Ethereum Mining Information

What is Ethereum Mining?

Ethereum is one of the most promising projects of the world for crypto currencies and block chain. If you want to invest in Ethereum you can buy the virtual currency “Ether”. If you talk about “Ethereum” as a virtual currency there are other terms for it like ETH, Ethers, Ether Tokens or Ethercoin.

Mining means mining for a crypto value units from a block chain network. For Ethereum it means that the hash function is running in a loop. This loop means it use random information en put it together with letters and numbers with a fixed length. The hash algorithm from Ethereum puts metadata together with a block with using Nonce. Nonce is a binary number with a unique hash value. This network binds the value with a new block from a block chain.  All miners uses their GPU (graphic processing unit ) to decode the nonce to receive the value. The reason why the miners use their GPU is because a GPU is much more power fuller to calculate than a CPU (central processing unit).  A graphic card needs to constantly calculate the display quality.

The reason why people are mining in 2017 is because it’s to make profit out of it. When you buy a GPU with high calculating power and low energy consumption to get the Ethereum through mining  which you can convert to for a currency like Euro’s, Pounds or Dollars.

A lot of people make use of a mining pool. With a mining pool more persons can solve a mine block. When more people mine a block the chance of success is increased. If you are going to mine in a pool you need to fill in your personal data in the form for the company. When a block is finished there will be a reward who divide for the people in that block. The most used method is PPS (Pay Per Share).
PPS is paying out on the basis of the completed task you have made for that block. That means the more tasked your system make the more reward you will receive. After that the Ethereum will be transferred to your wallet.    

When mining you need 3 things:

-Hardware (The system needs an strong graphic card)
-Software (programs to mine)
-Digital wallet (wallet to store the Ethereum)

For hardware you can choose between AMD of NVIDIA. AMD graphic cards are in the recommend in the mining community because of the high calculating power , but a NVIDIA is efficient with the power consumption.
For the software you need to install an operating system. You can choose for Windows but Linux, ethOS and the GETH software is a widespread implementation of the Ethereum protocol block chain technology. After GETH you need to install Ethminer. Ethminer is an application who will find a solution for your hashes.