Cryptocurrency mining is a process through which new blocks are added to the existing blockchain. This is being done in order to confirm the transactions and make sure no fraud is committed to while transactions are being made on the blockchain. Ethereum is the second most valued cryptocurrency by market capitalization in the world and like Bitcoin mining, mining of the ethereum is quite popular among miners. The consensus mechanism used in ethereum mining is proof-of-work (POW). During the mining process, miners need to solve complex mathematical problems to verify a transaction and, in return, get rewards for the verification process.
Ethereum Mining Hardware and Software
To mine ethereum, you require a combination of hardware and software which will be applied to solve a complex cryptographical puzzle for the mining process. In terms of hardware, you require a motherboard, hard drive, Random Access Memory (RAM), and a Graphics Processing Unit (GPU). In addition, you also require a reliable and continuous power supply to support the mining process. Besides hardware, you also require specific software for
ethereum mining. ethOS is the application designed specifically for the mining of the ethereum. With the help of this application, you can control all the rigs employed in the mining of ethereum from one single location.
In order to start with Ethereum mining, you are required to have an ethereum wallet. The setup of the wallet is necessary, as mining of ethereum needs to be protected with the help of adequate measures. These safeguards will be provided only with the help of the wallet. There are quite a few options available in ethereum wallet space, and due diligence must be applied by choosing the wallet. One of the recommendations, to use a safe wallet, is to go for a recognized and repeatable name, which is providing services in the market for a long time. In sum, to go ahead with the mining of ethereum, one requires a combination of hardware, software, and an ethereum wallet.
Ethereum Mining: Individual vs. Pool
There are primarily two ways in which one can mine the ethereum. One is the individual mining operation, while the second option is to go for pool mining. As the cost of resources and electricity involved in the mining process is on the higher side, it is a good idea to go for the pool mining option. As per ETH News, Experts consider pool mining more beneficial in the long run as the pooling will lead to higher output due to the integration of efforts and resources while it consumes lesser resources compared to individual mining. Still, some specific conditions might dictate requirements whether to go for individual or pool mining processes.
Is Ethereum Mining Still Profitable?
The answer to the question of whether mining of ethereum is profitable or not depends upon the capabilities of your network and its cost-efficiency. In case you are mining ethereum individually, then the high cost of the resources might not turn the process into a profitable one. However, pool mining of ethereum could prove to be beneficial provided you are able to share the burden of resources with other miners in the group. In addition, the changing dynamics in the cryptocurrency world which involves a constantly upgrading consensus mechanism and upgradation of the protocols play an important role in deciding how the dynamics of the mining industry change in the future. Even some experts are making guesses about the ETH Price Prediction from the mining process and hash rate.
Enigma: A name in Ethereum Mining to Reckon With
When it comes to the largest Ethereum mining farm in the world, the name of Enigma leads the pack. It offers a range of services to crypto miners and depending upon your requirement, you can easily choose a specific hash-rate while signing in a 2-year contract with the company. Enigma is the preferred name and thanks to its constant upgradation efforts; it is able to provide optimized and cost-effective services to its clients.
Ethereum mining is a complex process that requires resources in terms of computational power, hardware, software, and a constant source of electricity. While one can easily share the burden of resources by opting for pool mining, but then the trade-off comes in the form of compromise, one has to make on rewards. Still, the process of ethereum mining is important and if controlled effectively, the mining of the coin can prove beneficial in the long run.