Crypto Glossary
Dive deep into essential crypto mining terms and take your expertise to the next level.
ASIC
An ASIC (Application-Specific Integrated Circuit) is a specialized computer chip designed for a specific task.
ASIC Boost
ASIC Boost is an optimization technique for Bitcoin mining that enhances efficiency by leveraging the modular structure of block hashes.
ASIC Resistant
ASIC Resistance refers to measures aimed at preventing ASIC miners from dominating a blockchain network, promoting decentralization.
Altcoin
Altcoin refers to all cryptocurrencies other than Bitcoin.
Blind Merge Mining
Blind Merge Mining allows miners to mine multiple cryptocurrencies simultaneously without exposing their primary operations.
Block
A block is a unit of data on a blockchain that contains transactions, a nonce, and a reference to the previous block.
Block Header
A block header contains metadata for a Bitcoin block, including its height, hash, timestamp, and Merkle root.
Block Height
Block height is the count of blocks preceding a particular block in the blockchain, starting from the genesis block.
Block Reward
Block reward is the incentive miners receive for solving a block.
Block Size
Block size refers to the amount of data that a block can contain, measured in bytes.
Block Subsidy
Block subsidy is the total compensation miners receive from a block, combining the block reward and transaction fees.
Block Time
Block time is the average time taken to mine a new block.
Block Withholding Attack
A Block Withholding Attack occurs when miners send fake hash contributions to harm the productivity of another mining pool.
Blockchain
A blockchain is a decentralized digital ledger that records transactions securely and immutably, using consensus mechanisms to validate entries.
CGMiner
CGMiner is an open-source software for ASIC mining, previously a standard in the mining industry.
CPU
A CPU is a central processing unit that handles general-purpose computing tasks.
Centralization
Centralization occurs when control of a network or resource is concentrated in a few hands.
Chip
Chips are the semiconductor components in ASICs, crucial for mining efficiency.
Cloud Hosting
Cloud hosting allows individuals to own mining hardware hosted at a remote facility.
Cloud Mining
Cloud mining enables users to rent hashrate from mining farms without owning physical equipment.
Computational Power
Computational power is the processing speed at which a device can perform calculations, often measured in hashes per second.
Confirmation
Confirmation is the process of verifying and finalizing transactions on a blockchain.
Consensus Method
A consensus method is a protocol by which blockchain participants agree on the validity of transactions and the state of the ledger.
Controllable Load Resource
A controllable load resource consumes significant energy but can be turned off during peak grid demand.
Crypto
Crypto is a shorthand term for cryptocurrency.
Crypto Coin
A crypto coin is a unit of digital currency used for transactions and value transfer.
Cryptocurrency
Cryptocurrency is a decentralized digital currency secured by cryptography and operated on a blockchain network.
Cryptography
Cryptography involves secure methods for encoding and decoding data to protect information during transmission.
Decentralization
Decentralization distributes data and control across a network, reducing reliance on a central authority.
Decentralized Exchange (DEX)
A decentralized exchange (DEX) is a trading platform for cryptocurrencies without central intermediaries.
Desktop Wallet
A desktop wallet is software installed on a computer to manage cryptocurrency holdings.
Difficulty Adjustment
Difficulty adjustment recalibrates mining complexity every X blocks to maintain a consistent block time.
Double Spend
Double spend is an attempt to use the same cryptocurrency coin more than once on a blockchain.
Downtime
Periods when an ASIC miner is non-operational, potentially due to maintenance, power outages, or hardware issues, impacting profitability.
EAL (Evaluation Assurance Level)
An Evaluation Assurance Level (EAL) is a category ranking assigned to an IT product or system after a Common Criteria security evaluation. The level (1 to 7) indicates to what extent the product or system was tested.
Efficiency
Efficiency measures how effectively a mining device converts energy into hashrate.
Efficiency Delta
Efficiency delta compares the reported hashrate of a miner to the hashrate reported by its pool.
Epoch
An epoch is a life cycle marked by halving events (4 years cycle for Bitcoin).
FOMO
FOMO refers to the fear of missing out on potential opportunities, common in cryptocurrency markets.
FPGA
An FPGA is a flexible computing device used for mining different algorithms, albeit less efficient than ASICs.
FPPS (Full-Pay-Per-Share)
FPPS compensates miners based on their contribution to mining pool activities, including transaction fees and block rewards.
Financing Rate
Financing rate is the annual interest miners pay for equipmentor operational loans.
Firmware
Firmware is software embedded in hardware devices to enhance functionality.
Firmware Customization
Custom firmware developed by third parties to unlock advanced features or optimize ASIC performance beyond the manufacturer's default settings.
GPU
A GPU is a graphics processing unit used for mining altcoins and other applications.
HODL
HODL refers to holding cryptocurrencies long-term rather than selling them.
HPC (High-Performance Computing)
HPC involves high-performance computing tasks unrelated to cryptocurrency mining.
Halving
Halving reduces mining rewards (by half approximately every four years for Bitcoin).
Hard Fork
A hard fork creates a divergence in blockchain protocols, resulting in separate blockchains.
Hardware Wallet
A hardware wallet is a physical device for securely storing cryptocurrency private keys.
Hash
A hash is the output of a cryptographic function, representing proof of mining work.
Hash Exchange
A hash exchange facilitates trading between miners and buyers of computational power.
Hash Wars
Hash wars occur when competing miners direct hashrate to different blockchains to establish dominance.
HashFi
HashFi is a Telegram group discussing hashrate-based financial instruments.
Hashprice
Hashprice is the value of computational power for mining measured in cryptocurrency terms.
Hashrate
Hashrate measures a device's computational power in completing cryptographic operations.
Hashrate Marketplaces
Platforms that allow miners to buy or sell computational power (hashrate) without owning physical mining equipment, such as NiceHash.
Hashrate Under Management
Hashrate under management refers to the hashrate a pool, colocation, or group controls.
Hosted Mining
Hosted mining outsources ASIC operation and hosting to a third-party facility.
Hostname
A hostname identifies a device on a network for communication purposes.
IP Address
An IP address uniquely identifies devices on a network for communication.
IP Reporter
IP Reporter is software displaying a computer's network IP address.
Immersion Cooling
A cooling technology where ASIC miners are submerged in a non-conductive liquid to dissipate heat more effectively than traditional air cooling.
Institutions
Institutions refer to large companies participating in cryptocurrency mining.
KW/h
kWh measures energy consumption over one hour in kilowatts.
Lifecycle Management
Strategies for ensuring the longevity and profitability of mining hardware, including regular updates, repairs, and upgrades.
Luck
Luck in mining refers to the statistical probability of solving a block.
MEV (Miner Extractable Value)
MEV is the value miners extract from transaction ordering or arbitrage within blocks.
MaaS (Mining-as-a-Service)
A business model where companies provide full-service mining operations for clients, from equipment procurement to maintenance.
Machine Slide
Machine slide describes miners selling equipment to operators with lower costs when profitability declines.
Mainchain Miners
Mainchain miners focus on securing a cryptocurrency's primary blockchain.
Management Software
Management software oversees mining operations, including monitoring and configuration.
Market Capitalization
Market capitalization measures a cryptocurrency's total value as price multiplied by circulating supply.
Mempool
The mempool temporarily holds unconfirmed transactions waiting for inclusion in blocks.
Merged Mining
Merged mining allows miners to work on multiple blockchains simultaneously with shared hashrate.
Merkle Tree
A Merkle tree reduces block size by organizing transaction data hierarchically.
Minable Coin
A minable coin is earned through mining as a reward for solving blockchain algorithms.
Miner
A miner refers to a device or individual performing cryptocurrency mining.
Mining
Mining involves validating blockchain transactions and earning cryptocurrency rewards.
Mining Algorithm
A mining algorithm specifies the cryptographic process for a cryptocurrency.
Mining Calculator
A mining calculator estimates mining profitability based on inputs like power cost and hashrate.
Mining Difficulty
Mining difficulty adjusts to maintain consistent block times as network participation changes.
Mining Hardware
Mining hardware includes devices like ASICs, GPUs, and CPUs for blockchain mining.
Mining Pool
A mining pool combines individual miners' power to increase the chance of solving blocks.
Mining Reward
Mining rewards are incentives, including block rewards and transaction fees, for validating blockchain transactions.
Mining Rig
A mining rig is a collection of hardware devices optimized for mining.
Mining Software
Mining software controls hardware performance and provides operational statistics.
MoQ
MoQ is the minimum order quantity of ASICs a buyer can purchase from a supplier.
Mobile Units
Mobile units are portable containers housing mining equipment for remote operations.
Mobile Wallet
A mobile wallet is a cryptocurrency wallet app for smartphones.
NFT
NFTs are unique digital assets representing ownership of items like art or collectibles on a blockchain.
New-Gen
New-Gen refers to the latest ASIC models with improved efficiency.
Node
A node is a participant in a blockchain network that verifies transactions and maintains the ledger.
Nonce
A nonce is a variable in a Bitcoin block that miners adjust to meet hashing requirements.
Off-Grid
Off-grid mining uses independent energy sources, bypassing the main electricity grid.
Orphan Blocks
Orphan blocks are mined but excluded from the main blockchain due to network delays.
Overclocking
Overclocking increases an ASIC's performance by raising voltage and hashrate.
Overclocking Risks
Potential issues caused by increasing the performance of an ASIC miner beyond its rated specifications, such as overheating or reduced lifespan.
POS
POS, or Proof of Stake, is a consensus method selecting validators based on staked coins.
PPLNS (Pay Per Last N Share)
PPLNS rewards miners based on the number of shares contributed to the last N shares.
PPS (Pay-Per-Share)
PPS is a mining pool payout method compensating based on contributed hashrate.
PSU
A PSU provides power to ASICs and may be external or integrated.
Payback Period
Payback period is the time it takes for mining hardware to generate revenue equal to its cost.
PoW (Proof-of-Work)
PoW is a consensus method using computational work to validate blockchain transactions.
Power Rate
Power rate is the cost of electricity used in mining, measured per kilowatt-hour.
Private Key
A private key secures access to a wallet and its funds, requiring careful protection.
Profit Switcher
Profit switching optimizes mining profitability by switching between blockchains.
Prop Mining
Prop mining refers to self-hosted mining with complete ownership of infrastructure.
Proxy Pool
A proxy pool forwards hashrate to another pool with block-mining capabilities.
Public Key
A public key is a shareable address for receiving cryptocurrency in a wallet.
ROI
ROI in mining refers to the time to recover equipment costs through earnings.
Rig
A rig is a colloquial term for a cryptocurrency mining device or setup.
SHA-256
SHA-256 is the hashing algorithm used by Bitcoin and similar cryptocurrencies.
Sharding
Sharding divides a blockchain into smaller segments (shards) to improve scalability.
Sidechain Miners
Sidechain miners focus on secondary blockchains connected to the main chain.
Soft Fork
A soft fork updates blockchain protocols while maintaining compatibility with old rules.
Stablecoins
Stablecoins are cryptocurrencies pegged to assets like fiat currencies for price stability.
Stale Block
A stale block is mined simultaneously with another but excluded from the main chain.
Stranded Gas
Stranded gas is unused gas repurposed for Bitcoin mining instead of flaring.
Stratum
Stratum is a mining protocol optimizing data transfer and security for mining operations.
Team Green
Team Green refers to Nvidia GPU miners.
Team Red
Team Red refers to AMD GPU miners.
Terahash per Second
Terahash per second measures a miner's computational power in trillions of hashes per second.
Token
A token is a digital asset or unit of value issued on a blockchain.
Transaction Fees
Transaction fees incentivize miners to process and secure blockchain transactions.
Transformer
A transformer transfers electrical energy between circuits for mining operations.
Tribalistic Miners
Tribalistic miners continue mining non-profitable networks for ideological reasons.
Uncle Blocks
Uncle blocks in Ethereum are mined simultaneously but not included in the main chain.
Unconfirmed Transactions
Unconfirmed transactions are pending entries in the mempool awaiting block inclusion.
Waste Heat
Waste heat from ASICs can be repurposed for heating or other uses.