Posted on: 09. March 2018

GPU

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What does GPU mean?

GPU is the abbreviation of Graphics Processing Unit. It constitutes an important element of cryptocurrency, especially when it comes to how new blocks are created within the blockchain.

Some cryptocurrencies can be mined particularly efficiently with the processors of graphics cards.

How mining works

In order to generate new units of cryptocurrency, most of these currencies use different types of algorithms. These algorithms are becoming increasingly more complicated.

In the cryptographic network, the individual calculating machines are now competing to see who can solve the task first. Usually, the user of this device gets the profits from the newly mined block.

Alternatively, new coins are distributed to various users. Certainly, at the start of major cryptocurrencies such as Bitcoin, commercial processors were able to handle this work.

However, these tasks quickly became more complex and the mining process is nigh on impossible with a regular CPU. This is where GPUs come in.

Advantages and disadvantages of mining with a GPU

It didn’t take long for individuals to realize that certain algorithms can be solved with the help of GPUs. As a result, some people have set up entire banks of computers in their home, consisting solely of graphics cards.

The advantage of this is that tasks can be solved faster, increasing the chance of mining success. The drawback is that GPUs need to be adequately cooled to prevent overheating and damage.

In addition, GPUs are louder and consume considerably more power than normal processors do usually.


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