GPUs and Cryptocurrency Mining, Investopedia

Rapidly evolving technology has made cryptocurrency mining a reality on huis computers. Overheen the years, the mining process and its efficiency has improved with the use of better hardware. (For more, see How Does Bitcoin Mining Work?)

Graphic Processing Units (GPU) have bot used ter the mining process for many years. This article discusses the GPU and its use ter cryptocurrency mining process.

What Is a GPU Versus a CPU?

Each standard laptop is tooled with a Central Processing Unit (CPU), which is a processing device that acts spil a master of the entire pc system. It performs the controlling functions for the entire pc based on the logic of the operating system and the software installed on the pc. Typical functions – like save this verkeersopstopping spil MS Word, print this spreadsheet, or run that movie ter VLC Media Player – are managed by the CPU.

A GPU is another processing device, but it is specialized for treating display functions. It is the part of a pc that is responsible for its movie rendering system.

The typical function of a GPU is to perform and control the rendering of visual effects and 3D-graphics so the CPU doesn’t have to get involved te minute details of video-rendering services. It takes care of graphics-intensive tasks such spil movie editing, gaming display, and decoding and rendering of 3D movies and animations.

To draw an analogy, the master (CPU) managing the entire organization (the rekentuig system) has a dedicated employee (GPU) to take care of a specialized department (video-rendering functions).

This setup permits the CPU to perform the high-level diversified tasks for managing the entire laptop, while the GPU is te charge of the movie functions of which it is a specialist. A CPU will perform the function to open a movie opstopping te Windows Media Player, but once the opstopping opens, the GPU takes overheen the task of displaying it decently.

How Do GPUs Help te Cryptocurrency Mining?

Cryptocurrency mining wasgoed originally performed using CPUs. However, its limited processing speed and high power consumption led to limited output, rendering the CPU-based mining process inefficient.

Inject GPU-based mining, which suggested numerous benefits overheen the use of CPU. A standard GPU, like Radeon HD 5970, clocked processing speeds of executing 3200 32-bit instructions vanaf clock, which wasgoed 800 times more than the speed of CPU that executed only Four 32-bit instructions vanaf clock.

The core reason behind this efficiency is that the movie processing GPUs are devised to do better te performing similar and repetitive work, than ter performing diversified multi-tasking functions like those of the CPU. For example, rendering a 3D movie requires the GPU to keep processing similar kinds of information to the screen again and again, however with slight switches.

It is this property of the GPU that makes them suitable and better for cryptocurrency mining, spil the mining process requires higher efficiency te performing similar kinds of repetitive computations. The mining device continuously attempts to decode the different hashes repeatedly with only one digit switching ter each attempt te the gegevens that is getting hashed. A GPU fits better for such dedicated processing.

GPUs are also tooled with a large number of Arithmetic Logic Units (ALU), which are responsible for performing mathematical computations. Courtesy of thesis ALUs, the GPU is capable of performing more calculations, leading to improved output for the crypto mining process.

The Bottom Line

Despite technological advancements, certain challenges – like excessive power consumption and limited profit potential – remain which mar the efficiency of the mining hardware.

GPUs have bot around for years, but are now facing competition from improved, new-age devices. They include the Field Programmable Gate Arrays (FPGAs) and the Application Specific Integrated Circuits (ASICs), which score better than both CPUs and GPUs at performing hash calculations, an essential function to blockchain management te cryptocurrency.

Investing ter cryptocurrencies and other Initial Coin Offerings (“ICOs”) is very risky and speculative, and this article is not a recommendation by Investopedia or the writer to invest te cryptocurrencies or other ICOs. Since each individual’s situation is unique, a qualified professional should always be consulted before making any financial decisions. Investopedia makes no representations or warranties spil to the accuracy or timeliness of the information contained herein.

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