Miners play a crucial role in the Ethereum network by ensuring transactions between users are verified and added to the blockchain public ledger.
Miners also enable new coins to be generated without the need for a third party central authority.
In return for mining blocks, you’ll receive ETH as well as fees associated with the transaction.
There is a lot of debate about how profitable Ethereum mining is, but if you believe ETH will continue increasing in value or simply want to play a part in the Ethereum network, these are the steps you need to take.
Choose a GPU
To mine Ethereum, you’ll need to buy special computer hardware called a Graphical Processing Unit (GPU). When choosing a GPU, it’s important to consider the cost of the actual hardware itself, as well as its power consumption and hash rate.
The hash rate is the speed at which the mining device operates. In cryptocurrency mining, speed is important because miners are essentially trying to solve a question and get rewards before anyone else. The higher the hash rate, the greater your chances are of finding the next block and receiving a reward.
Some miners decide to set up a mining rig, which is a machine composed of several GPU units. A mining rig will increase your hash rate and therefore boost your chances of successful mining.
Once you’ve bought your mining hardware, you need to install the required software. Drivers for your graphics card are either provided with the card itself or available on the manufacturer’s website.
The next step is to download the Ethereum blockchain and connect your node to the network. You can use a service like Geth, which continuously attempts to connect to other nodes on the network until it has peers.
Once installed, your node will be connected to all the other nodes and the Ethereum network itself. This allows you to start mining, deploy your own smart contracts, build decentralised apps, and send transactions.
Test your mining capabilities