The Golem Network has launched an app that allows users to extract Ethereum on their laptops, but it will take a long time before the treasures can be collected.
The Golem Network has launched an app that allows users to extract Ethereum on their laptops, but it will take a long time before the treasures can be collected. The decentralized computing sharing platform has launched the Thorg app which allows users to earn Ethereum on Windows-based computers and laptops. The application runs in the background and uses unused computing power to process the calculations needed to prove that mining is working. Users will be rewarded with Golem's native GLM tokens instead of Ethereum. The system runs on the aggregate layer of the second polygon layer, which reduces the high transaction costs associated with the ERC-20 GLM token. This creates "shares" which are batch computing tasks that are collected and used to extract Ethereum.
Piotr Janiuk, CEO of Golem, said that Thorg was created to increase the adoption of the Golem network by allowing users to generate passive income from their own computers. The minimum requirements for starting the application are the Windows 10 operating system and a graphics card with 6 gigabytes or higher, which only high-end gaming laptops have. Those who think this could be an easy way to harvest mint at home may need to reconsider. According to the test page, the 6 GB graphics card delivers a hashrate of around 26 MH/s. Given that and the average desktop power consumption of around 600 watts for a hypothetical example, the profit from spending Ethereum per computer could generate about $0.06 per day, according to the mining calculator, or take more than two weeks to figure out. dollar. However, there are many variables, such as specific computer hardware, energy consumption, and electricity prices, so this is only a theoretical example and results may vary.
The calculations also don't take into account the cost of high-end graphics cards, which are currently very expensive due to global demand and shortage of chips. The message says that not all users need a high-end GPU. "If you don't have a high-end GPU, you can still use the Golem Network to compute tasks and earn GLM." At the time of writing, the native Golem token is trading 1.5% per day at $0.475.
Ethereum miners will continue to benefit from lucrative payouts for their efforts in 2021 as smart contract blockchain platforms approach deviations from consensus on proof of performance. The last few months have been phenomenal for most of the cryptocurrency space as Bitcoin (BTC), Ether (ETH) and various other coins have seen a tremendous increase in value. The increase in transaction volume and consumers also directly benefits the cryptocurrency mining ecosystem. Ethereum miners in particular have made significant profits due to the success of decentralized finance projects implemented on their blockchain. These different DeFi platforms have stimulated the volume of transactions and activity on the Ethereum blockchain, resulting in sharp increases in fees and longer processing times. While the end customer has to bear the brunt of the increased transaction fees, the miners smile at the bank.
As a result, Ethereum miners posted record earnings of over $830 million in January 2021, a level not seen since the first few weeks of 2018, before the market for ether, bitcoin, and other cryptocurrencies collapsed. While Bitcoin tops the list of cryptocurrencies by market cap, BTC miners do not enjoy the same level of profitability as Ethereum miners. Philip Salter, operations manager at Genesis Mining, said that while Ethereum production is “very profitable” at the moment, current and prospective miners still need to be aware of the initial barriers to entry.
"The margin you can earn with ETH is much higher than the margin you can earn with BTC. However, that does not mean it is generally more profitable. The reason is that the ETH mining hardware is more expensive than the BTC-Dig hardware so you have to offset the costs." higher acquisitions.” Salter notes that Litecoin (LTC) and Dash production are also profitable, but not yet in the same place as BTC and ETH. He also added that all other cryptocurrencies mined using graphics cards are not as profitable as mining ETH. Pylon. Finance’s pseudonymous founder, OxGrimReaper, also assessed the current mining climate and the superior profitability of Ethereum's current production.
“ETH is currently the most lucrative mining opportunity, especially as GPUs and hardware in retail are blocked. Also, we are in the middle of Chinese New Year, which means no factory production. The barrier to entry at this point was as high as before. "The founder of Pylon.finance also said that while bitcoin mining is less profitable than GPU mining, it's easier to get in because consumers can buy ASIC excavators, which are basically plug-and-play. However, GPU capture has several barriers to entry, including the cost of the GPU, the technical knowledge required to set up the system, and operational considerations.
OxGrimReaper also agrees that the success of the DeFi platform has played a significant role in the profitability that Ethereum miners enjoy today. Ethereum gas fees paid to miners for completing transactions have skyrocketed as use of the DeFi platform has increased, and he says this is a positive sign for miners: “The AMM Frontbots are an important catalyst for the gas war. But of course, the gas war means high business costs. High gas is a good indicator that miners are making money. Gas has hit record highs this year, while production has also hit record highs. In addition, transactions in the ETH ecosystem have reached record highs this year. All of these are strong indicators of a healthy mining ecosystem, especially for those who already have the infrastructure. "
For now, ether miners will continue to benefit from high fees and transaction volumes while maintaining the blockchain. This is despite the ongoing slow transition to Ethereum 2.0, which will signal the beginning of the end of Ethereum production as the core network joins the anti-flare betting chain starting in December 2020. The move away from the current PoW protocol, which Ethereum is working on, aims to make the blockchain more scalable, safer and more sustainable. However, this will also end a profitable venture for Ethereum miners. With a full transition to Eth2 still in sight, Salter said miners will carefully consider upgrading their operations as Eth2 evolves: “Switching from Ethereum to PoS has been possible for a very long time, but it always seems to be about two years later. Miners will assess the risk of such an event before investing in new hardware.
Salter added that a more pressing issue is the upcoming Ethereum EIP-1559 upgrade plan, which suggests burning a large portion of transaction fees rather than giving them to miners, with a significant impact on ETH's profitability: "If this is accepted, this will result in a significant reduction in premium returns - up to 50% less. Such drastic changes often affect the Ethereum ecosystem and create uncertainty for investors.” Ethereum transaction fees continued to rise in February 2021, with data from Blockchain estimating the average transaction fee for Ether at $50, compared to Bitcoin's $30 average per transaction.
Meanwhile OxGrimReaper says that their operations could easily be replaced with other profitable cryptocurrencies that use GPUs instead of ASICs used to extract cryptocurrencies like Bitcoin:
“There are more than 10 coins that our GPU can easily generate profitably. We are now doing this with 4G cards pulled from Ethereum. This results in Ravencoin with some profitability. For us, protocol is not as important as arbitrage between streams and calculating hash rate. "However, cryptocurrency commentators like Lark Davis, also known as Crypto Lark, emphasize the need for Ethereum developers to speed up the transition to Eth2 and give consumers a break from Ethereum's astronomical transaction fees. While many users have used DeFi platforms such as Uniswap and 1inch to perform simple exchanges between trading pairs, the fees for these services and transactions have become too high for the average user, making it difficult to bring new people into the DeFi sector.