How to Min Ethereum for Free, Can You Still Mine ETH 2023?
Table of Contents [Show]
Do you want to mine Ethereum? You are in the right place. Please read further to find out if you can still mine ethereum in 2023. Of the many people who mine Bitcoin, there are a number of parties who choose to mine other cryptos. One of them is the crypto asset Ethereum, which is a decentralized blockchain platform.
This means that people can safely interact with each other, without the need for any third party to oversee the interaction. This step is commonly known as a “peer-to-peer” transaction.
Built and powered by Vitalik Buterin, Ethereum builds on the popularity of Bitcoin by adding powerful new features, including its own programming language. In practice, it not only allows Ethereum to have its own digital currency, but also its own native applications. The apps are called 'dapps', which are programmed using the Solidity scripting language, which comes from Ethereum.
Like all blockchains, Ethereum can also be issued or issue its own currency. Ethereum's native currency is called “Ether” or “ETH” and is second only to Bitcoin. As of August 2022, one ETH is worth around US$1610, with a circulation of around US$195 billion. However, in 2023, the price of 1 ETH will still be around US$ 1,200.
Therefore, if you want to mine Ethereum, the best method for now, is to save at least 32 ETH to become a validator. In the old proof-of-work mining model, miners needed to invest large sums of money to buy computers, network equipment, cabling and cooling mechanisms. With this old capital, the total accumulation for mining ETH is around US$ 20,000 to US$ 50,000 per individual.
In the new model, namely proof-of-stake, miners must become "validators,". This means miners have to buy and “stock up” 32 ETH. Of course, participants still need to invest some hardware costs, even if it's only on one computer.
In essence, Ethereum mining can no longer be done in 2023 because Ethereum has moved from POW to POS. Ethereum staking is cheaper than Ethereum mining if your goal is to make money.
1. Proof of Stake
Ethereum has now moved to full Proof of Stake in December 2021, meaning ETH proof of work mining will become obsolete. Currently, you can save ETH to earn more than mining Ethereum with GPU, which uses more capital.
Ethereum Staking/Hoarding, is the term for placing ETH crypto in available wallets and verifying and confirming transactions while securing the network. ETH Staking is currently known to be active after upgrading to ETH 2.0.
To summarize the proof of stake algorithm on Ethereum, validators can choose to run a validator node by storing 32 ETH or sending crypto in a staking wallet. The algorithm will choose, at random, who should create a block and check and confirm transactions from a given block.
It's an obvious fact that randomness favors those with the most amount of ETH. The validator proposes a block and is then stored by another validator. From the entire validator pool, 4 to 168 random committees of 128 validator nodes are selected when a block is proposed. These nodes are assigned to a specific shard block and will then vote on the next validator to fill the committee's allotment slot. The weight of validator votes depends on the size of the deposit or the amount of ETH staked.
Each 'block' has 32 slots, meaning 32 committee sets must complete the validation process in each epoch. When a random member of 128 nodes in a committee is granted the exclusive right to propose a block, the remaining 127 will vote on the proposal to prove the transaction.
This is an interesting pivot for two important reasons:
- The new model forces everyone to buy into the currency. Everyone becomes an equal shareholder in the first place, making the company much more democratic.
- If you do not act as a validator, you will be penalized, including in the worst violations after your ETH is destroyed or "trimmed". It encourages everyone to be an actor of good faith and punishes malicious behavior or hacking.
How to 'stake' Ethereum to get rewards? Easy. We can do this in the following ways:
How to Stake Ethereum
Buy 32 ETH and save it in a wallet address
First, you must be able to buy 32 ETH or more. For purchases, you can do it from exchanges or partners. The more ETH saved, the more rewards. Also, withdrawals are only available on future upgrades which may take 1-2 years, for example on minor upgrades when mainnet joins Beacon Chain.
Run an Ethereum staking node
Running a node requires only downloading an Ethereum 1 or 2 client on your device, doing the setup with the software, and making sure it's online. You can download and install software such as Prysm, Nimbus, Teku, Lighthouse, Lodestar and others that can run on Windows and other platforms.
Nodes must be connected to the Internet 24/7. You can also run as many nodes as you want or choose to combine all your ETH into one staking node.
Ethereum key or send it to the staking contract address:
The staking address in this case is 0x00000000219ab540356cbb839cbe05303d7705fa.
First, follow the ETH 2.0 launchpad and use the instructions there before paying to the address. After paying, your address is validated to become a blockchain validator.
During the payment process, you generate a key to sign and validate the block, as well as a second key to withdraw funds. Currently, the second can only be created when Eth 1.0 is merged with Eth 2.0 in 2022.
Run node and pay attention to the rules
Nodes will be punished if they break the rules. For example, penalties such as a reduction (or deduction) of staked Eth or deletion as a validator may occur for a rogue validator. Light fines also apply to offline validators.
Penalties and prizes are awarded every six and a half minutes. Running these nodes is usually aimed at pro-Ethereum users who understand the ins and outs of the blockchain. However, it's not hard to do for the average.
Run individual nodes on VPS
You can also run nodes through a VPS or virtual private server. VPS is basically renting out some computing power. These are servers that are physically far from your location, but online all over the place, because it removes the need for you to run the machine and keep it online.
After renting, you can install staking software and other software that allows you to connect to the Ethereum blockchain for staking purposes.
This requires knowledge of VPS and software. You need to find a VPS that provides at least 6 CPU Cores or more, 4-8 GB RAM, 400-500 GB SSD drive, etc. You can get options like Contabo, Strato, and Vultr.
Monitor profit or income
For those asking about the benefits of staking Ethereum, it depends on the amount of ETH stored. Current profit is 6% for running individual nodes and 5.35% for being in Ethereum staking pools. As of October 1, 2021, 7,805,242 Eth has been stored in the network.
Using Ethereum Staking Pool
Just a few things to note about Ethereum staking pools. First, pools don't require everyone to have at least 32 Eth. You can stake a smaller amount.
- Using Ethereum staking pools is one of the best methods to earn staking rewards without having to run a node.
- Staking rewards are distributed to pool members in proportion to the amount of ETH distributed. In addition, this staking is supported by smart contracts so the rewards are paid out automatically after the pool confirms the block.
- Staking pools allow you to hoard less or more than the 32 Eth required to run a single node. Pool members earn rewards by combining staking power with others in the pool. Staking power in the ETH network, is assessed based on the total ETH staked in the pool.
- Pool charges.
- Most pools issue a tokenized version of ETH that is locked by staking such as rETH, some type of ERC-20 token which is used to track the amount of ETH that users have hoarded and the amount of rewards they have earned.
- Top Ethereum staking pools include Ankr, Coinbase, Guarda, Lido, StakingEther, Binance, StakeWise, and Rocket Pool. Different pools have different staking payout results.
Conclusion
Ethereum mining can no longer be done and only Ethereum staking can be done in 2023 and above.
If you think about it, Ethereum staking is much cheaper when compared to Ethereum mining. Besides that, staking ethereum is safer and you can be sure that you will profit. Ethereum mining may not necessarily be profitable if your device is not expensive.
1. Is It Possible to Mine Ethereum in 2023?
No, Ethereum can no longer be mined because Ethereum has become POS.
2. Is Staking Ethereum Beneficial Than Mining Ethereum?
If you buy Ethereum cheaply, staking Ethereum is much more profitable than mining Ethereum
0 Comments