Mining Glossary — Every Term Explained for Home Miners

How many calculations your miner performs per second. Higher hashrate = more chances to earn rewards. Measured in H/s, KH/s, MH/s, GH/s, TH/s, or PH/s depending on the algorithm.

The cryptocurrency paid to miners who successfully add a new block to the blockchain. For Bitcoin, this halves every 4 years (currently 3.125 BTC per block).

A measure of how hard it is to mine a block. Adjusts automatically based on total network hashrate. Higher difficulty = less frequent rewards for the same hashrate.

A group of miners who combine their hashrate and share rewards proportionally. Provides steady, smaller payouts instead of rare, large payouts from solo mining.

Mining without a pool. You keep 100% of any block you find, but for Bitcoin you might wait years between rewards. Only practical for coins with low difficulty.

The communication protocol between your miner and a mining pool. Stratum handles job assignments, share submissions, and difficulty adjustments. Most miners use Stratum V1; some pools and firmware support the newer Stratum V2 which gives miners more control over block templates.

The mathematical puzzle miners solve. Different coins use different algorithms: SHA-256 (Bitcoin, Bitcoin Cash), Scrypt (Litecoin, Dogecoin, DigiByte), KHeavyHash (Kaspa), Etchash (Ethereum Classic), Equihash (Zcash), X11 (Dash), KAWPOW (Ravencoin), Blake3 (Alephium), RandomX (Monero).

The algorithm used by Bitcoin and Bitcoin Cash. Stands for Secure Hash Algorithm 256-bit. ASIC-dominated since 2013 — GPU mining is not viable for SHA-256 coins.

The algorithm used by Litecoin and Dogecoin (via merged mining). Originally designed to be ASIC-resistant, but ASICs now dominate. Scrypt pools typically offer merged mining for both LTC and DOGE simultaneously.

The algorithm used by Kaspa (KAS). Memory-hard algorithm designed for ASIC mining. Kaspa uses BlockDAG technology instead of traditional blockchain.

The algorithm used by Zcash (ZEC). Memory-intensive algorithm that was originally designed to be ASIC-resistant, but ASIC miners now exist. Zcash offers optional privacy features through shielded transactions.

The algorithm used by Dash (DASH). Uses 11 different hashing functions chained together. Originally designed for GPU mining, but now dominated by ASICs. Dash focuses on fast, low-cost payments.

The algorithm used by Ravencoin (RVN). GPU-only algorithm designed to be ASIC-resistant through frequent memory access patterns. Popular among GPU miners for its fair distribution.

The algorithm used by Alephium (ALPH). Modern, fast hashing algorithm. GPU-mineable with growing ASIC development. Alephium combines sharding with proof-of-work.

The algorithm used by Monero (XMR). CPU-optimized algorithm that uses random code execution and memory-hard techniques. Specifically designed to be efficient on consumer CPUs while resisting GPU and ASIC mining.

Kadena ASIC mining ended in October 2025 when the network transitioned away from proof-of-work. KDA mining hardware (like the Antminer KA3 and Goldshell KD-Box) is no longer usable for mining. If you see KDA miners for sale, they have no mining utility.

Application-Specific Integrated Circuit. Specialized hardware built solely for mining one algorithm. Extremely efficient but expensive and can't be repurposed.

Using graphics cards to mine. More flexible than ASICs (can mine multiple algorithms), but less efficient for most coins. Still viable for some altcoins.

Low-power USB mining devices (like Bitaxe, NerdMiner, Lucky Miner). Very low chance of finding a block, but fun, educational, and use minimal electricity. Great entry point for beginners.

Hardware modification that allows industrial ASIC miners (designed for 240V) to run on standard 120V household outlets. Lets home miners use powerful equipment without electrical upgrades.

Converts AC power from your wall to DC power for the miner. Must be rated for your miner's wattage plus 10-20% headroom. Critical for reliability and safety.

The component on an ASIC miner or Bitaxe board that converts input voltage down to the precise level the hashing chips need. VRMs generate significant heat under load. Adding small copper heatsinks to VRMs is a common upgrade on Bitaxe builds to improve stability and allow higher clock speeds.

Software embedded in your miner that controls its operation. Stock firmware comes from the manufacturer; aftermarket firmware (Braiins, VNish, LuxOS) can unlock better performance and features. Your firmware choice also determines how you can shut down, restart, and schedule your miner remotely.

The open-source firmware that runs on most Bitaxe and NerdQaxe lottery miners. AxeOS provides a web interface for configuring your pool, wallet address, frequency, and voltage. It does not auto-update — you flash new versions manually via the Settings > OTA Update page. Source code on GitHub.

The circuit board inside an ASIC miner that contains the mining chips. Most full-size ASICs have 3 hash boards. When running a Loki Kit on 120V, only one hash board operates to stay within the power limit.

Pushing your miner beyond factory settings for higher hashrate. Increases heat and power consumption but can boost earnings. Requires careful tuning, adequate cooling, and aftermarket firmware. Not recommended without monitoring tools.

Reducing the voltage supplied to mining chips. Lowers power consumption and heat while maintaining most of the hashrate, improving efficiency (J/TH) and profitability. One of the most impactful tuning options for home miners.

Running your miner below factory clock speed to reduce power consumption, heat, and noise. Trades some hashrate for significantly better efficiency. Ideal for home miners paying for electricity or dealing with noise constraints.

A feature in aftermarket firmware that automatically adjusts chip frequencies and voltages to find the best balance of hashrate and efficiency for your specific hardware. Each chip is tuned individually, since no two chips perform identically.

A firmware feature that lets you set a maximum wattage and the miner automatically adjusts hashrate to stay within that limit. Essential for home miners who need to stay under circuit capacity or manage electricity costs.

How long until your mining profits pay back your hardware costs. Calculated as: Equipment Cost ÷ Monthly Profit = Months to ROI.

The point where your total mining revenue equals your total costs (equipment + electricity). After break even, you're in pure profit.

Percentage taken by mining pools for their service. Typically 1-2%. Lower isn't always better — reliable pools with good support are worth paying for.

Percentage taken by aftermarket firmware developers. Usually 2-3%. Pays for ongoing development, tuning profiles, and support. Worth it for the efficiency gains.

Power consumption per unit of hashrate. Lower is better. A 25 J/TH miner uses less electricity than a 35 J/TH miner for the same hashrate — critical for profitability.

What one terahash of mining power earns per day in USD. This single number accounts for difficulty, coin price, and transaction fees. Compare your hashprice against your electricity cost per TH to know if you're profitable. Track it on the Data Vault.

You get paid for every valid share you submit, plus your share of estimated transaction fees — regardless of whether the pool actually finds a block. The pool takes on all the variance risk. Most predictable income but pools charge higher fees to cover their risk.

You get paid for every valid share you submit based on the block reward only (no transaction fees). Consistent payouts but you miss out on transaction fee bonuses that can be significant during high-fee periods.

A hybrid model: PPS for the block reward (guaranteed per share) plus PPLNS for transaction fees (paid when blocks are found). Balances stability with bonus potential. Common on larger pools.

You get paid based on your shares in the last N shares when the pool finds a block. If you mine consistently, you earn well. If you hop between pools, you may miss payouts. Rewards loyal miners, punishes pool hoppers. Usually lower fees than PPS methods.

OCEAN pool's payout system. Non-custodial — you get paid directly from the coinbase transaction when the pool finds a block. More decentralized but higher variance since you only get paid when blocks are actually found.

Mining without a pool. You keep the entire block reward (currently ~3.125 BTC) if you find a block. The catch: with a single ASIC, you might wait years between rewards. It's a lottery. Popular with Bitaxe and NerdMiner owners who want to "hit the jackpot" rather than earn steady income.

Mining two or more coins simultaneously using the same hashpower. For Scrypt miners, this means earning both Litecoin AND Dogecoin with the same work. No extra electricity cost. Most Scrypt pools do this automatically.

Shares submitted after the pool has already moved to a new block. They're valid work but arrive too late to count. High latency (distance to pool server) increases stale shares. Using a North America pool if you're in North America reduces stales.

How electricity is billed. A 1000W miner running for 1 hour = 1 kWh. At $0.12/kWh, that's $0.12. Running 24/7 = 24 kWh/day = $2.88/day.

Standard US outlets are 120V (15-20A). Dryers and ovens use 240V. Most industrial ASICs need 240V but can run on 120V with a Loki Kit or modifications. 240V is more efficient (less heat loss in wiring).

How much power a circuit can safely deliver. A standard 15A/120V circuit provides ~1,440W safely (80% rule). Never exceed this — fire hazard. Use dedicated circuits for miners.

Electricity pricing that varies by time of day. Many utilities offer cheap/free nights or off-peak rates. Schedule mining during cheap hours to maximize profit.

National Electrical Manufacturers Association. The organization that sets standards for electrical outlets and plugs in North America. When you see "NEMA 6-20" on a miner's specs, it refers to a specific outlet type.

Standard 120V household outlets. The 5-15 (15A) is the common 3-prong outlet in every room. The 5-20 (20A) has one sideways slot and is typically in kitchens and garages. Most Loki-modified miners plug into these.

A 240V/20A outlet. The "6" indicates 240V, "20" is the amperage, "R" means receptacle (outlet). Provides up to 3,840W continuous (at 80%). Common for window AC units and smaller industrial equipment.

A 240V/30A locking outlet. The "L" means twist-lock — the plug locks in place to prevent accidental disconnection. Provides up to 5,760W continuous (at 80%). Popular for multiple miners via a PDU.

An industrial-grade power strip that distributes electricity from a single high-amperage source to multiple devices. Essential for running 2+ miners from one 30A circuit. Available in basic, metered, switched, and intelligent versions. Switched and intelligent PDUs (also called smart PDUs) add remote on/off control and scheduling — see the Remote Management guide.

NEC requirement that continuous loads (running 3+ hours) use no more than 80% of circuit capacity. A 20A circuit = 16A max continuous. A 30A circuit = 24A max continuous. Mining is always a continuous load, so size your circuits with 20% headroom.

A circuit breaker that controls both hot wires in a 240V circuit simultaneously. Required for all 240V circuits. Takes two slots in your breaker panel. Trips both legs if either overloads.

American Wire Gauge — the standard for measuring wire thickness in the US. Lower numbers = thicker wire = more capacity. For mining: 12 AWG handles 20A circuits, 10 AWG handles 30A circuits.

The US standard for safe electrical installation (NFPA 70). Covers wiring, outlets, breakers, and everything else electrical. Most jurisdictions require NEC compliance. Electricians follow this code — and so should you for any DIY work.

A circuit that serves only one appliance or device — nothing else shares it. Mining ASICs should always run on dedicated circuits because they draw continuous high power. Sharing a circuit with other devices risks tripping breakers or overheating wiring.

Any electrical load that runs for 3 or more hours continuously. Mining is always a continuous load — your miner runs 24/7. The NEC 80% rule applies to all continuous loads, meaning you can only use 80% of a circuit's rated capacity.

The amount of electrical current flowing through a circuit. Amps = Watts ÷ Volts. A 1200W miner on 120V draws 10 amps. A 3000W miner on 240V draws 12.5 amps. Always check that your miner's amp draw doesn't exceed 80% of your circuit's rating.

The rate of energy consumption. A miner's wattage tells you how much power it draws continuously. Higher wattage = higher electricity cost. To find daily kWh cost: (Watts ÷ 1000) × 24 × your rate per kWh.

A text-based command connection to your miner over the network. Required for advanced control like stopping/starting the mining process, checking logs, and running scheduled commands. Stock Bitmain firmware has SSH locked since 2019 — you need aftermarket firmware to use it. See the Mobile SSH guide.

A miner state where mining stops but the control board stays powered, fans run at minimum, and the network connection stays alive. Draws ~50–100W idle. Useful for pausing mining during peak electricity rates without losing remote access.

Stopping the mining process and allowing chips to cool before cutting power. Reduces thermal stress on hash boards compared to yanking the plug. See Safe Shutdown Methods for the recommended sequence.

Cutting power completely and restoring it. The universal fix for frozen ASIC miners. Requires physical access to the plug or a smart PDU for remote power cycling. Nothing over the network can power on a miner after a full shutdown.

The software process doing the actual mining (bmminer on stock, cgminer on older models, bosminer on Braiins OS). Stopping the daemon stops mining without shutting down the miner — the control board, fans , and network stay active. This is different from a full power-off.

A smart PDU feature that continuously pings your miner's IP address and automatically power cycles the outlet if the miner stops responding. Acts as a watchdog so frozen miners get restarted even when you're not watching. See Monitoring & Automation.

An automatic scheduled task on Linux. Home miners use cron jobs to stop and start mining around electricity rate windows — for example, shutting down at 7 AM when peak rates begin and restarting at 9 PM when free/cheap power kicks in. Requires SSH access through aftermarket firmware.

A network-connected power distribution unit with remote on/off control, power monitoring, outlet scheduling, and AutoPing watchdog. The single most important piece of remote management hardware — it's the only way to power cycle a miner remotely. See Smart PDU recommendations.

A mobile and desktop SSH app for managing miners from your phone. The free tier covers everything home miners need: saved connections, command snippets, and multi-tab sessions. See the Mobile SSH guide for setup.

A free mesh VPN that lets you access your home network from anywhere without port forwarding or complicated router configuration. Paired with a Raspberry Pi subnet router, it gives you full access to every miner on your LAN from your phone. See VPN Remote Access.

A PC and server feature that allows remote power-on via a network signal. ASIC miners do NOT support Wake-on-LAN — their network cards are not designed for it. If your miner is off, the only way to turn it back on remotely is a smart PDU or smart switch that physically restores power.