Since Vitalik Buterik presented the idea of Ethereum, cryptomoneda has had an impressive growth, demonstrating a potential of Blockchain technology that had not been appreciated before. Faced with this impact, the use of Ether has spread and today many want to know how to mine Ethereum.
Since Ethereum is the platform most linked to ICOs by its ERC-20 standard and the Intelligent Contracts, at TodoIcos we have considered it appropriate for our readers to know what the whole Ethereum mining process is like and to be able to clear up all the doubts that arise.
What is Ethereum mining?
As explained above, the mining process is the one that checks all transactions on the Blockchain network, in this case, the Ethereum network. The verification of transactions requires the resolution of encrypted mathematical algorithms and this is achieved thanks to the computational power of electronic equipment.
Particularly Ethereum can still be mined by means of the GPU, which means that it does not need specialized machines. The algorithm used in the network is Ethash. The reward that is generated in each block is determined in 3 Ethers, this reward is distributed among all the miners who are part of the Minning pool that has resolved the block of transactions within the network. The generation of new blocks is given every 15 seconds, a much lower number compared to the 10 minutes it takes to generate each block of Bitcoin.
Is it profitable to mine Ethereum?
Mining is a process that requires a considerable investment and we must take it into account if we want to enter mining. It is also necessary to consider the energy consumption of the computers that are connected 24 hours a day to the Blockchain network.
Along with this we must also consider the ability of the team and see the power we have to decipher the hash code with our team. If the equipment does not have a good capacity, there may be a possibility that it is not profitable to connect it to Ethereum’s Blockchain network since it will be more the cost of the electricity consumed than what the equipment will produce as a reward.
The last assumption mentioned has been happening with GPU mining. Graphics cards no longer provide enough mined power to make a profit and keeping them on within the network produces more losses from energy consumption than mined profits.
What are the best teams to mine Ethereum in 2019?
Although Ethereum has an algorithm that can still be applied with GPU, given the price of ETH and the mining difficulty that exists in Ethereum’s Blockchain network, GPU mining has become very complicated. The only way that GPU mining can remain functional is to install a “mining rig” consisting of multiple graphics cards.
Given this reality, the equipment most used to mine Ethereum in 2019 are specialized mining equipment or graphic card rigs. Based on CryptoCompare data, there are 3 teams that can provide profits for the miners.
It is a mining rig that can run several algorithms, including Equihash, Cryptonight, X16R and of course, Ethash. As its name rightly mentions, these are 3 B1 computers connected to each other. Each B1 has 8 AMD RX580 8GO graphics cards. It can mine Ethereum at 720,000,000 hashes with a consumption of 1040W. Its price is 8430 dollars. It has a return on investment of 499 days*.
An ASIC equipment manufactured by Innosilicon. It only works with the Ethash algorithm. It can mine Ethereum at 485,000,000 hashes with a consumption of 650W. Its price is 5650 dollars. It has a return on investment after 1,435 days*.
* This return on investment is established taking as price 116.51 dollars each ETH. In addition, an average cost of 12 US cents per kWh of consumption is established.
Programs to start mining Ethereum
To start the mining process, we need to download a program that uses the potential of our computer to make it available to the Ethereum Blockchain network. The following programs can be used:
Geth – Frost: Program created by the own community of the Blockchain network of Ethereum. It is widely used because it is available on all CPU operating systems, whether Windows, Ubuntu, Mac or Linux. To run the program you need at least a graphics card with 2 GigaBytes of GDDR5 memory.
Claymore Dual Miner: The program developed by Nanopool Mining Pool to be able to do mining from CPU. It is simple to use but can be used with the specific mining pool. To run the program you need at least a graphics card with 3 GigaBytes of GDDR5 memory.
Ethereum’s Best Mining Pools
The mining pools will allow us to go “together” to the Blockchain networks and thus be able to unite the computational powers and have more opportunities to solve the algorithms of the network faster. There are several mining pools in the market, but it is important that we choose which one to join in order to get the most out of it.
It doesn’t even have a year of existence but it is already managing to break into the Blockchain mining space. This mining pool does not mine a specific coin but mines according to the algorithm and by means of an intelligent formula, measures which coin is more profitable to mine. The developers of the pool have established their own programming code for the establishment of this pool. It has a rate of 0.9% on the mined.
It is a mining pool that works only with the Equihash algorithm owned by Ethereum and other crypto currencies. It is one of the busiest mining pools for Ethereum within the market and therefore has considerable hash power within the market. It does not impose any taxes or fees on mining.
It is one of the most solid and important mining pools in the market. It is one of the easiest pool to use, being also very comfortable for those who do not know of computer programming. It has a large number of coins to mine and among them ETH. Its rate ranges from 1% to 1.5%.
A mining pool that works solely and exclusively to mine Ethereum. It has special servers for users in the United States, China and Europe, which makes it a pool with a strong international presence. Its rate is 1%.