Thanks to the enormous security risk, energy-sapping bitcoin mining is here to stay

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First, just to clarify, the CPU, or central processing unitis the part of the computer that performs the will of the software loaded on the computer. It's the main executive for the entire machine.

It is the master that tells all here is more resources on amd bitcoin mining parts of the computer what to here is more resources on amd bitcoin mining - in accordance with the program code of the software, and, hopefully, the will of the user. Most computers have multi-core CPUs nowadays which is almost the same thing as having multiple CPU's in a single physical package.

The CPU is usually a removable component that plugs into the computer's main circuit board, or motherboard and sits underneath a large, metallic heat sink which usually has a fan, a few are cooled by water.

The GPU, or graphics processing unitis a part of the video rendering system of a computer. Servers usually have here is more resources on amd bitcoin mining limited or no GPU facilities as they are mostly managed over a text-based remote interface. Powerful GPUs are needed mostly for graphic intensive tasks such as gaming or video editing. For example, the translucent windows in Windows 7, or technologies like Mac OS X's Quartz, which powers the Aqua desktop and its beautiful, water-like graphical effects and animations here is more resources on amd bitcoin mining as bulging the Dock in a smooth animation when the mouse is moved to the lower edge of the screen or "sucking" windows into the Dock when they are minimized - these are powered by GPUs.

These are the differences that make Bitcoin mining far more favorable on a GPU. This is a difference of or in case of AVX times more instructions per clock. As ofthe fastest CPUs have up to 6, 8, or 12 cores and a somewhat higher frequency clock MHz vs. A CPU is designed primarily to be an executive and make decisions, as directed by the software. For example, if you type a document and save it, it is the CPU's job to turn your document into the appropriate file type and direct the hard disk to write it as a file.

CPU's are also highly capable of following instructions of the "if this, do that, otherwise do something else". A large bulk of the structures inside a CPU are concerned with making sure that the CPU is ready to deal with having to switch to a different task on a moment's notice when needed.

A GPU is very different. Yes, a GPU can do math, and can also do "this" and "that" based on specific conditions. However, GPU's have been designed so they are very good at doing video processing, and less executive work. Video processing is a lot here is more resources on amd bitcoin mining repetitive work, since it is constantly being told to do the same thing to large groups of pixels on the screen.

In order to make this run efficiency, video processors are far heavier on the ability to do repetitive work, than the ability to rapidly switch tasks. As a result, they can do large amounts of bulky mathematical labor in a greater quantity than CPU's. One way to visualize it is a CPU works like a small group of very smart people who can quickly do any task given to them.

A GPU is a large group of relatively dumb people who aren't individually very fast or smart, but who can here is more resources on amd bitcoin mining trained to do repetitive tasks, and collectively can be more productive just due to the sheer number of people. It's not that a CPU is fat, spoiled, or lazy. On silicon chips, size is expensive. The structures that make CPUs good at what they do take up lots of space.

When those structures are omitted, that leaves plenty of room for many "dumb" ALU's, which individually are very small. They can either all work on nearly identical variations of one single task, in perfect sync with one another, or nothing at all. Trying different hashes repeatedly - the process behind Bitcoin mining - is a very repetitive task suitable for a GPU, with each attempt varying only by the changing of one number called a "nonce" in the data being hashed.

The ATI Radeon is a popular video card for Bitcoin mining and, to date, offers the best known performance of any video card for this purpose.

This particular card has 3, "Stream Processors", which can be thought of as 3, very dumb execution units that can be trained to all do the same repetitive task, just so long as they don't have to make any decisions that interrupts their flow. Those execution units are contained in blocks. The uses a VLIW-5 architecture, which means the 3, Stream Processors are actually "Cores," Each able to process 5 instruction per clock cycle.

Nvidia would call these cores "Cuda Cores", but as mentioned in this article, they are not VLIW, meaning they cannot do as much work per cycle.

This is why comparing graphics cards by core count alone is not an accurate method of determining performance, and this is also why nVidia lags so far behind ATI in SHA hashing. Trying a single SHA hash in the context of Bitcoin mining requires around 1, simple mathematical steps that must be performed entirely by ALU's.

Bitcoin mining requires no decision making - it here is more resources on amd bitcoin mining repetitive mathematical work for a computer. The only decision making that must be made in Bitcoin mining is, "do I have a valid block" or "do I not". That's an excellent workload to run on a GPU. Because of this VLIW vs.

Secondly, another difference favoring Bitcoin mining on AMD GPUs instead of Nvidia's is that the mining algorithm is based on SHA, which makes heavy use of the bit integer right rotate operation. This alone gives AMD another 1. See Some Performance Specs Below:. Retrieved from " https: Navigation menu Personal tools Create account Log in. Views Read View source View history. Sister projects Essays Source.

This page here is more resources on amd bitcoin mining last edited on 8 Januaryat Content is available under Creative Commons Attribution 3. Privacy policy About Bitcoin Wiki Disclaimers.

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Mining is the process of adding transaction records to Bitcoin's public ledger of past transactions and a " mining rig " is a colloquial metaphor for a single computer system that performs the necessary computations for "mining". This ledger of past transactions is called the block chain as it is a chain of blocks. The blockchain serves to confirm transactions to the rest of the network as having taken place. Bitcoin nodes use the blockchain to distinguish legitimate Bitcoin transactions from attempts to re-spend coins that have already been spent elsewhere.

Mining is intentionally designed to be resource-intensive and difficult so that the number of blocks found each day by miners remains steady. Individual blocks must contain a proof of work to be considered valid. This proof of work is verified by other Bitcoin nodes each time they receive a block. Bitcoin uses the hashcash proof-of-work function. The primary purpose of mining is to set the history of transactions in a way that is computationally impractical to modify by any one entity.

By downloading and verifying the blockchain, bitcoin nodes are able to reach consensus about the ordering of events in bitcoin. Mining is also the mechanism used to introduce Bitcoins into the system: Miners are paid any transaction fees as well as a "subsidy" of newly created coins.

This both serves the purpose of disseminating new coins in a decentralized manner as well as motivating people to provide security for the system. Bitcoin mining is so called because it resembles the mining of other commodities: An important difference is that the supply does not depend on the amount of mining.

In general changing total miner hashpower does not change how many bitcoins are created over the long term. Mining a block is difficult because the SHA hash of a block's header must be lower than or equal to the target in order for the block to be accepted by the network.

This problem can be simplified for explanation purposes: The hash of a block must start with a certain number of zeros. The probability of calculating a hash that starts with many zeros is very low, therefore many attempts must be made. In order to generate a new hash each round, a nonce is incremented. See Proof of work for more information. The difficulty is the measure of how difficult it is to find a new block compared to the easiest it can ever be. The rate is recalculated every 2, blocks to a value such that the previous 2, blocks would have been generated in exactly one fortnight two weeks had everyone been mining at this difficulty.

This is expected yield, on average, one block every ten minutes. As more miners join, the rate of block creation increases. As the rate of block generation increases, the difficulty rises to compensate, which has a balancing of effect due to reducing the rate of block-creation. Any blocks released by malicious miners that do not meet the required difficulty target will simply be rejected by the other participants in the network. When a block is discovered, the discoverer may award themselves a certain number of bitcoins, which is agreed-upon by everyone in the network.

Currently this bounty is See Controlled Currency Supply. Additionally, the miner is awarded the fees paid by users sending transactions. The fee is an incentive for the miner to include the transaction in their block. In the future, as the number of new bitcoins miners are allowed to create in each block dwindles, the fees will make up a much more important percentage of mining income. Users have used various types of hardware over time to mine blocks.

Hardware specifications and performance statistics are detailed on the Mining Hardware Comparison page. Early Bitcoin client versions allowed users to use their CPUs to mine.

The option was therefore removed from the core Bitcoin client's user interface. See the main article: A variety of popular mining rigs have been documented. FPGAs typically consume very small amounts of power with relatively high hash ratings, making them more viable and efficient than GPU mining.

An application-specific integrated circuit, or ASIC , is a microchip designed and manufactured for a very specific purpose.

ASICs designed for Bitcoin mining were first released in For the amount of power they consume, they are vastly faster than all previous technologies and already have made GPU mining financially. Mining contractors provide mining services with performance specified by contract, often referred to as a "Mining Contract. As more and more miners competed for the limited supply of blocks, individuals found that they were working for months without finding a block and receiving any reward for their mining efforts.

This made mining something of a gamble. To address the variance in their income miners started organizing themselves into pools so that they could share rewards more evenly.

See Pooled mining and Comparison of mining pools. Bitcoin's public ledger the "block chain" was started on January 3rd, at The first block is known as the genesis block. The first transaction recorded in the first block was a single transaction paying the reward of 50 new bitcoins to its creator. Retrieved from " https: Navigation menu Personal tools Create account Log in. Views Read View source View history.

Sister projects Essays Source. This page was last edited on 25 June , at Content is available under Creative Commons Attribution 3. Privacy policy About Bitcoin Wiki Disclaimers.