australia, and others have legalized cryptocurrency as a medium to secure their transactions. With the introduction of cryptocurrencies like bitcoin, Ethereum has also gained some popularity nowadays.
Ethereum can be defined as a blockchain-based distributed computing platform which is the public and open source used to implement smart contract functionality. The Ethereum Virtual Machine is a virtual machine provided by Ethereum which uses a network of public nodes to execute scripts. Ether is the cryptocurrency that is extracted using Ethereum.
The term Ethereum was coined by a cryptocurrency researcher named Vitalik Buterin who was a programmer involved with Bitcoin Magazine in late 2013. After that, it was announced in 2014 in a North American Bitcoin Conference in Miami. At the same time, Charles Hoskinson, Gavin Wood and Anthony Di Iorio who financed the project rented a house in Miami were also recognized in the list of founders of Ethereum.
In order to start with the process of Ethereum mining, you will need GPU(also known as Graphics Processing Unit). The mining process involves maintaining the Ethereum ledger by solving complex mathematical problems.
Here are four steps that are involved in the mining process.
1 Install the Graphical Processing Unit.
2 Get an Ethereum wallet like MyEtherWallet or Mist.
3 After that, join the mining pool.
4 Finally, start mining.
Any cryptocurrency mining involves a very complex and dynamic industry like price, difficulty, pools, software, profitability and constant updates in hardware. While we can earn a lot of money from the mining process, it also costs money and taking wrong decisions can cause a negative return on investment. For an investor with low investment, getting the return on investment in a decent time can affect their buying decisions. An average miner has earned a profit of $0.2 per 1MH/s while the miner with a high-end rig with lots of GPUs has earned around 25MH/s which is still a decent profit during the peak of the crypto bull run. With the development of the Crypto bear market, lots of crypto miners have switched to other ways of mining cryptocurrencies like MasterNodes or Proof of Stake. This can be a beneficial situation for new investors who are looking to make money from Ethereum.
In summary, the mining of Ethereum takes a lot of computation and processing power with its miner getting rewarded for solving complex math problems using the blockchain technology. Although the future of Ethereum remains unpredictable like other cryptocurrencies, it is one of the fastest-growing cryptocurrency next to Bitcoin. Ethereum can also be regarded as a first “world computer” as it is a decentralized network that anyone can use who is can of running applications with no downtime and fraud.