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As with many other digital currencies, ethereum is also another a blockchain based public open-source computing platform or operating system that operates on a scripting also known as the smart contract. Accounts that operate under the same system can transfer Ether between them. There is also compensation of nodes for any computation that individuals perform.
What Is Ethereum Mining?
While mining in the cryptocurrency world may mean the increase of the volume of the digital currency in question, there is a slight difference when investors use this word on ethereum.
Ethereum mining means any exercise that will see the increase of Ether volume that is in circulation. However, there is more to it. Sometimes, ethereum mining involves the creating, the verifying, the publishing, and the propagating of the blocks that are within the ethereum blockchain.
Benefits of Ethereum, Mining over Any Other Cryptocurrencies
Although many people start to hear ethereum mining in 2015, it is growing fast. Today, ethereum mining is second profitable cryptocurrency mining business after bitcoin that is dominating since its launch in 2007.
There may be many reasons why it is more profitable to mine ethereum to mining any other digital currency. Here are the main benefits that you need to know:
- Compared to other digital currencies such as Bitcoin, Ethereum comes with a higher immunity system. This term refers to the inability of the third party making changes on ethereum’s data.
- Like any most cryptocurrency mining, ethereum utilize apps. The difference is that apps that work with ethereum rarely go down. In fact, ethereum apps don’t fail.
- It is free from fraud and corruption thanks to its censorship inability.
- No limit when it comes to ethereum Megabytes.
- Keep your ETH in Ethreum wallet
- It is possible to use this digital currency for fundraising thanks to its smart contracts.
- Proof of work algorithm that miners use in ethereum mining is hacker-free.
- Mining Ether takes 14 seconds. It takes very long mining other digital currencies. For instance, it takes 4 hours to mine a Bitcoin.
How Top ETH Mining Pools Works
Back in the days, it was not easy to tell how this computing language works. However, with the passage of time, it is becoming softer. Today, ethereum mining is not so different from that of bitcoin mining.
First, there are blocks. For each block, miners do transactions. The aim is for miners to repeatedly and at a fast speed try to find answers to the cryptic puzzle by use of computers. In the end, one miner must find the answer to the cryptic puzzle.
Different miners will use the blocks information, which includes software version as well as timestamp using the hash function. In the event that the miner identifies a harsh, which they will match to the target, then the miner gets the Ether. The information is broadcasted across the computing system of the block to notify the network the miner has the Ether thus add a copy of it to the ledger.
PS1. There is no cheating in this game. It is extremely difficult to cheat. For this reason, the smart system is referred to as ‘proof of work’ smart system.
Upon identifying the answer to the puzzle that matches the target, it takes seconds for others within the system to verify, confirm, publish, and propagate the hash value. This is the work of each node.
The process of identifying the right answer to the puzzle does not take long. Although it is difficult, it takes miners 10 to 15 seconds to solve the puzzle.
PS2. In the event that miners delay or take long to unravel the puzzle, the algorithm comes to their aid. It simply auto adjusts itself thus enabling the lucky miner to ‘proof its work’ within the time limit of 12-15 seconds.
In the end, different ethereum miners earn Ethers depending on their speed, computing power, which boils down to nothing but luck.
After seeing what Ethereum mining is, the benefits of mining ethereum to the investor, detailed information on how ethereum mining works, it is important that we look at some of the top-rated ethereum mining pools. As we embark on this comparison, look at the pros and cons of each ethereum miner. In the end, you’ll make an informed decision on the type of ethereum mining pools you will go for.
Best Ethereum Mining Pools
It is true that mining pools my proof to be a bit tricky if this is your first time to come across the term or to try ethereum mining. Nonetheless, every ethereum ‘expert’ that is alive today was once a novice. Therefore, if it is difficult today, it will not be the same tomorrow or after reading through to the end.
So far, Ethepool, which at times is referred to Ethermine is the leading in all top ethereum mining pools. Many reasons make it the world’s number one. More of it is on the pros section but it is important to point out that Ethermine has a speed of 41.9Ghash per second.
Currently, more than 100,000 miners use Ethermine. It has a service fee of 1 percent. This mining pool comes with many quality features such as a PPLNS remuneration distribution and a minimum payout of 0.05 ETH among other advantages.
- Has a simpler and convenient interface.
- Very accurate reporting of miner statistics and other relevant data in the pool.
- Constant developments.
- Instant payments.
- No registration required.
- Has extremely secure servers scattered in Europe, America, and Australia.
- Secure and stable network.
- You will need to pay an additional 0.001 if you withdraw anything less than 1 ETH.
There is no much difference between this etehreum mining pool and Ethermine. Perhaps, the main difference is that Nanopool supports altcoins.
With it, you can also mine Zcash, Classic, Siacoin, and Monero to name a few. It is true that Ethermine may also be compatible with other altcoins but Nanopool takes the lead in this. Additionally, Nanopool has a hash rate of 44.5 GH per second.
There is a charge of 1 percent fee if you are going to prefer thus use this mining pool to mine ethereum. The goodness though is that you can cash out as low as 0.05 ETH.
Currently, Nanopool has 72,000 registered users.
- It is easy to calculate your profit even if you are not through with the mining.
- Has a super user-friendly interface. You do not have to be a tech-nerd to understand it.
- It is easy to set up this mining pool.
- Comes with a small ‘ball’. This is different from its competitors.
- Users complain of low ping and server lagging.
- Although it sounds strange and unprofessional, the mining pool administration has always reiterated that there will be no compensation of any form in the event that a loss or a technical hitch occurs.
The name ‘dwarf’ may carry the meaning of a short-reaching thing but that is not what Dwarfpool is. For a long time, this ethereum mining pool has been regarded as the market leader.
Like its competitors above, Dwarfpool will charge you a fee for using it. The fee is 1 percent of the amount your block rewards.
Many things make this ethereum mining tool stand out. First, the minimum payout balance is 1.01 ETH. This is not a big deal to many investors.
The second thing is that the pool pays out up to 6 times in a single day. Therefore, depending on how luck Dwarfpool solves the cryptic puzzle, you will cash out severally within 24 hours.
You can choose to join a pool that has a much lower payout amount whenever you like. However, it will be difficult if you are using a powerful mining rig or maybe using a number of ethereum mining pools.
The other thing you’ll love about Dwarfpool is that it supports and mines other altcoins. Some of the digital coins you can mine with Dwarfpool ethereum pool include Expanse, Groestlcoin, Zcash, and Monero to mention a few. Dwarfpool has a hash rate of 8k GH per second.
- It is stable.
- The interface is somewhat friendly to use.
- Ability to mine other altcoins.
- Has a higher payout balance.
- Fairly difficult to set up.
For a long time, f2pool is a mining tool for the Bitcoin. Only a handful of areas such as China are at the forefront of testing this mining pool to execute ethereum. Because of this, there is little information on how it is doing whether good or bad.
Nonetheless, we know that it is also known as the ‘multi-currency digital miner’, meaning it can mine ethereum. But you should beware that it charges a fee of 4 percent. This possibly makes it one of the most expensive ethereum mining pools.
- It is a multi-mining pool.
- It charges a very high PPS fee of 4%.
This is one of the popular ethereum mining pools. Like most of the ethereum mining pools, you can use Suprnova to mine other digital currencies such as Zcash, Litecoin, Moreno, and BitcoinCash among other major cryptocurrencies.
While Suprnova’s interface is easy and clear to operate, you need to register for you to operate on it. Many people praise the mind behind this mining pool saying, “It is a nice tool for investors.” Besides, you only need to have 0.01 ETH for any withdrawal to take place and charges a 1% commission fee for using the pool.
- Withdrawals with this mining pool are automatic.
- Reliable systems.
- You can use it to mine other digital coins.
- Quality services especially from the pool’s support team.
- General good performance.
- There are times the system goes down.
Once you subscribe to the top-tier ethereum mining pools and know each of them works, you won’t go wrong. While these are the top most miners for ethereum and other altcoins, you need to choose the one you feel comfortable to use. In the end, it is the profit that you make matters, not the type of ethereum mining pool.