Graphical Processing Unit Definition

A graphical processing unit, or GPU, is a specialized chip that draws images and video on a screen and also handles big batches of math in parallel. Modern GPUs power gaming visuals, video editing, and many kinds of high-throughput computing. Their design makes them well-suited for workloads that need the same operation done across lots of data at once.

Core Design and How It Works

GPUs contain many smaller processing units that can run thousands of calculations side by side. This setup speeds up tasks like rendering 3D scenes or processing frames of video. In crypto contexts, the same parallelism helps with the repeated hashing required by certain blockchains.

GPU and CPU in Context

A CPU is a general-purpose processor that excels at a wide variety of tasks. A GPU focuses on doing many similar tasks at once. Because of this, a GPU can push through large piles of arithmetic far faster than a CPU on the right kind of workload. Some sources even note performance figures at peak capacity for common GPU operations, reflecting this emphasis on throughput.

Common Uses Beyond Graphics

Outside pure graphics, GPUs show up in machine learning, scientific computing, and video production. Their ability to process data in parallel reduces the time needed for these workloads and can unlock real-time or near-real-time results.

Role in Cryptocurrency

GPUs became popular for proof-of-work (PoW) mining because they can try many hash calculations quickly. Miners compete to solve a cryptographic puzzle; when one succeeds, they validate a block of transactions and earn a reward. While early miners tried GPUs on several coins, Bitcoin mining moved to dedicated ASIC machines, which outperform GPUs on Bitcoin’s algorithm.

Mining Algorithms Often Paired With GPUs

Different PoW networks use different hashing algorithms. Examples historically mined with GPUs include Scrypt, X11, and Ethash. Scrypt underpins networks like Litecoin and targets a lighter resource profile than SHA-256. X11 chains aim for energy-efficient hashing. Ethash powered Ethereum before its switch to proof-of-stake and still secures Ethereum-derived networks that kept PoW.

Changing Mining Landscape

Ethereum’s move from PoW to proof-of-stake reduced demand for GPU mining on that chain and shifted miners toward other PoW networks. That transition affected the market for GPUs, since a large pool of mining hardware no longer targeted Ethereum. Today, GPU mining tends to focus on coins whose algorithms remain GPU-friendly.

Picking a GPU for Mining

People who still mine with GPUs often look at hashrate, power draw, and expected daily profit when comparing cards. Two major brands dominate the consumer GPU space, and miners typically choose from their product lines based on performance per watt and budget. Architectural features such as many arithmetic units help GPUs handle the repetitive math in PoW.