Do you want to know how does Ethereum mining work? Learn now!
Cryptocurrency became a brand new, digital alternative for earning money. The whole process of mining cryptocurrency is rather complicated to explain. However, to make it clear and simple, later on we will give you a very simplified explanation. What’s more, we want to show you what kind of differences Ethereum and Bitcoin mining has. Of course it doesn’t have huge impact on our earning.
In addition to thorough explanation How does Ethereum mining work, we will also give you the comparison to Bitcoin network. Another element of our article will focus on giving you the answer to why Ethereum is for professionals and not for the people without highly advanced equipment and special space to keep computing machines.
How does Ethereum mining work? Comprehensive analysis
People believe mining cryptocurrency works on the same basis everywhere. Of course the everyday user, who just wants to earn some Ether, Bitcoin, or any other cryptocurrency, is not going to see the difference. However, each cryptocurrency that uses the blockchain technology or any other open-source service differs with its purpose.
Ethereum network needs users and their computing power to not only modify and empower the whole network, but also to maintain its open-source ability to share decentralized applications with everyone. That is why we share our computer’s computing power for more than just updating the currency ledger, as it happens in Bitcoin network.
The whole process of mining limits to one thing. We need to download specified set of applications that will connect us with the Ethereum network. Once you connect and set everything right, you will have a chance to earn Ether, cryptocurrency that Ethereum’s creators use to reward everyone, who supported the network.
Of course, the basics things are really simple. Mining is basically providing the blockchain network with computing power of your computer. The more efficient computer you have, the more calculations it can provide, the more money you earn. But how does Ethereum network look when compared to Bitcoin?
Ethereum and Bitcoin – similarities and differences
Despite the fact these two networks are using the same technology, they vary a lot. First of all, Bitcoin uses one particular aspect of blockchain technology, which is creating a ledger for currency. As for Ethereum, we receive here free place, where you can share applications without any limitations or controls. What’s more, the flow of information is also free, due to decentralization system. Of course it doesn’t mean that it’s more difficult to mine through Ethereum network.
Another difference between Bitcoin and Ethereum is also easement. It is possible to mine Ether with the use of everyday computer. When it comes to Bitcoin, we need at least special machines and separate space. That’s why Ethereum is more friendly for new users.
Except for differences like the purpose of networks and different easement of mining, the rest is pretty similar. We get here cryptocurrency that is very valuable on the market. Everything is based on the same engine, and the popularity of them will grow every day.
Why Ethereum is user-friendly?
The reason why mining Ether is better than mining Bitcoin is its difficulty. With Ether, everything is easy and you can profit even with a regular PC. Unfortunately, Bitcoin is a much more expensive business that costs thousands of dollars.
Summary – do you know how does Ethereum mining work?
We hope that each and every question regarding mining Ether is clear. In case of any questions or troubles with understanding, contact us!