How Ethereum Mining Works?

Ethereum Mining Review

Ethereum, as well as Bitcoin, uses proof-of work method. In this case, it is called Ethash. The developers of this cryptocurrency say that the algorithm helps the equipment to be safe and stable which is important for mining and bringing profit.

Nowadays, this very electronic money show constant stability which attracts a lot of customers all over the world.

Reward for a block

In Ethereum organization, blocks get generated every 12 seconds. A reward for one block values 5 coins that are also called ETH.

Cloud Mining

If you have studied cloud mining for Bitcoin, you must know that the organization uses Genesis Mining. This is the most trustful provider that offers cloud mining. By using the provider, you will be able to buy various contracts for mining. Contacts come at different prices for Ethereum. Here are some examples of annual contracts and their cost:

1MH/s – $44
25 MH/s – $1100
100 MH/s – $4400

You can find out more how contracts work and what benefit you get when using each. There are possibilities to mine ETH using Amazon cloud servers which are convenient and profitable.

Profits your get when using Ethereum Mining

No matter what web money you choose to mine, the gain depends on many different factors. Your profit will be defined by the hashrate of your mine-workers in relation to the total amount of the network hash. Also, your earning will depend on the price of Ether in relation to the fiat currency such as USD.

The most effective equipment for mining will definitely bring you a better profit. So, you need to consider what equipment to buy. We have done quite a few reviews of modern equipment for mining that you can find out about and compare it with the competitors. The better your equipment can convert power into Ether, the better profit you will get.

You can use an online calculator for defining your possible mining earnings, as well as for approximate profit in relation to your hash rate and the network, block time, and the cost of one ETH. Use EtherScan or Badmofo – both will help you to define your approximate profit.

Mining pools

Ethereum only recently became popular, however, it can offer two mining pools for searching for coins and making the profit. Look for EthPool or Ethereum Nanopool to mine.

Get an account

Of course, if you want to mine and get profit you will have to get a wallet. This is the same for every electronic money you want to mine and earn. So, the same as for Bitcoin, create an account and get an Ethereujm wallet to buy and sell coins. Install the wallet on your device which will be a secure place where you keep and store your gains.

Use Geth to start working with Ethereum. There you will get all important instructions and tips for safe and effective work with the cryptocurrency.

Ethereum or Bitcoin?

The difference between these two organizations is really big. As you know, Bitcoin is not controlled by any department. However, Ehereum is more centralized, therefore, it may create new options and changes in POW. At the moment, the organization is planning to use proof-of-rate instead of proof-of-work.

Also, the block time is a bit higher. 12 seconds per block while Bitcoin offers 10 seconds per block.

Now you know more about Ethereum, how it works, and its advantages, so you can choose what way to use for getting a better profit.