Tag Archives: Mining

How to mine ether

The Ethereum network is kept running by computers all over the world. In order to reward the computational costs of both processing the contracts and securing the network, there is a reward that is given to the computer that was able to create the latest block on the chain. Every 15 seconds, on average, a new block is added to the blockchain with the latest transactions processed by the network and the computer that generated this block will be awarded 3 ether. Due to the nature of the algorithm for block generation, this process (generating a proof of work) is guaranteed to be random and rewards are given in proportion to the computational power of each machine.

This process is usually called mining in the crypto-currency lingo.

CPU MINING USING THE COMMAND LINE
If you are on a private network (and if you just want to test the technology for free, you should) then any normal computer with a normal CPU will be able to run the network and earn test ether (ether that is only redeemable on the test network where it was generated) through mining. This is the best choice for small-scale network or testing privately, as it’s less resource intensive. On the real (or live test) network a normal desktop (or laptop) computer might take a very long time to successfully mine a block and receive ether.

Before you do any mining, you need to set which address will receive your earnings (called “etherbase”). You only need to do this once. Here’s how to set your etherbase and then start mining:

Geth:

miner.setEtherbase(eth.accounts[0])
miner.start()

Eth:

web3.admin.eth.setMiningBenefactor(web3.eth.accounts[0])
web3.admin.eth.setMining(true)

Before you can find any blocks, however, your computer needs to go through a process called “building a DAG”. This DAG (short for “Directed Acyclic Graph”) is a large data structure (~1GB) required for mining, intended to prevent ASIC machines (“Application Specific Integrated Circuits”) from being mass manufactured for mining ether. Its goal is to protect miners like yourself so that you will only ever need your home computer to remain competitive. The DAG should take about 10 minutes to generate and as soon as it finishes, Geth will start mining automatically.

If you have successfully mined a block you will see a message like this among the logs:

🔨 Mined block #123456
To check your earnings, you can display your balance with:

web3.fromWei(web3.eth.getBalance(web3.eth.accounts[0]), “ether”)
GPU MINING USING THE COMMAND LINE
If you are serious about mining on the live ethereum network and getting real ether rewards, then you should use a dedicated computer with very powerful graphics cards in order to run the network.

Instructions for Eth:

If you are using Eth then GPU mining comes out of the box. Simply quit the console (press control+C multiple times and then enter) and then start it with the –GPU option turned on:

eth -b –genesis path/to/genesis.json -i -m on -G
Once you started, just follow the same instructions as normal CPU mining.

Instructions for Geth

There are currently two options for GPU mining in Geth available. You can read a more detailed description of how to install it on this mining post.

C++ Etherminer. This is a version for the pro miners. To install it, follow the guide to install the whole C++ ethereum code.

Go experimental GPU branch. It’s experimental so you need to build go from source to get it. This version is focused on hobbyists and developers. To install it, clone geth from source and then switch to the GPU Miner branch.

MORE INFORMATION ON MINING
Ethereum’s proof of work algorithm does not make use of Scrypt or Sha256, instead, it leverages EtHash, a Hashimoto / Dagger hybrid. You can read all about the theory behind this and its design in the Ethereum gitBook, mining chapter. Note that for Serenity (a future release, a major milestone on the Ethereum development roadmap) we are planning to switch to Proof of Stake (PoS).

The Ethash proof of work algorithm is memory hard, you’ll need at least 1+GB of RAM on each GPU. I say 1+ because the DAG, which is the set of data that’s being pushed in and out of the GPU to make parallelisation costly, will start at 1GB and will continue growing indefinitely. 2GB should be a good approximation of what’s needed to continue mining throughout the year.

Mining prowess roughly scales proportionally to memory bandwidth. As our implementation is written in OpenCL, AMD GPUs will be ‘faster’ than similarly priced NVIDIA GPUs. Empirical evidence has already confirmed this, with R9 290x regularly topping benchmarks.

ASICs and FPGAs are strongly discouraged by being rendered financially inefficient, which was confirmed in an independent audit. Don’t expect to see them on the market, and if you do, proceed with extreme caution.

Reference: https://www.ethereum.org/ether

Bitmart Opens Africa’s First Retail Store

Bitmart has been the leading Bitcoin mining hardware supplier in South Africa since 2015. The company which is run on a tight schedule by CEO Jacques Serfontein and a team of crypto professionals, supplies miners to almost every corner of the globe. The Bitmart brand is a favourite amongst the crypto communities in Japan, Canada, Sri Lanka, North America, Dubai, Abu Dhabi, New Zealand, Australia, England and Europe. Other specialty services include GPU Mining Rigs and GPU mining hardware components, GPU Rig mining software and international mining rig monitor app. Bitmart’s GPU Rigs can be used to mine Ethereum, ZCash, Monero, Electroneum and Bitcoin Gold to name but a few.

Reference: https://www.ccn.com/bitmart-opens-africas-first-retail-store/

New York Wants a Piece of the Ever Growing Bitcoin Mining

The New York Power Authority has approved the allocation of 15,000 kilowatts of hydroelectric power to a new bitcoin mining venture by Coinmint, the North Country Data Center Corp (NCDC), pending the approval of a contract within a year. Coinmint, which currently operates a bitcoin mining facility in Plattsburgh, expects that the cryptocurrency market will continue to grow worldwide and thus seeks to expand its business to a second facility. According to the proposal plan, the power allocation would support capital investment of at least $165 million and the creation of 150 new jobs in connection with the proposed project. The plan will involve renovating a former metal smelting facility in Massena, and the installation and operation of up to 180,000 specialized bitcoin mining systems within two years. Once complete and fully operational, the NCDC expects to handle 15 percent of the global cryptocurrency business.

Reference: https://news.bitcoin.com/new-york-wants-a-piece-of-the-ever-growing-bitcoin-mining-pie/

Self Mining Smart Contract

Earlier Artemine introduced unrestricted access to public mining, which allows anyone to mine the token by calling a ‘smart contract’ function (as previously reported by Cointelegraph.) The team expressed their belief that the trading of Genesis Addresses can become a billion dollar market once people start looking at the advantages of the self-mining principle.

The team stated: “Once people start seeing the benefits of self-mining, which basically allows anyone to mine coins automatically without the need of any kind of mining equipment, we should start seeing the tradability of Genesis Addresses to become a more important factor. Possibly reaching a $1 bln dollar market in a not so distant future.”

Reference: https://cointelegraph.com/news/platform-starts-trading-service-for-self-mining-smart-contract

Make your Own Ethereum Mining Rig with Best Supported Hardware

01. GPU: Gigabyte Geforce GTX 1050 Ti G1 Gaming 4G Graphics Card
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02. Motherboard: Asrock H81 Pro BTC Mining Board = Rs. 22000
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03. Processor: Intel Core i3 6th Generation LGA 1151 Processor
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04. RAM: HyperX Fury Black 8GB 2133 MHz CL14 DDR4 Internal Memory
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05. Hard Disk: Seagate New BarraCuda 1 TB 64 MB Cache SATA 6.0Gb/s Hard Drive
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06. Power Supply: CORSAIR RMx RM1000X ATX12V EPS12V Certified Power Supply
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07. Monitor: Dell 18.5 Inch LED Monitor
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08. GPU Riser Cable: 6-Pack PCIe Riser Adapter USB 3.0 Extension Cable & 6-Pin PCI-E to SATA Power Cable GPU Riser Adapter
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09. Mining Rig Frame: Party Blowers Mining Rig Frame
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