Glossary of ASIC Mining & Cryptocurrency Terms
ASIC
Application-Specific Integrated Circuit, a high-performance chip designed for specialized mining tasks.
ASIC Boost
An optimization technique for Bitcoin mining that improves efficiency by leveraging the block hash structure.
ASIC Resistance
Design strategies intended to prevent ASIC miners from dominating a blockchain network, promoting decentralization.
Altcoin
Any cryptocurrency other than Bitcoin.
Blind Merge Mining
Allows miners to mine multiple coins simultaneously without revealing their primary chain mining operations.
Block
A unit of data on a blockchain that contains transactions, a nonce, and a reference to the previous block.
Block Header
Contains metadata for a block, including its height, timestamp, Merkle root, and more.
Block Height
The position of a block in the blockchain, starting from the genesis block.
Block Reward
The reward miners receive when they successfully mine a block, including coins and transaction fees.
Block Size
The amount of data (in bytes) that a block can hold.
Block Subsidy
The total reward a miner receives from block reward plus transaction fees.
Block Time
The average time it takes to mine a new block.
Block Withholding Attack
A malicious act where a pool member submits invalid or withheld solutions to disrupt the pool.
Blockchain
A decentralized ledger that securely records transactions via consensus mechanisms.
CGMiner
An early open-source mining software designed for ASIC mining.
CPU
Central Processing Unit, used for general computing and much less efficient than ASIC for mining.
Centralization
When control over a network is concentrated in the hands of a few entities.
Chip
The semiconductor component inside an ASIC that determines its efficiency.
Cloud Hosting
Cloud hosting allows individuals to own mining hardware hosted at a remote facility.
Cloud Mining
Renting mining power from remote data centers without owning mining hardware.
Computational Power
The speed at which a device performs hashing calculations, typically measured in H/s.
Confirmation
The process by which a blockchain network verifies and records a transaction in a block.
Consensus Method
The protocol for ensuring agreement on a blockchain’s state (e.g., Proof of Work, Proof of Stake).
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 digital currency unit used for transactions and payments.
Cryptocurrency
Digital currency secured by cryptography and operating on a decentralized network.
Cryptography
The techniques used to encrypt and secure data on the blockchain.
Decentralization
The distribution of control across many nodes rather than a central authority.
Decentralized Exchange (DEX)
A digital asset trading platform without a central intermediary.
Desktop Wallet
Wallet software installed on a computer for managing cryptocurrency assets.
Difficulty Adjustment
Automatic periodic adjustment of mining difficulty to maintain consistent block times.
Double Spend
An attack where the same coin is tried to be spent more than once.
Downtime
Periods when mining equipment is offline due to outages or maintenance.
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
A metric that measures a device’s energy consumption relative to its hashing power.
Efficiency Delta
Efficiency delta compares the reported hashrate of a miner to the hashrate reported by its pool.
Epoch
A cycle or period in Proof of Work blockchains, typically around every four years (e.g., Bitcoin halving).
FOMO
FOMO refers to the fear of missing out on potential opportunities, common in cryptocurrency markets.
FPGA
Field Programmable Gate Array, a programmable device less efficient than ASIC, used for various algorithms.
FPPS (Full-Pay-Per-Share)
A mining pool payout method where miners are paid for shares plus block rewards, covering fees.
Financing Rate
Financing rate is the annual interest miners pay for equipment or operational loans.
Firmware
Software embedded in mining hardware that controls its operation.
Firmware Customization
Third‑party modified firmware designed to improve mining device performance.
GPU
Graphics Processing Unit, commonly used to mine ETH and other altcoins, but less efficient than ASIC.
HODL
A mining and investment strategy where cryptocurrency is held long-term without selling.
Halving
A scheduled event in Bitcoin where block rewards are cut in half to control inflation.
Hard Fork
A major update to a blockchain protocol that is not backwards compatible and may split the chain.
Hardware Wallet
A physical device used to store cryptocurrency private keys offline for security.
Hash
A cryptographic hash function output used as proof of work for mining.
Hashrate
The number of hashes computed per second, measuring a miner’s computational power.
Hashrate Marketplaces
Platforms where users can buy and sell hash power, such as NiceHash.
Hosted Mining
Renting space for mining equipment in a third-party facility.
Immersion Cooling
A cooling method where mining hardware is submerged in dielectric fluid, more efficient than air cooling.
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)
Additional profit miners can extract by ordering transactions within a block.
MaaS (Mining-as-a-Service)
An integrated service for mining that includes equipment procurement and maintenance.
Merged Mining
Mining on multiple blockchain networks simultaneously to increase earnings.
Merkle Tree
A data structure used in blocks to securely store transactions.
Mining Algorithm
The cryptographic algorithm that defines how mining computations are performed (like SHA-256).
Mining Pool
A service where miners combine their resources to share block rewards proportionately.
Mining Rig
A full setup for cryptocurrency mining including hardware, power supplies, and cooling.
MoQ
Minimum Order Quantity required by manufacturers or suppliers.
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.
Orphan Blocks
Blocks that were mined but not accepted into the main chain due to chain forks.
Overclocking
The process of increasing a miner’s voltage or frequency to improve performance, but with increased risk.
PoS (Proof-of-Stake)
A consensus mechanism that does not require mining hardware. Validators stake coins instead.
PPLNS / PPS / FPPS
Different mining pool payout methods (like pay-per-last N-share, pay-per-share, full-pay-per-share).
PoW (Proof-of-Work)
A consensus mechanism where miners compete using computational power to validate transactions.
Power Rate
Electricity cost per kilowatt-hour used for mining.
Private/Public Key
Cryptographic key pair used for securing wallets and signing transactions.
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.
Terahash per Second (TH/s)
A unit of mining power equal to one trillion hashes per second.
Token
A digital asset issued on a blockchain platform.
Unconfirmed Transactions
Transactions that have been broadcast to the network but not yet included in a block.
Waste Heat
The excess heat generated by mining equipment that can be repurposed or cooled.
