How Does EOS Mining Work | Beginners Guide

How Does EOS Mining Work | Beginners Guide

Introduction to EOS

Before we get deeper into the EOS mining concept, it’s important to go into a detailed overview of the EOS cryptocurrency uniqueness.

What is EOS?

EOS is a platform built on blockchain technology.
However, instead of a platform that is only meant for trading different currencies or commodities, EOS promises to be a real operating system that runs distributed applications.
This way, it will be able to serve millions of users who will not even need to know how it works behind the scenes.

The EOS ICO (Initial Coin Offerings) started on June 26, 2017, by block.one, with a total of one billion tokens to be issued on the Etherium network, as follows:
200 million tokens (20%) were distributed by July 1, 2017.
700 million tokens (70%) were then distributed over 350 23-hour rounds.
The remaining 100 million tokens (10%) will not be distributed but will remain owned by block.one and will not be able to pass within the Etherium network.
This is because of developer financing, marketing, etc.
By the end of October 2017, a total of about $ 700 million had been raised, of which $ 180 million in the first five days.
In total, the EOS IPO has broken records by raising over $ 4 billion!

Block.one’s Chief Technology Officer is Dan Larimer, one of the most influential people in the crypto world industry.
He helped develop several projects, among others the “Proof of Stake” algorithm, and the concept of the “Distributed Autonomous Organization (DAO)”
Another famous (and somewhat controversial) project he was involved in is Steem:

A distributed social network that helps content producers make money through blockchain and BitShares (distributed trading system).

The EOS scalability is horizontal rather than vertical; thus allowing multiple smart contracts to run and perform simultaneous transactions.

This is unlike other chains, where each application runs on the same network and its execution is done in a single file line by line.

EOS is made up of several different components: databases, permissions system, schedules, authentication, internal application system, and asynchronous communication.

All the above create the connection between the chain and the distributed operating system.

Some of its benefits would be:

  • Local storage: The system makes it possible to store the local information of each user on his local computer outside the chain, which of course gives the platform a very high level of security.
  • Alternative to server: Another capability of the system is to serve as a storage server or cloud so that the various applications are not limited in storage or traffic volume.
  • Flexible payment model: Each distributed app developer can determine for himself how the monetization of his app will work to cover the usage fees of the system. For the end-user, he pays the costs (if any) to the developer only without using an EOS wallet.

EOS’s competition is mainly against smart contract platforms;  Ethereum, NEO, Cardano, and others. 

The EOS tokens are best for business purposes, so, the burden of providing development resources rests with the app developers.

For funding applications on the EOS network, the EOS token is used as a stake.

All the above results in EOS being amongst the most discussed projects in the Cryptocurrency ecosystem.

EOS mining – how does it work?

Since EOS currency is based on the DPoS consensus algorithm, and since DPoS does not require miners, there is actually no way for EOS mining the usual way, using a mining pool.

Therefore, there is no EOS mining pool to join out there.

There is a fixed number of EOS tokens that are not available for mining, but you can buy or convert them into EOS.

Therefore, if you are looking for EOS mining, AND you have a mining rig, these are both your options:

Mine Ethereum and convert it to EOS

Using this option, you will “Mine” EOS through an Ethereum mining pool

This should ensure the crypto mining profitability.

So, for EOS mining what you actually need is:

  • Get ethereum and EOS wallets
  • Mine Ethereum
  • Convert it into EOS through an exchange that supports both coins.

Use an Ethereum Cloud Mining

Cloud mining is the best option for those who don’t have enough knowledge but want to mine cryptocurrency.

You will lease your computing power to a remote server; this server will mine ETH for you.

This is a less costly option, as expensive mining equipment is not needed.

Cloud mining gives miners a unique opportunity to start mining cryptocurrency without initial investment in hardware and without extensive technical knowledge.

All you need with cloud mining is a wallet and a strong internet connection.

You can choose between some recommended cloud mining services, and get started with the cloud mining.

3 popular cloud mining vendors 

Hashflare

This company was launched in 2015. It is regarded as a trustworthy and reliable online vendor.

  • In Hashflare, you can get a contract with a low hash, rate, and no maintenance fee.
  • The strategy is pretty easy,.
  • The mining starts immediately after confirmed payment and first payouts take place within 24 hours
  • You will be able to choose the amount to withdraw and receive it immediately.
  • It is possible to view all mining-related information in real-time from anywhere.
  • You can choose the pools you want your hashrate to mine in. This allows you to find the most profitable combination.

Genesis Mining

Genesis was founded in 2013, by founders who shared the dream of building mining as a service.

The first farm was built in Eastern Europe.  

Today it is regarded as one of the foremost reputed companies, offering Ethereum mining services amongst other currencies.

  • Genesis offers easy access to small, medium, and large mining contracts:
  • There is good customer service available.
  • Daily payouts,
  • Using Genesis is easy from set up to the withdrawal.
  •  Mining starts immediately once signing the contract.

IQ mining

IQ mining was founded at the end of 2016 by a team of blockchain experts and IT engineers.

  • It offers A wide selection of cloud mining contracts
  • It is very easy and straightforward to use.
  • It allows daily payouts
  • There are various contracts available, such as “Pro” contracts with 20% interest per year
  • 24/7 live support 
  • Easy and convenient purchase and many withdrawal methods, no commission
  • A unique option for inexperienced miners to copy successful traders:

eos mining

The above are 3 reliable cloud mining vendors, optional for Ethereum mining.

To conclude:

Eos mining in a mining pool is actually not possible, however: There are “indirect” ways to mine EOS, such as mining ethereum and converting it to Eos.

 

 

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