If you decide to start mining EOS cryptocurrency, there’s a lot you should consider before you switch on your hardware. Providing high scalability and great transaction throughput, the EOS blockchain was introduced as a proper environment for a decentralized application (dApp) deployment. EOS is constantly being compared to its main rival, Ethereum. Some may even call EOS an ‘Ethereum killer.’ There is a question: can we mine EOS in the same way as ETH? Today, we are going to investigate EOS mining.
About EOS Cryptocurrency
The EOSIO platform was created in 2017 by a private company Block.one. To introduce the EOS cryptocurrency to the community and ensure its widespread distribution, Block.one allocated one billion EOS tokens. Back at that time, EOS cryptocurrency was just an ERC-20 token, which became an independent entity in 2018 when the EOS mainnet was launched. Since then, the EOS rate has been meeting ups and downs, but the currency has never left the top 20 coins according to the market capitalization.
Today, the price of EOS is $2.75 with a market cap of over $3 billion.
How to Mine EOS?
How to mine EOS cryptocurrency? – is quite a popular request. However, you cannot mine EOS in the same fashion as you mine, for example, BTC. The answer to the initial question is simple: EOS mining is impossible.
The EOS blockchain is based on the Delegated Proof of Stake (DPoS) consensus algorithm which does not require miners. Instead, DPoS-based platforms have a group of validators that sign the blocks and maintain the blockchain in general. In the case of EOS, there are 21 block producers that perform the role of miners by validating blocks. The EOS community elects each of them.
Yet, if you already have a mining rig for, let’s say, Ethereum, it is possible to ‘mine’ EOS through ETH. EOS ‘mining’ takes three steps:
Create ETH and EOS wallets;
Join an Ethereum mining pool, set up your hardware, and start mining Ethereum (ETH) solo.
After you generate some Ether, convert it to EOS using the exchange platform. You can also exchange ETH to EOS swiftly via Changelly.
As mentioned above, there is no such thing as pure EOS mining. Thus, those who want to ‘mine’ EOS can either join an Ethereum mining pool or mine ETH solo. Ethereum (EOS) cloud mining is also an option.
Join an Ethereum mining pool. You can work together with a group of miners and combine your computing power for better results. Why join the mining pool? Ethereum mining has a high difficulty level, while mining solo might be very inefficient in terms of computational and electric resources.
Try Ethereum cloud mining. In this case, you lease the computing power for fiat: a remote server mines ETH for you. So, there is no need to buy expensive hardware. Cloud mining requires a PC with a strong internet connection. Just choose a suitable cloud mining service, sign up an account, and start ETH (EOS) cloud mining for basic cost.
How to Become an EOS Block Producer?
Block producers are a vivid part of the whole EOS ecosystem. They’re not just producing blocks, but continuously improving the network by providing essential solutions.
In 2019, a leading (at the time) block producer EOS New York proposed an EOS User Agreement (EUA) to replace the old EOS Constitution. The proposal clarified the core principles of the EOS blockchain in addition to the policy regarding the EOS users. The EUA had a positive impact on the whole community. Another block producer, GreyMass, developed and introduced one the most solid EOS wallets – Anchor (former GreyMass Wallet).
Even after dropping out of top 21, big block producers who helped to launch EOS continue providing
EOS has a strong community that is an engine for the whole network. By staking EOS tokens, users vote for a particular block producer thereby promoting BP’s position to the top 21. Once you decide to become a reliable block producer, you have to prove your utility to the community.
A block producer should have appropriate hardware to run the EOS full node and a considerable amount of RAM. In order to become a successful block producer, it is important to be publicly available and transparent as well as provide a vision on EOS improvements There are no strong requirements on the BP position, yet a user should understand that with a block producing comes great responsibility. If standby BPs happen to hit the top 21, they better be good. Otherwise, token holders will not vote for them once again.
EOS Block Reward
Roughly speaking, block producers are EOS miners as they do get a reward for block producing. As of April 24, 2020, the top block producer, Eoshuobipool, got 333 EOS (~$900) for produced blocks and 550 EOS (~$1,480) for votes from token holders.
There are too many obstacles on the way to the top 21. Most of the top positions are taken by whales – cryptocurrency exchange candidates that obviously have funds for votes. EOS ‘mining’ might be tough in such circumstances.
The community and standby block producers cannot struggle against the financial backup of giant exchanges. One of the oldest block producers that have contributed immensely to the EOS ecosystem development, EOS Canada, stopped its block producing operations.
Block.one that previously had not participated in the life of the EOS ecosystem directly, announced its future participation in the EOS governance. Perhaps, such a decision will help to return the true spirit of libertarianism to the EOS network.
Buy EOS with USD, EUR, and GBP at Changelly
Changelly provides quick access to over 150 cryptocurrencies. Credit cards are accepted.
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There are multiple ways to ‘mine’ EOS. Ethereum cloud mining allows you to save a fortune on expensive mining rigs, while block producing will bring you profits after you spend some on hardware. The easiest way to get EOS is to exchange your crypto to EOS coin or purchase is it on a reliable crypto exchange.
Changelly is a secure instant crypto exchange that has 150+ cryptocurrencies available to be swapped and bought at market-best rates. Operating since 2015, the platform and its mobile application attract over a million visitors monthly, who all enjoy quick and simple exchanges, low transparent fees, and 24/7 live support.