In understanding complicated processes for the first time or to gain deeper insight into how they work, it is helpful to have a common activity as something to draw a parallel with. Once we have an at least rudimentary if not complete understanding about how crypto currency mining works, the intricacies of Ethereum cloud mining can be delved into. With this in mind, we can say that the process of generating crypto currency mining in an efficient and productive manner is akin to farming in real life.
At the outset, a farmer who wishes to till the land for profit first has to purchase said land. Like in the land rushes that were common in unexplored parts of the world in the latter half of the past millennium, the better piece of land a farmer can get his hands on, the more likely they are to gain a substantial return. At the same time, the farmer has to take cognizance of the fact that there are multiple crops they can cultivate, each with its own requirements and risks, but also commiserate revenue and rewards. Let us assume that the farmer chooses to grow barley, given that there is a need for barley in the market. After purchasing the land, the farmer invests in seeds, fertilizer, farm equipment, processing plants (or not), and people to run the operations to make it scalable, if the venture turns out to be successful. Once the barley is grown, the crops need to be transported to the buyers, who no doubt look for the best price amongst the competitors of the farmer. To offset these rivals, the farmer can adopt better farming practices for higher quality and minimal loss. With any luck, the farmer makes up his investments and turns a profit as well, once his entire crop is sold.
Ethereum cloud mining works in a similar way. In general, for all sorts of CryptoCurrency mining, the ‘miner’ is a person like a farmer, who has bought a computer which is designed to perform calculations at very high speeds, with utmost power efficiency and lowest operational costs. This is analogous to the investment made by the farmer in his raw materials and equipment. We can take the analogy deeper, by comparing the performance capabilities of the equipment in both the processes. Like high end tractors, high quality seeds and highly effective fertilizers, the computing machines used for CryptoCurrency mining (just more silicon based), with circuits that consume electric power in the same way as a tractor guzzles fuel, come in different standards of floating operations per second (called flops, and usually measured in teraflops, or multiples of one million million – NOT a typo), power consumption (in Watts and kilowatt hours), cooling requirement and a host of other parameters which only become apparent after one gets into the business. The CryptoCurrency miner has to decide on which type of computing machine to choose, too – Graphics Processing Units (GPUs), Application Specific Integrated Circuits (ASICs) or plain old personal computers that have been ‘juiced up’ or ‘souped up’, to borrow a phrase from street racing.
Next comes the choice for the farmer or miner between which crypto currency to mine – the wheat level Bitcoin, which already has many producers and is being deployed into new sectors and industries like healthcare and governmental scheme implementations, or the barley type Ethereum, which is behind wheat in demand and overall value but has lesser competition? For new CryptoCurrency mining enthusiasts, Ethereum cloud mining would be the optimal choice, since securing Bitcoin has become resource intensive and yields practicable profit only when carried out at large scale or niche application.
Ethereum Cloud Mining – Pros and Pros, Only
As the cryptocurrency mining industry stands today, there is no apparent downside to Ethereum cloud mining. Once the infrastructure of computing machines is set up and ready to go, all that needs to be done is connect it to the cloud hosting, download the Ethereum software that has been hosting and managing the distributed applications that are the hallmark of Ethereum cloud mining. What this means in layman terms is that your processor becomes a part of the connected network that is used by third parties to develop, launch and maintain the applications that were (and continue to be) generally run on single servers. The approach of Ethereum cloud mining has multiple advantages, mainly in the speed of processing client requests and ensuring up-time in the event of failure of any servers. For this, the Ethereum cloud mining network uses specific derivatives of the hashing algorithm SHA-256, that is used to secure and verify the earliest cryptocurrency – Bitcoin.
The underlying principles of blockchain and mathematical riddle solving has defined cryptocurrency mining since its earliest days, but now, Ethereum cloud mining is set to expand its market via distributed applications, or DApps – the future of the app stores!