Ethereum uses the Proof-of-Work (POW) consensus mechanism, like Bitcoin. Mining is a vital component of all POW-based cryptocurrencies. Cryptographically difficult puzzles are solved by Ethereum miners from around the world using their time and processing power. A successful miner will be able to add blocks to the Ethereum blockchain and earn a reward for their efforts.

A Stake/Proof of Work Hybrid Model for Ethereum Mining

Understanding Innosilicon A10 Pro Ethereum mining requires understanding POW and why it was required in the first place. A decentralised network like Ethereum relies on consensus mechanisms to make decisions. Before Satoshi Nakamoto created Bitcoin and its underlying POW algorithm, several attempts were made to create a legitimate decentralised peer-to-peer digital currency system. They were all unsuccessful, however, because they did not answer the “Byzantine Generals Problem.”

Byzantine Generals Problem: What is it?

How Proof of Stake Works and How Ethereum Mining Works

Imagine that there are a group of Byzantine generals who wish to attack a city. They are faced with two distinct problems:

Generals and armies are very far apart, so it is impossible for centralized authority, which makes coordinated attacks very difficult.

A city that has a huge army can only win by attacking at once.

For successful coordination, the armies on the left of the castle send a messenger to the armies on the right of the castle stating, “ATTACK WEDNESDAY.” However, suppose the armies on the right are not prepared for the attack and say, “NO.” The messenger would then send the message back to the army on the left through the city. This is where we encounter a problem. It is possible for the messenger to encounter a variety of problems. There is a possibility that he will be captured, compromised, killed or replaced with another messenger by the city. The army would receive tampered information, which could result in an uncoordinated attack and defeat.

The blockchain is also clearly referred to in this. Since the blockchain is such a big network, how can it possibly be trusted? When sending 4 Ether from your wallet, how can you be sure that someone in the network isn’t going to tamper with it and change it to 40 Ether?

The proof of work protocol was invented by Satoshi Nakamoto in order to solve Byzantine General’s problem. It works in the following way. If the army on the left wanted to send a message to the army on the right called “ATTACK MONDAY”, they would follow certain steps.

Ethereum Mining Conclusion

Things are going to change immensely once Proof of Stake is implemented, as you can see. Anyone who wants to join the POW mining game in Ethereum still has plenty of time to do so.