Ethereum, ethereum wallet you can find at ethereum-wallet.net; these are crucial tools for Ethereum mining. For they are part of the revolution that is taking place in the online sphere. Yup, this is pretty much what I do in my free time. 😉 I’ve compiled a bunch of details for you guys who don’t know anything about cryptos.
At our Inn, you’ll be happy to hear we now have Bitcoin ATMs. It’s a trial and hopefully it goes well. If you want to purchase Bitcoin or ethereum, just head over to Stand Up Inn!
In the recent years, we’ve seen the advent of cryptocurrencies with Bitcoin leading the pack. This is a form of currency that is based on what is called blockchain technology. The idea behind Bitcoin was improved, and thus the birth of Ethereum and thus terms like ether and ethereum wallet in 2015. Before we delve into the mining of Ethereum, let’s take a look at what it is in particular.
What is Ethereum?
Ethereum, in technical jargon, is a peer-to-peer connection of virtual machines, which are in turn used to run distributed applications (Dapps). The applications can be about anything. The whole network is then optimized in a way that it sees to it that all the rules are carried out; rules that execute mechanically when conditions stated in a contract are met. Like Bitcoin, Ethereum also has a public blockchain of its own which is decentralized and cryptographically stores, executes and protects all the contracts in the blockchain.
For all this to be successful, every computer in the network has to have a small virtual machine, so as to be in sync with the Ethereum blockchain. Once it is synchronizes with the blockchain, it then remains available to execute contracts. With the distributed network, there is provision of security, reliability as well as the required computing power; all which are necessary in the carrying out of the designed arrangement.
How to mine Ethereum
On the Ethereum blockchain, ether is the digital currency and with time, it has grown to be the second largest cryptocurrency. While there is the option to buy ether in the open market, other people opt to ‘mine’ it, by use of their computer power, in validating and confirming the transactions executed in the Ethereum blockchain, in what is called proof-of-work (PoW). These ‘miners’ in turn receive blocks of ether. A block is usually expected to be found in every 12 seconds.
Mining for Ether indirectly
This is the easiest way to mine for ether through various cloud mining services. In this, individuals are given the option of buying contracts to enable them mine virtually. When mining, they use the resources of a company such as Genesis Mining. The profitability in mining ether, usually fluctuates, depending on the market price and the difficulty in mining, that is the aggregate mining power that is online.
Mining for Ether directly
One, you have to have an Ethereum wallet. This can be found online in sites such as Ethereum Wallet. The ethereum wallet acts as your virtual ether account and holds all your digital currency. Once you earn, you can send the coins to the ethereum wallet as well as any mining rewards.
Once you set up an ethereum wallet, the next step is to download a program called Geth, which enables your computer to talk with other computers in the Ethereum network. The program also receives info when a block is mined by another computer and also brings your copy of the blockchain up-to-date. The program is usually in command line.
With your ethereum wallet and Geth program, the next step is to download Ethminer, a program that will initiate the mining activity as well as process it. The program is also in command line.
Benefits of Ethereum
A smart contract is simply a program that is written in the high-level programming languages available in Ethereum such as Serpent or Solidity. Once a program is written, it is then enlisted into a special transaction, alongside a small amount of transaction fee. If the transaction goes through or is executed, the program gets stored in the blockchain. A smart contract in an Ethereum wallet blockchain is securely protected by the system. It is also shielded from being taken down by third parties such as monitoring bodies. In fact, it is impossible to do so due to the fact that the system is decentralized, and each transaction has to be verified by every computer in the network.
Decentralized application (Dapp)
In a bid to rule out the involvement of a third party, these apps are responsible for facilitating interactions between users. Anything that happens between users is left among them. These applications are thus responsible for making Ethereum not only more efficient, but also do away any danger to privacy. At Ethereum Wallet, you can start mining for ether by setting up an online ethereum wallet. Pretty useful for a D’App, right? Be sure to grab some Btc and Eth from our ATMs in our Inn!