ETH (ETHEREUM): Mining and Ethereum Virtual Machine

Ethereum tokens are created through the process of mining at a rate of five ether/mine block. Instead of mining for bitcoin, the users work to earn Ether. It is also used by developers to meet the transaction expenses and services provided on Ethereum network.

The mining process is similar to that of the Bitcoin where the miners repeatedly answer the puzzles until one of the user wins. They will run the block’s unique header metadata through a hash altering the ‘nonce value’. The value that synchronizes the current target, the miner will get the Ether, validates it and adds it to the ledger. Ethereum use ‘Ethash’, a specific proof-of-work algorithm.