In case you’re not very familiar with the term, mining in any cryptocurrency represents the action of confirming transactions or solving problems in order to harvest a reward. This reward is paid in the cryptoasset (Ether in this case) and is distributed by the chainblock to the user which solves the problem faster. Taking into consideration the number of blocks produced by Ethereum (and also other cryptocoins), this represents a great amount of money. The people who are in charge to operate this transactionis known as miners. But, how is mining in Ethereum?
Mining in Ethereum
As in any other cryptocoin mining, the more and better equipment you own, the bigger the profits will be. This is because rewards are based on the number of code problems the miner can solve in less time and it is obviously an easier and faster task with the best devices. In this matter, mining Ethereum is always easier and faster with a GPU processor on your pc.
For an effective Ethereum mining, it is highly recommended that you implant a mining pool which works with a group of miners working on the same calculation or problem and generating rewards that will be lately distributed amongst collaborators so the mining in Ethereum works better with “small periodical rewards” instead of one big punctual prize.
There are lots of programs for mining Ethereum and each one represents advantages according to the kind of mining you want to do; some of them are simpler and also simplify the number of nodules and resources your computer will need for mining and are ideal for small personal mining. On the other side, there are programs with complexity and the possibility of customizing the configuration according to the number of devices in the mining pool.
What are the difficulties?
One of the principal difficulties for mining Ethereum is the number of resources needed. As we mentioned before in this article, mining this cryptocurrency requires great equipment with a graphic card good enough to support the platform but the problem is that, with the crescent incorporation of new miners and mining pools. The requirements for this graphic card are higher and higher and the prices start to represent an inconvenient to recruit new miners which have resulted in a fall in the growth rate.
Since depends exclusively on the quality of the graphic memories for storing all the data analyzed, the most miners, the most data and therefore the best graphic memory needed which has led some users to believe that this cryptocurrency is designed to be more and more elite and with the capacity to afford better devices. But it is also important to remember that this fact also affect because if you have a great mining pool, the more miners you involve, the harder the mining process will be for you, so uncertainty has wrapped a little bit Ethereum in the last few weeks (even causing a descend on the mining volume) but hopes are for the best in the further solution of this inconvenience.