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What Is Graphics Processing Unit (GPU)?

A Graphics Processing Unit (GPU) is a video card that runs on a computer. The processor in the GPU is quite powerful and that's why it is used in cryptocurrency mining.

The Graphics Processing Unit (GPU) is known as a graphics card or video card. In general, the GPU is used to process images or videos on a computer. The graphics processing unit is also used for cryptocurrency mining. A GPU is also known as a computer chip that creates 3D images in digital devices.

Since leverages blockchain distributed ledger technology (DLT), many devices perform simultaneous transactions to help verify and add blocks to the blockchain. During these transactions, GPUs are used to decode hashes. GPUs can provide more flexible use in cryptocurrency mining compared to ASIC devices. Graphics processing units play an important role in verifying and processing transactions on blockchain networks.

How Does GPU Mining Work?

GPU mining is used to verify hashes in blockchain networks and add blocks to the blockchain chain. This is done with a computer's GPU and is based on a pre-determined algorithm. GPUs are not designed for crypto mining, but due to their high computing power, they are often used in mining. GPUs can perform many operations at the same time and are therefore preferred by miners.

GPU mining can involve the following steps:

  • A miner receives a list of transactions that need to be verified on the blockchain.
  • These transactions are converted into blocks by the miner.
  • The block is encrypted through the designated algorithm, a process known as "hashing".
  • The miner tries to decrypt the block to confirm that it is ready.
  • This process is continued until the block is verified and added to the chain.
  • When the miner adds a new block to the blockchain, they are rewarded with cryptocurrencies.

What Are GPU Mining Algorithms?

GPU mining algorithms refer to the algorithms used by cryptocurrency miners. These mining algorithms utilize the processing power of GPUs to verify and add hashes to the blockchain.

There are several types of GPU mining algorithms and some of them are as follows:

  • SHA-256
  • X11
  • Scrypt
  • Ethash


SHA-256 is an algorithm used in the blockchain of different cryptocurrencies such as Bitcoin (BTC), Bitcoin Cash (BCH) and Terracoin (TRC).


Scrypt is measured in kilohashes and is used as an alternative to SHA-256 in cryptoasset units such as Litecoin (LTC).


X11 is known as an energy-saving mining algorithm, measured in megahashes. Cryptocurrencies with the X11 algorithm include Dash (DASH), StartCoin (START), CannabisCoin (CANN) and XCurrency (XC).


Ethash is used on the Ethereum blockchain and is used quite often by miners.

What Are GPU-Mined Cryptocurrencies?

GPU-minable cryptocurrencies include different cryptocurrencies that perform various functions with different algorithms, and some of them are as follows:

  • EthereumPoW
  • Ethereum Classic
  • Dash
  • Litecoin
  • Monero (XMR)

GPUs and Cryptocurrency Mining

GPUs are not specifically designed for cryptocurrency mining, but with the popularization of the cryptocurrency sector, it has become a new mining method. This is because cryptocurrency mining requires complex calculations. GPUs are preferred due to their high processing power.

ASICs are often used in cryptocurrency mining. ASICs (Application-Specific Integrated Circuit) are designed to provide a specific algorithm and offer high efficiency, but despite this, the cost of ASICs can be quite high. Therefore, they can be difficult for miners to access. GPUs are often the preferred alternative, as they are less costly and accessible. However, despite this, GPUs are considered less efficient than ASICs.

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