Ethereum is in the middle of a mining conundrum. Right now it’s a proof-of-work (PoW) crypto, but the main developers are creating a proof-of-stake (PoS) protocol, so Ethereum can transition to a staking system.
But, that transition will take a long time and Ethereum will be a mineable cryptocurrency for at least a few more years. And anyone wanting to mine the second most popular crypto can do so. What’s more, with new protocol updates looking more likely, it seems like Ethereum will become a lot more popular with the mining public.
What Is Mining?
Mining is basically a computer that works alongside thousands of other mining computers, all working to validate transactions on the Ethereum blockchain.
They all hash transactions into a block before competing against each other, when they then try to be the first to solve a cryptographic puzzle in an attempt to win the ETH block reward.
The block reward is 2 ETH for every block added, and each block is added roughly every 12 seconds. All transaction fees and code-processing fees are also rewarded to miners. The transaction fee on Ethereum is known as Gas, but it’s essentially ETH and miners are paid out in ETH.
Ethereum Mining Hardware
Although the Ethereum mining algorithm Ethhash was designed to be ASIC resistant, there are ASIC mining rigs now that mine ETH, and they are more competitive than their GPU counterparts.
An ASICs mining rig is the most powerful computing machine that’s designed especially for mining certain cryptocurrencies. So an ETH ASICs mining rig is designed to mine ETH only.
Read More at Ethereum Nexus