Crypto Glossary

CPU Miner

Since mining requires computing power, the process of generating or mining cryptocurrency using a central processing unit (CPU) is called CPU mining (or central processing unit mining).

What Is a CPU Miner?

As the name suggests, CPU miner is a software program that is used for cryptocurrency mining on a processor or CPU. Some cryptocurrencies require the use of a central processing unit (CPU) for mining along with the relevant software programs.  

There are different software programs out there offering a wide variety of features. Miners have two options available: either to do solo mining or join a mining pool to increase their chances of getting rewards. It is highly recommended to join a pool where you can mine with other people and share profits.

How Does CPU Mining Work?

CPU mining is the process of using a computer to perform complex calculations on blocks of data that keep the blockchain network running. In simple terms, it involves a computer repeatedly running hashing functions until the correct result is found. The miner receives a reward in the form of coins for each block of data.

Miners are required to solve complex computations using their hardware in order to get rewarded. Since the competition is high, it is beneficial for participants to use efficient tools. This is where GPU mining comes in. 

CPU, GPU, and ASIC Mining 

During the earlier years of cryptocurrency, only CPU mining was available to users. However, since mining crypto, especially BTC, has become more difficult than before, miners have shifted their focus to GPU and Application-Specific Integrated Circuit (ASIC) mining. Moreover, after each halving, the BTC rewards are reduced by 50%. Therefore, it is beneficial to use more mining rigs than just a few.

One of the main differences between CPU and GPU mining is that GPUs are able to complete blocks faster than a CPU. While CPUs have been able to mine profitably in the past (for example, during the early days of Bitcoin), the rise in difficulty level has made it challenging to mine profitably with a CPU, even if you have free electricity.

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