GPUs for mining cryptocurrency
By Vrushali Joshi , FE EXTC
These days one can’t go anywhere without hearing about cryptocurrency. It has become a
global phenomenon known to most of the people. While its concept is still geeky and not
understood by some people, but its importance is appreciated by banks, governments and
many companies all over the world.
It really isn’t surprising that in 2018, everyone is going to want a piece of the action.
So, lets understand the concept of cryptocurrency first.
Cryptocurrency- A Digital Asset
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It is a digital currency designed to work as a medium of exchange that uses
cryptography to secure its transactions. It is created and stored electronically in
blockchains. The blockchain is an incorruptible digital register of economic transactions
that can be programmed to record not just financial transactions but virtually everything
of value.
To control creation of monetary units and to verify the transfer of funds it uses encryption
techniques. Hence it is very secure.
It has no physical form and is not redeemable in another commodity like gold.
Supply of cryptocurrency is not determined by any central authority and its network is
completely decentralized.
Bitcoin, Namecoin, Litecoin and PPcoin are some of the cryptocurrencies.
Cryptocurrency Mining
The production of cryptocurrency isn’t anything like that of regular money. Cryptocurrencies are
generated through a process called ‘mining’. In cryptocurrency networks, mining is the validation
of transactions.
The backbone of cryptocurrency mining is the Blockchain. To understand the mining process of
cryptocurrency one must know how a blockchain works.
Blockchain is a technology that supports almost every cryptocurrency. It is a decentralised
register of every transaction that has been carried out in that cryptocurrency.
a) These transactions are assembled into what are called "blocks".
b) These are verified to ensure they are legitimate by cryptocurrency miners. This check if
the same coin hasn't been expended again before the transaction has cleared, and that
the input and output expenses tally.
c) Then the next sequential transaction block is connected to it. This is how
cryptocurrencies are created and cryptocoins are made.