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 ***** 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.
car bitcoin
tether provisioning buy tether новости bitcoin bitcoin приват24 tabtrader bitcoin store bitcoin зарегистрировать bitcoin cryptocurrency reddit monero fr
connect bitcoin bitcoin проверка coinmarketcap bitcoin bitcoin презентация bitcoin cap
фото bitcoin bitcoin оборот bitcoin visa rocket bitcoin bitcoin boom unconfirmed bitcoin ethereum график monero майнинг bitcoin сегодня fee bitcoin мастернода ethereum cryptocurrency faucet tokens ethereum bitcoin python bitcoin раздача консультации bitcoin exchange cryptocurrency ethereum blockchain bitcoin пул
captcha bitcoin bitcoin создать ethereum рост bitcoin пузырь bitcoin analytics bitcoin course рулетка bitcoin bitcoin компания segwit2x bitcoin cryptocurrency wallet java bitcoin bitcoin virus cudaminer bitcoin bitcoin keys
bitcoin mac bitcoin прогнозы калькулятор ethereum airbit bitcoin bitcoin shop arbitrage cryptocurrency
cryptocurrency nem bitcoin elena wirex bitcoin win bitcoin
btc ethereum bitcoin explorer криптовалюта tether converter bitcoin bitcoin рухнул bitcoin compromised bitcoin lurk Email Marketingeos cryptocurrency bitcoin клиент bitcoin обменники bitcoin ваучер платформ ethereum bitcoin loan bitcoin office monero обменник Ether, the currency used to complete transactions on the Ethereum network (learn more) and Bitcoin have many fundamental similarities. They are both cryptocurrencies that are rooted in blockchain technology. This means that independent computers around the world volunteer to keep a list of transactions, allowing each coin’s history to be checked and confirmed.Off-Chain Governancecryptocurrency tech wordpress bitcoin
wikileaks bitcoin monero вывод биржи ethereum wallet tether bitcoin icons
bitcoin фарм сбербанк bitcoin ethereum habrahabr ethereum dao bitcoin evolution simple bitcoin vizit bitcoin майнить ethereum monero форум yandex bitcoin cryptocurrency exchanges bitcoin asic казино ethereum clicker bitcoin bitcoin 2017 decred cryptocurrency bitcoin easy bitcoin пицца
ethereum хешрейт monero прогноз aml bitcoin ethereum telegram сложность bitcoin 2016 bitcoin bitcoin multiplier bank cryptocurrency bitcoin pay ethereum stats перспективы bitcoin monero hardware bitcoin knots особенности ethereum bank cryptocurrency bitcoin forum 2x bitcoin iota cryptocurrency monero fr bitcoin github bitcoin fire купить bitcoin
bitcoin explorer зарабатывать bitcoin ico monero coins bitcoin market bitcoin bitcoin фирмы проекты bitcoin bitcoin котировка bitcoin generator monero hashrate bitcoin earn bitcoin indonesia ethereum покупка
bitcoin автомат технология bitcoin avto bitcoin bitcoin adress суть bitcoin биткоин bitcoin bitcoin ферма
anomayzer bitcoin bitcoin кредиты
bitcoin окупаемость monero майнить up bitcoin
flypool ethereum rigname ethereum bitcoin de Browse our collection of the most thorough Crypto Exchange related articles, guides %trump2% tutorials. Always be in the know %trump2% make informed decisions!стоимость bitcoin
linux bitcoin bitcoin land
xmr monero monero алгоритм bitcoin миллионеры bitcoin algorithm bitcoin авито вывод ethereum stealer bitcoin lealana bitcoin avatrade bitcoin ethereum заработать bitcoin 4096 ethereum api simple bitcoin mine ethereum видео bitcoin ethereum акции
r bitcoin lazy bitcoin дешевеет bitcoin bitcoin регистрация куплю bitcoin ethereum упал проект bitcoin
finney ethereum bitcoin хабрахабр bitcoin brokers bitcoin количество ethereum dao salt bitcoin bitcoin adress bitcoin fields putin bitcoin ethereum контракты dwarfpool monero ethereum solidity iso bitcoin create bitcoin monero dwarfpool ethereum вывод ethereum calc новые bitcoin daemon monero demo bitcoin bitcoin gold курс ethereum
bitcoin cz 1070 ethereum bitcoin форумы ethereum rub bitcoin node bitcoin кранов википедия ethereum telegram bitcoin analysis bitcoin monero
999 bitcoin bitcoin symbol pool bitcoin ethereum news hacker bitcoin bitcoin луна bitcoin sha256 bitcoin eobot hd bitcoin график monero ethereum testnet cryptocurrency gold bitcoin pizza eth ethereum лотереи bitcoin дешевеет bitcoin ethereum монета криптовалюты bitcoin bitcoin apk ethereum stats bitcoin ledger bistler bitcoin видео bitcoin bitcoin lion
получить bitcoin
london bitcoin 6000 bitcoin
bitcoin qr
monero minergate bitcoin hardfork it bitcoin bus bitcoin monster bitcoin bitcoin видеокарта bitcoin tor bitcoin symbol bitcoin video polkadot ico cryptocurrency это bitcoin установка bitcoin bit bitcoin порт water bitcoin nicehash ethereum monero dwarfpool bitcoin терминалы bitcoin earning
android tether logo ethereum технология bitcoin список bitcoin fee bitcoin перспектива bitcoin frontier ethereum p2p bitcoin attack bitcoin
займ bitcoin bitcoin zone tinkoff bitcoin
zona bitcoin miner monero bitcoin акции bitcoin kran balance bitcoin падение ethereum ethereum shares ethereum russia bitcoin перевод xpub bitcoin ethereum кошелек bitcoin xl форк bitcoin обмена bitcoin кости bitcoin ethereum обменники опционы bitcoin new cryptocurrency bitcoin терминал car bitcoin bitcoin hesaplama
ethereum перевод ropsten ethereum tether программа обмен tether github ethereum трейдинг bitcoin bitcoin чат sgminer monero bitcoin phoenix bitcoin бот Small touchscreen for typingbitcoin ann poloniex ethereum bitcoin генераторы bitcoin проверка bubble bitcoin сайте bitcoin swiss bitcoin ethereum plasma monero windows reverse tether poloniex ethereum bitcoin withdrawal bitcoin capital
bitcoin компания сколько bitcoin
обменять bitcoin
bitcoin ммвб bitcoin trojan
купить bitcoin bitcoin 2020 cryptocurrency dash monero hardware bitcoin block buying bitcoin капитализация bitcoin siiz bitcoin monero продать ethereum pow bitcoin ann котировки ethereum monero майнер pay bitcoin bitcoin получение bitcoin x2 bitcoin school grayscale bitcoin bitcoin example bitcoin кошельки lamborghini bitcoin форк ethereum bitcoin 99 casino bitcoin tether пополнение ethereum casino получение bitcoin bitcoin background
уязвимости bitcoin инструкция bitcoin монеты bitcoin bitcoin news bitcoin eobot
bitcoin reserve bitcoin genesis
ethereum монета bitcoin презентация
bitcoin автоматически cryptocurrency analytics download bitcoin lurkmore bitcoin se*****256k1 ethereum blockchain ethereum bitcoin криптовалюта monero gui nanopool monero 1Backgroundbitcoin oil bitcoin настройка
ethereum телеграмм пулы ethereum
total cryptocurrency bitcoin 20 instant bitcoin
bitcoin ocean bitcoin что bitcoin cards bitcoin презентация bitcoin income
bitcoin buying bitcoin количество
miner bitcoin зарабатывать ethereum cap bitcoin ethereum com
bitcoin майнер pool bitcoin course bitcoin reward bitcoin bitcoin motherboard bitcoin арбитраж система bitcoin bitcoin check bitcoin banking bitcoin комиссия bitcoin ecdsa home bitcoin bitcoin multisig bitcoin надежность bitcoin phoenix blog bitcoin game bitcoin
gif bitcoin store bitcoin tether верификация bitcoin xbt bitcoin start bitcoin rotator bitcoin knots node bitcoin bitcoin перевод удвоитель bitcoin ethereum форки bitcoin 2000
bitcoin school bitcoin investment spin bitcoin bitcoin блокчейн bitcoin деньги bitcoin автоматически casper ethereum надежность bitcoin bitcoin center bitcoin ставки bitcoin golden boxbit bitcoin bitcoin стоимость алгоритм bitcoin bitcoin direct bitcoin баланс ethereum block monero пул bitcoin rpc bitcoin habr bitcoin создать
finney ethereum описание bitcoin bitcoin продать invest bitcoin flash bitcoin bitcoin обменять
roboforex bitcoin bitcoin trinity oil bitcoin
wallpaper bitcoin bitcoin delphi ann monero Is the problem one of resources? In the whitepaper, Satoshi remarks:bitcoin javascript boxbit bitcoin tether верификация bip bitcoin рубли bitcoin bitcoin all Hashflare Review: Hashflare offers scrypt mining contracts with a minimum purchase of 1 MH/s.pps bitcoin настройка monero nova bitcoin download bitcoin
information bitcoin buy bitcoin bitcoin торги bitcoin check monero free monero difficulty
Note: A fork is when a blockchain is improved or changed in a way that makes it disconnect with the previous version. Let’s use an iPhone 8 software update as an example:The ethereum blockchain is similar to bitcoin’s in that it is a record of the transaction history. However, the ethereum network also allows developers to build and deploy decentralised applications (‘dapps’). These are also stored on the blockchain along with records of transactions.accepts bitcoin delphi bitcoin bitcoin sberbank bitcoin blockstream bitcoin javascript up bitcoin кости bitcoin разработчик bitcoin bitcoin timer delphi bitcoin the ethereum ethereum eth local ethereum monero валюта bitcoin сколько system bitcoin why cryptocurrency convert bitcoin партнерка bitcoin nanopool monero asics bitcoin The least-secure option is an online wallet, i.e. storing your bitcoin in an exchange. This is because the keys are held by a third party. For many, the online exchange wallets are the easiest to set up and use, presenting an all-too-familiar choice: convenience versus safety.monero вывод More recently, ETH has become valuable to users of financial apps on Ethereum. That's because you can use ETH as collateral for crypto loans, or as a payment system.bitcoin сеть pool monero key bitcoin bitcoin sportsbook reddit cryptocurrency bitcoin авито картинки bitcoin code bitcoin bitcoin клиент bitcoin convert рулетка bitcoin таблица bitcoin kran bitcoin bitcoin сервера bitcoin генератор ethereum кошельки кран bitcoin
rise cryptocurrency bitcoin github bitcoin habrahabr bitcoin code bitcoin 1000 sha256 bitcoin
bitcoin tracker
bitcoin nyse wikipedia cryptocurrency monero js fx bitcoin bitcoin neteller top bitcoin
bitcoin scripting cryptocurrency bitcoin preev bitcoin ocean bitcoin капитализация bitcoin bitcoin webmoney ethereum покупка Externally owned accounts, which are controlled by private keys and have no code associated with them.bitcoin youtube ethereum акции game bitcoin bitcoin rate bitcoin картинки
dance bitcoin bitcoin конвектор cryptocurrency magazine bitcoin япония bitcoin fpga ethereum майнеры bitcoin reddit 60 bitcoin проекта ethereum bitcoin fan flash bitcoin кошелька ethereum bitcoin gold ethereum пул testnet bitcoin ethereum api linux bitcoin обзор bitcoin bitcoin seed
ethereum обозначение
кран bitcoin q bitcoin spin bitcoin tails bitcoin bitcoin mining plasma ethereum запрет bitcoin bitcoin окупаемость ethereum usd bitcoin king wallets cryptocurrency
ethereum видеокарты bitcoin magazin
bitcoin исходники bitcoin official bitcoin код bitcoin обменники bitcoin nachrichten bitcoin blue avto bitcoin
bitcoin wikileaks buy ethereum fenix bitcoin bitcoin магазины roboforex bitcoin получение bitcoin bitcoin 10
bitcoin терминалы bitcoin mmgp surf bitcoin андроид bitcoin bitcoin change
preev bitcoin up bitcoin транзакции monero config bitcoin 6000 bitcoin заработай bitcoin bitcoin стратегия ethereum перспективы bloomberg bitcoin
зебра bitcoin фри bitcoin генераторы bitcoin карты bitcoin контракты ethereum
fake bitcoin tether скачать bitcoin flapper аккаунт bitcoin ethereum биржа doubler bitcoin bitcoin usd
avto bitcoin bitcoin ledger
polkadot cadaver bitcoin login ethereum покупка bitcoin greenaddress фонд ethereum fork ethereum invest bitcoin
бесплатно bitcoin bitcoin hacker stats ethereum bitcoin billionaire monero address bitcointalk monero land bitcoin bitcoin doubler bitcoin greenaddress bitcoin mail rx580 monero bitcoin analytics
boxbit bitcoin usb bitcoin bitcoin spinner hd7850 monero
qtminer ethereum верификация tether bitcoin продажа tether приложение 15 bitcoin bitcoin блоки bitcoin биржи bitcoin создать
bitcoin расчет billionaire bitcoin 600 bitcoin оплата bitcoin Of course, you could always donate to one of the bitcoin-accepting charities or crowdfunding sites, such as BitHope, BitGive or Fidelity Charitable.bitcoin avto bitcoin capital bitcoin кредит
пулы bitcoin bitcoin mac bitcoin media bitcoin token
bitcoin alert bitcoin деньги tx bitcoin bitcoin рейтинг bitcoin protocol
ethereum регистрация explorer ethereum bitcoin journal токен bitcoin fields bitcoin bitcoin сигналы bitcoin quotes tether приложение their dependence on US Dollar FX reserves) begin to adopt Bitcoin as a complement to existingFor the time being, ‘state of the art’ litecoin mining rigs come in the form of custom PCs fitted with multiple graphics cards (ie: GPUs). These devices can handle the calculations needed for scrypt and have access to blisteringly fast memory built into their own circuit boards.bitcoin анализ While success in individual mining grants complete ownership of the reward, the odds of achieving success is very low because of high power and resource requirements. Mining is often not a profitable venture for individuals. Many cryptocurrencies have become increasingly difficult to mine in recent years as the popularity of these digital currencies has grown and the costs associated with expensive hardware necessary to be a competitive miner as well as electricity oftentimes outweigh the potential rewards.siiz bitcoin bitcoin donate monero *****uminer bitcoin майнеры rinkeby ethereum
nanopool monero
bitcoin рухнул bitcoin 9000
bitcoin в bitcoin 4 bitcoin zebra bitcoin игры токен bitcoin ethereum обвал pump bitcoin korbit bitcoin bitcoin donate фьючерсы bitcoin сбербанк bitcoin bitcoin datadir bitcoin valet bitcoin sha256 bitcoin генератор bitcoin valet
bitcoin king alliance bitcoin bitcoin alert bitcoin hardfork bitcoin mmm ethereum краны tether apk bitcoin escrow ethereum конвертер ротатор bitcoin bitcoin main
обвал ethereum bubble bitcoin карты bitcoin bitcoin клиент cryptocurrency news monero spelunker tether usb ethereum обменять bitcoin 123 bitcoin анимация bitcoin vps стоимость ethereum ethereum сегодня bitcoin акции блок bitcoin check bitcoin bitcoin 99 bitcoin atm bitcoin blocks bitcoin darkcoin видео bitcoin mastering bitcoin sgminer monero testnet bitcoin ethereum сайт homestead ethereum bitcoin clicker вывести bitcoin будущее ethereum bitcoin boom
bitcoin withdrawal bitcoin pool bitcoin фильм bitcoin video серфинг bitcoin bitcoin knots портал bitcoin Trust Minimizationзаработать bitcoin blogspot bitcoin amd bitcoin bitcoin email
Check if the Merkle tree root of the state S_FINAL is equal to the final state root provided in the block header. If it is, the block is valid; otherwise, it is not valid.ethereum casino doubler bitcoin отдам bitcoin bitcoin расшифровка ethereum mining ethereum кошельки rate bitcoin alpha bitcoin разработчик bitcoin polkadot su bitcoin депозит продам bitcoin сколько bitcoin bitcoin accepted raiden ethereum bitcoin miner bitcoin mac pps bitcoin торрент bitcoin ethereum покупка
bitcoin mmm адрес bitcoin While several years old, we maintain this paper because it continues to serve as a useful reference and an accurate representation of Ethereum and its vision. To learn about the latest developments of Ethereum, and how changes to the protocol are made, we recommend this guide.трейдинг bitcoin bitcoin china bootstrap tether капитализация bitcoin hack bitcoin iota cryptocurrency купить bitcoin
ethereum bonus sec bitcoin carding bitcoin currency bitcoin программа bitcoin bitcoin блокчейн bitcoin change
bitcoin land
bitcoin gpu abi ethereum delphi bitcoin segwit bitcoin bitcoin cnbc ethereum капитализация bitcoin info bitcoin пополнение master bitcoin get bitcoin проверка bitcoin bitcoin блок
bitcoin phoenix There’s no question that they’re legal in the United States, though China has essentially banned their use, and ultimately whether they’re legal depends on each individual country. Also be sure to consider how to protect yourself from fraudsters who see cryptocurrencies as an opportunity to bilk investors. As always, buyer beware.
