The hashing scheme used for Ethereum mining is known as ethash. Nonce is a special code used by this algorithm for last system block metadata hashing, which is a random binary number needed to create unique function meaning. Every new piece of the block chain is given a special hash value by the network system, so every user tries to guess the meaning of nonce which gives the requested value for mining Ether.
Hashing scheme uses principles of cryptography, so that is impossible to find out the nonce meaning with random method. The only way to solve this task is cyclic movement across the range of possible values until the correct one is founded.
After finding out the value, miner decrypts the block and gets 5 ETH. Then the process begins again – it has to restart every 12 seconds.
Step by Step Ethereum mining Guide
To begin money making with a homemade mining rig, user needs to fulfil next easy steps:
- Choose well-equipped hardware. That’s may be a personal computer or a mining farm with set up operation system, WindowsX64, Linux or MAC for example. Moreover, video cards with good performance are needed. One computer uses from four to six details.
- Choose crypto currency. Ethereum algorithm offers variable virtual money: Ethereum Classic, Musicoin
- Provide internet connection. Perfect speed is not necessary, but there must be a good ping. It is better to use cable connection than Wi-Fi.
- Choose mining pools for making Ethereum.
- Install and set up special mining software.
- Choose exchange or Ethereum Purse where currency will be accumulated and saved. Look for services providing money withdrawal to exchange mined currency and get real money.
How to Choose ETH Mining Hardware?
As it was written before, devices choosing is one of mining basic steps. It is necessary to have a device with ability to mine during all the day.
User can choose between two types of devices: central processing unit and graphics processing one. GPU is able to find out the nonce faster because it has better hash rate.
GPU setting up is a quite difficult task. Fortunately, there are many Internet resources making it easier to choose suitable unit according to its hash speed, energy consumption and productivity. If user is going to set up a rig for mining, he or she needs two or more GPUs. Week or more will be wasted to install the construction then.
Moreover, mining profitability calculators are needed. They are used to predict the nearly amount of earned ETH according to the following hashing rate and Ethereum value and find out if mined currency covers installation costs.
Is Ethereum mining still worth it?
Though Ethereum mining at home continues to be profitable, users have lots of problems while doing all the technic processes themselves. Powerful hardware costs too much and not every person can afford it. Moreover, some people are not able to set up the equipment as they don’t have a technic education.
Cloud mining means sharing of remoted data centers computing resources. That is an alternative way of crypto money making. Anyway, services of Cloud mining help their clients to avoid the problems. This kind of Ethereum earning has lots of advantages:
- No noisy and hot equipment on the living territory. Data centers are remoted, so they don’t disturb people around. Also farms are equipped with powerful coolers.
- There is no need to pay for the electricity. Services ask for some extra fee only.
- Experienced workers look after farms and fix their broken details immediately.
- Farms are already set up, so user don’t need to choose and install special software.
- Prices are available – client purchases only part of hash rate, not all of it.
Ethereum is a platform for block chain online services creation. Realization of the process represents it as a single virtual machine with decentralized location. The idea was proposed at the end of 2013 and realized in 2015.
There are two ways of getting Ethereum – buying and mining. The second one is known to be a process when user provides the computing power of his or her video card for the calculation of transactions and gets paid for it. The more nonces farm finds out the bigger reward owner has.
Though solo mining is profitable, it has too many problems like high prices for hardware and electricity or noisy working process. Cloud mining solves the problems and still gives passive profit.