Imagine extracting valuable materials from an orebody.
What would you need the most? Suitable equipment for material extraction, processing, and handling. Similarly, the digital gold pit of cryptocurrency requires you to have tools to verify and add transactions to a blockchain ledger for crypto mining.
One way to mine cryptocurrencies is via your computer's central processing unit (CPU). Arithmetic logic units (ALUs) in CPUs perform advanced arithmetic and logical operations, making CPUs capable of performing complex operations and calculations.
Anyone with a desktop computer can use their CPU’s processing power to solve complex algorithms and validate crypto coin transactions. This mining process is known as CPU mining in cryptocurrency mining software.
CPU mining is a crypto mining process that uses a computer's central processing unit to secure cryptocurrency transactions. By solving complex math problems, miners validate transactions, add new blocks to the blockchain, and earn crypto rewards. CPU mining can be done using an everyday computer or CPU mining rigs.
CPUs can rapidly switch between tasks and follow the ‘if this, do that, otherwise do something else’ type algorithm execution instructions. This CPU ability minimizes user wait time when working with different software.
CPUs can do math work, too, but aren’t suitable for solving repetitive or lengthy mathematical equations. Cryptocurrency mining enthusiasts switched to graphic processing unit (GPU) mining because of CPUs' inability to handle large volumes of mathematical data.
CPUminer is multi-threaded, open-source software that optimizes cryptocurrency mining. This software supports secure hash algorithm (SHA)-256d and scrypt (N, 1, 1) protocols, getblocktemplate, and Stratum mining protocols. A CPUminer is ideal for solo and pool mining alike.
CPU mining uses a CPU’s processing power to validate transactions and mine new coins. GPU mining relies on graphic processing units’ ability to solve complex mathematical problems and verify electronic transactions.
A CPU acts like an executive. It tries to be smarter at any task assigned to it. Its primary objective is to execute software instructions and switch tasks at a moment’s notice. CPUs also:
A GPU does less executive work but is extremely good at processing repetitive work. GPUs can run more mathematical equations because they have more ALUs than CPUs. This is why GPU miners excel at parallel computations.
Let's look at four factors that differentiate CPU and GPU mining abilities.
GPUs are way faster than CPUs at solving mining-related mathematical problems. CPUs deal with a larger instruction set with fewer cores.
For example, a CPU core using 128-bit streaming SIMD extension (SSE) instructions or eight 2256-bit advanced vector extensions (AVX) executes four 32-bit instructions per clock. In comparison, a GPU performs 3200 32-bit instructions per clock.
Mining efficiency is another factor to consider while comparing CPU and GPU mining. The more efficient hardware you use, the more energy you save.
GPUs conserve energy better than CPUs and have become the go-to choice for miners.
CPUs aren’t as easy to maintain or upgrade as GPUs. You need to be careful about CPU temperature and potential damage.
On the other hand, GPUs are pretty easy to maintain.
GPU should be the first choice if you’re looking to mine effortlessly. CPUs can process anything you ask of them. But higher processing also generates heat and increases the chance of permanent hardware damage.
In a nutshell, CPUs are more versatile and handle broad instruction sets, while GPU cores process data many times faster than CPUs.
In 2009, Bitcoin (BTC) wasn't as mainstream as it is today. Pseudonymous creator Satoshi Nakamoto was the first to mine bitcoins on January 3, 2009. He mined the first batch of 50 bitcoins using his computer CPU chip. This first Bitcoin block was known as the Genesis Block.
CPU crypto mining relies on the ‘one processor, one vote’ consensus mechanism. Satoshi Nakamoto proposed this idea in the 2008 paper Bitcoin: A Peer-to-Peer Electronic Cash System. Bitcoin doesn't follow this principle anymore, and only certain altcoins allow miners to mint coins with CPUs.
The lack of miner competition in the early days meant anyone could use their CPUs’ computational energy to create new crypto blocks and earn mining rewards. Back in 2010, you could probably generate hundreds of BTC using an Intel Pentium CPU, as less competition meant a higher success rate. However, a lot has changed since then.
Competition gradually increased as more miners joined the BTC network for block rewards. However, the miners soon found that their winnings outweighed their electricity and machine depreciation costs.
Also, the increasing algorithmic difficulty resulted in longer transaction discovery times. These issues led to GPU mining.
CPU mining uses computer hardware to perform blockchain-related computation. You can use regular laptops and desktops to mine coins and then store them with cryptocurrency custody software. Cryptocurrency miners use CPUs to run hashing functions until they find the correct result. After solving a block's mining problem, they receive a block reward in a network's proprietary coin.
Depending on the configuration, CPUs rely on solitary-center, double-center, or quad-center processors. More centers allow a processor to meet different CPU mining guidelines consistently.
Some CPUs can imagine two centers for each accessible center and facilitate hyper-threading indirectly. Although hyper-threading suggests the multiplication of potential force, actual centers perform better than virtual ones. Some miners connect two or more CPU processors to Intel and AMD processor-based servers and workstations.
CPU mining usually leverages the proof-of-work (PoW) mechanism to prove job completion, add new coins, and become eligible for rewards. Its success depends on two technical CPU capabilities:
A CPU mining rig combines individual mining devices to improve performance and efficiency. Common CPU mining rig elements are:
Some CPU miners also create multi-CPU mining rigs by connecting several CPUs. The idea here is to combine and concentrate the power of multiple CPUs in a single computer. Servers and workstations with such setups need custom-built server boards or motherboards with multiple cores and threads.
If you’re ready to take the plunge and start mining today, you have two options. You can either go solo or join a pool of miners to start CPU mining.
In solo mining, an independent miner confirms blockchain transaction blocks without third-party or pool support. Solo miners rely on hardware hash power and network hash rate to add new coins to their cryptocurrency wallets.
Solo mining is very competitive, and it can take a miner years before they discover a block. This mining method was more profitable in the early days due to the lower hash rate complexity. Despite the difficulty factor, solo mining can be beneficial as it offers higher returns than pool mining over time. Compare electricity expenses and other charges to profits before diving deep into a solo CPU mining operation.
A mining pool attracts individual miners to collaborate and share computing power to discover new blocks. Pool miners share their resources over a network to increase profitability chances. After validating and adding a block, they divide the rewards based on individual processing power contributions. Some crypto mining pools require miners to show PoW to receive rewards.
Joining a mining pool allows miners to meet electricity and hardware costs. However, they give up some mining autonomy and must follow pool rules to participate.
Slushpool was the first Bitcoin mining pool and appeared on the Bitcointalk forum in 2010.
Not all CPUs are created equal, so finding the best one to mine crypto is challenging. Consider these factors to find the best CPU for mining rigs.
Think of a core as the brain of a CPU. A CPU core consists of billions of microscopic transistors. It receives and processes task information for external use. The very first CPUs in 1971 had only one CPU core. These cores didn’t need to run several programs at once.
CPUs required more cores as users started running more resource-intensive applications. The more cores your computer has, the easier it is to run multiple tasks. To build the best CPU for crypto mining, you need enough cores to verify block transactions at speed.
A thread is a sequence of programming instructions or virtual components that divide physical cores into multiple virtual cores. A CPU can thread its cores up to 2x to offer more processing power.
For example, a single Intel Core CPU has 2 threads per core. Similarly, a dual or octa-core CPU has 4 to 16 threads. Ideally, using CPUs with more threads generates optimal processing power.
Some CPUs today offer multithreading or hyper-threading capabilities. Hyper-threading enables a single core to act as two cores to speed up application execution. Multithreading runs two or more concurrent threads using a single process resource.
Clock rate, or clocking speed, measures the rate at which a clock generator generates pulses to synchronize different component operations. CPUs measure clocking speed or the rate of cycles in gigahertz (GHz). Higher clocking speed helps crypto miners achieve a higher hash rate and prevents overclocking.
Modern CPUs specify a base (minimum) clock speed and a turbo (maximum) speed. They adjust the clock rate depending on task intensity and temperature.
CPU transistors produce thermal energy or heat during operation. This heat increases the overall CPU temperature. Mining CPUs require efficient cooling systems to stay within their safe operating temperatures.
CPUs come with air or liquid cooling options to absorb and redistribute heat away from the hardware. While air coolers relocate and disperse heat inside the case, liquid coolers use radiator fans to move heat outside the system.
Powerful CPUs consume large amounts of power. If you mine crypto coins that require a lot of power, you end up spending a lot on electricity bills. That’s why miners buy CPUs with lower power consumption or mine less strenuous coins. Some CPU miners also consider joining mining pools to recover electricity costs from the pool.
The thermal design power (TDP) rating measures a processor’s power and thermal performance in watts. CPUs with good TDP ratings help you save on electricity consumption while maintaining stable operating temperatures. If you want to buy higher TDP CPUs for mining, you also need powerful coolers.
CPU mining profitability depends on your crypto mining projects and CPU configurations. CPU mining can be a great way to obtain tokens early on and keep them safe until yields are higher.
Miners often combine CPUs and graphics cards to make more profits. However, be careful, as cryptocurrency mining can be highly volatile and speculative.
A CPU mining profitability calculator lets you evaluate the potential earnings from your hardware. It compares electricity costs and total income to estimate profits. You can divide CPU and electricity costs by estimated earnings to understand how long it’ll take to see a return on investment (ROI).
Yes, but you need to be cautious about a few things. First, your antivirus software may flag a mining client as a virus. This happens when CPU miners register the mining software as a Trojan horse virus. You can simply add the software to the exceptions list to stop seeing such errors.
Second, you need to be careful when mining on laptops. Laptops can’t withstand rising temperatures like CPUs, and mining can cause permanent hardware damage. Users can also use benchmarking software for computer performance testing, hardware reviews, and system optimization for CPU mining.
CPU miners use an ordinary personal computer (PC) setup or a CPU farm to mine new coins. Individual miners often start CPU mining with their home computers to generate a moderate passive income. Here are some pros and cons to assess whether CPU mining is right for you.
CPU mining pros:
CPU mining cons:
If the potential CPU temperature issue has got you sweating, here are some best practices for safe CPU mining.
If you’re looking to set up a small cryptocurrency mining operation with your home PC, these are the best cryptocurrencies to mine with CPUs.
CPU mining isn't the only option to mine cryptocurrencies. You can also use application-specific integrated circuit (ASIC) mining or cloud mining to earn from block discovery.
If you find mining to be too challenging, you can also earn passive income by trading on cryptocurrency exchanges.
This article was originally published in 2022. It has been updated with new information.
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