Today we are going to talk about Ethereum Mining pools. Ethereum is a public, open source platform built on a blockchain technology. Ethereum is a public computing platform that comes with a specific feature or function called Smart Contract. Ethereum makes use of a decentralized virtual machine known as the Ethereum Virtual Machine (EVM). This machine executes scripts with use of nodes, which happens to be public and international. Using Ethereum, a cryptocurrency token known as ether is provided. This token can be transferred to several accounts. It is used to reward nodes who performed in certain computations.
An Ethereum mining Pool simply refers to the meeting up of Ethereum miners who work and pool their resources together in other to mine Ethers. When mining, these miners try to make sure that they reduce the volatility of their compensation.
For an Ethereum user who wants to mine Ethereum, the first step is to get the required Ethereum mining hardware. After you have gotten your hardware and all other requirements, you are expected to join a mining pool. Your chosen Ethereum mining pool will help you get a regular payout. Apart from joining a mining pool, you will also need an Ethereum mining software just like you need an Ethereum mining hardware.
Comparison of 18 Ethereum Mining Pools
|Pool Name / |
|Register||Fee||Minimum payout||Payouts per day||Reward||Difficulty|
|Eth.PP.ua||No||0.01||0.1 ETH||2||PPLNS/Time Prop||Variable|
|UTOCat||No||0.01||1 ETH||1||PPLNS/Time Prop||Variable|
To mine Ethereum you will need to:
- Choose your preferred mining hardware: To mine Ethereum, it is advisable to have a dedicated mining computer for your mining activities. Although, there are two types of mining hardware namely: CPU and GPU. As a miner, you will need to get a GPU, which happens to be the available type of mining hardware. When buying a GPU, make sure that you buy the GPU that is the most profitable. Consider the rate at which it consumes power, its hash rate performance and any other expense involved. To calculate your profit, there are mining profitability calculators that are available to miners. This calculator will help you estimate your potential profit.
- Install the Software: After choosing your desired mining hardware, the next thing to do is to install the mining software. Make sure that you are connected to the Ethereum network. After installing, your node can now communicate with other nodes.
- Once you have done the above, it is important to test run it, in other to make sure that everything is perfect.
- Once your node is part of the Ethereum network, and you already have your client downloaded, it is advisable to install Ethminer, which will help your node carry out the duty of securing the Ethereum network for you.
- When mining, it is important to join a mining pool, as the chances of you being able to mine Ethereum on your own are quite slim. In a mining pool, there are other miners who come together to pool their computational power or resources. They pool their resources so that they can increase their chances of solving cryptographic puzzles to enable them to earn either as a form of reward. When choosing a mining pool, there are several factors to consider. As a miner you should consider the following:
- Profitability: When choosing a mining pool make sure you consider the profitability of such pool. It is vital to join the mining pool that has a good amount of hashing power in the Ethereum network. If it has a high hash rate, then it has the chance of generating more blocks.
- Secondly, when considering a pool to join make sure you check out the reputation of such mining pool. What are other users saying about it? How popular is the mining pool? This will help you choose the right mining pool.
- More so, make sure that whichever mining pool you choose, it should have a user-friendly and compatible platform for it users. It should also have an interactive platform
- When choosing a mining pool, one thing you should endeavor to check is if such mining pool gives its users detailed statistics. This detailed statistics will help to ensure transparency in the pool.
- Consider the mining pool fees. Some mining pools have high fees while some have low fees. When deciding on the right mining pool, try to pick the mining pool with a reasonable and affordable mining pool fee.
- Lastly, as a miner ensure that you are aware of the way your preferred mining pool pays out. Does it do a daily payout? Or any other type of payment method? Endeavour to know these things as it will help you to decide the right mining pool.