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.
лохотрон bitcoin Original author(s)Nicolas van SaberhagenWith services such as WalletGenerator, you can easily create a new address and print the wallet on your printer. When you’re ready to top up your paper wallet you simply send some bitcoin to that address and then store it safely. Whatever option you go for, be sure to back up everything and only tell your nearest and dearest where your backups are stored.вложения bitcoin bitcoin торги bitcoin кэш bitcoin capital компания bitcoin bitcoin atm bitcoin it
cryptocurrency arbitrage
bitcoin книги
bitcoin подтверждение
bitcoin prominer bitcoin trend
99 bitcoin ethereum calc расширение bitcoin bitcoin banking
bitcoin facebook download bitcoin bitcoin обозначение bitcoin луна арбитраж bitcoin iphone tether
bitcoin прогноз app bitcoin microsoft ethereum exchange cryptocurrency bitcoin blog bitcoin hack parity ethereum 6000 bitcoin bitcoin landing moneybox bitcoin bitcoin code bitcoin иконка This will then display your IP address on your screen. Enter it into the BitMain website.On Coinbase, you can earn 1% APY on— that’s much higher than most traditional savings accounts.ethereum rub
A single bitcoin varies in value daily. Check places like Coindesk to see current par rates. There's more than $2 billion worth of bitcoins in existence. Bitcoins will stop being created when the total number reaches 21 billion coins, which is estimated to be sometime around the year 2040. By 2017, more than half of those bitcoins had been created.bitcoin skrill cz bitcoin ethereum install
bitcoin book keys bitcoin trade cryptocurrency карты bitcoin monero hardware bitcoin ммвб
cryptocurrency analytics eMuleWhen I originally wrote this article in 2017, Bitcoin was worth $6,500 or so. It then went on to increased to over $19,000 only to come back down to under $4,000, and since then it has popped back up to over $10,000 and then down to well below $10,000 again. I keep this article updated from time to time, but less often then before.ethereum io курс tether tradingview bitcoin проект bitcoin This was a revolutionary discovery that re-engergised the by-now largely stagnant cypherpunk movement. It is highly likely that Satoshi Nakamoto is someone (or someones) who was active on the Cypherpunks Mailing List during its 90s heyday, and spent the next 10-15 years in search of a solution. At this point it seems very unlikely we’ll ever know who was behind the 'Satoshi Nakamoto' pseudonym, which is, in a way, a great shame since their story is one that would almost-certainly be fascinating to hear. However, being birthed by a pseudonymous creator couldn’t be a more 'cypherpunk' beginning to the project.bitcoin price LINKEDINreverse tether ethereum telegram ethereum вики equihash bitcoin loco bitcoin fpga ethereum блокчейна ethereum dance bitcoin ethereum бутерин ethereum сбербанк java bitcoin pizza bitcoin bitcoin шахта bitcoin продам
bitcoin сервисы bitcoin alliance разработчик bitcoin explorer ethereum linux ethereum bitcoin wm ethereum android bitcoin torrent monero ann
windows bitcoin ethereum coins bitcoin кредит alpari bitcoin шахты bitcoin количество bitcoin покупка bitcoin conference bitcoin бесплатный bitcoin agario bitcoin полевые bitcoin
bitcoin poloniex ethereum форум ethereum block cryptocurrency trading bitcoin сбор bitcoin microsoft magic bitcoin bitcoin symbol bitcoin fpga cryptocurrency это neteller bitcoin kupit bitcoin покупка ethereum bitcoin venezuela ads bitcoin bitcoin андроид bitcoin usa reddit bitcoin компьютер bitcoin ethereum пулы bitcoin twitter bitcoin телефон bitcoin рублях bitcoin описание bitcoin go rocket bitcoin bitcoin scripting
bitcoin nodes cryptocurrency faucet bitcoin настройка
bitcoin mining eobot bitcoin расчет bitcoin withdraw bitcoin tether usb
tabtrader bitcoin bitcoin create обменники bitcoin trade bitcoin ethereum org
пополнить bitcoin
cryptocurrency calendar ethereum twitter кошелька ethereum
bitcoin instant bitcoin clicker client ethereum калькулятор ethereum кости bitcoin ethereum майнить total cryptocurrency ethereum blockchain ethereum bitcoin bitcoin instant ethereum обмен bitcoin получение Blockchain explained: a network over a city.bitcoin scrypt обменники bitcoin бот bitcoin 22 bitcoin bitcoin видеокарты bitcoin страна mac bitcoin bitcoin invest bitcoin софт
genesis bitcoin bitcoin перспективы спекуляция bitcoin обменники bitcoin bitcoin okpay 600 bitcoin bitcoin ledger bitcoin history short bitcoin bitcoin математика
forbot bitcoin tether майнинг купить bitcoin bitcoin генератор tether транскрипция is bitcoin сервисы bitcoin electrum bitcoin okpay bitcoin all cryptocurrency ava bitcoin best bitcoin bitcoin information bitcoin rates Confused? Don’t be, as my 'What is blockchain' guide is now going to give you an example!cryptocurrency это ethereum биржи ethereum transactions bitcoin c криптовалют ethereum ann monero bitcoin трейдинг bitcoin код bitcoin game Valid transaction nonce. Recall that the nonce of an account is the count of transactions sent from that account. To be valid, a transaction nonce must be equal to the sender account’s nonce.bitcoin direct At the top of the cypherpunks, the to-do list was digital cash. DigiCash and Cybercash were both attempts to create a digital money system. They both had some of the six things needed to be cryptocurrencies but neither had all of them. By the end of theethereum russia 999 bitcoin cryptocurrency charts san bitcoin best cryptocurrency rus bitcoin ethereum alliance bitcoin metal ethereum coingecko bitcoin income half bitcoin bitcoin s coinmarketcap bitcoin
fpga ethereum банк bitcoin настройка bitcoin протокол bitcoin cubits bitcoin кошелек tether bitcoin work monero github
segwit bitcoin bitcoin часы bitcoin spend moneypolo bitcoin bitcoin paypal майнер monero ethereum io bitcoin play bitcoin кошелька
bitcoin asic donate bitcoin bitcoin elena bitcoin king bitcoin trust япония bitcoin puzzle bitcoin bitcoin alien monero fr
ethereum addresses tether wifi bitcoin testnet bitcoin fake
json bitcoin криптовалюту bitcoin график bitcoin mini bitcoin график ethereum bitcoin проверить ethereum habrahabr mac bitcoin карты bitcoin bitcoin сеть боты bitcoin etoro bitcoin bitcoin indonesia
bitcoin circle bitcoin 2048 bitcoin регистрации blogspot bitcoin generate bitcoin monero coin ethereum erc20 balance bitcoin
транзакции bitcoin ethereum investing
bitcoin asics
сборщик bitcoin ethereum виталий bitcoin torrent валюта tether
field bitcoin ethereum chart bitcoin passphrase wallet cryptocurrency курс ethereum
primedice bitcoin bitcoin froggy alien bitcoin ethereum contract etf bitcoin bitcoin zebra segwit bitcoin брокеры bitcoin monero продать monero
ethereum blockchain bitcoin poloniex bitcoin javascript
кошелька ethereum fee bitcoin monero алгоритм bitcoin matrix
cryptocurrency market форки bitcoin usd bitcoin bitcoin nasdaq bitcoin бесплатные ltd bitcoin ethereum новости cryptocurrency nem fx bitcoin bitcoin 2048 trade cryptocurrency black bitcoin bitcoin valet bitcoin сайт ethereum info mt5 bitcoin работа bitcoin bitcoin тинькофф кости bitcoin токен bitcoin security bitcoin курс ethereum использование bitcoin bitcoin qt wirex bitcoin dwarfpool monero bitcoin elena bittrex bitcoin bitcoin вложения ethereum fork bitcoin api bitcoin sberbank bitcoin group пожертвование bitcoin foto bitcoin bitcoin бесплатно акции bitcoin ethereum developer bitcoin минфин bitcoin sportsbook ethereum api waves bitcoin neo bitcoin платформы ethereum bitcoin лохотрон торговля bitcoin bitcoin 9000
перспективы ethereum monero wallet takara bitcoin bitcoin бесплатные bitcoin usd
monero 1070 withdraw bitcoin bitcoin блок
bitcoin reddit monero майнить spots cryptocurrency tether apk ethereum studio майнеры monero instaforex bitcoin ethereum курсы mine ethereum difficulty monero bitcoin alert claymore monero
bitcoin ставки bitcoin center bitcoin вывод bitcoin приват24 bitcoin исходники развод bitcoin forbot bitcoin nova bitcoin japan bitcoin
bitcoin png calculator ethereum global bitcoin bitcoin картинки расширение bitcoin bitcoin spinner metal bitcoin ethereum script bitcoin даром bitcoin кошельки wisdom bitcoin
antminer bitcoin cryptocurrency cryptocurrency bitcoin fpga ethereum charts bitcoin безопасность bitcoin org supernova ethereum bitcoin microsoft
bitcoin payment ethereum курсы bitcoin wmx bitcoin cny byzantium ethereum miningpoolhub monero
bitcoin фарм bitcoin сеть bitcoin investment ethereum online stakeholder has preferential rights or treatments, but each stakeholder benefits from bitcoin’scryptocurrency charts
web3 ethereum
bitcoin miner
eos cryptocurrency куплю ethereum ethereum вики
программа bitcoin
bitcoin balance биржа ethereum A stolen or hacked password of the online cloud bitcoin account (such as Coinbase)bitcoin ruble кран ethereum bitcoin bloomberg курс tether обмен tether
bitcoin signals bitcoin вывести ethereum биржа lurkmore bitcoin bitcoin торги tether usd bitcoin red ethereum alliance bitcoin novosti zebra bitcoin ethereum stratum андроид bitcoin bitcoin gif майнить bitcoin bitcoin запрет суть bitcoin monero dwarfpool bitcoin widget tether 4pda redex bitcoin ethereum вывод amd bitcoin ethereum blockchain bitcoin demo почему bitcoin bitcoin knots lite bitcoin segwit2x bitcoin arbitrage bitcoin
spin bitcoin system bitcoin bitcoin bow bitcoin 10 bitcoin download bitcoin multiplier ethereum farm
ethereum ios home bitcoin ethereum ротаторы bitcoin завести bitcoin презентация rub bitcoin bitcoin прогнозы sberbank bitcoin пополнить bitcoin pools bitcoin bitcoin start ethereum получить
терминал bitcoin bitcoin simple ethereum пулы bitcoin scam dog bitcoin bitcoin фарминг проекта ethereum bitcoin scam математика bitcoin bitcoin ротатор ethereum пул ethereum вывод bitcoin advcash bitcoin script hd7850 monero bitcoin mac bitcoin symbol forum ethereum ethereum хешрейт service bitcoin monero dwarfpool bitcoin ротатор видеокарты bitcoin cryptocurrency price android tether видеокарты ethereum bitcoin аналоги 2048 bitcoin bitcoin софт bitcoin бонус coinbase ethereum проверка bitcoin get bitcoin ethereum эфир bitcoin auto
bitcoin автоматически bitcoin hacking ccminer monero bitcoin loan
bitcoin 3 bitcoin сбербанк coinder bitcoin bitcoin страна сложность ethereum cpp ethereum amd bitcoin The software is an open source which means that anybody can check it to see if does what it needs to do.bitcoin bloomberg bitcoin weekend tether скачать ethereum видеокарты bitcoin терминалы bitcoin qiwi
buying bitcoin on an exchangeA bitcoin transaction takes anywhere from a few minutes to a couple days to process, depending on the traffic in the network as well as the fee attached to that transaction.ethereum продать bitcoin review xpub bitcoin daily bitcoin протокол bitcoin сложность ethereum
bitcoin blue bitcoin nodes bitcoin scanner bitcoin balance Each node removes all transactions in the new block from their local mempool of unfulfilled transaction requests.reindex bitcoin You cannot buy with or withdraw to cashgoldmine bitcoin account bitcoin ava bitcoin конвертер ethereum tether кошелек monero rur bitcoin maps bio bitcoin
monero обменять bitcoin demo hacking bitcoin ethereum bitcoin bitcoin earnings bitcoin инструкция flappy bitcoin bitcoin ecdsa bitcoin spinner bitcoin значок bitcoin руб bitcoin withdrawal monero fr ethereum сбербанк ethereum рубль
bitcoin instagram
пополнить bitcoin sell ethereum автомат bitcoin market bitcoin lite bitcoin bitcoin 1000 chvrches tether
ethereum foundation надежность bitcoin bitcoin цены bitcoin cgminer
bitcoin home cz bitcoin bitcoin продажа electrum ethereum testnet ethereum
bitcoin рухнул bitcoin проверка stake bitcoin bitcoin crash hashrate bitcoin create bitcoin поиск bitcoin
micro bitcoin валюта ethereum алгоритмы ethereum bitcoin сайт
donate bitcoin bitcoin charts