How to Mine Ethereum? How Does Ethereum Mining Work?



In a world of progress, everything is competing with each other to go ahead. It is only a matter of time before cryptocurrency makes its mark. The more the world incline towards digitization, the more cryptocurrency will have a huge value to the world.
Bitcoin was the first in 2009, and now there are hundreds of cryptocurrencies. These new coins (that operate on their own native blockchain) are called altcoins or alternative coins. Ethereum is second ranking cryptocurrency. It can be bought, sold and traded, just like Bitcoin. It can also be mined!
Ethereum or Ether is the #1 cryptocurrency in terms of mining profitability. Moreover, ETH is supported worldwide by businesses, regular people and Solidity (contract-oriented programming language) developers. Ethereum blockchain currently hosts more daily transactions than any other cryptocurrency. 
Ethereum is an open software platform based on blockchain technology that enables developers to build and deploy decentralized applications. 

What Is Ethereum?
Ethereum is an open-source, blockchain-based, decentralized software platform used for its own cryptocurrency, ether. It enables SmartContracts and Distributed Applications (ĐApps) to be built and run without any downtime, fraud, control, or interference from a third party.
Ethereum is not just a platform but also a programming language (Turing complete) running on a blockchain, helping developers to build and publish distributed applications

At early post - How to start Dogecoin mining

Key Highlights

Etherium is an open-source computing platform and operating system.


November 2013: Vitalik Buterin publishes the Ethereum whitepaper.


August 2014: Ethereum ends their ICO and raises $18.4 million.


May 2015: “Olympic” the Ethereum testnet releases.

July 30, 2015: The first stage of Ethereum’s development, “Frontier” was released.

March 14, 2016: Homestead, the first “stable” Ethereum release, went out on block 1,150,000.


October 25, 2016: Ethereum Classic forks away from the original Ethereum protocol.


February 28, 2019: The Metropolis Constantinople hardfork update happens.


What is Ethereum Mining

Ethereum’s mining process is similar to Bitcoin. The reward per block is 5 ether and remains constant, it does not halve. Also contrary to Bitcoin, Ethereum does not have a maximum total number of ether but does cap the amount released each year.
Ethereum block times are currently at about 14 seconds, compared to Bitcoin’s 10 minutes.
Another difference will be the method of reward. Instead of rewarding miners for creating blocks validators will earn a transaction fee for each transaction and smart contract they validate.
Ethereum mining in a pool is the easiest and fastest way to get started. You work together with other people. All of the people that are mining within a single pool agree that if one of them finds the secret number, they’ll share rewards with everyone. How often you find blocks and share rewards depends on the pool size. However, not all pools are the same. These are the things that you should consider before joining a pool.
The parties that want the transaction or smart contract executed will also pay a fee (called the gas price) in order to have it completed and added to the blockchain.
Ethereum currently operates on a proof-of-work basis. Miners are rewarded for processing transactions and executing smart contracts, which create blocks. Although Ethereum is currently working towards changing to a proof-of-stake model which will change the reward system dramatically. In a proof-of-stake model there will no longer be miners, but validators. Validators will be required to own ether and in order to validate a block they will be required to put their owned ether on the line to certify that a block is valid. This way, if there is malicious behavior or a validator does something invalid they will lose their stake, their owned ether

See post - Best Bitcoin Mining Hardware 

How to mine Ethereum
First you need a computer, or graphics card, that is capable of computing an algorithm that it attempts to solve in order to generate some Ether. For Ethereum, the ‘block’ that your video cards are attempting to find generates on average every 15 seconds. That means every 15 seconds, the Ethereum network pays to whomever found the block, 5 Ethereum (this value may change over time).

We’ve listed the top pools in order of hash rate share according to Etherchain:

Ethpool/Ethermine
Ethpool and Ethermine are two different sites although they appear to be basically the same pool.

They are currently the largest Ether mining pool with about 25% of the network’s hash rate.

f2pool
F2pool is also a Bitcoin mining pool. Its Ether mining pool appears to only be available in Chinese, so this is not a good option for most of our readers.

DwarfPool
DwarfPool is the third largest Ethereum mining pool with about 13% of the network’s hash rate. In addition to Ether you can mine a bunch of other currencies like Monero and Dash.

2Miners
2Miners has 0.4% of the network hashrate. It has servers in the USA, Asia and Europe.

Ethfans
ethfans is another Chinese pool with about 8.6% of the network hash rate.