ETCMC Node Review & Setup Guide
Comparing Cryptocurrency Mining & Node Rewards
Mining manifests in various forms, spanning from the proof-of-work Bitcoin ($BTC) mining to novel techniques such as hard drive mining used by Chia ($XCH), and even more unconventional methods like harnessing radio waves, as seen with Helium ($HNT). Numerous experiments leverage mining as a cornerstone to fuel their infrastructures and facilitate decentralized processes.
Bitcoin’s utilization of mining extends beyond the simple notion of network security; it also serves as an effective means for projects to distribute their coins and tokens in a decentralized manner, fostering the creation of vibrant and engaged communities.
Nodes and mining
Proof-of-work (PoW) chains, like Bitcoin and Ethereum Classic, consist of two essential components: Miners and Nodes. Mining, a substantial industry in itself, generates staggering revenues, with Bitcoin alone producing over $40 million a day for participants within its network.
However, an intriguing aspect arises when examining the role of Nodes. Unlike Miners, their participation is entirely voluntary and lacks the allure of coins or incentives. This disparity in motivation between Miners and Nodes prompts a unique consideration within the blockchain ecosystem. Enter ETCMC and the ETCPOW token, an initiative aiming to revolutionize this paradigm.
The project recognizes the fundamental role Nodes play in the stability and decentralization of the network. By redefining the incentive structure for Node operators, ETCPOW aims to create a more balanced and participatory ecosystem. This innovative approach not only has the potential to enhance the overall health of proof-of-work networks but also signifies a step towards recognizing and rewarding the often unsung heroes of the blockchain — the voluntary Node operators.
What does a Node do?
- Nodes are participants in the network that store a copy of the entire blockchain and validate transactions.
- Validation: Nodes verify the transactions and blocks to ensure that they adhere to the consensus rules of the network. This helps maintain the integrity of the blockchain.
- Distribution: Nodes propagate valid transactions and blocks to other nodes in the network, ensuring that all nodes have an up-to-date copy of the blockchain.
The distinction between Miners and Nodes is crucial in understanding the dynamics of blockchain networks. Miners engage in competitive cryptographic puzzle-solving, harnessing significant computational power. The first successful Miner earns the privilege to append a new block to the blockchain, reaping rewards in the form of newly minted cryptocurrency (block reward) and transaction fees. This process, known as proof-of-work, necessitates substantial electricity consumption and often requires specialized hardware, such as Application-Specific Integrated Circuits (ASICs), intensifying the resource requirements for miners.
On the flip side, Nodes play a different role, functioning without the competitive puzzle-solving aspect. Unlike Miners, Nodes operate voluntarily, running on minimal electricity and not demanding highly specialized hardware. Nodes contribute to the network’s decentralization, verifying and broadcasting transactions while maintaining a copy of the blockchain. Although their tasks may not be as resource-intensive as mining, Nodes are integral to the overall resilience and health of the blockchain network, ensuring redundancy and consensus among participants. ETCMC’s mission to introduce incentives for Node operators recognizes the importance of these contributors and aims to strike a balance in the participation dynamics of these two vital components within proof-of-work chains.
Getting paid for running an Ethereum Classic Node
ETCMC introduces a groundbreaking approach by presenting a novel concept for compensating node hosts for their contributions. While it diverges from the traditional proof-of-work model centered around solving mathematical puzzles, getting paid to operate an ETC node isn’t dependent on solving complex cryptographic challenges; rather, it relies on a smart contract mechanism designed to reward the node hosters.
This innovative approach, though distinct from traditional proof-of-work, provides an incentive for individuals to host nodes that contribute positively to the network. While not identical to conventional proof-of-work, this model establishes a unique way to encourage participation and support from node hosts, fostering a more robust and well-rounded ecosystem for Ethereum Classic.
How to Setup an ETCMC Node
There are several options you can choose to get a ETCMC node up. One approach is the do-it-yourself method, while another user-friendly alternative is the plug-and-play version designed by ETCMC, offering ease of setup and minimal power consumption.
The node I got comes with a small screen and small keyboard kind of cute and makes using the node pretty easy. It's definitely not necessary but nice to have the option.
At the back of the ETCMC unit there are two USB ports, two HDMI ports, a power port, and a LAN port.
When buying the plug-and-play model from the ETCMC store, the software has been set up already so when starting the unit you can see the ETCMC node software on the desktop.
By right-clicking and selecting “run as administrator,” you initiate the ETCMC node software, which then presents you with a splash screen featuring two distinct choices. I chose the GETH client. GETH, short for “Go Ethereum,” is one of the most widely used clients in the Ethereum ecosystem.
You need to register your node to be able to earn the ETCPOW token. You will have to use the same email that you used when purchasing. Choose a username and an Ethereum classic wallet. If you already have an Ethereum wallet, adding the Ethereum Classic network is easy.
After registering, you simply press on the yellow EARN ETCPOW button and the node will start syncing. This can take a long time because it will have to download all of the Ethereum Classic blockchain. For me, it took around 48 hours, so patience is key.
When you setup the node using the plug-and-play option, the electricity cost of running the node is negligible. So keeping it running for a long time is not a problem or much work.
When your node is fully synced it starts earning ETCPOW
At the top right, you can see your ETCPOW balance and also a CLAIM ETCPOW button. There is a catch though, well actually two catches. You need to wait until it hits 100 ETCPOW tokens before you can claim them. When you finally hit 100 and click claim, you still have five-day waiting period before you actually receive the coins in your wallet.
If you want to trade your ETCPOW, you can do so on HEBE swap a decentralised exchange on Ethereum classic.
And ETCMC recently launched its own DEX.
This way you can trade into ETC and after that in whatever coins you like.
Risk
With a novel concept like this come certain risks. How much should such a token be priced is determined by the market. This can mean there can be huge swings in price.
Just a month ago, the node was potentially making $20 per week but the token price has dropped significantly since I began running the node.
I have mined, (noded?) 200 ETCPOW coins since starting it. This is now worth around $40. This should be a bit more but I’ve been moving the tokens around to different locations.
A node makes about 240 ETCPOW tokens a month, so it really depends on the current token price what dollar amount it earns. Right now that would be about $50 a month.
But will it keep dropping or will it go up again? It depends a bit on what the team and community do with this new idea of paying out node operators.
Starting a decentralized exchange could be a great step in creating more value for the project and creating demand for ETCPOW tokens.
ETCPOW Tokenomics:
Total supply: 1 billion ETCPOW tokens Token distribution:
• Mining contract: 60% (600 million ETCPOW tokens)
• ETCMC DAO: 20% (200 million ETCPOW tokens)
• Team and advisors: 10% (100 million ETCPOW tokens)
• Marketing and community development: 5% (50 million ETCPOW tokens)
• Airdrops: 2% (20 million ETCPOW tokens)
• ETCPOW staking rewards: 2% (20 million ETCPOW tokens)
Conclusion
Running a node is good for the network. Running a node and getting paid for it means more people will run said node. So this actually a pretty smart incentive for people joining the ETC ecosystem to get involved and contribute.
This project has been a big success and of great value for the Ethereum Classic Network. The number of nodes has steadily been growing even after Donald McIntyre’s tweet and is now over 94%. This means that those are all ETC nodes running the ETCMC GETH client!
But is it great value for you? And will it make you money? Right now it is a profitable way to run a node. How profitable? Only the future will tell.
The project is a great and novel way to strengthen the ETC blockchain so this project could have a bright future ahead.
Pros
- Good earnings even though the token price has been dropping
- Low electricity use
- Easy setup (plug and play model)
- Supporting the Ethereum Classic Blockchain
Cons
- The app and claiming process is janky and kind of annoying I would like to see the amount lowered and the claiming process not take five days.
- Sometimes the node drops peers and can’t find new ones to keep the blockchain up to date so that means it doesn't earn. (This could also be due to the fact I moved it a few times).
So should you run out and buy 20 ETCMC nodes? Probably not, but if you are interested in Blockchain and low-power mining, this can be a fun way to run a node and earn some money on the side.
Where to buy the ETCMC node
If you want to buy the plug-and-play node you can go check out their store here. Make sure to use the code VOSKCOIN to save.
There you can also find the digital license that you could run on a device you already own.
Would you like to know more?
Stay tuned for a full video review on the VoskCoin YouTube Channel, and check out this interview with the founder of ETCMC:
Thank you to ETCMC for providing this node to VoskCoin to review. Please make sure to do your own research before investing.
