CPUs vs. GPUs

Before there were any alternatives, the first Bitcoin was mined using central processing units, or CPUs. Although CPUs are technically capable of mining crypto, they have since become archaic. This isn’t a matter of how powerful a CPU is, rather it’s a matter of how well suited the technology itself is to the specific task of mining.

CPUs are designed to maintain all the functions of a computer. They are essentially responsible for locating and running various programs and files, however this means that they are not very well suited for repetitive computations, like the ones that computers process when rendering video and three-dimensional environments. This is where the GPU comes in.

When a computer plays a video, or renders a three-dimensional environment like a video game, the file is first located and opened by the CPU. When the correct program is running, the CPU delegates the task of rendering all the necessary data to the GPU. GPUs fit into mining because the way the video data is rendered is somewhat similar to the process that goes into mining cryptocurrency.

The Basics of Early GPU vs. CPU Mining

Mining requires processors with a high degree of efficiency when performing repetitive computations. The miner continuously attempts to decode different hashes, while repeatedly changing only one digit with each attempt. GPUs are able to do this more easily than CPUs because they contain a greater number of arithmetic logic units, or ALUs. These ALUs are the component that allows the GPU to perform a greater number of calculations than a CPU at the same time.

The Future of Mining

There is still quite a bit of GPU mining taking place in crypto, however that may soon change. Picture the different tools used to mine cryptocurrency as different tools you would use to mow a lawn. Over the years, the tools used to mow a lawn have become more technologically advanced and suited to the task at hand, but that doesn’t necessarily mean the older tools no longer work.

GPU mining is like having a generic tool kit with multiple hand tools that can be used to perform different basic tasks. This tool kit contains a sharp blade that can be used to cut the grass, but that was never what it was originally intended to do. The GPU “tool kit” can perform this task about as well as it can perform other basic tasks, in a relatively straightforward, affordable, and easy way.

The next tool can be used to mine cryptocurrency/ mow our hypothetical lawn is known as an application-specific integrated circuit miner, or ASIC miner. This is a tool that is specifically designed to mine cryptocurrency, but it can’t do much else. The ASIC is like a ride-on lawnmower. It’s the perfect tool for the job and it’s easy to use, but it comes with a much higher price tag than your basic tool kit. If you have the money for it however, it’s absolutely the way to go.

Another tool that is less commonly used to mine cryptocurrency is known as field-programmable gate arrays or FPGAs. These interesting tools are modular and programmable logic blocks, that can be wired together to serve any number of complicated tasks. They’re less expensive and about as effective as ASIC miners, and can mine any kind of proof-of-work cryptocurrency. The catch however is the amount of technical knowledge required to configure them correctly. They’re an incredibly effective tool, but only if you really know what you’re doing.

In our example, FPGAs are like a set of Lego blocks that can be combined to build a lawnmower from scratch. It will work exactly like the ride on lawnmower that you can buy from the hardware store, and for a fraction of the cost, but they’re useless if you don’t know how to put them together. If you do know what you’re doing with these Lego blocks, you can make a lawnmower that is specifically tailored and customized to your specific needs.

Conclusion

In the same way that cryptocurrency trading and DeFi/web3 development are their own worlds, cryptocurrency mining is undoubtably a world in and of itself. Without cryptocurrency mining, we wouldn’t have any of the blockchain technologies which are at our disposal today. It’s exciting to think about how much the world of mining has changed in one short decade and how much it is likely to evolve in the future!

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