Day 47: Mining Ethereum: A Beginner’s Guide to the Leading Altcoin
Ethereum (ETH), introduced in 2015 by Vitalik Buterin, has established itself as a leading platform for decentralized applications (dApps) and smart contracts, distinguishing it from Bitcoin’s primary function as a digital currency (Buterin, 2015). In September 2022, Ethereum underwent a significant transformation known as “The Merge,” transitioning from a Proof of Work (PoW) to a Proof of Stake (PoS) consensus mechanism, effectively rendering traditional mining obsolete (CoinLedger, 2025). This article provides a comprehensive overview of Ethereum’s evolution, the implications of this transition, and the current methods to earn ETH in 2025.
1. Ethereum’s Transition from PoW to PoS
Initially, Ethereum utilized a PoW consensus mechanism, similar to Bitcoin, where miners solved complex mathematical problems to validate transactions and secure the network. This process was energy-intensive and required substantial computational power (99Bitcoins, 2024). To address scalability and environmental concerns, Ethereum transitioned to PoS in 2022, a process known as “The Merge.” This shift significantly reduced Ethereum’s energy consumption by over 99.9%, enhancing its sustainability (The Times, 2024).
2. Implications of the Transition
2.1 End of Traditional Mining
With the implementation of PoS, traditional mining on the Ethereum network became obsolete. In PoS, validators are selected based on the amount of ETH they “stake” as collateral, eliminating the need for energy-intensive mining hardware (CoinLedger, 2025).
2.2 Introduction of Staking
Staking has become the primary method to participate in network validation and earn rewards. Validators are required to stake a minimum amount of ETH to be eligible for selection to validate transactions and propose new blocks. This process is more energy-efficient and accessible compared to traditional mining (CoinLedger, 2025).
3. How to Earn ETH in 2025
Although traditional mining is no longer possible, individuals can still earn ETH through staking and other methods.
3.1 Staking Ethereum
- Requirements: To become a validator, one must stake a minimum of 32 ETH. For those with less than 32 ETH, staking pools or services allow participation by pooling resources with others (CoinLedger, 2025).
- Process: Validators are selected to propose and validate blocks based on the amount of ETH staked and the duration of staking. Rewards are distributed proportionally, incentivizing long-term participation and network security (CoinLedger, 2025).
- Risks: Validators may face penalties, known as “slashing,” for malicious behavior or prolonged inactivity, which can result in the loss of a portion of their staked ETH (CoinLedger, 2025).
3.2 Participating in Decentralized Finance (DeFi)
Beyond staking, Ethereum’s robust DeFi ecosystem offers opportunities to earn ETH through activities such as liquidity provision, yield farming, and lending. These methods involve interacting with smart contracts and can yield returns based on the specific protocols and strategies employed (CoinGecko, 2025).
4. Environmental Impact and Sustainability
Ethereum’s transition to PoS has significantly reduced its environmental footprint, addressing one of the major criticisms of blockchain technology. The network’s energy consumption has decreased from approximately 84 TWh annually to just 0.01 TWh, setting a precedent for sustainability in the crypto industry (The Times, 2024).
5. Conclusion
While traditional Ethereum mining has been phased out, the network’s evolution towards PoS has introduced more sustainable and accessible methods for earning ETH. Staking has become the primary avenue for participation, offering rewards to those who contribute to network security. Additionally, Ethereum’s vibrant DeFi ecosystem provides various opportunities for earning ETH through innovative financial mechanisms. As the blockchain landscape continues to evolve, Ethereum’s commitment to sustainability and scalability positions it as a pivotal platform in the decentralized economy.
What’s Next?
In Day 48: Litecoin Mining: Is It Worth It?, we will explore the intricacies of mining Litecoin, evaluating its profitability, hardware requirements, and the factors influencing its viability for miners in 2025.
References
- 99Bitcoins. (2024). Beginner’s Guide to Ethereum Mining. Retrieved from https://99bitcoins.com/ethereum/ethereum-mining/
- Buterin, V. (2015). Ethereum Whitepaper: A Next-Generation Smart Contract and Decentralized Application Platform. Retrieved from https://ethereum.org/en/whitepaper/
- CoinLedger. (2025). Is Ethereum Mining Dead? (Earn ETH in 2025). Retrieved from https://coinledger.io/learn/is-ethereum-mining-dead
- CoinGecko. (2025). How to Mine Ethereum — A Really Basic Guide. Retrieved from https://www.coingecko.com/learn/how-to-mine-ethereum-basic-guide
- The Times. (2024). Bitcoin and the Planet: Crypto Miners Chip Away at Cavernous Carbon Footprint. Retrieved from https://www.thetimes.co.uk/article/bitcoin-crypto-bad-planet-energy-climate-change-uk-2022-z76bb2xd7