3
Now how are new blocks made?
1. Every time a slew of transactions is assembled into a block, this is appended to the
blockchain.
2. Whoever appends the block gets rewarded with some of that cryptocurrency.
3. To prevent the devaluation of the currency by miners building lots of blocks, the task is
made harder to conduct. This is achieved by making miners solve complicated
mathematical problems called proof of work.
In order to successfully create a block, it must be accompanied by a cryptographic hash that
fulfills certain requirements. The only feasible way to arrive at a hash matching the correct
criteria is to simply calculate as many as possible and wait until you get a matching hash. When
the right hash is found, a new block is formed and the miner that found it is awarded with units
of cryptocurrency.
Earlier, it was possible to mine cryptocurrency using a regular PC, but now that is no longer the
case. The limited processing speed and high power consumption led to limited output rendering
CPU- based mining inefficient.
GPUs enter into the picture
A GPU is a processing device similar to a CPU, only difference being that it is specialized for
handling display functions. It is the part of a computer that is responsible for video rendering
system.
How does the GPU perform cryptocurrency mining?
GPUs are equipped with large amounts of ALUs (Arithmetic Logic Units) which are responsible
for performing mathematical computations. Owing to these ALUs, the GPU is capable of
performing more calculations, leading to improved output for the crypto mining process.