Graphical Processing Unit Meaning

What is a Graphical Processing Unit (GPU)?

A graphical processing unit (GPU), sometimes called a graphics card, is a computer component that is responsible for digital rendering. It has a higher processing power than a central processing unit (CPU). GPUs are used to create digital images on computers and mobile phones. They can also perform video rendering for games and create 3D graphics for various applications. 

Due to their high processing power, GPUs are also used to mine some Proof of Work (PoW) consensus cryptocurrencies. Miners can use GPUs to mine cryptocurrencies more efficiently and profitably than mining with CPUs. 

Miners have used GPUs to mine POW cryptocurrencies like Bitcoin and Dash.

To mine a cryptocurrency, miners have to use a significant amount of computing power to solve complex puzzles and validate transactions on the blockchain to earn rewards. The strong computing power of GPUs means that they can process thousands of mathematical computations and find the right values for each puzzle. This makes them a good machine for crypto mining. 

There are two main brands of GPUs in the market and they are produced by the NvidiA and the AMD brands. The Nvidia GeForce RTX 3090 and the AMD Radeon RX 5700 XT are two popular products from both brands. Miners will often consider a GPU’s power consumption, hashrate and potential profits per day when they select a GPU.

A standard GPU will process 3,200 32-bit transactions per clock at peak capacity. It also comes with several Algorithmic Logic Units (ALU) which conducts all arithmetic and logic operations in a computer. These properties make the GPU an ideal machine for cryptocurrency mining as it can handle repetitive, complex mathematical computations that PoW blockchains demand.