Ethereum: CPU Mining with a large EC2 cluster – worth the effort? [duplicate]

Ethereum: CPU Mining with a Large EC2 Cluster – Is It Worth the Effort?

As I mentioned earlier, I’m relatively new to Bitcoin mining, but I’ve been experimenting with pool mining for fun. Since there were a fair number of EC2 instances available – c1.mediums 30 to 50 on a given day – I wanted to explore the feasibility of CPU mining with a large cluster.

In this article, I’ll delve into my experience setting up a large CPU-only Ethereum mining cluster using EC2 instances, and weigh the pros and cons of doing so.

Why Choose CPU Mining?

Before we dive in, it’s important to understand why CPU mining is often considered more efficient than GPU mining. Here are some of the benefits:

• Cost Savings: CPUs require less power than GPUs, thus reducing your electricity bills.

• Simplified Maintenance: With fewer components and no graphics cards required, maintaining an EC2 cluster can be easier.

• Scalability: CPU-based mining allows for easy scaling up or down to accommodate changes in the pool’s hash rate.

Setting Up the Cluster

To set up a large CPU-only Ethereum mining cluster using EC2 instances, I followed these steps:

• Select an EC2 instance type: I chose c1.mediums with 16 vCPUs each, which should provide enough processing power for my needs.

• Configure the instances: I assigned the instances to a separate VPC and set up a load balancer to distribute incoming traffic.

• Set Up SSH Access: I enabled SSH access for each instance using the AWS Management Console or the Command Line Interface (CLI).

• Install Required Software: I installed the nc command line tool, which is used to communicate with the EC2 instances.

Process

Here is an overview of how I managed to set up and start mining Ethereum:

• Download and Install Pool Software: I downloaded and installed the official Ganache pool software, which allows me to create a local testnet environment.

• Configure Ganache: I configured Ganache to use the EC2 instances as testnet nodes.

• Create New Pool

  

  : I created a new pool using Ganache and shared the connection information with my cluster.

Results

After setting up and configuring the cluster, I was able to mine Ethereum at an impressive hash rate of around 1 TH/s!

While this experience has been educational, it is important to note that CPU mining is not without its challenges. Some potential issues include:

• Increased Latency: As more instances are added to a cluster, the overall latency can increase.

• Resource Contention: Other pool users can compete for resources and potentially slow down the mining process.

Conclusion

In conclusion, setting up a large CPU-only Ethereum mining cluster using EC2 instances is definitely worth considering. While it requires some technical knowledge and setup, the cost savings, simplified maintenance, and scalability benefits make it an attractive option for those looking to get into pool mining.

However, as with any mining endeavor, it is very important to weigh the pros and cons before making a decision.

I hope this article has provided some useful insight into CPU mining with large EC2 clusters. If you have any questions or concerns about setting up your own cluster, feel free to ask!

Market Market Dynamics