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Cryptocurrency Mining Glossary

Below is a list of the most used terms in mining and their meanings.
 

Altcoin

Name given to bitcoin alternative currencies. Example: Litecoin, Dogecoin, Dash, etc.

API

The acronym API derives from the English expression Application Programming Interface which, translated into Portuguese, can be understood as an application programming interface. In other words, 'API' is a set of standards that enable communication between platforms through a series of standards and protocols.

ASIC /Antminer

Acronym Application Specific Integrated Circuit, in Portuguese: Application Specific Integrated Circuits. Chip created specifically to perform a task, for example, in the case of bitcoin, ASICs were created to process a SHA-256 hash and mine bitcoins.

Block

The genesis block is coded in the software and serves as the initial state of the system. It may contain information about the rules or instructions about the remaining database.

Once this is done, the database is formed from a series of blocks that together form a chain. This is where the name 'blockchain' comes from. Each block in the chain contains information or transactions. As transactions are added, your information is stored in the block according to the moment it was processed. This combination of information and time creates a ledger that documents value or other resources in the database.

Blockchain

A blockchain (also known as “the protocol of trust”) is a distributed registration tecnologiatechnology that aims at decentralization as a security measure.[1] They are distributed and shared databases and data that have the function of creating a global index for all transactions that take place in a given market. It works as a ledger, but in a public, shared and universal way, which creates consensus and trust in the direct communication between two parties, that is, without the intermediation of third parties.

Cryptocurrency

Cryptocurrency is the generic name for decentralized digital currencies, created in a blockchain network from advanced encryption systems that protect transactions, their information and the data of those who transact.

Cryptocurrencies are digital currencies because, unlike the real, the dollar and other touchable currencies, they only exist on the internet. In other words, you know they're real, but you can't catch them with your hands – or keep them in your wallet, in your safe, or under your mattress.

Effort

Pool/Block "Effort" and "Luck" are different names for the same thing. We prefer to call it effort as it is more descriptive. Block effort refers to just one block, overall/joint effort refers to the average effort of the last block. The current effort refers to the block that is being extracted right now (real-time effort, so to speak). The effort is to measure how many hashes our pool did to find a block. Whether a lock was encountered exactly as predicted (based on global hashrate, pool hashrate, and lock time/difficulty). Each block has its own "luck". Longer block = greater effort. Efforts above 100% mean we were unlucky, efforts below 100% mean we got lucky and hit a block sooner than expected. If the pool works correctly, the overall effort stabilizes and is around 100%.

Ethash

The Ethash mining algorithm is the algorithm that does the mining operation in Ethereum. A high quality algorithm that uses some very elaborate computer techniques to ensure the greatest possible security.

Exchange

Place used to exchange between cryptocurrencies and other assets, for example, exchanging real for bitcoin. Bitcoin exchange is used to exchange bitcoin for FIAT currencies or other cryptocurrencies.

Flight Sheet

Flight Sheets are sets of settings for your devices, different combinations of wallets, currencies, pools and miners. In Hive OS, you can create any number of Flight Sheets and quickly apply them to your employees to increase mining efficiency and your revenue. Switching between Flight Sheets takes just a few clicks.

FIAT Coins

It is fiat money, that is, money that is not cryptocurrency, such as the Real, Dollar, Euro, Yen, etc.

Gas Limit

It is the total Gas that a transaction can consume. This value changes depending on the operation. If excess Gas is supplied, the excess is converted to ETH and returned. However, if an insufficient amount of Gas is supplied, this amount is rejected by the miner and the transaction is reverted to the user. When in doubt, always send an extra amount, as there is no cost for this.

Gas Price

It is the amount of Gwei the sender is willing to pay for each Gas. This fee can be set according to the rush to submit the transaction. If the goal is to have a faster transaction, the Gas Price will have to be high. If you want to save, the sender can download the Gas, but will have a lower priority in sending the transaction.

Gwei

While Bitcoin can be split into up to 100 million Satoshis, ETH is much more divisible. By convention, each ETH is equivalent to 1,000,000,000,000,000,000 Wei (one quintillion Wei). Gwei is one of ETH's measurement units. This is the amount of Gas charged in Wei. It is equivalent to 100 million Wei. The name Wei was named after the cryptographer Wei Dai, one of Satoshi's inspirations in the creation of Bitcoin.

Hashrate

Hashrate is an indicator of the computational power used during the cryptocurrency mining process. This indicator is measured in units of hash/second, which means the amount of calculations that machines can process each second on the network.

The higher the hashrate of a machine, the greater the chance of mining a block and receiving bitcoins as a reward. This is the main reason why miners gather in Mining Pools to pool the computational powers of their machines.

HiveOS

The Hive OS is the ultimate mining platform that allows users to configure, explore and control processes more efficiently and smoothly across thousands of platforms, all in one place.

HODL

It's a meme, the correct one would be Hold – from “hold”, in English, which is when you keep your assets, even in the low price, because you believe they will be appreciated in the future.

Invalid Share / Share Inválido

A share caused by a problem with the miner or your gpu's overclocking, which needs to be inspected or configured correctly.

LHR

The acronym LHR stands for lite hash rate, which in free translation is low hash rate. The hash rate is the card's main performance benchmark in cryptocurrency mining, and the higher it is, the more the user is rewarded. Nvidia claims that the hash rate will be halved.

Market Cap Volume

Total currency market volume (sum of the value of all currencies already mined) in Dollars and BTC.

Mining

It is the act of performing mathematical calculations. When a computer performs this cryptographic calculation it receives a reward, X Bitcoin or other currency that is being mined. We say he's mining and allowing more coins to come up or authenticating transactions.

Nethash

Indicates the total hashpower of the coin's network, summing up the mining power of all miners (related to difficulty). This indicator is followed by a percentage value that indicates how much the difficulty increased (positive values) or decreased (negative values) in the last 24 hours.

Overclock

With overclockyou can increase the mining power of your graphics cards (GPUs) and/or decrease the consumption of electrical energy, you can increase the fan speed to improve the cooling of the card and combine a series of settings to make your GPUs work best.

Pool

In short, a mining pool is a kind of cooperative where the mining power of several miners is “added” in order to decrease earnings volatility, making payments more frequent.

PPLNS

Pay Per Last N Shares - Similar to PROP, in this method, miners participate in the distribution of rewards based on contributed effort (share). The difference between the PPLNS and the PROP is that in the PPLNS there is protection from so-called "pool-hoppers" - unscrupulous miners who run through pools with a PROP payment, send shares and leave, as they know they will have something when the block is found. So, PPLNS does not consider all the shares that were sent by the miners while the pool was looking for the block, but the last X shares. For example, on 2Miners.com in the Ethereum group, only the last 3,000 shares sent by miners are used to calculate the reward. In this case, if one of the users sent 1500 of the last 3 thousand shares, he will receive 50% of the profit of the block found.

PPS

Pay per Share - this is the easiest way to distribute rewards, as this is where payment is made for each share sent. The pool decides it is interested in buying a share from a particular seller for 1 cent and then only pays you a penny for each share sent.

PPS+

PPS+ is a combination of the above two modes, PPS and PPLNS, ie block reward is set according to PPS mode. And service fee / mining transaction is settled according to PPLNS mode. That is, in this modality, the mining company can additionally obtain revenue from part of the transaction fee based on the PPLNS payment method.

PROP

(Proportional) - payment proportional to the shares contributed. Assuming that five farms are working in a pool and sending shares: farms 1, 2 and 3 sent 10 shares, farm number 4 sent 20 and farm number 5 sent 100. After finding the block, the reward will be split among the participants according to the amount of shares that each one sent to the pool.

Proof-of-Work (POW)

Proof-of-Work, also known as PoW, is a mechanism designed to avoid double spend on the Bitcoin network. Nowadays, the main cryptocurrencies use PoW as their consensus algorithm, being one of the main methods that guarantee the Blockchain integrity.

This is where the Proof-of-Work comes in. It ensures that users are not using money they are not entitled to spend. Using a combination of game theory and cryptography, the PoW algorithm allows anyone to update information on the Blockchain, according to the rules of the system.

PoW requires miners to use their computing resources until a puzzle is found. That solution is the block hash. The data contained in the hash works like a “fingerprint”, being unique for each block.

RIG

Mining rigs are cabinet-mounted computing systems specializing in cryptocurrency mining. Since the operation of several scripts and hashing algorithms is required, its function is to provide support and control the processing performed by very high-performance GPUs.

Riser

Widely used for cryptocurrency mining, PCI-e extenders become very useful in many cases, in order to extend the distance of one video card and another, for example, or even connect several video cards on a single motherboard.

Share

Share is a part of the block the pool is working on. When hashing the pool, your equipment solves / extracts these puzzles and sends them to the pool. You are getting paid for it.

Stale Share

A stale share is a share that was delivered to the pool, but with a delay. This is due to the internet with a higher ping or even a time-consuming calculation to be done by gpu. Another miner performs the same calculation and delivers before delivery, thus leaving your share as stale (obsolete).

Thermal Throttling

Thermal Throttling or processing limitation is a thermal protection created to keep the computer running, when in a specific (and high) temperature range, the gpu decreases its processing to lower the temperature of its components.

Token

Tokens are usually confused with cryptocurrencies, but there are differences. Cryptocurrencies are coins created with the purpose of being coins, while tokens are created to be distributed to people with promises of being worth something in the future. Comparing both to the conventional investment market, cryptocurrencies could be currencies like USD or EURO, while Tokens would be a company's shares.

Wallet

Like cash and cards, cryptocurrencies also need to be stored so they are not lost, or worse, stolen by criminals. Also known as Wallets, digital wallets are responsible for storing the keys – a sequence of numbers to pay and receive cryptos – that give access to your balance.

Whale

Holder of a large part of a given currency, the whale is a user who centralizes the currency by controlling its price.

Worker

Worker is the nomenclature used by mining softwares like HiveOS, MinerOS and Minerstat to identify an individual rig within a network.

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