Ethereum upgrade is imminent, PoW mining is hoist
In 2013, Vitalik Buterin released a white paper conceptualizing the “next-generation smart contract and decentralized application platform” as “Ethereum”. Originally launched in 2015 as a Proof-of-Work (PoW) consensus algorithm, the vision has always been for Ethereum to be an energy-efficient Proof-of-Stake (PoS) network.
With the recent upgrade, Ethereum is gradually shifting from PoW mining to PoS mining. While PoW is the original consensus mechanism first used by Bitcoin, PoS is a newer concept aimed at overcoming the limitations of network scalability and an effective alternative developed to overcome the extreme energy consumption of Proof-of-Work consensus mechanisms.
Cryptocurrencies work on a decentralized blockchain, which means that there is no central authority overseeing the transaction process. However, they require all computers on the network to agree on the legality of a transaction to ensure that no one spends the same money twice, and the mechanism that helps support this decentralized process on encrypted blockchains is known as a “consensus mechanism.”
As the older of the two consensus mechanisms, Proof-of-Work is used by traditional blockchains such as Bitcoin and Ethereum 1.0. This consensus mechanism requires all computers on the blockchain network to perform complex mathematical calculations to decrypt protected transactions. Therefore, it requires a lot of hash rate power to maintain operations.
Every time a certain number of transactions are processed, they are added to a “block” on the blockchain. For each block processed, miners receive a fixed amount of cryptocurrency to contribute to the blockchain through their hash rate power.
Therefore, Proof-of-Work also has many advantages, such as Proof-of-Work is a powerful way to ensure the security of decentralized blockchains; miners are incentivized to join the network as the value of the cryptocurrency being mined grows; strong power requirements mean no one can interfere with the network. Several of the above factors all contribute to enhancing the security of the blockchain.
If people want to make a significant investment in ETH or ETC, or people plan to hold this cryptocurrency for the long term, mining is one of the more popular ways. It is the activity of dedicating computing resources to verifying transactions and generating new Ethereum blocks, and it also contributes to the governance and security of the network.
Choosing the right hardware for people Ethereum mining activity is crucial, as the wrong hardware can mean the difference between a profit and a loss. When considering the perfect hardware for a miner, the most important factors to consider will be price, availability and performance. Currently, there is one major brand to choose from – the JASMINER X4 High-throughput 1U server, known for its “high hash rate, low power consumption” advantages that are popular with Ethereum mining enthusiasts. Better performance usually means more energy consumption, which increases mining costs and reduces profits. In order to be profitable, miners need to strike the right balance between all these factors. The emergence of the JASMINER X4 High-throughput 1U server has solved the problem of high cost caused by high energy consumption in the mining process. It has a hash rate of 520MH/s±10%, and the power consumption is only 240W±10% , the total electricity bill accounted for only 3%. The most important thing is that it not only supports the ETHASH algorithm, but also supports the ETCHASH algorithm, which will undoubtedly provide double insurance for ETH and ETC mining.
As Ethereum decides which upgrades to make in the future, it’s important to recognize where the platform is specifically positioned in the space. No one can be sure which cryptocurrencies will stand the test of time, however, it is hard to imagine a crypto market without Ethereum. At present, ETH and ETC mining is still the most potential cryptocurrency market. The author believes that if people enter the market in time, people will get a visible return in the near future.
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