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Why is mining done with graphics cards instead of CPUs (Why is mining done with GPUs)

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Why is mining done with graphics cards instead of CPUs Editor\’s note: This arti

Why is mining done with graphics cards instead of CPUs (Why is mining done with GPUs)

Why is mining done with graphics cards instead of CPUs Editor’s note: This article is from Caiyun Blockchain (ID: cybtc_com), and it is authorized to be reproduced by Odaily Star Planet Daily.

Bitcoin mining is one of the main functions of computers because it plays a key role in the proof-of-work and proof-of-stake consensus algorithms. However, using GPUs for cryptocurrency mining can lead to a decrease in graphics card prices. Therefore, it is not cost-effective for ordinary users to use their graphics cards for mining, especially considering factors such as the physique of gamers and the demand for virtual economy. Why are graphics cards used instead of CPUs for mining? This is because people have discovered some applications on the Ethereum network, some of which can be used for mining, but they also have many flaws, such as the inability to handle large computational tasks or store files. Therefore, a question arises: Can graphics cards support mining activities without compromising their security?

According to the latest research report, “although some hardware devices are called ‘application-specific integrated circuits’, they still require additional consumption of GPU resources during actual operation.” And these technologies are not the best way to solve the problem. “ASIC” usually refers to chips that can provide higher performance and improve the efficiency of executing the proof-of-work process for complex software. Due to the high technological restrictions of ASIC, it is more difficult for ASIC to gain a wide range of applications in the market. “The memory speed is much lower than the speed of the GPU, and it can only reach hundreds of GB of memory capacity per hour”.

In fact, although there are currently many GPU-based digital assets sold out and some people don’t even know which data center nodes they own. However, the situation is changing now. It is estimated that as of August 2019, less than 5% of Bitcoin network transactions were completed within the NVIDIA GPU driver’s operating system.

So how should we deal with this sudden situation? Simply put, by adopting a new and scalable approach to reduce GPU costs. To make this transition easier, it is recommended to first use the AMD A1 series as a reference, which includes 4G memory, 32MB hard disk space, 64KB motherboard, and 2TB bandwidth. Then integrate all other products into this machine-also known as “memory accelerator” (LiquidMining). This innovative product is not only suitable for high-frequency graphics processing, but also available for professionals to develop. It also includes optimized services specifically for the video conferencing field.

In a sense, this solution is an alternative solution that allows personal computers to achieve new scalability through complementing existing systems. However, it is also possible that due to the lower cost of the CPU used in AMD A1 by more than 20 times compared to its competitors.

Why is mining done with graphics cards?

What is the mining machine mining? Why does the mining farm need graphics cards? Because GPU is used for mining.

Ethereum ran out of memory (only 4 pieces of CPU were used) for Bitcoin mining after it went online in August 2018; and with the beginning of 2019 and the beginning of 2021, the price of Ethereum has also soared to nearly 2000 yuan/TH. Although many people are now buying some high-end graphics cards, they still lack enough memory. To solve this problem, many manufacturers choose to use ordinary GPUs to perform computational calculations for highly profitable mining equipment. Therefore, they will adopt a “powerless” method: by purchasing a graphics processor or server dedicated to gaming machines to realize mining of digital currency. However, these products currently cannot meet the needs of daily transactions.

If you want to become a player, exchange, wallet, and other service providers in the cryptocurrency industry, you must first have a small computer or smartphone with sufficient bandwidth and can accommodate a large amount of storage space. If you want to participate in DeFi, you can directly obtain various coins and token rewards from your computer and achieve a considerable return on investment. This means that you must have a high-performance memory computer and ensure its security and availability, thereby providing ample opportunities for your funds. (Babbitt)

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