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Most Popular Mining Terms

Mining Terms

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Most Popular Mining Terms

Transaction Block

This is simply the name that is given to a group of different transactions that have been grouped together and hashed on the Bitcoin network and added to the blockchain.

Total Coin Supply

Some cryptocurrencies for example those that cannot be mined will have a set number of them in existence and that total number of coins is known as the total coins supply.

Timestamp

The Timestamp is very handy for it is a digital time stamp that is going to allow you to prove that something existed at any certain time and has not been added at a later date.

Testnet

When someone is designing and thinking about launching their own digital coin or token they are able to connect to the Testnet which is simply a no cost risk free type of blockchain.

TCP/IP

This term means Transmission Control Protocol Internet Protocol and it is the protocol that is required to be used for anyone who wishes to connect to the internet using any type of device.

Taint

It is possible that you are going to be able to track the history of any coin on any blockchain and the term Taint refers to the correlation between two digital address used to track such a coin.

Soft Fork

When a digital currency has been subject to a soft fork that simply manes a very version of it has been designed and has come into operator which can occasionally happen with new ones.

Stale Block

When you hear the term Stale Bloc that is simply a block that has been solved already by a miner who has claimed the reward for solving it so a reward cannot now be claimed on it.

Signature

The signature is simply a mathematical operation which is going to allow anyone to prove that they have ownership or someone else has ownership of digital currencies in their wallet.

Sidechain

This is the name given to two theoretical and two completely independent blockchains which have been two-way pegged to the Bitcoin blockchain and can have their own unique features

Segwit

This term simply means Segregated Witness and it is a huge improvement in regards to the way that the Bitcoin digital currency is going to handle all of the transactions within in block.

Pre-Mining

Before any newly launched cryptocurrency goes on sale to the general public the organisations behind them will often pre-mine a set number of coins to get it off the ground.

Peercoin

Peercoin has been recognised as being the very first cryptocurrency that had fully implemented something known as a Proof f Stake alongside Proof of Work protocol.

Orphaned Block

When a valid block has been discarded by a blockchain due to it becoming a fork of that blockchain due to two miners simultaneously mining it, it is given the name orphaned block.

Nonce

The term Nonce when used in regards to digital currency simply means a random number that is only ever used once when a miner is aiming to then complete the hash a transaction block.

Node

A Node is simply a computer that has been connected up to a cryptocurrency network and by doing so it is then going to be used to help verify the accuracy of a blockchain.

Multisig

When you hear the term Multisig it simple refers to the way that more than one signature is required to approve and then verify any cryptocurrency transaction that have been made.

Minting

As soon as any new proof of stake coins are mined then those miners who have discovered those new coins are going to be rewarded with their efforts which is known as minting.

Mining Contract

There are many ways that you can invest in digital currencies and one way is by you taking out a mining contract, investing in the hardware required to mine for cryptocurrencies.

Mining Pool

To boost and increase their chances of successes many miners of digital currencies are going to pool their efforts together and when they do so that is a known as a mining pool.

Miner

This is the name given to someone or a computer that is participating in any cryptocurrency network by performing proof of work and it is usually done to receive block rewards as they do so.

Mining Algorithm

This term refers to the algorithm that is always used by a cryptocurrency to sign transactions, but be aware they can and do vary and change in regards to each cryptocurrency.

Merged Mining

Not all miners have their time and effort concentrated on mining one single cryptocurrency and as such you will find some that mine for many known as merged mining.

Mining Rig

There are many companies and people who mine for digital currencies and to be able to do so effectively they need to have one or usually more powerful computers known as a rig.

Mining

When you set about mining for a cryptocurrency you are hoping that you solve the next mathematical equation in the block and if you do you are rewarded with a set number of coins.

Hash Rate

The Hash Rate is the name that is given to the amount of processing power that the whole of the Bitcoin network or any other cryptocurrency networks needs to operate.

Hash

The Hash is simply a mathematical process that is going to convert any amount of inputted data into a fixed length string of characters, in cryptocurrencies that is often 23 characters.

Halving

When someone successfully mines for Bitcoin they were originally rewarded for doing so with 50 Bitcoin when they mine a Bitcoin Block, each four years that amount halves in value.

GPU

If you come across the acronym GPU then that simply means graphics processing unit and they can be used to mine for cryptocurrencies much faster than a standard computers CPU.

Difficulty

A certain amount of computing power is of course required to solve the hash of any block and Difficulty refers to the amount of computing power that is required to solve the hash of a block.

ASIC Miner

The way in which some cryptocurrencies are produced is by people mining them and an ASIC Miner is a computer that has been designed so that it only ever mines for cryptocurrencies.

ASIC

An ASIC is a chip in a computer or CPU that has been designed in such a way that it is only ever going to be able to perform  one single function only and only ever performs that one function.

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