Ethereum is a blockchain-based platform for developing decentralized online services. Services are based on the principle of smart contracts. The creator of the system is Vitalik Buterin – he first proposed Etherium at the end of 2013 in the Bitcoin Magazine, and the network itself began operating in the summer of 2015.
Since Ethereum is an open platform, it has made the introduction of blockchain technology much easier. This caused interest in the system from both small fintech startups and global IT giants – Microsoft, IBM.
The Ethereum exchange unit is ether or ETH. However, unlike other types of cryptocurrencies, ether is not limited to payments, the authors suggest using it as an exchange tool, confirmation of the registration of transactions, and smart contracts. At the moment, the currency is sold on exchange services, it can be mined using mining, and the capitalization of the cryptocurrency is $ 1 billion.
The economic idea of the new crypto coin lies in the fact that thanks to the invented technology, it is possible to register any transactions with assets based on a decentralized base of contracts without any legal procedures. This is a real breakthrough compared to existing financial technologies.
In the second half of 2014, fundraising for the development of Ethereum began using crowdfunding. As a result, 31,591 bitcoins were collected, which at that time were equivalent to $ 18,439,086, and exchanged for 60,102,216 ETH. The cryptocurrency then attracted the attention of many financial institutions as a test platform for examining bonds and smart contracts in detail.
It is worth paying attention to the fact that, according to the idea of the authors of Ethereum, mining as network protection is provided only at first. Then the platform will be fully transferred to proof of stake. However, there is protection against ASICs due to the maximum video memory requirements of the graphics adapter. This raises the question: how and on what can you mine ether, while it is so relevant and interesting for “miners”?
What do you need to mine Ethereum?
ETH mining is somewhat different from other cryptocurrencies, primarily in that there is no special equipment for this process. All you need for mining is:
- The most common computer with 4 GB of RAM. Many people think that the process will work with less RAM capacity, but that already depends on luck.
- Stable internet connection.
- One or more AMD Radeon graphics cards or better with 2 GB or more memory.
The first thing to do is open an Ethereum wallet. You can download the application to your computer, or you can open an account online. You specify your email, click on the “Generate address” button, and you will get your wallet for use.
After that, you need to download and configure a special miner program. At the same time, please note that it is absolutely pointless to mine on your own. Therefore, you need to choose a pool in which you will participate. Next, you need to make the necessary settings (you can find it on the website of the selected pool), and start earning the most promising cryptocurrency to date.
The choice of “iron”
As mentioned above, the video card is responsible for mining. But here the question arises: which device to buy directly for Ethereum mining, so that it is efficient and profitable?
The HD 7990 was released in 2013 and is now more difficult to buy as this series has been replaced by the R9 series launched in 2015. In fact, the HD 7990 with 6GB of RAM consists of two AMD HD 7970 graphics cards with 3GB of RAM each.
Other parts of the system
- Intel motherboard with PCIe 3.0 x16 support.
- Intel processor, not necessarily the fastest
- A power supply capable of regulating the power consumption of the video card and other system components.
- A minimum of 8 GB of RAM compatible with the graphics card
- The hard drive doesn’t matter
- Computer case with sufficient cooling
- Coolers. More liquid cooling is required, given the workload of the GPU. Therefore, you need to buy either a dedicated GPU cooler, or buy a processor with built-in liquid cooling.
In general, the R9 series graphics cards are the best GPU choices for ether mining. But the answer is somewhat more complicated.
What exactly do you need? Low cost per unit of power? Low present value of the entire set? Best performance per unit of electricity? Low energy and cooling costs per unit of power?
The choice and cost of equipment depend on the answers to these questions.
- If you are worried about the ratio of electricity to a unit of power, in this regard, the R9 Nano video card will be the most profitable.
- For the best power per unit of electricity, choose the R9 Fury X.
- If low cost is important, the R9 290 is a good choice.
- If you are looking at the AMD HD series, the 7990 offers the best performance as it is essentially 2 GPUs in one package. It is difficult to find something better than this model in the series.
You don’t need a motherboard or high-power processor to mine ether on a video card. AMD chips use more power than their Intel counterparts. But AMD models are cheaper than their Intel counterparts.
In total, a set of mining equipment should consist of:
- x Video chips
- Hard disk
- Power supply
- PC cases
- PCI buses if you want to fit more processors on the motherboard than the default
- Operating system – Windows or Linux.
If you do not have sufficient knowledge or technical skills, a logical question arises: how, in this case, to mine ether, is there a workaround? After all, mining from a video card is rather the prerogative of “geeks” who are well versed in the hardware of a PC, can choose a suitable configuration and set everything up. Indeed, there is another way – cloud mining.
Using such services, you can earn this cryptocurrency without material investments, without additional settings and other difficulties. We have collected some of the most reliable Ethereum cloud mining services.
The organization experimented a lot, and in 2016 presented support for Ethash, its own calculation algorithm for Ethereum. There are only 3 contracts to date: 1M hash/sec, 25, and 100 MH / sec, each offered at a fixed price of $ 37 per MH / sec. To start earning, you need to register on the Genesis Mining website, and in the account select the amount of productivity that the user wants to purchase. In addition, you can first make a choice of a contract, and then register.
In the control panel, you will see sliders with which you can quickly change the available power and distribute it to several different cryptocurrencies. This is a great option for every user who wants to mine not one ether, but several crypto coins at once. But now we are looking at Ethereum. Therefore, we choose Ethash, set the slider to the maximum, so that all the purchased performance is aimed at mining this coin. Within a day, the user will be able to receive a starting profit. Remember, your account settings must contain your Ethereum wallet address where funds will be credited. But even if the user forgets to enter the necessary data, money will be accumulated on the account until the wallet address is entered in a special field.
Take responsibility for the security of your mining account. To improve your account security, we recommend using Google Authenticator. This program in Android and iOS gadgets is designed for two-factor authentication. The service is free and can be downloaded from the respective stores.
This team has been dealing with cryptocurrencies since the inception of Bitcoin and has been working with mining for 3 years. The goal of the company is to make mining easy for everyone, regardless of age, amount invested, experience and skills. The Hashflair Data Center is modern, full of high technologies, and was designed directly for the operation of mining equipment.
All rooms maintain a specific microclimate set by industry standards. Thanks to this, the organization is engaged in round-the-clock production at the highest productivity, without facing the problem of overheating and equipment failures. HashFlare contracts for the production of Ether cost $ 42.5 per MH / sec, there are many packages in increments of 100 KH / sec. The cost is slightly higher than that of Genesis Mining, but as a result, the proposed contracts are more affordable for customers, since you can buy small capacities, try, test, etc.
This service combines the ability to buy computing resources in the cloud, a trading platform, and options for depositing BTC. As a user of OHVTS, you have the opportunity to buy, change cloud capacities, invest in bitcoin, getting the highest efficiency.
OHVTS as a cryptocurrency mining service traces its history back to 2014, its creators are Chinese investors. Several contracts are now being offered at a cost of 0.08 BTC per MHash / sec. OHVTS can be a great, profitable option if you already work with bitcoins and decide to try mining ether as a side income. In addition, after earning a certain amount of crypto coins, you can immediately sell them on the exchange with the same name.
There is currently no specialized equipment for ether mining. At home, mining takes place on ordinary video cards – however, on the most powerful ones. Now it makes no economic sense to mine ether on your own, alone, so even if you want to try mining with your own hands, you need to choose a pool. This is an association of miners, each of whom contributes to the common cause with their power. Then the earned crypto coins are distributed among the pool members depending on their share.
For ether mining, experts recommend choosing an AMD HD 7990 or R9 series graphics card. Which model to choose depends on your budget and specific mining requirements. If you do not want to immediately invest funds, deal with the hardware part of cryptocurrency mining, set up a PC, and do many more things that you need to be well versed in, there is a way out – cloud services. There you pay funds for rent or purchase of power on real mining farms, and get your profit. In fact, you are investing in a mining project and have your dividends every day.
Which opportunity to use – the choice is yours.