What does Ethereum and Mining Mean (Calculation of Ethereum Mining Cost)

What do Ethereum and mining mean? Ethereum is a distributed ledger using blockchain technology, adding a decentralized network on the basis of Bitcoin. And this system is called the Block Production Mechanism (PoW). Because there are a lot of Proof of work involved, it is called consensus protocol, that is, we package the entire Cryptocurrency into a block To address these two issues, the Ethereum team has designed some algorithms to help improve the scalability of Ethereum. For example, Ethereum 2.0 needs to be partitioned, expanded and optimized. Therefore, the developers decided to make a small change to Ethereum 2.0 first, and then transfer this part to a different chain and complete the upgrade So what is Ethereum and its mining methods? Actually, it’s very simple: the first method is to use Ethereum as the accounting unit; The second way is to establish a digital asset exchange on the Ethernet or raise funds or sell these tokens through the issuance of tokens; The third method is to use a tool dedicated to Ethereum ecological construction – smart contract. (The above three points can be understood as the abbreviation of Ethereum)

The calculation of mining cost in Ethereum

The calculation method of mining cost in Ethereum is to use a computer to dig a coin. If the CPU and bandwidth of each computer are counted in the value of the ledger, it is necessary to use this machine to do transactions of about two blocks for its network every day Due to the high price volatility of virtual currencies such as Bitcoin, when you want to buy a pile of Ethereum and mine it, you need to package these Ethereum coins into blocks (with a block height of 148888). In order to ensure the safe operation of your blockchain, you must ensure that your device is functioning properly and has sufficient time to prepare to handle error events before completing the operation, in order to avoid errors or situations of being confirmed first. Therefore, we can use some relatively simple methods to estimate the mining cost:

1) The average electricity bill for each miner is 3 cents

2) Each miner can only earn around $1 per month, which means they can save over 3000 yuan per year

3) Each time the mining machine configuration remains unchanged, a total cost of 1000 RMB is required

At present, the price of Ethereum mining machine is far lower than the market price of mainstream digital assets such as Bitcoin and Ripple. (Reference: coinmarketcap)