The Bitcoin Miner’s Glossary: Every Mining Term You Need to Know (A-Z)

Bitcoin mining has its own language. If you are going to mine, you need to speak it. This is not a fluffy overview for casual observers — this is a working glossary built by miners, for miners. Every term here is defined through the lens of someone who actually runs machines, solders hashboards, and believes that decentralizing Bitcoin’s hash rate is not optional — it is essential.

At D-Central Technologies, we have been in the trenches since 2016. We are Canada’s Bitcoin Mining Hackers — taking institutional-grade mining technology and making it accessible to home miners, solo operators, and anyone who believes that every hash counts. We repair ASICs, build custom mining solutions, manufacture open-source miners, and ship worldwide from Laval, Quebec.

This glossary covers everything from foundational Bitcoin concepts to the latest open-source mining hardware and pool payout schemes. Bookmark it. Reference it. And if a term is missing, let us know — we will add it.

Quick Navigation: A–Z

A · B · C · D · E · F · G · H · I · J · K · L · M · N · O · P · R · S · T · U · V · W

A

ASIC (Application-Specific Integrated Circuit)

A chip — and by extension, a machine built around that chip — designed to do exactly one thing: compute SHA-256 hashes as fast and efficiently as possible. Unlike GPUs or CPUs, an ASIC cannot be repurposed. It is a purpose-built hashing machine. Modern Bitcoin ASICs like the Antminer S21 or Whatsminer M60 pack hundreds of these chips onto hashboards, delivering terahashes per second of mining power. When an ASIC fails, D-Central’s ASIC repair service brings it back to life — we are Canada’s largest ASIC repair center with expertise across Bitmain, MicroBT, Canaan, and more.

ASIC Chip

The individual silicon die inside an ASIC miner that performs SHA-256 computations. Examples include Bitmain’s BM1366 (used in the S19 XP), BM1370 (used in the S21), and BM1397 (used in the S17/T17 and also in the Bitaxe Supra). Chip generation determines a miner’s efficiency — newer chips produce more hashes per watt. When you see “5 nm” or “4 nm” in miner specs, that refers to the fabrication process of these chips.

ASIC Repair

The process of diagnosing and fixing failed ASIC mining hardware. This can involve replacing blown ASIC chips, reflowing solder joints on hashboards, replacing faulty components like voltage regulators or temperature sensors, and firmware recovery. D-Central operates the largest retail-focused ASIC repair center in Canada, with model-specific expertise spanning 38+ machine types.

AxeOS

The open-source firmware that runs on Bitaxe miners. AxeOS provides a web-based interface for configuring your mining pool, monitoring hashrate, setting fan speeds, adjusting core voltage, and overclocking. It connects over Wi-Fi, making the Bitaxe a truly standalone solo mining device — no separate computer required. AxeOS is community-developed and regularly updated with new features.

Avalon (Canaan)

A line of ASIC miners manufactured by Canaan Creative. Avalon miners were among the first commercially available Bitcoin ASICs. Canaan is also notable for being the first Bitcoin mining hardware company to go public on NASDAQ. Their machines are less common than Bitmain or MicroBT units but remain in active deployment.

B

Bitcoin

A decentralized, peer-to-peer electronic cash system invented by Satoshi Nakamoto and released in 2009. Bitcoin uses proof-of-work mining to secure the network, process transactions, and issue new coins on a predictable schedule. It is the hardest money ever created — capped at 21 million coins, enforced by code, and secured by the largest computing network on Earth. Everything in this glossary exists because of Bitcoin.

Bitaxe

An open-source, standalone Bitcoin solo miner. The Bitaxe is a small, Wi-Fi-connected device running AxeOS that mines SHA-256 independently — no host computer needed. It uses actual ASIC chips (BM1397, BM1366, or BM1370, depending on the variant) to produce real hashrate. While the odds of solo mining a block are low, the Bitaxe represents the purest form of decentralized mining: one person, one miner, one shot at a full block reward. D-Central is a pioneer in the Bitaxe ecosystem — we created the original Bitaxe Mesh Stand, developed leading heatsink solutions, and stock every variant and accessory. Power input is a 5V barrel jack (5.5×2.1mm DC) with a 5V/6A PSU — the USB-C port is for firmware flashing only, not power.

Bitaxe Hex

A six-chip variant of the Bitaxe that delivers significantly more hashrate than single-chip models. The Hex uses a 12V DC XT30 connector for power instead of the 5V barrel jack used by single-chip Bitaxe variants. D-Central developed custom heatsinks specifically for the Bitaxe Hex form factor.

Bitaxe Variants

The Bitaxe comes in multiple variants, each named and distinguished by the ASIC chip it uses: Supra (BM1397), Ultra (BM1366), Gamma (BM1370), and GT (BM1370, 12V XT30). There is also the multi-chip Hex. As open-source hardware, anyone can manufacture a Bitaxe — but D-Central has been in the ecosystem since the beginning, building accessories, manufacturing stands, and stocking every model.

Bitcoin Space Heater

A Bitcoin miner enclosed in a case designed to distribute its waste heat into a living space, functioning as both a mining device and a space heater. Since ASIC miners convert nearly 100% of their electrical input into heat, the economics are compelling: you are heating your home while earning bitcoin. D-Central builds Bitcoin Space Heater editions using Antminer S9, S17, S19, and L3+ platforms, with noise-reduction modifications for home environments.

Block

A bundle of Bitcoin transactions that has been validated and added to the blockchain. Each block contains a header (with the previous block’s hash, a Merkle root, a timestamp, the difficulty target, and a nonce) and a body (the transactions). As of 2026, a new block is found approximately every 10 minutes, and the miner who finds it earns the block subsidy plus all transaction fees.

Block Header

An 80-byte data structure at the top of every Bitcoin block. It contains six fields: version, previous block hash, Merkle root, timestamp, difficulty target (nBits), and nonce. This is the data that miners actually hash — over and over, billions of times per second — trying to find a hash below the current difficulty target.

Block Reward (Block Subsidy)

The amount of new bitcoin created and awarded to the miner who successfully mines a block. The block reward started at 50 BTC in 2009 and halves approximately every 210,000 blocks (roughly every four years). After the April 2024 halving, the current block reward is 3.125 BTC. The next halving is expected around 2028, when it will drop to 1.5625 BTC. This is how Bitcoin’s monetary policy is enforced — entirely by code, not by committee.

Block Template

The data structure a mining pool (or solo miner) constructs to define which transactions to include in the next block. The block template includes the coinbase transaction, selected mempool transactions, and the block header fields. In traditional pool mining, the pool constructs the template; in protocols like Stratum V2, individual miners can construct their own templates — a critical improvement for decentralization.

Blockchain

An append-only, distributed ledger that records every Bitcoin transaction ever made. Each block is cryptographically linked to the previous one, forming an unbreakable chain. Any attempt to alter a past transaction would require re-mining every subsequent block — an impossibility given the network’s enormous hashrate. The Bitcoin blockchain is the most secure and immutable database in human history.

BM1366 / BM1370 / BM1397

Bitmain ASIC chip model numbers that matter because they define a miner’s generation and efficiency. The BM1397 powers the Antminer S17/T17 series and the Bitaxe Supra. The BM1366 powers the S19 XP and the Bitaxe Ultra. The BM1370 powers the S21 series and the Bitaxe Gamma/GT. Each generation brings better joules-per-terahash efficiency.

Braiins OS

An open-source, Linux-based firmware replacement for Antminer hardware. Braiins OS+ includes autotuning capabilities that optimize individual chip voltages and frequencies to maximize hashrate-per-watt. It supports Stratum V2 and is one of the most popular aftermarket firmwares for ASIC miners looking to squeeze out extra performance or reduce power consumption.

C

CKPool / CKSolo

A mining pool software and public pool operated by Con Kolivas. CKPool’s solo mining mode (solo.ckpool.org) is one of the most popular endpoints for solo miners running Bitaxe devices or other small hashrate miners. When you point a Bitaxe at CKPool solo, you are mining independently — if your device finds a valid block, you keep the entire block reward (minus a small pool fee). CKPool has facilitated multiple solo block finds from small miners.

Coinbase Transaction

The first transaction in every Bitcoin block, created by the miner. It has no inputs (it creates new bitcoin from nothing) and includes the block subsidy (currently 3.125 BTC) plus all transaction fees from the included transactions. The coinbase transaction also contains a special field where miners can embed arbitrary data — Satoshi famously embedded a newspaper headline in Bitcoin’s genesis block coinbase.

Cold Wallet (Cold Storage)

A method of storing bitcoin private keys completely offline — never touching a device connected to the internet. Hardware wallets (like Coldcard, Trezor, or Ledger) are the most common form. For miners, cold storage is where you move your earned bitcoin for long-term holding. The cypherpunk principle: not your keys, not your coins.

Control Board

The brain of an ASIC miner. The control board runs the firmware, manages network connectivity, communicates with hashboards, and interfaces with the mining pool via Stratum protocol. Common control boards include Bitmain’s Xilinx-based boards and Beaglebone-based alternatives. When a miner will not boot, connect to the network, or initialize hashboards, the control board is often the first suspect.

Cryptojacking

The unauthorized hijacking of someone else’s computing resources to mine cryptocurrency. Malware is installed on a victim’s device — usually through a compromised website or phishing attack — and silently runs mining software in the background. The victim pays the electricity bill; the attacker collects the mining rewards. This is theft, plain and simple. Keep your systems patched and run reputable security software.

D

Difficulty

A numerical measure of how hard it is to find a valid block hash. Bitcoin’s difficulty adjusts every 2,016 blocks (approximately every two weeks) based on how fast the previous 2,016 blocks were mined. If blocks came faster than the 10-minute target, difficulty increases; if slower, it decreases. This self-regulating mechanism ensures Bitcoin’s block production rate stays consistent regardless of how much hashrate joins or leaves the network. As of early 2026, Bitcoin difficulty is at all-time highs, reflecting the massive global hashrate.

Difficulty Adjustment

The algorithmic recalculation of Bitcoin’s mining difficulty every 2,016 blocks. This is one of Bitcoin’s most elegant features — a self-correcting feedback loop that maintains the 10-minute block interval. No central authority decides when to make mining easier or harder; the protocol handles it mathematically. The maximum adjustment per period is a factor of 4 in either direction, though real-world adjustments are typically much smaller.

Double Spending

An attack where the same bitcoin is spent in two different transactions. Bitcoin’s proof-of-work consensus mechanism prevents this — once a transaction is buried under multiple block confirmations, reversing it would require more hashpower than the rest of the network combined. This is why merchants wait for confirmations, and why Bitcoin’s hashrate is not just a number — it is the security budget of the entire network.

Dust

A tiny amount of bitcoin in a UTXO that costs more in transaction fees to spend than it is worth. Dust limits exist to prevent spam attacks on the network. If you have been accumulating mining payouts into tiny UTXOs, consider consolidating them when fees are low.

E

Efficiency (J/TH)

The most important metric for evaluating a Bitcoin miner, measured in joules per terahash (J/TH). It tells you how much energy a miner consumes for each terahash of computation. Lower is better. A miner rated at 15 J/TH uses half the energy of one rated at 30 J/TH for the same hashrate. Modern machines like the Antminer S21 achieve around 15-17.5 J/TH. The Bitaxe, using a single chip, is less efficient overall but its power draw is minimal in absolute terms — making it ideal for solo mining where economics are secondary to sovereignty.

Epoch

In Bitcoin mining, an epoch is the period of 2,016 blocks between difficulty adjustments, lasting approximately two weeks. Some pool statistics and hashrate calculations reference epochs to provide context for performance trends.

Extranonce

Additional nonce space provided by the Stratum mining protocol. Since the 4-byte nonce in the block header can be exhausted in under a second by modern ASICs, the extranonce (embedded in the coinbase transaction) gives miners a much larger search space. The pool assigns each miner a unique extranonce to prevent duplicate work.

F

Fan (Cooling Fan)

The primary cooling mechanism in ASIC miners. Stock fans in machines like the Antminer S19 are industrial-grade and extremely loud (75-80+ dB). Home miners often replace them with quieter aftermarket fans, Noctua adapters, or immersion cooling setups. Fan failure is one of the most common ASIC issues — and one of the simplest repairs.

Firmware

The software that runs on an ASIC miner’s control board, controlling everything from pool configuration to fan speeds to chip voltages. Stock firmware comes from the manufacturer (Bitmain, MicroBT, etc.), but aftermarket options like Braiins OS, VNish, and LuxOS offer performance tuning, autotuning, and advanced features. For Bitaxe devices, the firmware is AxeOS.

FPPS (Full Pay-Per-Share)

A mining pool payout method where miners are paid for every valid share submitted, including an estimate of transaction fees — not just the block subsidy. FPPS eliminates variance for miners (you get paid regardless of whether the pool finds a block) but the pool assumes the risk. F2Pool and Antpool use FPPS variants. Compare with PPLNS, which pays only when blocks are found.

G

Genesis Block

Block 0 — the first block in the Bitcoin blockchain, mined by Satoshi Nakamoto on January 3, 2009. Its coinbase contains the text: “The Times 03/Jan/2009 Chancellor on brink of second bailout for banks.” This embedded message is both a timestamp proof and a statement of purpose: Bitcoin exists because the traditional financial system failed.

GPU Mining

Mining using graphics processing units (GPUs). GPU mining was viable for Bitcoin from 2009 to roughly 2013, before ASICs made it economically irrelevant for SHA-256. GPUs can still mine other proof-of-work algorithms, but for Bitcoin, ASIC miners are the only viable option. The transition from GPU to ASIC was a natural consequence of Bitcoin’s growing hashrate and difficulty.

H

Halving

The event that cuts Bitcoin’s block reward in half, occurring every 210,000 blocks (approximately every four years). This is Bitcoin’s deflationary monetary policy, hardcoded into the protocol. The halvings so far: 50 to 25 BTC (2012), 25 to 12.5 BTC (2016), 12.5 to 6.25 BTC (2020), 6.25 to 3.125 BTC (April 2024). The next halving, to 1.5625 BTC, is expected around 2028. After 64 halvings, no more bitcoin will ever be created. This scarcity schedule is why Bitcoin is sound money.

Hash

The output of running data through a cryptographic hash function. In Bitcoin mining, miners repeatedly hash the block header using SHA-256 (actually double-SHA-256) trying to find a result that falls below the current difficulty target. A valid hash is essentially a very large lottery — you cannot predict it, you cannot shortcut it, you just have to keep trying. That is the proof in proof-of-work.

Hashboard

A printed circuit board (PCB) inside an ASIC miner that holds dozens to hundreds of ASIC chips. Most full-size miners have three hashboards, each contributing roughly one-third of the machine’s total hashrate. Hashboard failure is the most common serious ASIC issue — causes include blown chips, cracked solder joints, corroded connectors, and power delivery failures. D-Central’s repair technicians work on hashboards daily.

Hashrate

The number of hash computations a miner (or the entire network) can perform per second. Measured in H/s, with common units being TH/s (terahashes, 10^12), PH/s (petahashes, 10^15), and EH/s (exahashes, 10^18). A single Antminer S21 produces around 200 TH/s. A Bitaxe Ultra produces around 500 GH/s. The entire Bitcoin network hashrate exceeds 800 EH/s as of early 2026 — that is 800 quintillion hashes per second. Higher network hashrate means higher security.

Hashrate Distribution

How the total network hashrate is divided among mining pools and solo miners. A healthy hashrate distribution means no single pool controls a majority. Centralized hashrate is a systemic risk to Bitcoin — if one pool controls over 50%, they could theoretically execute a 51% attack. This is why D-Central advocates for home mining, open-source mining hardware, and protocols like Stratum V2 that give individual miners more control.

Heat Recovery (Heat Reuse)

The practice of capturing waste heat from ASIC miners and using it for productive purposes: heating homes, greenhouses, pools, hot tubs, or even drying lumber. Since miners convert virtually all consumed electricity into heat, any useful application of that heat effectively subsidizes your mining operation. D-Central’s Bitcoin Space Heaters are purpose-built for this — turning mining waste heat into home heating.

Home Mining

Running Bitcoin mining hardware in a residential setting. Home mining is the backbone of decentralized hashrate — it distributes mining power across thousands of individual operators rather than concentrating it in industrial data centers. Challenges include noise, heat, power delivery, and internet reliability. D-Central exists to solve these challenges: we build quiet miners, space heaters, provide repair services, and stock everything a home miner needs.

Hosting (Mining Hosting)

A service where a facility houses and operates your mining hardware on your behalf, providing power, cooling, internet, and physical security. Ideal for miners who cannot run machines at home due to noise, power, or climate constraints. D-Central offers hosting services from our facility in Laval, Quebec, where we benefit from low-cost hydroelectric power.

I

Immersion Cooling

A cooling method where ASIC miners are submerged in a non-conductive dielectric fluid that absorbs heat directly from the chips. Immersion cooling eliminates fans (and their noise), improves chip cooling efficiency, extends hardware lifespan, and enables overclocking. It is increasingly popular for both industrial and home mining setups.

Inscriptions (Ordinals)

Data embedded directly into the Bitcoin blockchain using the Ordinals protocol, introduced in early 2023. Inscriptions allow arbitrary content (images, text, etc.) to be attached to individual satoshis. While controversial among Bitcoiners — some view them as spam, others see them as a valid use of block space — inscriptions have significantly increased transaction fees during high-activity periods, directly benefiting miners.

J

J/TH (Joules per Terahash)

The standard efficiency metric for Bitcoin mining hardware. It measures how many joules of energy are consumed per terahash of computation. The lower the J/TH, the more efficient the miner. This single number determines whether a miner is profitable at a given electricity rate. Example: a miner at 15 J/TH consuming 3,000W produces 200 TH/s. Always compare J/TH when evaluating different mining hardware.

K

KH/s, MH/s, GH/s, TH/s, PH/s, EH/s

Units of hashrate, scaling by factors of 1,000: Kilohash (10^3), Megahash (10^6), Gigahash (10^9), Terahash (10^12), Petahash (10^15), Exahash (10^18). A modern full-size ASIC miner operates in the hundreds of TH/s range. A Bitaxe operates in the hundreds of GH/s range. The Bitcoin network total is measured in EH/s — exceeding 800 EH/s as of early 2026.

L

Lightning Network

A Layer 2 payment protocol built on top of Bitcoin that enables near-instant, low-fee transactions. Lightning uses payment channels between nodes, allowing bitcoin to flow back and forth without touching the main blockchain until the channel is closed. For miners, Lightning is relevant because some pools (like OCEAN) offer Lightning payouts, getting your earned sats to you faster and cheaper.

Lottery Mining

A colloquial term for solo mining with a small amount of hashrate, where the odds of finding a block are very low but the potential payoff is the entire block reward (currently 3.125 BTC plus fees). The Bitaxe is the iconic lottery miner — a tiny device with real ASIC hashrate pointed at solo.ckpool.org or a similar solo endpoint. The math says your expected value is the same as pool mining, but the variance is enormous. Every hash counts — and Bitaxe operators around the world have actually found blocks.

M

Mempool

Short for “memory pool” — the holding area where valid but unconfirmed Bitcoin transactions wait to be included in a block. When the mempool is full, transactions with higher fees get priority. Miners (and pools constructing block templates) select transactions from the mempool to maximize fee revenue. A congested mempool means higher fees, which is good for miners.

Merkle Root

A single hash that represents all the transactions in a block, computed by hashing pairs of transaction hashes together in a tree structure until one root hash remains. The Merkle root is included in the block header, enabling efficient verification that a specific transaction is included in a block without downloading the entire block.

Mining Algorithm

The cryptographic hash function used by a proof-of-work blockchain. Bitcoin uses SHA-256 (specifically, double SHA-256). The mining algorithm determines what type of hardware can mine the coin — SHA-256 is mined with purpose-built ASICs. This glossary is focused on Bitcoin and SHA-256 mining.

Mining Difficulty

See: Difficulty.

Mining Farm

A large-scale facility dedicated to running hundreds or thousands of ASIC miners. Mining farms benefit from economies of scale in power procurement, cooling, and management — but they also represent hashrate centralization. The counterbalance is home mining and small-scale operations running from garages, basements, and spare rooms.

Mining Pool

A service that aggregates hashrate from many individual miners to collectively find blocks more frequently. When the pool finds a block, the reward is distributed among participants based on their contributed hashrate (shares). Pool payout methods include FPPS, PPLNS, PPS+, and TIDES. Major Bitcoin pools in 2026 include Foundry USA, Antpool, ViaBTC, F2Pool, OCEAN, and Braiins Pool. The tradeoff: pools reduce variance but introduce a trusted third party between you and the protocol.

N

NerdAxe

An open-source Bitcoin mining device in the “Nerd” family of open-source miners. Like the Bitaxe, the NerdAxe uses a real ASIC chip and runs independently. It is part of D-Central’s growing lineup of open-source mining hardware. Power input: 5V barrel jack (5.5×2.1mm DC), 5V/6A PSU required.

Nerdminer

An entry-level open-source solo mining device, typically built around an ESP32 microcontroller. The Nerdminer produces extremely low hashrate (measured in KH/s) — it is more of an educational and novelty device than a practical miner. That said, it is a fantastic way to learn how Bitcoin mining works at the protocol level, and yes, it technically has a (vanishingly small) chance of finding a block.

NerdQAxe

A quad-chip open-source mining device offering more hashrate than single-chip units. The NerdQAxe++ uses a 12V DC XT30 connector and requires a 10A PSU. Part of the growing ecosystem of open-source mining hardware that D-Central stocks and supports.

Network Hashrate

The total combined hashrate of all miners on the Bitcoin network. As of early 2026, the Bitcoin network hashrate exceeds 800 EH/s — a number that has been climbing consistently year over year. Network hashrate is not directly measured; it is estimated from the observed block finding rate and current difficulty. Higher network hashrate means a more secure network.

Nonce

“Number used once.” A 4-byte field in the Bitcoin block header that miners increment to produce different hash outputs. Mining is essentially: hash the block header, check if the result is below the difficulty target, if not, change the nonce and try again. Modern ASICs burn through the entire 4-byte nonce space (about 4.3 billion values) in under a second, which is why the extranonce in the coinbase transaction provides additional search space.

O

OCEAN Pool

A Bitcoin mining pool co-founded by Jack Dorsey and Luke Dashjr, launched in late 2023. OCEAN distinguishes itself by using the TIDES payout scheme, supporting Stratum V2, filtering certain transaction types from blocks, and paying miners directly via coinbase outputs — no custodial balance required. OCEAN represents a new generation of pools focused on decentralization and transparency.

Open-Source Mining Hardware

Mining devices whose hardware designs are publicly available, allowing anyone to manufacture, modify, and improve them. The Bitaxe is the flagship example — its schematics, PCB layouts, and firmware (AxeOS) are all open source. Other examples include the NerdAxe, Nerdminer, NerdQAxe, and PiAxe. D-Central is a pioneer in the open-source mining ecosystem, having created the original Bitaxe Mesh Stand and developed leading accessories for these devices.

Overclocking

Running an ASIC miner’s chips at higher frequencies or voltages than stock settings to extract more hashrate. Overclocking increases power consumption and heat output, potentially reducing hardware lifespan if not managed carefully. Aftermarket firmware like Braiins OS provides per-chip tuning that can squeeze out 10-30% more hashrate from the same hardware. The Bitaxe, via AxeOS, also supports frequency and voltage adjustments.

P

Pleb Mining

Mining Bitcoin as an individual — at home, in a garage, in a spare room — rather than in an industrial facility. Pleb mining is about sovereignty: running your own miner, pointing it at your own pool (or solo), and contributing your hashrate to the decentralization of the network. D-Central exists to serve pleb miners. We are Bitcoin Mining Hackers — taking institutional-grade technology and making it accessible to everyone.

Pool Fee

The percentage of mining rewards that a pool charges for its service. Typical pool fees range from 0% to 3%, depending on the pool and payout method. Some pools embed fees in the block reward transparently; others are less clear. Always understand how your pool charges before committing hashrate.

PPLNS (Pay Per Last N Shares)

A pool payout method where miners are paid based on the number of shares they contributed in the window leading up to a block being found. Unlike FPPS, PPLNS does not pay for shares that did not contribute to a found block — there is variance. However, PPLNS pools typically have lower or zero fees, and over time, the expected earnings converge with other methods. Braiins Pool uses PPLNS scoring.

PPS+ (Pay Per Share Plus)

A hybrid payout method: miners receive a guaranteed payment for each share (like PPS) at the base block reward rate, plus a share of the transaction fees earned when the pool finds blocks (like PPLNS for fees). PPS+ balances predictability with fee upside.

Proof of Work (PoW)

The consensus mechanism that secures Bitcoin. Miners expend real-world energy to compute hashes, competing to find a valid block. The “work” in proof-of-work is the computational energy spent — it cannot be faked, shortcut, or reversed without spending at least as much energy again. This thermodynamic anchor is what gives Bitcoin its security and immutability. PoW is not a bug — it is the fundamental innovation that makes decentralized digital money possible.

PSU (Power Supply Unit)

The component that converts AC mains power to the DC voltage that an ASIC miner requires. Full-size miners like the Antminer S19 use the Bitmain APW series, typically outputting 12V DC at high amperage. Bitaxe devices require a 5V/6A PSU with a 5.5×2.1mm barrel jack. The Bitaxe Hex and GT use 12V via XT30 connectors. Undersized or failing PSUs are a common cause of mining hardware issues.

R

Reorg (Chain Reorganization)

When the Bitcoin network switches from one chain tip to another because a competing chain has more accumulated proof-of-work. Small reorgs (1-2 blocks) occur naturally when two miners find blocks at nearly the same time. Deep reorgs would be a sign of an attack. This is why waiting for multiple confirmations matters before considering a transaction final.

S

Satoshi (sat)

The smallest unit of Bitcoin: 1 satoshi = 0.00000001 BTC (one hundred millionth of a bitcoin). Named after Bitcoin’s creator, Satoshi Nakamoto. Mining payouts, especially from pools or small-scale operations, are often discussed in sats. When someone says a Bitaxe mines “a few hundred sats per day,” this is the unit they mean.

Satoshi Nakamoto

The pseudonymous creator of Bitcoin, who published the Bitcoin whitepaper in October 2008, released the software in January 2009, and disappeared from public activity in 2011. Satoshi’s true identity remains unknown. The creation of Bitcoin is arguably the most important technological innovation of the 21st century.

SegWit (Segregated Witness)

A Bitcoin protocol upgrade activated in August 2017 that separates (segregates) the digital signature data (witness) from transaction data, effectively increasing the block capacity. SegWit also fixed the transaction malleability bug, enabling second-layer solutions like the Lightning Network. SegWit transactions use less block weight, resulting in lower fees.

SHA-256

The cryptographic hash function used in Bitcoin mining. SHA-256 takes any input and produces a fixed 256-bit (32-byte) output. The same input always produces the same output, but even a tiny change in input produces a completely different hash. Mining is the process of finding an input (block header with a specific nonce) that produces a SHA-256 hash below the current difficulty target. All Bitcoin ASIC miners are SHA-256 machines.

Share

In pool mining, a share is a hash submission from a miner that meets a lower difficulty threshold set by the pool (not the full network difficulty). Shares prove that the miner is working. Occasionally, a share will also meet the full network difficulty — that is when a block is found. Pools use shares to measure each miner’s contributed work and calculate payouts.

Shroud (ASIC Shroud)

A duct or enclosure attached to an ASIC miner to direct its hot exhaust air. Shrouds are essential for home mining setups: they allow you to vent hot air outdoors through a window or wall, keeping the room cool. D-Central manufactures universal ASIC shrouds and duct adapters compatible with multiple miner models.

Solo Mining

Mining Bitcoin without joining a pool — your miner works alone, and if it finds a valid block, you keep the entire block reward. The downside is extreme variance: a home miner with a few hundred TH/s might go years (or forever) without finding a block. Solo mining is most popular among Bitaxe operators and enthusiasts who value sovereignty over predictable income. Solo endpoints like solo.ckpool.org make it easy to get started.

Stratum (Stratum V1)

The communication protocol used between miners and pools since 2012. Stratum defines how pools distribute work to miners, how miners submit shares, and how pool connectivity is maintained. While functional, Stratum V1 has significant limitations: the pool has complete control over block template construction, and communication is unencrypted.

Stratum V2

The next-generation mining protocol that addresses Stratum V1’s shortcomings. Key improvements include: encrypted communication between miners and pools, the ability for individual miners to construct their own block templates (instead of accepting the pool’s template), and reduced bandwidth usage. Stratum V2 is a critical upgrade for mining decentralization — it removes the pool’s monopoly on transaction selection. Braiins Pool and OCEAN support Stratum V2.

T

Target

A 256-bit number that a block’s hash must be less than for the block to be considered valid. The lower the target, the harder it is to find a valid hash, meaning higher difficulty. The target is encoded in the block header as the “nBits” field and is recalculated every 2,016 blocks during the difficulty adjustment.

TIDES (Transparent Index of Distinct Extended Shares)

A mining pool payout scheme used by OCEAN Pool. TIDES tracks each miner’s share contributions over a large window and pays out proportionally when blocks are found, with payouts going directly into the coinbase transaction — meaning miners receive bitcoin directly on-chain rather than accumulating a custodial balance with the pool. This is a more transparent and non-custodial approach to pool payouts.

Transaction Fee

The amount of bitcoin a sender includes as an incentive for miners to include their transaction in a block. Fees are calculated based on the transaction’s size in virtual bytes (vbytes), not the amount of bitcoin being sent. As the block subsidy decreases with each halving, transaction fees become an increasingly important component of miner revenue. During periods of high network activity (like inscription waves), fees can spike dramatically.

U

Underclocking (Undervolting)

Running an ASIC miner at lower frequencies or voltages than stock settings. This reduces hashrate but also reduces power consumption and heat — often disproportionately, meaning efficiency (J/TH) actually improves. Underclocking is popular for home mining (reducing noise and heat) and for mining during periods of low profitability (keeping machines running at lower cost). Aftermarket firmware makes this easy to configure.

UTXO (Unspent Transaction Output)

The fundamental unit of Bitcoin accounting. Every piece of bitcoin you own is a UTXO — an unspent output from a previous transaction. When you spend bitcoin, you consume one or more UTXOs and create new ones. Miners should be aware of UTXO management: if your pool sends many tiny payouts, you accumulate many small UTXOs that become expensive to consolidate when fees are high.

V

Variance

The statistical fluctuation in mining earnings. Pool miners experience low variance (steady, predictable payouts). Solo miners experience extreme variance (long periods of zero earnings, then a massive payout if they find a block). Variance is purely a function of your hashrate relative to the network total. The smaller your share, the higher your variance. This is the fundamental tradeoff in the pool-versus-solo decision.

VNish

An aftermarket firmware for Antminer ASIC miners that offers autotuning, performance optimization, and additional management features. VNish, along with Braiins OS and LuxOS, represents the aftermarket firmware ecosystem that helps miners extract maximum efficiency from their hardware.

W

Watt (W) / Kilowatt (kW)

Units of power consumption, critical for calculating mining profitability. An Antminer S21 draws about 3,500W (3.5 kW). A Bitaxe Ultra draws about 12-15W. Your electricity rate (measured in $/kWh) multiplied by your miner’s power draw determines your operating cost. This is the most important number in mining economics.

Whatsminer

A line of Bitcoin ASIC miners manufactured by MicroBT, a Chinese hardware company. Whatsminer models (M30, M50, M60 series) compete directly with Bitmain’s Antminer series. MicroBT machines are generally well-regarded for reliability. D-Central repairs both Bitmain and MicroBT hardware.

Frequently Asked Questions