But the rate is not expected to be maintained: Sometime in 2017, Ethereum will switch from Proof of Work to a new consensus algorithm in development, the Casper, which is expected to be more efficient and requires less mining effort. The exact method of emission and what functions it will serve is still in the field of active research, but what can now be guaranteed is (1.) that the current maximum is the upper limit and the new emission under Casper will not be exceeded (it is expected to be much less) and (2.) no matter which method is ultimately chosen, it will be a decentralized, intelligent contract (smart contract) that will never give priority to a particular group of people and whose purpose is to take advantage of the general health and safety of the network.
Ethereum Mining – How do I mine ether?
Ethereum’s network is managed by computers all over the world. To reward the cost of processing the contracts and securing the network, there is a reward given to the computer that was able to create the latest block in the chain. On average, every 12 seconds a new block of the block chain is created, with the last transactions being processed by the network and the computer that created this block being rewarded with 5 ethers. Due to the type of block generation algorithm, this process (proof of work) is guaranteed to run randomly and the rewards are set in relation to the computing power of each machine.
This process is usually referred to in crypto-currency jargon as “mining”.
If you are on a private network (and want to test the technology and Ethereum Mining for free) then any normal computer with a normal CPU will be able to join the Ethereum Mining network and earn Testers (an Ether that can only be used on the test network where it was created) created by the Mining.
This is the best choice for small networks or private testing of Ethereum Mining, as it is less resource intensive. With Ethereum Mining in the real (or live test) network, a normal desktop (or laptop) computer can take a very long time to successfully generate a block in Ethereum Mining and get Ether.
GPU Ethereum Mining
If you are serious about growing with the living Ethereum network and want to get real ether rewards for Ethereum Mining, then you should use a dedicated computer with very powerful graphics cards for Ethereum Mining to run the network. In the meantime, entire cloud mining pools have formed in order to “win” ether faster together.
Another option is cloud mining. Here you can rent mining power without having to place any hardware in your own four walls.
Vitalik Buterin – The genius behind Ethereum
Vitalik Buterin – Founder of Ethereum
Buterin was born in Kolomna, in the Moscow area of Russia, and lived in the area until the age of six when his parents emigrated to Canada to seek better employment opportunities. While he was in the third grade of primary school in Canada, Buterin was placed in a class for gifted children and began to understand that he was being educated in mathematics, programming and economics. He also had the gift of adding three-digit numbers in his head twice as fast as his peers. In 2012 he received a bronze medal in the International Olympiad in Computer Science. He attended the University of Waterloo, but left in 2014 when he received the Thiel scholarship and moved to full-time work at Bitcoin.