Nvidia To Restrict Ethereum Mining and Announce CMP for Professional Mining

Nvidia To Restrict Ethereum Mining and Announce CMP for Professional Mining

By bit.team

Nvidia will limit the hashrate on GeForce RTX 3060 processors to prevent Ethereum mining using this type of GPU. It is assumed that a special processor for mining cryptocurrencies (CMP) should reduce the lack of a GPU.

Nvidia offers miners a choice

In a blog post, graphics processing unit (GPU) manufacturer Nvidia has made two announcements that could change the mining industry. The post titled “GeForce Built for gaming, CMP built for mining” marks the beginning of a more aggressive strategy aimed at countering the purchase of GPUs for mining cryptocurrencies such as Ethereum.

To this end, Nvidia will reduce the hashrate in software drivers for the product that it will release on February 25-GeForce RTX 3060. By doing so, the company aims to ensure that GPUs fall into the hands of gamers, not miners. Nvidia announced:

“The RTX 3060 software drivers are designed to detect certain attributes of the Ethereum cryptocurrency mining algorithm and limit the hash rate or mining efficiency of the cryptocurrency by about 50 percent.”

The publication does not neglect the mining of cryptocurrencies. In contrast, Nvidia complacently claims that its users are “constantly discovering new applications” for its programmable GPUs. However, all consumers have suffered from a shortage of GPUs caused by high demand in the mining sector.

Thus, the new Nvidia graphics cards will be equipped with a new technology adapted to the needs of gamers. Moreover, Nvidia has announced the launch of its second product – its cryptocurrency mining processors (CMP) for “professional miners”.

Unlike their GPUs for gamers, CMP will not support graphics production, but will have a number of features that will make them more efficient at mining Ethereum. According to Wu Blockchain, Nvidia’s statement was met with criticism from specialized media.

The only limitation to Ethereum?

At the moment, it seems that Nvidia will not reduce the hashrate for mining Ethereum on the rest of its graphics cards. Despite this, mining expert Christie-Lee Minehan said via Twitter that Nvidia’s announcements will cause ” mixed feelings among both miners and players.”

Apparently, there are gamers who use their GPUs to mine cryptocurrencies when they are idle, Minehan said, stating that there will be room for innovation that “will break this distinction.”»:

“I can vouch for the CMP series. CMP can be pushed harder: they are more productive, and optimized for mining. I’m interested to know if this restriction is based on an algorithm or if it also applies to other altcoins.”

In addition, Minehan indicated that this move will have a positive impact on Ethereum due to a reduction in investment in equipment that supports the Proof of Work (PoW) algorithm. According to CNF, the cryptocurrency has launched the Beacon Chain, which works with the Proof of Stake (PoS) algorithm, as part of its transition to Ethereum 2.0.

During the migration of the ecosystem, many worry about the mining sector, and how its impact may slow down the progress made by developers. Unlike PoW, the PoS blockchain does not offer miners incentives to maintain expensive equipment. Minehan concluded:

“On the other hand, this is a big step towards commercial cryptocurrency mining. Nvidia now supports the professional business that forms the backbone of ETH, and all additional activities.”