How Ethereum Mining Works?

Question

Have heard about Bitcoin Mining while knowing about Bitcoins and Cryptocurrencies. How does Ethereum Mining work?

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Charlie Evans 3 months 1 Answer 46 views 0

Answer ( 1 )

  1. Today, ethereum’s mining process is similar to Bitcoin’s.

    For each block of transactions, miners use computers to repeatedly and very quickly guess answers to a puzzle until one of them wins.

    If the miner finds a hash that matches the current target, the miner will be awarded ether and broadcast the block across the network for each node to validate and add to their own copy of the ledger. If miner B finds the hash, miner A will stop work on the current block and repeat the process for the next block.

    It’s difficult for miners to cheat at this game. There’s no way to fake this work and come away with the correct puzzle answer. That’s why the puzzle-solving method is called ‘proof-of-work’.

    On the other hand, it takes almost no time for others to verify that the hash value is correct, which is exactly what each node does.

    The miners randomly earn these ether, and their profitability depends on luck and the amount of computing power they devote to it.

    Miners are rewarded for processing transactions and executing smart contracts, which create blocks. Although Ethereum is currently working towards changing to a proof-of-stake model which will change the reward system dramatically.

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