The Cost Effectiveness of Field-Programmable Gate Arrays (FPGAs) vs. Field-Programmable Gate Arrays (FPGAs) . Graphics Processing Units (GPUs) for Ethereum Mining
As the demand for cryptocurrency continues to grow, many miners are looking for ways to reduce their costs and increase their profitability. Among the various options available, Field-Programmable Gate Arrays (FPGAs) have gained significant attention in recent months. However, when it comes to mining Ethereum, a popular decentralized application (dApp), one must consider whether an FPGA is more cost-effective than a Graphics Processing Unit (GPU).
In this article, we’ll delve into the details of FPGAs and GPUs, exploring their strengths, weaknesses, and costs associated with each option. We’ll also provide a comparison between the Bitcoin/hardware price ratio for both options to help you compute the return on investment.
What are Ethereum’s Mining Requirements?
To mine Ethereum using a GPU or an FPGA, one must first understand the mining requirements of the network. The current block reward for Ethereum is 12.5 Ether (ETH), which is distributed every 14 minutes. To calculate the required processing power, we can use the following formula:
\[ \text{Required Processing Power} = \frac{\text{Block Reward}}{\text{Time to Confirm a Block}} \times 10^8\]
Assuming an average block confirmation time of 15 seconds (a rough estimate), we have:
\[ \text{Required Processing Power} = \frac{12.5}{0.015}\times 10^8 = 2,666,667 \times 10^6\text{GHz}\]
This translates to approximately
2.67 exahertz of processing power required per second.
FPGA vs. FPGA. GPU: Comparing Performance
To compare the performance of FPGAs and GPUs for Ethereum mining, we’ll examine their characteristics:
- Processing Power:
The estimated processing power required for Ethereum mining is 2.67 Xahertz.
- Clock Speed: Modern FPGAs have clock speeds ranging from a few GHz to several hundred GHz, depending on the specific model. Let’s assume an average clock speed of 50 GHz.
- Hash Rate: A single GPU can achieve hash rates between 1-100 THash/s (thousand hashes per second), while most FPGAs can reach up to 10-100 GTH/s.
Using these estimates, we can calculate the required processing power for Ethereum mining using different hardware options:
| Hardware | Processing Power (GHz) | Clock Speed |
| — | — | — |
| AMD Radeon RX 590 | 1.5 – 2.5 GHz | 2000-2400 MHz |
| NVIDIA GeForce GTX 1080 | 3.7 GHz | 1900-2300 MHz |
| Intel Core i9-9900K | 4.0 GHz | 3200-3600 MHz |
Comparison of Hardware Costs
Based on current market prices, here’s a rough estimate of the costs associated with each option:
- AMD Radeon RX 590: $200-$300
- NVIDIA GeForce GTX 1080: $400-$600
- Intel Core i9-9900K: $500-$8
In comparison to these prices, it is clear that FPGAs are significantly more cost-effective than GPUs for Ethereum mining.
Bitcoin/hardware Price Ratio
To compute the return on investment (ROI) of using an FPGA over a GPU, we can calculate the Bitcoin/hardware price ratio:
| Hardware | Block Reward | Clock Speed |
| — | — | — |
| AMD Radeon RX 590 | $50-$100 | 2000-2400 MHz |
| NVIDIA GeForce GTX 1080 | $300-$600 | 1900-2300 MHz |
Using these estimates, we can calculate the required processing power for Ethereum mining using different hardware options and their Bitcoin/hardware price ratios:
| Hardware | Processing Power (GHz) | Clock Speed |
| — | — | — |
| AMD Radeon RX 590: $50-$100 | 1.5-2.5 GHz | 2000-2400 MHz |
| NVIDIA GeForce GTX 1080: $300-$600 | 3.7 GHz | 1900-2300 MHz |
Conclusion
In conclusion, FPGAs are significantly more cost-effective than GPUs for Ethereum mining due to their lower processing power requirements and higher clock speeds.
