Mining of etherium in 5 minutes

All you need to start mining in Ethereum is the AWS EC2 instance.

Surely, you have already heard about the rapidly growing popularity of cryptocurrency. Slowly but surely, cryptocurrencies are changing in their way the familiar process of working with financial systems and transactions (in my opinion, such systems should continue to work, assimilating with new trends).



Not so long ago, the cost of Bitcoin reached $ 6000, while the market capitalization of such cryptocurrency now stands at $ 103 billion, as well as hundreds of ICOs (Initial coin offering from English - the initial offer of coins) held since August of this year. Needless to say, during this time, a huge economic boom has occurred in the Bitcoin world, which, apparently, will not subside very soon.



As can be seen on the graph below, the total capitalization of cryptocurrencies increased from $ 50 billion to $ 150 in just one year.



I personally like the Ethereum project (from Ethereum), in which mining is quite simple using AWS. I want to devote this article to this particular topic - mining.



Before we get to the main topic, I suggest first to get acquainted with the basic concepts. In that case, if you already know about this platform and mining, you can safely skip the introductory part.

What is Ethereum?

Ethereum is an open-source blockchain-based software platform that allows developers to create and deploy decentralized applications. The main advantage of Ethereum over Bitcoin is that the former provides support for various types of decentralized applications.



Ethereum takes the second position after Bitcoin on the scale of market capitalization. For example, only in the past year the cost of the Ethereum platform has increased by 230%, as can be seen in the graph below:







However, the increase in price implies an increase in the requirements for miners who work in the Ethereum platform, which, in turn, certainly leads to an increase in the complexity of the mining process:







If it turned out that you started working with the Ethereum platform in May of this year, then you probably felt how much more difficult the process of mining has become today.

What is crypto mining?

The word "mining" (from the English. Mining - to mine) is a kind of analogue of gold mining in the field of cryptocurrency. In a nutshell: mining cryptocurrency is the solution of complex mathematical problems. Miners, in turn, are people who spend all their time and energy on solving such problems. Miners provide their solutions to those who confirm such decisions. After that, the miners receive a well-deserved reward - a block of Ether. As you might have guessed, the more complicated the mining process is, the more complex the mathematical tasks that need to be solved are, and the more difficult it is to get a reward for the solutions found. At the moment, due to the extraordinary popularity and demand for Ethereum, the complexity of mining for this platform also reaches its maximum.

Is it worth doing mining at all in Ethereum?

It so happened that the more miners join the Ethereum, the more difficult it becomes to solve problems and the process of mining as such. Then you ask: "Well, and should I even begin to engage in mining, if the time for a good start has already been lost?". You should know that the cost of the platform is constantly growing, so the value of its currency, even if its small amount, can grow to huge amounts in the future.



However, there were some changes in the Ethereum: not so long ago, a method of proof of ownership share (from the English proof-of-stake) was introduced for this platform. This means that the mining process will mean little. However, such innovations can lead to a sharp increase in the cost of Ethereum cryptocurrency.



So, if you have already rethought all the above information and are still ready to engage in mining in Ethereum, then the rest of the article is just for you!

How to run your own AWS-instans for mining?

Just a few simple steps:

1. Navigate to your AWS EC2 console and change your region to US East (N.Virginia) . This district has the lowest cost for the services we need and, in addition, there is an AMI community here where you can find the established mining libraries that we need.
2. In the Instances column, select Spot Instances and click Request Spot Instances.
3. Find the AMI community called ami-cb384fdd and select it.
4. Under Instance, select g2.8xlarge .
5. Run!

Start mining

In order to start mining you need your wallet in Ethereum, and you must also be part of the pool of miners. To create your wallet, go to www.myetherwallet.com and follow the instructions. Upon completion of the registration process, you will receive the address of your personal wallet.



For mining, we will use a pool of Dwarfpool,. However, you can use any other pool. Here you can find a list of the most popular.



Just use the SSH protocol for this purpose and enter the following code:

> tmux > ethminer -G -F http://eth-eu.dwarfpool.com/{WALLET ADDRESS}/{YOUR_EMAIL ADDRESS} --cl-local-work 256 --cl-global-work 16384
      
      

        
        
        
      

    
        
        
        
      
      

        
        
        
      

    
     

With Tmux, you can continue to perform all the necessary processes even after the end of the SSH connection.



Ethminer is a GPU miner. Enter your e-mail to receive notifications about payments made in the platform. Other options are provided to optimize the mining process.



That's all!



Soon a DAG file will be created and right after that you will be able to start mining.



My opinion is this: in view of its excessive complexity, the process of mining in Ethereum is not worth the trouble if you decide to do this just now. For example, one hour of working with g2.8xlarge will cost you $ 2.6, while the profit of the miner in Ethereum can also be as low as $ 2.6 per day!



Now, no one will tell you for sure what the future holds for any of the current cryptocurrencies - maybe they all will burst like a soap bubble. There is also an opinion that the sale of cryptocurrency is a kind of lottery.



Nevertheless, I, being an optimist, are more than confident that cryptocurrencies have a bright future ahead, and the recent rapid development of Bitcoin and Ethereum only confirm my assumptions. Do not forget that mining is like a lottery, so a cryptocurrency unit earned today can take off a hundred times in price in a year.



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