Besides speculative Ethereum investing, many cryptocurrency enthusiasts test themselves with Ethereum mining hardware. We created this Step by step Ethereum mining guide to aid you in your mining...
AtoZForex – As the whole world is getting digital, the developments of innovations reach higher and higher levels. The financial world is not an exclusion – the industry enjoys the number of remarkable innovative methods of transactions. One of these methods – cryptocurrencies and Ethereum technology is one of the leaders.
Step by step Ethereum mining guide
You might be already familiar with some of the top digital currencies, such as Bitcoin, Ethereum, Ripple, and others. Today, we will be focusing our attention on Ethereum – one of the fastest developers in the cryptocurrency industry. Just this week, Ethereum has passed the $400 level, advancing more than 2,000 percent from the start of 2017.
While buying cryptocurrency is straight forward, another option for you to obtain Ethereum is mining it. But how do you mine Ethereum? Previously we have discussed top 10 Bitcoin miners of 2017, today we will follow where the money is flowing and cover a Step by step Ethereum mining guide.
Mining process implies computationally intensive work. The work might be time-consuming and is requiring a lot of processing power. Basically, mining is the act of participating in a given peer distributed cryptocurrency network in agreement. The miners are rewarded for providing the solutions to challenging math problems. This is carried out by putting computer’s hardware to use with mining applications.
What is Blockchain?
Before we discuss mining, you need to understand what blockchain is.
All the data in digital currency transactions is embedded in special data blocks. Each block is connected to several other blocks. This creates the Blockchain.
The blocks need to be analyzed as fast as possible in order to ensure the adequate transactions process on the platform. Yet, the issuers of cryptocurrencies do not have the processing power to handle this on their own. Thus, they need miners.
Who is Ethereum miner?
A miner is an investor that is able to dedicate time, processing power, and computer space to sort out the blocks. When the mining process brings success, miners submit their solutions to the issuer of the digital currency. Then, the verification process is coming, where the issuer is assessing the solution of the miner. After this, the issuer is offering rewards in face of portions of the transactions they helped in verifying.
The issuers also offer cryptocoins in exchange for the work of miners. The result of digital mining process called a proof of work system.
How to mine Ethereum?
The only way to get Ethereum is through mining. However, mining Ethereum implies more than just increasing the number of Ethers in circulation. Mining Ethereum also means securing the network which in turn, assures the verified calculation.
Ether is the digital token. It is essential for the ensuring the smooth operations of the Ethereum platform. Ethereum was initially developed for any type of decentralized application developers would want to build. Every developer that wants to use smart contracts on the Ethereum blockchain platform, needs Ether.
- Ether supply is limited.
- The overall amount of Ethers is restricted to 18 million per year.
This is about 25 percent of the first issue. Such system is utilized to reduce inflation. Each block should have the proof of work of the given difficulty. Ether validation algorithm is called Esthash.
The basics of Ethereum mining
Before we proceed with our step by step Ethereum mining guide, we need to outline some basics. Ethereum mining process requires significant electric power. In case mining practices are executed efficiently, more profit is generated through the sale of Ether. There are special Ethereum mining calculators that are aiding miner in calculating profits.
You can utilize your personal computer to mine Ethereum. You will need to have the Graphic Card Unit (GPU) with at least 2 GB of RAM. The Central Processing Unit (CPU) mining will just waste your time and won’t bring you much profit. The GPUs are 200 faster than CPUs when we talk about mining Ethereum.
Remember that the mining process of Ethereum requires a lot of free space on your computer system’s hard drive. Before mining, make sure that you have about 30 GB of free space.
Step-by-step Ethereum mining instructions
Step 1. Download the Ethereum mining communication hub application Geth.
Geth app will serve as the mediator for you. It will connect you to the Ethereum platform, while at the same time coordinating your setup. Moreover, Geth will report any new development that requires your participation.
Geth normally comes as a zip file. You will need to unzip it and transfer the file to the HDD. The C: drive is normally used for this.
Step 2. You will need the Command Prompt in order to execute the Geth app. In order to find this, search in Windows for ‘CMD.’
Step 3. The normal name of your computer is ‘C:UsersUsername>’. On order to find Geth, type in ‘cd/’ into the command prompt terminal. This is an instruction to change directory. ‘C:>’ should be highlighted now. This means that you are currently in the C: drive.
Step 4. You will need to create the account. Type in ‘geth account new’ and press enter. The command terminal now should display ‘C:>geth account new.’
Step 5. Here you will need to create the password. Please take extra care in this step. Congratulations, your account is created!
Step 6. In order to connect Geth to the network, type in ‘geth —rpc’ in the terminal and press enter. This will start the download of Ethereum’s Blockchain and synchronization with the global network. This might take some time, so be patient. It is vital to wait until the completion of this process.
Step 7. You will also need a mining software. This will help your GPU to run the Ethash algorithm. You can successfully use Ethminer for this purpose. Install Ethminer or any other mining software for this procedure.
Step 8. Repeat step 3 in a new command terminal. In order to open a new command terminal, right click on the prior active terminal icon that is available in the taskbar. Then click on the terminal from the menu.
Step 9. In the new terminal window, type ‘cd prog’, then press the tab key. You will see the ‘C:>cd prog’ on display. Press the tab key again to display ‘C:/> cd “Program Files”’. After, push the enter key to show ‘C:Program Files>.’
Step 10. In order to go to the Ethereum mining software folder, type ‘cd cpp’. Press the tab and enter keys. Then, press tab once again. The terminal should now display ‘C:Program Filescpp-ethereum>.’
Step 11. In order to start mining with your GPU, type in ‘ethminer –G’ followed by the enter key. With this action, you will initiate the mining process after creating the Directed Acyclic Graph (DAG). This graph is a large file that is located in RAM of your GPU for the purpose of making it Application Specific Integrated Circuits safe. You need to make sure that there is enough free space on your hard drive before proceeding to this point.
Step 12. In case you are still going to the mining with CPU, type in ‘ETHMINER’ then the enter key to start the process. You will still need to build a DAG after which the Geth will take over the communication with Ethminer.
You are all set with the help of this Step by step Ethereum mining guide! Happy mining!
Is there anything else you would add to this step by step Ethereum mining guide? Let us know in the comments below.