The Ethereum network is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of fraud or third party interference. These apps run on a custom built blockchain, an enormously powerful shared global infrastructure that can move value around and represent the ownership of property.
This enables developers to create markets, store registries of debts or promises, move funds in accordance with instructions given long in the past (like a will or a futures contract) and many other things that have not been invented yet, all without a middle man or counterparty risk.
The Ethereum network is kept running by computers all over the world. In order to reward the computational costs of both processing the contracts and securing the network, there is a reward that one can earn by being a part of the network, this is known as “mining”.
Mining Ethereum works in much the same way as mining any other cryptocurrency. Miners are rewarded with ether for each block they successfully mine.
This process of “proof of work” is necessary to secure the network from malicious actors, and it also provides miners with new ether to power their applications.
While it is possible to mine Ethereum on your own, it is often more cost effective to join a mining pool. Mining pools allow miners to pool their resources together and share their rewards out proportionately according to the amount of work they contributed to solving a block.
There are many different mining pools one can join, each with their own benefits and drawbacks. It is important to choose a reputable pool with low fees and reliable payouts.
It is also important to consider the location of the pool’s servers as this can impact latency and performance.
Once you have chosen a pool, you will need to set up your mining software. There are many different software programs available for mining Ethereum, but we will be using Claymore’s Dual Miner which supports both AMD and Nvidia GPUs.
Once you have downloaded and extracted Claymore’s Dual Miner, open up the folder and look for the file named start_ethdcrminer64.bat if you are using Windows or start_ethdcrminer64.
sh if you are using Linux. Right click on this file and select “Edit”.
In the file, you will need to enter your Ethereum address where your rewards will be paid out and your mining pool information. You can find this information by creating an account on your chosen pool’s website and navigating to their “getting started” page or “help” section. Once you have entered this information into the start_ethdcrminer64 file, save it and double click on it to start mining!
You should now see something like this:
So can we mine ethereum on AWS? The answer is yes! By following the steps above, you can set up your own mining rig on Amazon’s cloud platform and start earning ether today!.