ASIC Mining Glossary

Bitcoin refers to both the decentralized network and its digital asset. The protocol lets you transfer value without a central authority.

BTC is the ticker symbol used to express amounts in bitcoin, just as USD stands for the US dollar or EUR for the euro.

A satoshi is the smallest unit of bitcoin. One bitcoin equals 100,000,000 satoshis.

A software or hardware wallet manages the keys you need to receive, store and send cryptocurrencies.

The private key is the cryptographic secret that lets you control and spend the funds associated with an address.

A Bitcoin address is a string of characters you can share to receive a payment.

The blockchain is the public ledger that orders blocks of transactions and makes them verifiable by the network.

A block groups recent transactions and is added to the Bitcoin blockchain at an average interval of about ten minutes.

A confirmation means a transaction has been included in a block. Each subsequent block strengthens its finality.

Fees are paid by users to incentivize miners to include their transactions in a block.

Difficulty adjusts the computing effort required to find a block so that blocks keep coming at the pace set by the protocol. Difficulty explained in our hashrate guide

Network hashrate is the total computing power committed to a proof-of-work blockchain. How network hashrate affects miners

The mempool holds valid transactions that are still waiting to be included in a block.

The nonce is a value that miners change while searching for a valid block hash.

Mining contributes computing power to secure a proof-of-work blockchain in exchange for a share of the rewards.

An ASIC is a machine built for one specific algorithm, designed to deliver high hashrate with optimized power draw.

Hashrate measures the number of cryptographic calculations a machine or a network performs every second. Read the full hashrate guide

Proof of work requires miners to commit energy and computation in order to propose valid blocks.

The block reward combines newly issued coins and the transaction fees paid to the winning miner or pool.

The halving periodically cuts the block subsidy in half. On Bitcoin, it happens roughly every 210,000 blocks. Read the full halving guide

A pool combines the hashrate of many miners and shares out the rewards according to each miner’s contribution. Read the full mining pool guide

SHA-256 is the algorithm used by Bitcoin, Bitcoin Cash and other chains that are compatible with Bitcoin ASICs.

Scrypt is used most notably by Litecoin and Dogecoin, which can be mined together through merged mining.

X11 is the proof-of-work algorithm used by Dash and supported by dedicated ASIC miners.

Equihash is a family of algorithms used most notably by Zcash and other compatible networks.

Firmware is the internal software that runs the ASIC. It must exactly match the model and the control board.

A hashboard is a compute board carrying the ASIC chips that produce the hashrate.

The control board manages the hashboards, networking, fans and firmware boot.

The power supply unit converts and delivers the electrical power the miner needs.

The power distribution unit feeds electricity to multiple devices and must be sized for voltage, current and connector types.

Power draw in watts is the miner’s instantaneous demand in its nominal operating mode.

Energy consumption in kilowatt-hours measures the energy used over a period of time. A 3,000 W ASIC uses about 72 kWh per day at full load.

J/TH shows how many joules are needed to produce one terahash. A lower value generally means better efficiency. Read the full J/TH guide

Voltage in volts and current in amps determine the wiring, circuit protection and PDU your installation needs.

The heat from an ASIC can be captured to warm a room, a greenhouse, water or a process loop.

Solar surplus is the solar electricity generated on site but not consumed right away.

A dynamic rate changes the price per kWh depending on the time of day or market conditions.

A flexible load can reduce or increase its consumption based on energy prices, available generation or grid needs.

Curtailment means temporarily shutting down or reducing a load to limit costs or support the grid.

A home miner is designed for residential or office environments, with particular attention to noise, heat and power supply.

Air cooling uses fans and continuous airflow to carry heat away from the chips.

Hydro cooling uses a liquid loop and a heat exchanger. Flow rate, temperature and coolant quality are critical.

Immersion cooling submerges compatible components in a dielectric fluid that carries heat to a heat exchanger.

Noise level measures the machine’s sound output in decibels. What you actually hear also depends on the room’s ventilation and acoustics.

Fans maintain the required airflow. Their size, voltage and connector must be compatible with the model.

A closed loop circulates liquid between the miner and the heat-rejection system without continuously consuming water.

A heat exchanger transfers heat from the ASIC loop to air, water or another loop without mixing the fluids.

Regular cleaning and checks of temperatures, cables, fans and logs reduce the risk of downtime or overheating.

Gross revenue is the estimated value of mined rewards before electricity, pool, maintenance and operating costs.

Electricity cost depends on power draw, run time and the price per kWh.

Estimated net profit subtracts the costs taken into account from gross revenue. It varies with the network, coin prices and the machine’s availability.

Return on investment compares the profit generated with the capital invested. Any ROI shown is an estimate, never a guarantee. See how to estimate payback and ROI

The payback period estimates the number of days needed to cover the purchase price at the observed rate of net profit. Read the full payback period guide

A miner’s price should be weighed against its hashrate, efficiency, cooling, required accessories, shipping and warranty.

Pool fees are deducted from rewards and depend on the pool and its payout method. Compare pool payout methods

Uptime is the share of time the miner is actually running and contributing to mining.

A historical chart describes past data. It is not a forecast of future profitability.