Mining Ethereum on CPU

On the eve of Etherium’s transition to version 2.0, PoW mining of the cryptocurrency is still relevant. In 2022, ETH is still the most popular coin for mining. Due to the complexity of the network, the asset is more often mined on video cards and asics. However, the developers originally optimized the Ethereum algorithm for mining on CPUs to increase the decentralization of the system. After the cryptocurrency’s DAG file grew to 4 Gb, minting coins on CPUs became impossible. Ethereum mining on CPU gained popularity again in 2020 with the advent of AVX512 and Adaptive Boost technologies, which added missing memory (up to 5 Gb) to CPU cores.

1. Features of Ethereum mining on a CPU
2. GPU vs CPU
3. Feasibility of mining ETH on CPU
4. Revenue
5. How to mine Etherium on a CPU
6. Mining equipment
7. Pooling Choices
8. Mining software
9. Setting up and running mining
10. Summary

Features of Ethereum mining on a CPU

The main function of the CPU (Central Processing Unit) is the allocation of PC resources for optimal computing. Mining ETH on a CPU is one of the most economical ways of mining cryptocurrency. Videocards and asics have higher performance, but consume a lot of electricity. Less noisy fans can be installed on the CPU, allowing you to mine cryptocurrency at home.

Many developers oppose the use of ASIC devices, which are detrimental to the decentralized network. Computing power is concentrated in one group of people, which means that the risk of “51% attack” grows. With the emergence of a new model for the popular coin, mining on farms with small hash rates becomes unprofitable. Private vorkers are leaving the market.

To protect the network, the Ethash algorithm was originally optimized for mining on CPUs. The performance of ETH mining depends on the speed of random access memory, which is quite high on CPUs. The mining performance is also affected by the presence of hardware support for calculations (AES protocol). Therefore, older CPU models that do not have this feature are not suitable for mining the asset.

In order to work with the Ethash algorithm, the vorkers need to download a DAG file. Its size is constantly growing. In August 2022, Ethereum’s DAG file takes up 4.86 Gb. Therefore, it is possible to mine Ethereum only on new processors with a large amount of cache memory and support for AES protocols.

GPU vs CPU

The performance of central units in mining is inferior to that of video cards. GPUs use a faster type of memory, so the bandwidth increases. This makes a difference for parallel computing. CPUs and GPUs serve different purposes. The functions of processors are presented in the table.

CPU	GPU
Controls PC components	Responsible for texture processing
The CPU core processes four 32-bit instructions per clock cycle	Passes 3,200 32-bit instructions per clock
Runs 1 or 2 calculation threads on one core	Conducts thousands of threads on each chip

Feasibility of mining ETH on CPU

In 2022, ethereum accounts for more than 70% of all coins mined. Most vorkers use video cards, which has been one of the reasons for the latter’s steep rise in price. In addition, supply chain disruptions are not uncommon. Sometimes miners have to wait for the right model for months.

Users began to look for alternative ways to mine Etherium. In 2020, powerful Intel 11-series CPUs appeared. They can compete with budget graphics cards in terms of hash rate, but consume less electricity. This is especially relevant in regions with expensive energy, where powerful video cards become unprofitable due to the high cost of the “power outlet.

Etherium mining on a CPU is worth considering in such cases:

• If you need a powerful CPU to work. You can get a little extra income during PC downtime.

• In cities with expensive electricity. It is necessary to carefully calculate the profitability of the farm on GPU and CPU.

To increase profits, you can do these steps:

• Run mining on CPU and graphics card simultaneously.

• Mint 2 coins on CPU. In 2022, simultaneous mining of ETH and TonCoin is relevant.

Revenue

In 2022, Ethereum network complexity is so high that mining on inexpensive CPU models is unprofitable. Hash rate of 20-30 Th/s can only be provided by modern models of Intel 11-series and above (or analogues of other manufacturers). The average price of such CPUs in August 2022 is $2,000. Profits from mining can be increased if you can buy a model in good condition on the secondary market at a discount.

If you work around the clock, you can earn $18-20 per month (at the price of ETH $1.8 thousand). In 2022, the cryptocurrency market is experiencing a prolonged correction. Bitcoin and Ethereum have declined from their peak values. But, many analysts predict an increase in the price of ETH to $10,000 on the next growth impulse. In this case, the income of the vorkers will multiply.

How to mine Etherium on a CPU

It is possible to mine ETH on a computer that is constantly used for work. Another option is to build a new one specifically for mining. The decision depends on the user’s goals – to create a stable source of income or to run the PC occasionally to avoid downtime.

Wallet registration

In 2022, developers offer a large number of services for storing cryptocurrencies. A small part of funds can be placed on exchange wallets to trade coins or invest them. Large amounts of money should not be stored on online platforms. It is safer to use non-custodial wallets for holding.

Where to Store Etherium?

Such services do not store private account keys, but pass them on to users. In 2022, miners are more likely to choose such wallets:

• Geth.
• MetaMask.
• MyEtherWallet.
• Trust Wallet и другие.

The algorithm for registering an account is the same for most services:

• Go to the developer’s website. Download and install the application. The application is available for mobile devices or desktop computers.

• Click the “Create new wallet” button.

• A mnemonic code of 12 words will appear on the screen. Write it down and keep it in a safe place. This is the only way to restore access to the assets if you lose the password.

• Confirm the correct entry of the Seed. To do this, put the words in the specified order.

The wallet address can be found in the “Wallet” menu. To receive rewards for mining, you need to copy and paste it into the appropriate field of the .bat file of the selected pool.

Mining equipment

To create a new block, you have to solve a complex cryptographic problem. The vorker who finds a valid hash first will get a reward. CPU-based mining equipment is compactly installed in a case:

• Power supply. On this element depends the performance of the system. That’s why you need a reliable server model.

• Graphics cards. Calculations are made by the CPU. If the user will not mine simultaneously on the CPU and graphics processor, any video card will do. It is possible to use a built-in video card.

• Processor. This is the main component of the farm. Powerful modern models are needed for etherium mining (minimum cache size 5 Gb, AES protocol support). It is possible to use server blocks designed to work in a data center. They can withstand maximum loads in 24/7 mode and have a large amount of cache memory. The disadvantage is the high price.

• Motherboard. The basis of a computer. On it there are slots for connecting components, so it is not worth saving. In case of a short circuit in the motherboard, most often the CPU also fails. RAM. Mining requires a minimum of 8 Gb. It is better to buy with a reserve – 16-24 Gb.

• Hard drive. It is more effective to use SSD. These disks have higher speed, which affects the performance of the system. You will need at least 128 Gb.

Pooling Choices

In 2022, solo mining of top coins is unprofitable due to the high complexity of the networks. Therefore, miners join together in pools. Such services divide a common task into many simpler ones. In this case, the probability of finding a block increases several times. The reward is divided between all vorkers in proportion to their computing power.

It is necessary to choose a pool based on its features:

• Reputation. Some platforms underestimate the hash rate of users, increasing their own profits up to 20-30%. Before you start working, you need to look at reviews on forums.

• Total hash rate. The more power the pool has, the higher the chance of finding a block.

• The way of profit distribution. In 2022 large pools use PPS (pay per valid balloon) or PPLNS (pay for all parts of decisions made during block finding).

• Location. The ping should not exceed 100ms. If there is a delay, some balls will not reach the pool.

Mining software

The extraction of digital assets is an automatic process. The work of the equipment is controlled by special programs. Most applications are distributed free of charge. Some have a developer fee by default. The software connects the computing power of the warcaster to the blockchain to validate transactions and receive a reward for mining.

In 2022, programs such as these are used to mine etherium on a central blockchain:

• Ethminer. Universal application suitable for all popular operating systems (macOS, Windows, Lunix).
• CGMiner. The program allows you to mine on the video card and processor simultaneously.
• ClayMoreDual. The application allows you to mine 2 currencies in parallel (one of them – ETH).

Setting up and running mining

Cryptocurrency mining on a CPU is low-profit. To increase performance, users artificially increase CPU parameters. The available characteristics for changing are presented in the table.

PARAMETER	DEFINITION
Clock frequency	Affects the number of operations performed per unit of time
Voltage	Regulates power consumption
Data width	Responsible for the amount of information the CPU can process in one round

Tuning the central unit is all about finding the best combination of hash rate and power consumption. If you increase the data bus and clock frequency, the power will increase. To avoid system failures, the supply voltage must be increased. At the same time, power consumption will increase, so quality cooling is required. If you overclock the CPU, the processor can fail. If it is used mainly for work, it is not necessary to achieve maximum performance.

After setting up the equipment and the miner program, it remains to start mining. The procedure is as follows:

1. Activate the program.
2. Disable WIndow auto-updates.
3. Install a remote access program (e.g.TeamViewer).

Summary

In 2022, it is possible to mine Etherium only on powerful equipment. A few years ago it was profitable to mine the coin on CPUs. By 2019, the cryptocurrency’s DAG file size reached 4 Gb. It became impossible to mine ETH on an ordinary PC.

The situation has changed with the advent of new generation CPUs. In 2022, such models are expensive. At the same time the rate of cryptocurrency fell by 60%. Therefore, the payback period of a farm on CPUs is 3-4 years.

Etherium mining on the CPU is expedient when electricity is expensive. CPU consumes less energy compared to a video card, with a comparable hash rate. To increase income, it is possible to mine coins simultaneously on GPU and CPU. Other options are to mine 2 coins simultaneously (e.g., ETH and Toncoin) or to rent additional capacity.