GPU Mining
Using graphics cards to perform the calculations needed to secure certain proof-of-work blockchains and earn newly issued coins or fees.
GPU mining is the use of graphics processing units, or graphics cards, to run the repeated calculations required by some proof-of-work cryptocurrencies. Miners use GPUs to search for a valid block solution, and the first miner or mining pool to find one can add a block to the blockchain and receive block rewards and transaction fees. GPUs became popular because they can handle many simple calculations in parallel, making them more suitable than regular CPUs for certain mining algorithms.
GPU mining matters because it has helped decentralize participation in some networks by allowing people to mine with consumer or specialist computer hardware rather than only industrial machines. However, profitability depends on factors such as electricity costs, hardware price, network difficulty, coin price, and cooling needs. For example, a gaming graphics card can be used to mine a GPU-friendly coin, while Bitcoin mining is now dominated by ASIC miners, which are purpose-built machines far more efficient for Bitcoin’s algorithm.
Other terms in Mining
Cloud Mining
Renting remote cryptocurrency mining hardware or hash power from a provider instead of running miners yourself.
Mining Rig
A specialized computer setup used to run mining software and perform the calculations needed to secure proof-of-work blockchains.
Orphan Block
A valid mined block that is not included in the main blockchain because a competing block was accepted by the network first.
Proof of Stake
A consensus method where validators lock up cryptocurrency to help secure a blockchain and earn rewards for proposing or verifying blocks.