Do you want to learn everything about GPU mining? Before I teach you how it works and how to do it, let’s take a look at the definition of GPU mining, and then we will have a deeper understanding of how does GPU mining work?

## What is Mining?

In simple terms, Mining is the process of using computation power to process transactions on a cryptocurrency blockchain in order to receive a reward for cryptocurrency. The computational power will come in the form of CPU processing or GPU processing.

With the growing network, the CPU became insufficient for the mining process, so the miners switched to mining with GPUs ( Graphics Processing Units), which are attached to external components of the computer to perform calculations much more complicated than the CPU.

## What is GPU Mining?

The GPU also known as the graphics card, is primarily built for gamers who need to run games that require high performance and complex calculations. However, due to its architecture, which is easily adaptable to mining tasks, it became popular in the field of cryptography, and people began mining Bitcoin using graphics cards in 2011.

GPU accelerated mining is the most common method for the majority of cryptocurrencies.

A single GPU is able to process the approximate the equivalent of 44.64 CPUs

## How Does GPU Mining Work?

To unlock a block in the chain, you need to verify it by solving a complex equation, usually in the form of something called fragmentation. Fragmentation is a set of random characters and numbers. Using the right key, the original message can be revealed. It is a key part of cryptography and is where the “cryptographic” part of the “cryptocurrency” comes from.

In the same way, GPUs help in solving these incredibly complex mathematical puzzles in a very fast manner so that in exchange the miner gets the reward in form of cryptocurrency. If you’re slower than the competition, you don’t get one. This method is called **“proof of work”.”**

So, to perform this mining task the GPU takes the help of the various algorithm to perform the particular task.

## GPU Mining Algorithms

There are various algorithms that are used to perform the mining operations on a different blockchain. some of them are explained here

### SHA-256 Algorithm

In the Bitcoin blockchain, SHA-256 was the very first cryptographic function utilised for cryptocurrencies. It requires extremely fast calculation speeds while putting little strain on the equipment’s memory.

The SHA-256 algorithm is a variation of the SHA-2 hash function, which was created by the National Security Agency of the United States in 2002. It’s also found in over 150 other cryptocurrencies, including:

**BitcoinCash**(BCH);**Peercoin**(PPC);**Namecoin**(NMC);**BetaCoin**(BET);**Terracoin**(TRC);**Ixcoin**(IXC);**Joulecoin**(XJO);**Unobtanium**(UNO).

### X11 Algorithm

The X11 encryption algorithms use multiple hash functions at once, or multi-algorithmic methods and the number in the function name determines how many are used.

Nowadays, DASH is the most well-known cryptocurrency mined using the X11 algorithm. PoS allows owners of more than 1000 DASH coins to earn roughly 5.8 coins per month. PoW mining for this coin is only cost-effective on ASICs.

### Scrypt Algorithm

**The Scrypt algorithm uses a lot of memory during calculation.** At present, only special hardware can effectively mine the Scrypt algorithm.

A few well-known cryptocurrencies use this algorithm, such as Litecoin (LTC) and Mooncoin (MOON).

## The Bottom Line

Since you have made it so far, you should have a basic understanding of GPU mining and why it is so important. Additionally, GPU mining represents another option for acquiring digital currency.