Ethereum is another form of cryptocurrency like Bitcoin but unlike Bitcoin, it does not seek to be a ‘currency’ (for e.g. Dash) but rather a decentralized application platform. What does this mean?
Traditional applications run off servers/computers and as long as the person has access to the code and the databases, these applications can be modified and changed. A simple example are online betting sites whereby you a place a bet on an outcome and when the outcome is achieved, you get a payout. You have to trust the online betting site to give you this payout and if they choose not to do so, your only recourse is a legal one which can be messy with questionable results. With a decentralized application on Ethereum, the betting application is uploaded onto the Ethereum blockchain platform as a smart contract. Once uploaded, the contract cannot be modified and therefore once the outcome is achieved, you automatically get your payout based on the rules set in the contract. It’s a self enforcing contract.
How do you get Ethereum to create and run these contracts? You can either buy it off a cryptocurrency exchange or mine it. This guide teaches you how to do it on Windows. At the point of writing the price of one Ether is USD13.23
Download the official Ethereum wallet and create an account. It will sync Ethereum’s blockchain which may take several hours depending on how fast your internet connection is.
Take note of the Ethereum address.
Edit eth-proxy.conf as follows below and change the bolded parts to suit your chosen Ethereum mining pool. For the purposes of this example we are using ethpool.org which is one of the oldest mining pools for Ethereum.
# Examples of command line for miners:
# ethminer.exe –farm-recheck 200 -G -F http://HOST:PORT/
# ethminer.exe –farm-recheck 300 -G -F http://HOST:PORT/rig1
# ethminer.exe -G -F http://127.0.0.1:8080/
# ethminer.exe –farm-recheck 100 -G -F http://192.168.0.33:8080/rig1
# farm-recheck parameter is very individual. Just test different values.
# You can submit shares without workername or
# You can provide workername:
# – with url like “/rig1”
# – or use automatically numbering(integer) based on IP of miner
# EU-Server: eu1.ethpool.org Port: 3333
# US-Server: us1.ethpool.org Port: 3333
# Asia-Server: asia1.ethpool.org Port: 3333
# Select Ethereum ETH
COIN = “ETH”
# Host and port for your workers
HOST = “127.0.0.1”
PORT = 8080
# Coin address where money goes
WALLET = “YOURETHEREUMADDRESS“
# It’s useful for individually monitoring and statistic
ENABLE_WORKER_ID = True
# Main pool
POOL_HOST = “asia1.ethpool.org“
POOL_PORT = 3333
# Failover pool
POOL_FAILOVER_ENABLE = True
POOL_HOST_FAILOVER1 = “eu1.ethpool.org”
POOL_PORT_FAILOVER1 = 3333
POOL_HOST_FAILOVER2 = “eth-us.dwarfpool.com”
POOL_PORT_FAILOVER2 = 8008
POOL_HOST_FAILOVER3 = “eth-hk.dwarfpool.com”
POOL_PORT_FAILOVER3 = 8008
LOG_TO_FILE = True
# Enable debug
DEBUG = False
Download ethminer (it comes also with other applications but we won’t be using those) which is the main mining software. Install it.
Depending on your setup, the information you enter into the config file will be different.
Create a new file in notepad and name it ethminer.bat with the following information (after editing it) and save it.
For single GPU setup:
ethminer -F http://127.0.0.1:8080/rig1 –farm-recheck 200 -G
If you have more than one GPU on the computer, this is specified with the -t flag. Below shows an example with 2 GPUs:
ethminer -F http://127.0.0.1:8080/rig1 –farm-recheck 200 -G -t 2
If you have an internal GPU (For example Intel) and also a dedicated GPU, the mining software sometimes refuses to load. You have to let the program know which GPU to use using the following command
ethminer -F http://127.0.0.1:8080/rig1 –farm-recheck 200 -G –opencl-platform 1
Save ethminer.bat in the same folder as ethminer.exe (usually C:\Program Files\Ethereum).
Now start-up eth-proxy.exe.
Then double click on ethminer.bat.
After a few seconds, it should show something like this which means you’re mining!
You can monitor your mining also from your mining pool’s website and entering your Ethereum address that you created when you created your wallet.