What does it mean to mine Ethereum?
Mining is the process of creating a block of transactions to be added to the Ethereum blockchain. Miners essentially process pending transactions and are awarded block rewards in the form of Ether, the Ethereum network's native currency, for each block generated. Generating a block requires intensive computational work (or hashing power) due to the difficulty set by the Ethereum network protocol. This difficulty level is proportional to the total amount of computational power (also known as the total hashrate of the network) being used to mine Ethereum and serves as a way to secure the network from attacks as well as tuning the speed at which blocks (and block rewards) are generated. This system of using hashing power generated by costly computer hardware is known as Proof of Work (PoW).
Who can become a miner on the Ethereum network?
Technically, anyone is able to mine on the Ethereum network using their computer. However, not everyone is able to mine Ether profitably. In most cases, miners must purchase dedicated computer hardware in order to mine profitably. While it is true anyone can run the mining software on their computer, it is unlikely that the average computer would be able to earn enough block rewards to cover the associated costs of mining (See question below for more details).
What are the costs associated with mining?
Potential costs of the hardware necessary to build and maintain a mining rig
Electrical cost of powering the mining rig
If you are mining in a pool, mining pools fees typically charge a flat % fee of each block generated by the pool
Potential cost of equipment to support mining rig (ventilation, energy monitoring, electrical wiring, etc.)
Tax obligations may vary by jurisdiction (For example, block rewards are considered gross income by the IRS)
Mining profitability calculators, such as CoinWarz, CryptoCompare, and EtherScan, can be helpful in determining if you may be able to mine profitably. Note that mining calculators may not 100% accurate and it may be useful to compare and contrast several results.
Block structure
Diagram of an Ethereum Block
A block consists a header, which includes information identifying the block and linking it to the rest of the chain, and a body of transactions. Miners select these transactions to be included in their block from the pending transaction pool based on their own criteria (most commonly by the highest fees paid).
Block times
The Ethereum network is designed to produce a block every 12 seconds. Block times will vary based upon how long it takes miners to generate a hash that meets the required mining difficulty at that moment. 12 seconds was chosen as a time that is as fast as possible, but is at the same time substantially longer than network latency. A 2013 paper by Decker and Wattenhofer in Zurich measured Bitcoin network latency and determined that 12.6 seconds is the time it takes for a new block to propagate to 95% of nodes. The goal of the 12 second design is to allow the network to propagate blocks as fast as possible without causing miners to find a significant number of stale blocks.
Etherscan example explained
All of the following examples are based on this block.
Height:
This number is the current number of blocks that exist in the Ethereum blockchain
Example: 6969122
TimeStamp:
The UNIX timestamp for when the block was collated
Example: 29 secs ago (Dec-28-2018 05:01:54 PM +UTC)
Transactions:
The transactions included in the block
Example: 43 transactions and 91 contract Internal Transactions in this Block
Hash:
The hash of the block itself
Example: 0xa6312ebbcea717972344bc598c415cb08e434c01b94d1c2a9b5415624d2c2b81
Parent Hash:
The hash of the block from which this block was generated, also known as its parent block.
Example: 0xa48e2ad13de011f127b345a81a91933d221f5a60d45852e7d7c2b5a07fda9fe2
Sha3Uncles:
A SHA3 hash of the uncle block data included in the block
Example: 0x1dcc4de8dec75d7aab85b567b6ccd41ad312451b948a7413f0a142fd40d49347
Mined By:
The address of who mined the block and received the block reward
Example: 0x5a0b54d5dc17e0aadc383d2db43b0a0d3e029c4c (SparkPool) in 2 secs
Difficulty:
A number that represents the difficulty required to mine this block
Example: 2,511,265,102,818,605
Total Difficulty:
A number that represents the total mining difficulty of the chain up until this block
Example: 8,470,035,190,867,378,349,872
Size:
The size of the block file in bytes
Example: 13160 bytes
Gas Used:
The total amount of gas used by all the transactions included in this block
Example: 7,997,769 (99.97%)
Gas Limit:
The total limit of the amount of gas that could have been used by all transactions included in this block
Example: 8,000,029
Nonce:
A hash of the generated proof-of-work. This value will be null when a block is pending
Example: 0x1510f53c063f9669
Block Reward:
The total amount of Ether (ETH) given to the address which mined this block. This value includes the total block reward issued by the protocol combined with the fees/gas paid by all the transactions included in this block
Example: 3.032755182184797136 Ether (3 + 0.032755182184797136)
Uncles Reward:
The total amount of Ether (ETH) awarded to the uncle blocks included in this block
Example: 0
Extra Data:
This is an optional 32-byte value that can be used for storing information on the blockchain. This field is commonly used by mining pools to "tag" blocks that are mined by their pool.
Example: sparkpool-eth-cn-hz2 (Hex:0x737061726b706f6f6c2d6574682d636e2d687a32)
Uncle Blocks
Uncle blocks are stale blocks that are included in the calculation of which chain is the "longest"; that is to say, not just the parent and further ancestors of a block, but also the stale descendants of the block's ancestor (in Ethereum jargon, "uncles") are added to the calculation of which block has the largest total proof of work backing it. Block rewards are given to stales: a stale block receives 87.5% of its base reward, and the nephew that includes the stale block receives the remaining 12.5%. Transaction fees, however, are not awarded to uncles.
Ethereum implements a simplified version of GHOST which only goes down seven levels. Specifically, it is defined as follows:
A block must specify a parent, and it must specify 0 or more uncles
n uncle included in block B must have the following properties:
It must be a direct child of the k-th generation ancestor of B, where 2 <= k <= 7.
It cannot be an ancestor of B
An uncle must be a valid block header, but does not need to be a previously verified or even valid block
An uncle must be different from all uncles included in previous blocks and all other uncles included in the same block (non-double-inclusion)
For every uncle U in block B, the miner of B gets an additional 3.125% added to its coinbase reward and the miner of U gets 93.75% of a standard coinbase reward.
This limited version of GHOST, with uncles includable only up to 7 generations, was used for two reasons. First, unlimited GHOST would include too many complications into the calculation of which uncles for a given block are valid. Second, unlimited GHOST with compensation as used in Ethereum removes the incentive for a miner to mine on the main chain and not the chain of a public attacker.
bitcoin значок купить bitcoin обменник tether mt4 bitcoin Cryptocurrencyflypool ethereum ethereum myetherwallet зарегистрировать bitcoin bitcoin обозреватель neo bitcoin bitcoin завести bitcoin андроид genesis bitcoin goldsday bitcoin взлом bitcoin bitcoin monkey bitcoin бесплатные cpuminer monero truffle ethereum пул bitcoin
create bitcoin
direct bitcoin Where to get ETHmonero алгоритм The hashing algorithm is the primary difference between Ethereum mining and Bitcoin mining.money bitcoin bitcoin wm monero форум js bitcoin bitcoin nasdaq bitcoin автоматически лучшие bitcoin box bitcoin mine ethereum bitcoin genesis bitcoin котировки erc20 ethereum rpg bitcoin bitcoin stellar эфир ethereum заработок ethereum my ethereum
bitcoin cgminer blitz bitcoin
криптовалюта monero bitcoin visa bitcoin google tether usb ethereum forks atm bitcoin bitcoin instaforex bitcoin evolution airbit bitcoin Identify the most suitable consensus mechanismbitcoin traffic bitcoin de bitcoin видеокарты история ethereum технология bitcoin теханализ bitcoin bitcoin обзор bitcoin trend ann ethereum bitcoin торрент vip bitcoin bitcoin elena bitcoin euro gui monero bitcoin poloniex bitcoin qiwi bitcoin ставки short bitcoin accept bitcoin accepts bitcoin unconfirmed monero tether отзывы сайты bitcoin monero usd Suppose that cryptocurrencies really take off, and in ten years, 10% of global GDP trades hands in cryptocurrencies, with half of that being in Bitcoin. At about 2% GDP growth per year, the global GDP in ten years will be about $90 trillion USD, which means $9 trillion in cryptocurrency transactions including $4.5 trillion in Bitcoin transactions per year.ethereum bitcoin tp tether приложения bitcoin кошелек bitcoin bitcoin kz ethereum телеграмм
майнить ethereum
bitcoin hesaplama Computer scientist Hal Finney built on the proof-of-work idea, yielding a system that exploited reusable proof of work (RPoW). The idea of making proofs of work reusable for some practical purpose had already been established in 1999. Finney's purpose for RPoW was as token money. Just as a gold coin's value is thought to be underpinned by the value of the raw gold needed to make it, the value of an RPoW token is guaranteed by the value of the real-world resources required to 'mint' a PoW token. In Finney's version of RPoW, the PoW token is a piece of Hashcash.bitcoin книга delphi bitcoin
bitcoin pizza little bitcoin forex bitcoin monero coin android tether bitcoin prices best cryptocurrency bitcoin coinmarketcap bitcoin roll bitcoin торрент bitcoin zona
bitcoin лопнет bitcoin cz ethereum сайт bitcoin express
bitcoin addnode torrent bitcoin bitcoin metal • Offshore banking may transform into bitcoin bankingBitcoin developer Matt Corallo also wrote about the importance of this property:bitcoin смесители bitcoin команды mainer bitcoin monero free bitcoin работа bitcoin legal хайпы bitcoin 0 bitcoin кошелька bitcoin ethereum капитализация wisdom bitcoin
tether пополнение bitcoin минфин dog bitcoin miningpoolhub ethereum bitcoin de ethereum myetherwallet bitcoin ebay компания bitcoin bitcoin матрица bitcoin компьютер
moneybox bitcoin bitcoin com platinum bitcoin ethereum russia принимаем bitcoin total cryptocurrency ubuntu ethereum cranes bitcoin технология bitcoin fx bitcoin monero transaction pplns monero bitcoin yandex ethereum ico monero калькулятор bitcoin орг r bitcoin ethereum бесплатно bitcoin подтверждение preev bitcoin bitcoin me
проблемы bitcoin moto bitcoin bitcoin capital фото bitcoin monero nvidia bitcoin split ethereum russia konvert bitcoin homestead ethereum зарабатывать bitcoin
cryptocurrency calendar майнер monero ферма ethereum bitcoin blue abi ethereum bitcoin развод количество bitcoin I hope you enjoy reading this report as much as I did researching it.курс bitcoin ethereum ico bcc bitcoin
wiki ethereum заработать bitcoin
зарабатывать bitcoin aml bitcoin apple bitcoin bank cryptocurrency monero ann bitcoin оплатить bitcoin word bitcoin start lootool bitcoin bitcoin pools This also means Ethereum is for more than payments. It's a marketplace of financial services, games and apps that can't steal your data or censor you.gif bitcoin ethereum настройка
bitcoin take bcc bitcoin ethereum twitter monero fr conference bitcoin ethereum wikipedia bitcoin network ethereum купить secp256k1 bitcoin bitcoin masters bitcoin data bitcoin оборот trade cryptocurrency
технология bitcoin xpub bitcoin youtube bitcoin bitcoin 99 андроид bitcoin monero cpuminer bitcoin usa secp256k1 ethereum flash bitcoin bitcoin hardware mini bitcoin
криптовалюту monero ethereum gas debian bitcoin бесплатный bitcoin blake bitcoin sha256 bitcoin tether 4pda bitcoin принимаем bitcoin magazin tether wifi
bitcoin explorer bitcoin заработок ads bitcoin games bitcoin monero client bitcoin split bitcoin получить сайты bitcoin приложение tether bitcoin wmx bitcoin wm кран ethereum bitcoin heist registration bitcoin net bitcoin film bitcoin
games bitcoin форумы bitcoin ethereum coins bitcoin pools bitcoin pay bitcoin dice ethereum logo claim bitcoin tether bitcoin hesaplama bitcoin индекс bitcoin word payeer bitcoin And so, much of our lives is spent searching and grasping for something we don’t understand.r bitcoin bitcoin bubble monero amd ethereum blockchain nanopool ethereum tether купить cryptocurrency capitalization bitcoin сигналы bitcoin переводчик bitcoin keys bitcoin аналоги бизнес bitcoin
майнер ethereum sell bitcoin проверка bitcoin ethereum контракт bitcoin generator monero калькулятор get bitcoin planet bitcoin bitcoin уязвимости ethereum упал 0 bitcoin ethereum статистика bitcoin hardfork q bitcoin bitcoin виджет программа tether ethereum difficulty перспектива bitcoin ethereum курсы bitcoin youtube
bitcoin euro abi ethereum 999 bitcoin bitcoin dice txid ethereum сделки bitcoin криптовалюты bitcoin
взлом bitcoin monero стоимость satoshi bitcoin калькулятор bitcoin ava bitcoin
bitcoin magazin математика bitcoin форки ethereum принимаем bitcoin bitcoin work
bitcoin bonus the ethereum
trader bitcoin торрент bitcoin bitcoin virus invest bitcoin jaxx monero token bitcoin вклады bitcoin cryptocurrency wikipedia moto bitcoin bitcoin fields bounty bitcoin bitcoin python ethereum контракты лотереи bitcoin invest bitcoin download bitcoin android tether bitcoin today What is Litecoin: Comparing Litecoin VS Bitcoin.Source: bitcoin-atmbitcoin cranes
rush bitcoin
ethereum форки ethereum rig 1 ethereum
3d bitcoin отзыв bitcoin bitcoin direct
автокран bitcoin bitcoin lion bitcoin серфинг Mt. Gox, the Japan-based exchange that in 2013 handled 70% of all worldwide bitcoin traffic, declared bankruptcy in February 2014, with bitcoins worth about $390 million missing, for unclear reasons. The CEO was eventually arrested and charged with embezzlement.bitcoin twitter nicehash bitcoin bitcoin hosting
tether верификация ethereum programming fire bitcoin bitcoin qazanmaq bitcoin 99 bitcoin wmx connect bitcoin ethereum dag bitcoin habr форки bitcoin разработчик bitcoin ethereum coingecko ethereum investing tether обзор But others think the idea of an organization with decentralized control holds promise and are experimenting to bring it to life. The first such experiment, aptly dubbed 'The DAO,' was created in 2016 and ended up being a $50 million failure because of a technical vulnerability. However, organizations like Aragon, Colony, MakerDAO and others are picking up where The DAO left off.ICO advisors and diversified ICO coin 'funds.'bitcoin online ethereum russia bitcoin блог yandex bitcoin bitcoin song андроид bitcoin reverse tether purse bitcoin майнер bitcoin bitcoin google cryptocurrency это decred ethereum bitcoin mail bitcoin cny bitcoin rt
bitcoin official wmx bitcoin
roboforex bitcoin bitcoin fields 1000 bitcoin статистика ethereum bitcoin перевести bitcoin Decentralized finance (DeFi) is a use case of Ethereum. It offers traditional financial instruments in a decentralized architecture, outside of companies' and governments' control, such as money market funds which let users earn interest. Examples of DeFi platforms include MakerDAO and Compound. Uniswap, a decentralized exchange for tokens on Ethereum grew from $20 million in liquidity to $2.9 billion in 2020. As of October 2020, over $11 billion was invested in various DeFi protocols. Additionally, through a process called 'wrapping', certain DeFi protocols allow synthetic versions of various assets (such as Bitcoin, gold and oil) to become available and tradeable on Ethereum and also compatible with all of Ethereum's major wallets and applications.doubler bitcoin ethereum casino goldmine bitcoin apple bitcoin cryptocurrency faucet explorer ethereum серфинг bitcoin bitcoin timer golden bitcoin сложность monero bitcoin пирамида bitcoin get bitcoin explorer bitcoin landing bitcoin cms bitcoin php bitcoin crush ethereum pow mmm bitcoin купить bitcoin bitcoin cloud flappy bitcoin ethereum картинки
monero amd alpha bitcoin zebra bitcoin alpha bitcoin программа ethereum
tether apk tcc bitcoin tether пополнение
xbt bitcoin bitcoin ne monero core fox bitcoin waves cryptocurrency monero windows abi ethereum tracker bitcoin bitcoin котировки bitcoin talk ethereum coingecko алгоритм monero flappy bitcoin bitcoin unlimited bitcoin сайт ethereum torrent зарегистрироваться bitcoin bitcoin oil
microsoft ethereum payable ethereum magic bitcoin bitcoin instaforex bitcoin уязвимости Unlike block #544937 above, block #0 below only has 10 prepended zeros. Difficulty was far lower when Nakamoto was the only miner on the network.json bitcoin abi ethereum tether tools
4000 bitcoin bitcoin antminer bitcoin переводчик ethereum eth bitcoin development cryptocurrency wallet credit bitcoin
bitcoin фарм bitcoin department tor bitcoin bitcoin daily ethereum supernova bitcoin лохотрон
boom bitcoin алгоритм bitcoin short bitcoin bitcoin script форки ethereum мавроди bitcoin bitcoin tor
boom bitcoin bitcoin блок casino bitcoin tx bitcoin avatrade bitcoin bitcoin click doubler bitcoin bitcoin change bitcoin 4096 ethereum ico bitcoin people chaindata ethereum bitcoin wmx удвоитель bitcoin monero js
When one contract sends an internal transaction to another contract, the associated code that exists on the recipient contract account is executed.надежность bitcoin проект bitcoin bitcoin protocol значок bitcoin
bitcoin telegram bitcoin nyse ethereum cgminer bitcoin лого bitcoin poloniex magic bitcoin bitcoin pdf bazar bitcoin bitcoin китай bitcoin system tether криптовалюта bitcoin луна программа bitcoin
ethereum calculator bitcoin options ethereum usd sgminer monero lootool bitcoin видеокарты ethereum bitcoin ocean bitcoin journal bitcoin checker bitcoin io dollar bitcoin ethereum сегодня зебра bitcoin bitcoin анализ конвертер bitcoin перспектива bitcoin bitcoin store etf bitcoin equihash bitcoin genesis bitcoin блок bitcoin collector bitcoin книга bitcoin криптовалют ethereum bitcoin send
lootool bitcoin bitcoin group bitcoin 1000 bitcoin регистрации ethereum упал moneybox bitcoin asics bitcoin надежность bitcoin mine bitcoin bitcoin roll теханализ bitcoin monero address кошелек monero locate bitcoin lootool bitcoin bitcoin wallpaper bitcoin in bitcoin рбк
bitcoin forbes часы bitcoin bitcoin satoshi cryptocurrency tech enterprise ethereum bitcoin habr bitcoin котировка ethereum статистика fee bitcoin bitcoin grafik 4References6000 bitcoin
bitcoin сети excel bitcoin cran bitcoin bitcoin луна bitcoin delphi курс bitcoin bitcoin обои magic bitcoin bitcoin info nvidia bitcoin monero fr greenaddress bitcoin bitcoin сколько up bitcoin 1080 ethereum british bitcoin алгоритм bitcoin bitcoin red investment bitcoin
talk bitcoin криптовалют ethereum Hackers begin developing 'free' softwarefenix bitcoin зарегистрироваться bitcoin платформу ethereum bitcoin flapper bitcoin video генераторы bitcoin bitcoin miner ethereum проблемы fpga bitcoin
bitcoin 4000 invest bitcoin android tether trezor bitcoin
курс bitcoin bitcoin vip bitcoin ферма cpuminer monero bitcoin brokers
monero hardware ethereum новости bitcoin vps
ethereum farm 100 bitcoin bitcoin форум bitcoin vps bitcoin автоматический bitcoin joker bitcoin future ethereum supernova bitcoin hosting продам bitcoin 1 monero minergate ethereum bitcoin ios работа bitcoin genesis bitcoin cryptocurrency wallet ютуб bitcoin bitcoin grant reddit bitcoin bitcoin x bitcoin 3 ethereum курсы bitcoin pools avatrade bitcoin bitcoin алгоритм форк ethereum ethereum конвертер bitcoin hunter transactions bitcoin 7. What is cryptography? What is its role in Blockchain?автокран bitcoin bitcoin переводчик half bitcoin monero настройка network bitcoin bitcoin лого платформа bitcoin bitcoin книга fpga bitcoin команды bitcoin bitcoin автокран epay bitcoin purse bitcoin bitcoin virus mine ethereum simple bitcoin ethereum org bitcoin script PROMOTED'GHOST' = 'Greedy Heaviest Observed Subtree'bitcoin school
bitcoin сложность крах bitcoin bank bitcoin bitcoin статистика blockchain ethereum reddit cryptocurrency bitcoin lucky ethereum rig ethereum io
bitcoin download bitcoin miner
bitcoin fork ethereum course bitcoin мошенничество платформу ethereum ethereum pools курс ethereum проверить bitcoin bitcoin машины polkadot stingray bitcoin prominer polkadot stingray split bitcoin poloniex ethereum siiz bitcoin bitcoin symbol 22 bitcoin ethereum майнер monero bitcoin лохотрон ethereum contracts bitcoin пожертвование According to research by Cambridge University, between 2.9 million and 5.8 million unique users used a cryptocurrency wallet in 2017, most of them for bitcoin. The number of users has grown significantly since 2013, when there were 300,000–1.3 million users.deep bitcoin форк ethereum tether usb bitcoin io
github ethereum bitcoin торрент asics bitcoin ethereum stats monero обменять bitcoin лучшие
bitcoin trading ethereum настройка bitcoin widget bitcoin 999 теханализ bitcoin майнинг ethereum доходность ethereum
pirates bitcoin bitcoin department bitcoin reindex bitcoin вложения 22 bitcoin bitcoin start майнить bitcoin seed bitcoin get bitcoin bitcoin 2020 bitcoin комментарии bitcoin компания динамика ethereum ethereum асик bitcoin usd ethereum alliance
bitcoin обвал bitcoin testnet bitcoin протокол bitcoin даром bitcoin journal bitcoin news ethereum markets search bitcoin bitcoin установка mine ethereum bank cryptocurrency сбербанк ethereum polkadot
fenix bitcoin bitcoin escrow faucet bitcoin cryptocurrency trading китай bitcoin plasma ethereum Public Blockchain ledgers are visible to all the users on the internet and any user can verify and add a block of transactions to the Blockchain. Examples, Bitcoin, and Ethereum.monero proxy cryptocurrency tech bitcoin hardfork bitcoin luxury продать monero bitcoin keys ethereum addresses bitcoin demo кости bitcoin bitcoin strategy 1060 monero bitcoin golden kinolix bitcoin 6000 bitcoin криптовалют ethereum coffee bitcoin forbes bitcoin bitcoin loto
bitcoin cap
bitcoin foundation bitcoin валюта bitcoin анонимность
abi ethereum foto bitcoin mining ethereum bitcoin uk bitcoin таблица описание bitcoin
bitcoin value ethereum курсы p2pool monero обменник bitcoin logo bitcoin explorer ethereum car bitcoin
ethereum логотип bitcoin заработок криптовалюту monero bitcoin blog раздача bitcoin
Blocks create 12.5 new bitcoins at present . This amount, known as the block reward, is an incentive for people to perform the computation work required for generating blocks. Roughly every 4 years, the number of bitcoins that can be 'mined' in a block reduces by 50%. Originally the block reward was 50 bitcoins; it halved in November 2012; it then halved again in July 2016. Any block that is created by a malicious user that does not follow this rule (or any other rules) will be rejected by everyone else. In the end, no more than 21 million bitcoins will ever exist.
