ETH Miner Gets Lucky With $540K Block RewardJanuary 21, 2022 7:11 pm
Recently, it was reported that an individual ETH miner managed to mine an entire block on their own which ended up being worth about $540,000.
The miner was mining in a Solo pool and ended up mining 168 ETH which is an extraordinary amount when compared to the average mining reward per block which averages to around 4 ETH.
#GPUmining #POS Individual ETH miner hits jackpot with $540K block reward: An individual miner defied the odds and managed to collect 168 ETH from a solo mining pool this week worth 42 times the… https://t.co/sjTB057mGm | https://t.co/vqHPEDx05k | https://t.co/FHLhKCQA7o pic.twitter.com/2yYdtLsJgn
— CryptoGator.co | Crypto and Forex News Aggregator (@eBargainsToday) January 20, 2022
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Adding to the remarkable nature of the reward is the size and hash power of the Solo pool.
It is relatively small with 854 miners online and 1.5 terahashes per second at the time of writing, meaning that the average miner contributes 1.85 gigahashes per second (GH/s).
The lucky miner currently contributes 2.25 GH/s, which could be generated with one to 20 of the latest GPU devices.
Hash power is the amount of computer processing power a device contributes to a proof-of-work blockchain like Ethereum and Bitcoin.
More hash power helps secure the network by processing transactions and mining blocks.
This was not the first time a miner got lucky when mining cryptocurrencies when you look at the past few years of mining history.
Earlier in the year, a BTC miner got lucky and was able able to mine 6.25 BTC from an entire block in a solo mining operation.
What is the most amazing part of both examples is the statistics or probability that each one of those events had in actually occurring which showed that they defied all odds.
Both miners technically had a 1 in 1400000 million chance to be able to mine an entire block.
These days, the probability of such occurrences happening appear to be continually decreasing due to improvements to the Ethereum blockchain.
Currently, the Ethereum blockchain is in a transition period as it moves a new proof-of-stake model which will make the energy requirements of the blockchain to be much less thus making high mining rewards even rarer than they are today.
There was a push within the industry to move to the proof of stake mining model because the current proof of work model is energy intensive and can pose risks to the environment.
Ethereum is scheduled to move to the new proof of stake model sometime in the summer of 2022 and the new network is named as Ethereum 2.0.
Despite the environmental risks, the crypto mining industry is still very much active due to the profitability when compared to the energy costs that it takes to mine the crypto in the first place, especially as crypto prices continue to rise dramatically over the years.
Since reaching an all-time high of $0.282 on May 12, 2021, the average daily Ethereum mining profitability has been declining.
According to BitInfoCharts, the average profitability is now at $0.0474. This is mainly due to EIP-1559, which instead of dispersing fees to miners, destroys them.
When the Ethereum network completes “the Merge,” indicating its transition to a Proof-of-Stake model, a jackpot prize such as the one earlier this week may become a thing of the past (POS).
Regardless what model the blockchains continue to adopt in the future, one thing is pretty certain.
As long as the activity of mining and the rewards that it provides exceeds the actual energy costs required to do the mining, mining operations will never die out as they are profitable operations.
Further discussions will have to be had in the future on how to allow mining without having environmental impacts.
Mining operations can incentivize the production of clean, renewable energy. https://t.co/uwCZvaQt3n
— Decentralize everything (@Lucky7efty) January 20, 2022
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