Bitcoin Miners, Profits Ethereum & Blockchain
Before we get into the depth of this article, let’s get one thing sorted out. Who are ‘miners’ and how do they earn? Simple as that. With answers to these questions, it becomes easier to grasp the developments with regard to the Ethereum network.
In simple words, to process bitcoin transactions, miners operate a vast network of machines. To be accepted by the network, the miners need to make sure that the transactions are effectively grouped or bundled together. Just like every businessman, they make profits when the revenue earned by generating and selling cryptocurrencies exceeds the cost of electricity required.
Now, why are ‘miners’ looking to capitalize on ether, the cryptocurrency of the Ethereum network? The answer is short and sweet. The prospect of profits. Due to Ethereum’s recent success, miners all over the world believe it to be a reliable source of profits, in the near future.
Moreover, it certainly looks like ether mining is gaining momentum. “Enigma” or “the world’s largest Ethereum mine” as described by Genesis mining not so long ago, allows hosted mining services to global customers who want a foot into the speculative value of ether but don’t want to get into full-fledged, i.e. as miners
The Ethereum network is not so different to bitcoin, offering similar features such as mining pools of different sizes and influences.
Despite all this, is not certain yet as to whether this is going to be a long-term phenomenon. More commonly known as a 51% attack, should a single entity gain majority control of the network, the Ethereum network faces a risk of having its transaction history become mutable. A proof-of-stake system would be considered as a solution to this problem as it would limit the number of major players in the game. Currently at $13.77, it is ultimately going to be down on the price of ether which in turn will decide its future.