How is Ethereum Produced?

Ethereum (ETH) is generated by users who verify blocks on the blockchain. The people who verify the blocks on the blockchain are called miners. In Ethereum mining, the Proof of Work protocol is used. In the Proof of Work protocol, miners strive to earn a block reward by verifying transactions in the block. Miners on the Ethereum blockchain use an algorithm called “ethash” belonging to the Ethereum blockchain, unlike the SHA256 algorithm used in Bitcoin, to verify blocks.

Miners validate blocks on the Ethereum blockchain using processing power (hash rate) and generate ETH by adding the verified blocks to the Ethereum blockchain. Miners who approve blocks receive the Ethereums they produce and the fees for the transactions they make on the block. The verification of each block on the Ethereum blockchain takes place in 12 seconds.

Ethereum mining, like Bitcoin production, could be done with lower capacity computers when it first appeared. With the increase in the number of miners on the Ethereum blockchain, it has become difficult to mine with poorly equipped computers. Mining operations have started to be carried out with devices with high capacity and special equipment.

Ethereum Mining with GPU:

The mining performed by the processors of the video cards of computers is called GPU mining. Devices called “Dec”, which are produced by combining multiple video cards, are used in Ethereum mining.

Ethereum Mining with ASIC:

The ethash algorithm used to validate blocks on the Ethereum blockchain does not support ASIC mining. However, it is possible to do Ethereum mining with special ASIC devices that some companies have developed for Ethereum mining.

Ethereum Mining with the Cloud:

  • It is an alternative mining service offered for users who do not have enough hardware, time and knowledge to do mining. Users who want to do mining rent processor power from cloud mining services and can do cryptocurrency mining by redirecting this processing power to the mining pool they want. Cloud mining is also used in the production of Ethereum. Thanks to this, users can join the mining pool and generate Ethereum by renting processor power. #ETH #mining #eth2.0 #BTC #Binance