Graphics Processing Unit (GPU)

A Graphics Processing Unit (GPU) is a specialized hardware component designed for rendering images and videos. In the context of cryptocurrency mining, GPUs are widely used for Proof-of-Work (PoW) mining because of their ability to perform parallel processing. This makes them more efficient than traditional CPUs (Central Processing Units) when solving the complex mathematical problems required for mining. For example, GPUs are commonly used to mine cryptocurrencies like Ethereum, which require high computational power to verify transactions and add new blocks to the blockchain. As mining became more competitive, especially in popular cryptocurrencies like Bitcoin, miners transitioned to more specialized hardware, such as ASICs, but GPUs remain popular for certain altcoins and newer networks.