Mining terms

Mining terms

Almost all Internet users have come across such a concept as cryptocurrency. This is considered a profitable investment at the moment, given the ever-increasing rate. Also, cryptocurrencies have become an object of trade on exchanges and everyone can try themselves as a trader. Many in this field achieve serious success.
If you delve into this area in more detail, you can come across specific terminology used by miners, brokers and other market participants. Therefore, initially it is worthwhile to understand the most common expressions, so as not to get confused in the definitions later. The dictionary of cryptocurrencies will help us with this.

  • Cryptocurrency-Digital currency created using an encryption method. Has decentralized accounting. Well protected from counterfeiting and also from depreciation. With the help of such electronic monetary units, you can make purchases on the Internet, pay for services, or make money on the difference in the rate when playing on the stock exchange.
  • Satoshi-Part of bitcoin making up the value 0.00000001. Represents the minimum unit for a given cryptocurrency.

  • Bitcoin address-A unique code consisting of digital-letter combinations. The letters are used both uppercase and lowercase. They are short and standard. In the first version, there are zeros at the beginning, which are omitted, in the second, the length is about 33-34 characters.
  • Minind-Cryptocurrency mining using special equipment and software. The process consists of solving specific problems and finding the correct sequence of code.
  • Farm-A set of equipment for the extraction of cryptocurrencies. Consists of system units, video cards, hard drives and cooling system. It consumes a lot of electricity and needs to maintain a certain temperature regime in the room because they are prone to overheating. Such mining terms in the majority of cases are applied to the production facilities of specialized firms.
  • Cloud Mining-Rent of computing power for cryptocurrency mining. Since the equipment is expensive, in some cases it is more profitable to use the services of specialized firms. The mining process is carried out automatically.
  • Hesreit-Characterizes the level of performance of farms. It is measured in the number of operations performed in one second. The higher the number, the more profitable the farm is.
  • ASIC (ASIC)-Integrated scheme used to perform a specific set of tasks or for a single task. Used for mining cryptocurrencies. The principle is based on the use of optimal algorithms for finding the required solutions, which has a positive effect on performance.
  • Pool-Service where a large number of miners are engaged in the extraction of cryptocurrency. It can be focused both on a certain digital currency and on different ones. Quite a convenient option because miners do not need to worry about storing mined coins. Fraud is rare, although it does exist.
  • Blockchain-A database consisting of a complex of blocks arranged in a certain sequence and stored on millions of computers around the world. Constantly updated in automatic mode.
  • Cryptocurrency wallet-system for storing cryptocurrency. There are two types of wallets: cold (offline) and hot (online) storage. The difference is that the former store digital coins offline, without access to the Internet.
  • Trading-economic term that means the process of independent trading, self-analysis of the market and the conclusion of trade transactions. Etymology of the concept: from the English "Trader" - "trader". The "trader" is used more often.
  • Fork (from the English "fork" - which means "fork")is the deliberate use of one code base of a software project to start another. That is, changing the blockchain code to split it in two. Each new branch of the chain can develop independently of the main project. This also applies to functions: in a new direction, you can realize the possibilities that were not there in the main. Bitcoin acts as a base for forks. All other cryptocurrencies are called BTC forks. The main distinguishing features of forks from each other: Encryption algorithm, Speed ​​and complexity of emission, Algorithm of hash functions, hashing (SHA-256, scrypt, Scrypt-Adaptive-Nfactor (Scrypt-N), Keccak).
  • Hash (hash, hashing)is a cryptographic term that means changing incoming data of different sizes into original data of a well-defined size, using a special mathematical algorithm. The term is used by miners to calculate the number below the “target” mark, as well as during cryptographic encoding. For example, if you need to encode the names of the participants in a transaction in the blockchain, they are processed by a special program, and the original alphanumeric code is called a hash. In mining, a hash is the number that needs to be mined in order to add a block to the chain and receive a reward.
  • Balloonis the result of the mining process. This result is sent from the miner to the pool and facilitates the search for a new block on the blockchain (in the process of confirming the transaction).

  • Accepted ballsare the balls that were solved correctly and on time... At NiceHash, you get paid for each successfully accepted share that was sent to our stratum server. You can read about the reward “pay-per-share”(Ball charge)
  • Rejected balls Is the term for all balls that are deflected for any of the reasons below:
    Stale share: The ball was sent too late (possibly due to either high ping or connection problems). This is the only type of balloon that is allowed in small quantities and is considered normal.
    Share above target: The problem is in your mining software. Test it and make sure it is configured correctly. It is also possible that the software is not compatible with NiceHash.
    Duplicated share: Shara has been sent more than once and indicates a bug in your mining software or incompatibility with NiceHash.
    OtherA: Any other type of deviation usually means that there is a bug in your software.
  • Pump & dumpis a manipulative scheme for playing on the stock exchange with the aim of making quick money. The essence of the scheme is an artificial increase in the exchange rate in the market, exchange, followed by its collapse, or vice versa: a collapse with a subsequent rise.
  • Token- a digital asset that is related to a specific project and is issued on the basis of a cryptocurrency. For example, based on the Ethereum blockchain platform, you can create ERC20 tokens, including the well-known stablecoin USDT.
  • Key-the set of symbols that is needed to gain access to a wallet with a cryptocurrency. There are two kinds of keys. Public - aka address - allows anyone to view the contents of the wallet. Private - this key is required to spend funds from the wallet.
  • Halving-mechanism that reduces the reward for mining cryptocurrency. For example, on the Bitcoin network, halving occurs approximately once every four years. The last time this happened was in May 2020, after which the reward for finding one block decreased from 12,5 to 6,25 BTC.