Before you buy Ethereum, there are things you need to know about its production and the blockchain that propels it. While blockchain technology might appear rigid in structure, there is a huge difference in its functions. The consensus mechanism is designed to work as a fault-tolerant mechanism connected to a group of blockchain networks to achieve that single data arrangement.
It can also be deployed when the network comes in a single state or multiple agents' connection, like a group of cryptocurrencies. The mechanism is vital in keeping the blockchain system secured against harmful external activities, e.g., hackers. Below, we have made a more detailed explanation of different types of blockchain and Ethereum Mining.
This is also called the Managed model of blockchain. It is the leading authority in private blockchains that doesn't allow any node with an equal right to perform. As efficient as the performance of private blockchains are, it has a few flaws: the private blockchain can be easily manipulated and is always vulnerable to scams and hacks. The type of blockchain is not 100% decentralized: there is restricted access. Some known examples of private (or managed) blockchains are Hyperledger: a blockchain open-source application, and Ripple: a B2B visual currency exchange network.
This is also another permission blockchain controlled by more than one organization, unlike what you have with private blockchains. Also, it is more dependent on a decentralized system than the private blockchain; thus, it's higher security efficiency. It needs the cooperation of a reasonable number of other organizations. Furthermore, suppliers of the chains may not be in the position to afford the technology or infrastructure needed to execute blockchain tolls.
Unlike the two types of blockchains listed above, the public blockchain is 100% "permissionless." Anyone can join, and it is completely decentralized. It allows the blockchain nodes to have equal rights to penetrate the blockchain by creating an entirely new information block, thus validating data blocks. Today, public blockchains are deployed mainly for mining cryptocurrencies,
thus very advantageous for those that buy Ethereum. Some well-known public blockchains are Litecoin, BTC, and ETH.
Sometimes people buy Ethereum, not knowing what the mining process looks like. The job of mining software is to manage the mining process, and they come in varieties. The same applies to Ethereum: there are ones that are specifically designed only to support Ethereum, while some others are designed to be naturally diverse, offering more support to other cryptocurrencies. Below are some of the popular software for mining Ethereum.
Originally designed for Chinese miners by a Chinese-based developer, this tool has found its way outside China and is now used by other miners from different parts of the world. It is developed to support both Linux and Windows OS. It also works effectively on AMD and NVIDIA GPUs and can be established freely on an SSL connection to mining pools. Although this software is designed for mining Ethereum, it can also be used for other cryptocurrencies like Aeternity (AE), Ravenous (RVN), BEAM, Conflux (CFX), and Ergo (ERGO). But mind you, NBMiner can be a bit difficult to use, especially for starters. Even the developers understand this, so they have provided users with a comprehensive how-to guide on the software's GitHub page.
Although the PhoenixMiner doesn't have a double mining option, it is designed to offer Ethereum miners lower dev fees and stability. It is specifically designed to support both NVIDIA and AMD cards and can work seamlessly on both Linux and Windows OS. It also runs seamlessly on Windows 10. Like NBMiner, you can still mine other coins with it.
For those who buy Ethereum, note that there are still others that come with a particular specification; they only work with either AMD GPUs or NVIDIA. Therefore, it is always recommended that you go for those programs that receive constant software updates: they have been certified to be more secure.
Also, you need to understand that some public blockchain networks make use of Proof of Stake (PoS) or also referred to as Proof of Work (PoW) which comes with permissioned Distributed Ledger Technologies (DLTs). It can be structured to concentrate on the network's ability to change in size, speed, and safety. So, when next you are out to buy Ethereum, at least acknowledge the production process.
