What is the Process of Ethereum Mining?
Ethereum mining is the process of validating transactions and adding them to the Ethereum blockchain. It involves a series of steps that ensure security and reliability.
1. Transaction Initiation
Users initiate transactions on the Ethereum network, which are broadcast to the network. These transactions include data such as sender, receiver, and amount.
2. Transaction Pool
Once transactions are broadcast, they enter the transaction pool (mempool). Miners pick transactions from this pool to include in the next block.
3. Block Formation
Miners group a selection of transactions to form a new block. Each block has a maximum size, limiting the number of transactions it can contain.
4. Proof of Work
To validate the block, miners must solve a complex mathematical problem known as Proof of Work. This process requires significant computational power and energy.
5. Block Verification
Once a miner finds a solution, the new block is broadcast to the network for verification. Other miners check the block's validity and ensure it contains valid transactions.
6. Block Addition
If verified, the new block is added to the blockchain, and the miner receives a reward in the form of Ether (ETH) and transaction fees for their efforts.
7. Continuous Cycle
This process repeats every approximately 15 seconds as miners continuously work to validate and add new transactions to the Ethereum blockchain.