In elementary term, Ethereum is an open software platform, which is based on the blockchain technology that helps developers building and deploying decentralized applications.
Similar to Bitcoin, Ethereum is a distributed public blockchain network. Of course, there are some major technical differences, but the most important one is that they differ substantially in purpose as well as capability.
Bitcoin offers one application – a peer-to-peer electronic cash system that helps with bitcoin payments.
The Ethereum blockchain can support many different sort of decentralized applications.
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So, How Do You Get Ethereum (Ether)?
There are some different ways to earn Ethereum,, but the two most common ones include, cryptocurrency exchanges and mining.
In this guide, we are going focused on discussing getting Ether through mining.
Mining is what originates from the gold analogy of the cryptocurrency sphere. In a layman term, cryptocurrency mining is the process of solving complex mathematical problems.
Those who do mining are called miners, the people who spend time and energy in solving these complex math problems.
They provide solution to the issuers, who then verify it and reward the miners with a block of Ether.
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Mining Sounds Simple. Should You Start Now?
Hold on a minute.
Before you start, there are quite some things you have to bear in your mind. They are,
A hash is nothing but a mathematical puzzle that a miner needs to find the answer for. The rate is at which the miner solves these problems.
As the number of miners joining the Ethereum network goes up, the computers available for mining also get better and offer a higher hashrate.
2. Mining difficulty
This is a measure of how difficult it is to find a perfect solution to the mathematical problem.
The Ethereum network is perfectly designed to produce a constant number of coins every few minutes.
Since the Hashrate of the computers increases, the mathematical problems too gets more and more difficult to solve.
Thus, as more miners join the Ethereum network, the harder it gets to solve the problems, increasing the difficulty in mining.
Now, since very powerful computers are running for solving these complex mathematical puzzles, a high amount of power is imperative to support these machines and their calculations.
In this way, the cost of electricity should be factored in when calculating the return on your mining investment.
In a nutshell, huge number of miners join the network daily as the price of Ethereum rises. Many miners means a higher hashrate, but the mathematical puzzle becomes more difficult.
And in case a computer consumes more time completing one calculation and getting one block of Ether, then there’s even more electricity consumed.
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How Many Ether Can You Mine Per Day?
In addition to these factors, how many Ethereum can you mine is decided. You should even incorporate the cost of the device and the maintenance expenses at the time of calculating the ROI.
You are using a mining rig that has the hashrate of 100 MH/s, using the power of 760 Watts. Your power cost is, let assume, $0.10 per kWh.
According to the current difficult level of Ethereum, which is 2418530528083430 and generates a block reward 3.00000000, you can mine 0.01071725 daily.
That is it for today!
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