To run the distributed platform of Ethereum, an element is required to fuel the network it is known as ether. The machine on the network that performs the task given by the client, accepts ether as payment.
Let us discuss on how ether was created; during the presale of 2014, the total supply of ether was decided to depend on the donation gathered. Approximately 60 million ethers were created by the contributors. For every miner of the block 5 ethers are created, 2-3 are created for another miner not included in the block for finding the solution of the block.
As per discussion of 2014 presale, it was concluded only 18million ethers can be issued in a year. The relative inflation will decrease with the fixed issuance amount. It is predicted that somewhere in 2018 2019 the ether will change from proof of work algorithm to a new algorithm known as Casper, this algorithm will give more efficiency to ether and will require less mining subsidy. Although the method and function of issuance are still under research. But at the moment only one thing can be said it will not give any preference to anyone compromising with the security of the network.
Computers worldwide keep running the Ethereum network, the rewards are given on computational cost for creating smart contracts, securing the network and creating the latest block on the chain. It is estimated that on an average in every 15 seconds a new block is added to the blockchain, a new transaction is processed and the computer which performs all this task gets the reward of 3 ether. The process is random due to the nature of the algorithm so the rewards are given in proportion to each computer. In cryptocurrency language, this process of generating blocks and adding it to the blockchain is called mining.
Using normal CPU to mine an ether and receive rewards will take a long time so it is better to work on a specialized computer designed for mining. If you really want to dedicate your time in mining and is really serious about it then start thinking about buying a dedicated computer with the very powerful graphics card to run on the Ethereum network. Creating ether base is very important before anyone starts mining because this is the place where you will receive your earnings.
Currently, there are two options for GPU mining: 1) C++ ether mining and 2) go experimental. To know more about this click continue reading