- By Henry Faulkner Brittany
- June 27, 2022
Recently, the biggest rival of Bit coin came to light and hit a new record high. Bitcoin’s biggest rival, ether, blew past $4,000 on Monday. Digital currency is up more than 400% so far this year.
It has become easier to buy cryptocurrency, ether, using an app such as Coinbase and these apps are the ultimate way to try your hands on crypto.
You can also do crypto mining.
Crypto mining can be done for two purposes: One is to create new coins while the other one is to maintain a log of all transactions of existing digital tokens.
In the case of bitcoin and other cryptocurrencies, miners contribute their computing power to verifying and adding all exchanges of ether to a public ledger around the globe.
The public ledger is also known as a blockchain. As is the case with ether’s blockchain is called Ethereum. Anything given can’t be altered or erased, giving observers a permanent and verifiable record.
Miners run a computer program in order to log exchanges of ether which computes millions of math equations. But not all these math equations are done in a vacuum. They are competing against miners all over the planet to be the first person to verify a block of transactions.
Every 13 seconds someone roughly wins this race once. And whoever is the winner is awarded two newly minted ether. They also get a transaction fee.
A custom mining rig is needed to mine ether which is Bitcoin’s biggest rival. The fundamentals of any crypto mining rig include a power supply, motherboard, and operating system to run on your motherboard, computer memory, and a GPU, or graphics processing unit.
“An Ethereum mining rig is just like any other computer you would build on your own; only instead of having an actual case that all the components live in, it’s in an open area,” explained Leigh. “You need to do this because when the GPUs are running, they get really hot, and it’s important to have a lot of air circulation.”
This rig, with just one graphic card, can run approximately 27 million math equations every second.
That sounds like a lot, right?
On Ethereum’s network, there are 600 trillion math operations happening every second. That’s why people join the mining pool. It lets a single miner combine their hashing power with thousands of other miners all over the world.
“They could be in Afghanistan. They could be in Dubai. They could be in Europe or South America,” said Leigh. “You’re all sharing your resources together, and it doesn’t matter where you’re physically located.”
The only thing left to do is to create a wallet that is like a digital address for crypto cash. There are dozens of options, ranging from physical hardware wallets to web wallets where physical hardware lets you store crypto offline while web wallets allow you to interact with your account via a web browser.
Once the rig connected to a power source and links it to the network, ether starts to go into your crypto wallet within minutes.
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