The Ethereum platform built for decentralized online services uses the ethash hashing algorithm. With its help, the metadata of the last blocks is hashed by means of a nonce encoding or, in other words, by generating a random binary value.
How Ethereum Works
For each new block in the chain, the platform in the same way assigns a unique hash value that the rest of the miners will have to look for. A simple broadband search mechanism will not work in this case. To create a new block in the blockchain, you have to work.
So far, the only way to find the correct password is to step through all valid solutions. The loop ends as soon as the correct code is found.
The computational power of the computer, launched for the hashing algorithm, did a full job of finding the only correct nonce code. The miner who found it and deciphered the block receives a reward of 5 Ether coins. After that, the whole process starts from the very beginning.
How to get your reward
You should start mining Ethereum with a thorough preparation of equipment and programs. Computer, video card, programs, wallet, Internet - only part of the preparation. But, first of all, we need to decide on the type of currency that we want to extract or mine.
The Ethash algorithm, formerly dagger-hashimoto, allows mining several types of cryptocurrencies: Ethereum Classic (ETC), Musicoin (MUSIC), and others. A peculiarity of the algorithm is considered to be demanding on the size of memory and significant power consumption.
The equipment must have technical specifications.
Access speed is not that critical.
What software is needed
Install a miner program on the computer that works according to the Ethash algorithm based on the blockchain. You can download them from the Internet, you can also choose a wallet for the mined Ethereum crypto coins there.
We do not specifically provide links to specific programs, since they are very often hacked and start mining not for you. Therefore, you should look for such software on special forums and download only confirmed versions.
The obtained digital money can be used immediately or simply exchanged for fiat currency at will.
The most convenient and popular exchanges are Yobit and Exmo
Numerous exchanges or exchangers do this at any time and in unlimited quantities.
The Topic of Article: How to mine Ethereum cryptocurrency.