Ethereum is an open source, blockchain based distributed computing platform. It supports the modified version of Satoshi Nakamotos consensus via transaction based state transitions. With the term Ether it refers to the cryptocurrency that is generated in the Ethereum platform. Ether is a cryptocurrency whose blockchain is generated by Ethereum platform. Ether can be transferred between the accounts. Ethereum was developed by Vitalik Buterin in late 2013.
Vitalik Buterin is a cryptocurrency programmer and researcher. Ethereum cryptocurrency system went live on 30th July 2015 with 12 million coins premined. Ethereum cryptocurrency grew over 13000 percent in 2017 which is extraordinary growth rate within a span of two years. In 2016 Ethereum was split into two separate blockchains. The original continued version was Ethereum Classic (ETC) and the new separated version became Ethereum (ETH).
Ethereum vs Bitcoin
Ethereum and Bitcoin both are Cryptocurrencies but Bitcoin is currently dominating the market. But many people see that Ethereum has the potential to overtake Bitcoin in the coin market. Ethereum’s coin value is referred to as “Ether”. So what’s the major difference between them? The fact is that Ethereum has different technology as compared to Bitcoin.
The major difference is that Bitcoin is just a currency not more than that, whereas Ethereum is a ledger technology which companies are using to build new programs. Both Ethereum and Bitcoin run on Blockchain technology, however Ethereum is termed as the advanced version of Bitcoin technologically.
To perform mining in an Ethereum platform miners have to solve a cryptographic puzzle which leads them to win an Ether. Even miners have to try a huge numbers of computational problems until one unlocks a new batch of asset. Mining on major public blockchains require more and more power so miners invest in most powerful hardware.
Now a days mining with low power hardware will lead you failure but a miner can gain experience on this mining platform. The mining hardware involves the CPU’s and GPU’s. The GPU’s will increase the hash rate which means they can guess answers for the puzzle easily. GPU’s are now the only option for miners looking for Ether. Settling the GPU is a complex task though it is profitable in terms of hash rate generation.
The miners can set up a mining rig which is composed of multiple GPU’s to mine Ether. It will take around a week of time to build the setup. After settling up the hardware the next step is to install a mining software. After selecting a mining software miners need to install client to connect to the network. Programmers familiar with command line can install “Geth” which is available for Windows, Mac OS and Linux.
Once done with Geth, miners can download Ethminer which is a mining software. Ethminer is available in windows and for detailed information about installations miners can visit Ethereum website. If you are alone and looking for a team to mine Ether you can join mining pool. A group of miners solve the puzzle to get Ether as reward. Be a part of mining pool mine an Ether and divide the profits according to the power each miner has contributed.
Before investing a huge amount of money in buying hardware and software for mining Ether. The user can mine”Test” Ether on his own private network just as an experiment. Mining on a test network doesn’t require any hardware setup. Just a personal computer with client installed that’s all what it takes.