Is The Future in Mining Ethereum?
Currently, Ethereum uses the Proof of work (PoW) system- this has been the arm supporting blockchain technologies like bitcoin and Ethereum. Proof-of-work refers to the solving of complex equations, which is a basic requirement for a miner to clear for their block to be added to the blockchain. This system has been picked apart for the environmental damage and electric cost it generates. However, through the use of the Dagger Hashimoto algorithm, Ethereum created a way that permits simple home computers to mine efficiently with little expenditure necessary.
Additionally, Ethereum plans with its next update tagged Serenity, to take out the concept of mining entirely and replace it with a new mechanism called Proof of Stake which will be powered by a consensus algorithm.
The Ethereum network is a long string of connections maintained by computers, their impact is undeniable, and the profit gained from mined Ether is surreal. A lot of people are of the opinion that mining will stop with the advent of the consensus algorithm and advise those with itching curiosity to mine now and think later
