The digitalized nature of society has pushed everyone into being reliant on technology, which has ensued a change in the way transactions are made. We’re referring to cryptocurrencies, which are becoming more and more mainstream every single day. Now, people are probably aware of Bitcoin, considering it’s the largest and original form of virtual money.
But, Ethereum is another form of cryptocurrency which is just as respected, and plenty of people are choosing Ethereum mining as their favorite. If you want to join the Ethereum community, ride the wave, and fuel the hype, then there are some mining terms that you’ll definitely want to brush up on…
Ether is the currency that you’ll you be working with if you decide to join the Ethereum community. Ether tokens are used within every transaction on the network and are also rewarded when a miner discovers a block.
A hash, hash function, or hash algorithm is a sequence of randomized numbers which keeps transactions, records, and documents completely anonymous and tamper-proof. It is the miners’ job to validate the hash function and ensure it is stored correctly on the blockchain.
The nonce can be looked at from two perspectives. On the one hand, there’s an account nonce, which tracks the amount of transactions per account. On the other hand, there’s proof-of-work nonce, which is used to help miners validate the work they’ve put in depending on the difficulty rate.
Ethash is currently the algorithm used within the Ethereum proof-of-work system. At the moment, it’s very GPU-orientated, to prevent CPU and ASIC domination. It’s worth noting that Ethereum will eventually transition into a proof-of-stake model.
If you’re going to get involved with mining, you’ll become very familiar with blocks. Luckily, it’s a very simple term to understand, as it’s just a record that is stored within the blockchain ledger. A miner’s main task is to discover blocks, so they can keep being added.
This is the process a miner will need to follow to be rewarded for their work. Since the network is decentralized, with no authoritative figure, there needs to be a way to ensure no cheating happens. So, a miner will need to solve an equation and add the block to the blockchain to prove they’ve completed it.
EVM (Ethereum Virtual Machine) Code
For those that have accounts on the Ethereum blockchain, the EVM code is what is sent from one account to another on the network. It has the capability to send messages, read storage, and construct its own storage.