A Cryptocurrency Dictionary - Multipool Cryptocurrency Mining Terminology
From Multipool Wiki
Revision as of 20:55, 24 February 2018 by Nick
Algorithm - A process built by a set of rules that are to be followed in the completion of calculations or other problem-solving operations, typically completed by a computer. Currently Multipool supports these three algorithms, but has plans to add more support in the future.
- Scrypt - Pronounced “ess crypt” is a password based derivation function and its stripped down version is used as a proof-of-work scheme for various cryptocurrencies including LiteCoin (LTC).
- SHA-256 - The Secure Hash Algorithm 256 (SHA-256) is a member of the SHA-2 family, which were patented by the United States under a royalty-free license. It generates a fixed size 256-bit (32-byte) hash. It cryptocurrency it is used to verify transactions and calculate proof-of-work or proof-of-stake.
- X11 - The X11 algorithm uses a series of eleven hashing functions as a proof-of-work. X11 is considered more energy efficient to compute than Scrypt.
Automated Pool Emails - Notifications related to several aspects of your mining operation such as withdrawals, high balance warnings, etc.
Balance - a rounded off display of found and confirmed blocks of that cryptocurrency currently available for withdrawal.
- Next Block Estimate - Found on the algorithm stats page, is the estimated amount of currency to be paid out relative to the number of shares contributed upon finding the next block, the actual amount paid varies based on various factors such as variations in the pools hash power, time to find the block and the blocksize.
- Confirmed Balance - The confirmed balance is available for for withdrawal in the last 24 hours. It is your proportionally distributed cryptocurrency on found and confirmed blocks.
- Unconfirmed Balance - The actual cryptocurrency you've earned for blocks that have been solved by the pool and will be added to your balance, once confirmed on the blockchain network. You can see which blocks are awaiting confirmation by visiting the individual Pool Stats pages, found by selecting a currency from the “Pools” menu option on upper right of the Multipool.us homepage.
- Value - An estimate of how much you can exchange the total mined currency for Bitcoin on an exchange, like Cryptopia.
- Total Balance - The sum of confirmed and unconfirmed balance, earned in the last 24 hours.
Blockchain - A digital ledger containing in which sequentially hashed transactions with various parameters are recorded chronologically and publicly.
Block Header - A text file that is sent to individual miner workers just after a block is found, in order to find the new block and contains the following information: block version, a timestamp, hash of previous block, the nonce, the target hash and the hash of the Merkle root, which is created by hashing all transactions included in the current block header.
Block Value - After a miner successfully finds a block, the total block value is revealed. Bitcoin block values are currently 12.5 + miner transaction fees, typically cryptocurrency block values vary and are specific to each cryptocurrency.
Cryptocurrency Exchange - An online trading platform, which allows the exchange of one type of cryptocurrency asset for another, some exchanges even support fiat currencies and withdrawals.
Cryptocurrency Wallet- An application that allows sending, receiving and storing cryptocurrency assets. They range from multicurrency digital wallets to engraved tablets that keep all the information required to to produce the assets private keys and public addresses.
- Cold Storage - Refers to the methods keeping cryptocurrency private key assets offline in one of a few mediums. This is generally considered the most secure form of cryptocurrency storage so long as various security procedures are taken.
- On a USB Drive or other data storage medium in a safe place (e.g. safe deposit box, safe)
- On a Paper Wallet - A document containing all of the data necessary to generate any number of cryptocurrency private keys and public addresses.
- An offline cryptocurrency Hardware Wallet, such as the Ledger Wallet.
- Warm Storage - A technique storing cryptocurrency assets on a hardware security module, not directly connected to the internet, but available via some type of proxy from an internal network, oftentimes used by large exchanges, but pose significant security risks if not properly constructed.
- Hot Storage - Refers to a cryptocurrency wallet that is online and connected in some way to the Internet, includes exchanges and even nodes.
Currency - A system of monetary exchange in common by a group of people
- Fiat Currency - Is issued by a government as legal tender, but is unsupported by a physical commodity. The global value of fiat currency is derived from the relationship between supply and demand of other currencies in the global market, which is based on the faith and credit of the issuing government’s economy.
- Cryptocurrency - Is a digital asset that functions as a medium for exchange. There are currently many different cryptocurrencies, which all vary origin, support, adoption, software design, implementation and use cases. The sending, receiving and storage of cryptocurrency assets are verified by a network of decentralized users (nodes).
Current Target - Is a 256 Bit number that mining hardware is attempting to produce, a value that once hashed is less than or equal to the most recent block accepted by the network.
DDOS-Protected - To maintain maximum user access and uptime, Multipool implements Denial of service attack protections, which are typically accomplished by flooding targeted networks with bogus requests attempting to overload the system and prevent any legitimate requests from being fulfilled.
Detached or Orphaned blocks - Valid blocks which are not part of the main chain and occur naturally when two miners produce blocks at similar/the same time or they can be caused by an attacker (with enough hashing power) attempting to reverse transactions. In this instance the longer of the two blocks is accepted into the network while the other is orphaned.
Display Name - The name the site uses to communicate with you.
Donations - A voluntary percentage added to our base pool fee contributed by miners to cover costs and support the pool.
Difficulty - A measure of how difficult it is to find a hash below a given target.
- The difficulty for bitcoin is adjusted every 2016 blocks based on the time it took to find the previous 2016 blocks. The networks goal is to release one block every 10 minutes, therefore 2016 blocks should take two weeks to find, if the networks takes less time the network difficulty is increased and if it takes more it is decreased. The change in difficulty is proportional to the time delta from that 2 week target.
Forks - A code split that duplicates an application or repository.
- Hard Fork - Is when a cryptocurrencies code and entire blockchain record are copied, so that any previously held wallet addresses, public and private keys will also be duplicated, so if you had a coin before the fork, you’ll end up with the original coin and an equivalent amount of the forked coins, which was the case of the Bitcoin Cash hard fork off the original Bitcoin code and its blockchain. Once the fork is completed, the code is often heavily modified and takes on a life of its own.
- Soft Fork - Is when only a cryptocurrencies code is copied and an entirely new blockchain is created, which is typically how new cryptocurrencies are created.
Halving - Bitcoin mining rewards is cut in half every 210,000 blocks, originally mining reward was 50 bitcoin per block, in 2012 it was reduced to 25 and then in 2016 it was halved again to 12.5. Other coins, such as litecoin have similar functionality.
Hash (aka Hash Value or Hashcode) - Is a value returned by a hash function that maps data of an arbitrary size to data of fixed size. The faster the computing power is at returning hashes, the greater your hash power or hash rate.
Hash Rate (aka Hash Power) - Is the measuring unit in seconds defining the output speed of the hash functions specified in each proof-of-work algorithm.
- Hash Rate Sizes:
- 1 H/s is 1 (one) hash per second
- 1 kH/s is 1,000 (one thousand) hashes per second
- 1 MH/s is 1,000,000 (one million) hashes per second.
- 1 GH/s is 1,000,000,000 (one billion) hashes per second.
- 1 TH/s is 1,000,000,000,000 (one trillion) hashes per second.
- 1 PH/s is 1,000,000,000,000,000 (one quadrillion) hashes per second.
- 1 EH/s is 1,000,000,000,000,000,000 (one quintillion) hashes per second.
- 1 ZH/s is 1,000,000,000,000,000,000,000 (one sextillion) hashes per second.
- 1 YH/s is 1,000,000,000,000,000,000,000,000 (one septillion) hashes per second.
Hash Rate Contribution (aka Shares or Cumulative Accepted Difficulty) - While the miner is seeking to be the first "miner" to find a nonce that delivers a desirable hash below the previous target is rewarded the current block. The varDiff determines the difficulty of the algorithms the computer completes, which is multiplied by the total contributed shares.
Instantaneous profitability - An estimated amount of bitcoin one could expect per TH/s based on mining that particular algorithm.
Luck - In cryptocurrency mining blocks are found by completing computer algorithms seeking to find a hash target below the previous one. Statistically on average, the amount of hashing power relative to the pools overall hashing power determines the percent of the total blocks a miner should expect to find. If your finding an amount of blocks proportionate to your percent of the networks hashing power, your luck is 100%. If your finding less blocks, your luck is decreased and therefore if your finding more blocks your luck is increased. For example if the overall network hashrate is 1000 TH/s and your contributing 10 Valid TH/s, you should assume that on average you would earn 1% of all the blocks on the network, in this example if you earned 1% of the blocks, then your luck would be 100%. If you earned 2% of the blocks, then your luck would be 200%.
- Average Luck - Is the sum of all the blocks luck percentages found over time divided by the number of total blocks found.
- Current Round Luck - Is the percent of luck that would be assigned to the block if it were found right now. The current luck goes down over time while seeking a block; once a block is found this number becomes the luck for that block.
Merkle Trees - Merkle trees are created by repeatedly hashing pairs of different information nodes (ie. Ethereum has three merkle tree root nodes, 1. The transactions in the block 2. The state 3. Transaction receipts) until there is one hash left known as the Root Hash or the Merkle Root.
Mining Fee - A base percentage of 1.5% to cover the pools costs.
Multipool - Providing a web site featuring technology that enables users to engage in pooled mining of Bitcoin and other cryptocurrency, namely, the shared computational processing and verification of financial transactions conducted using Bitcoin or other cryptocurrency. A Multipool.us originated and USPTO trademarked term.
Node - A cryptocurrency node is any computer that connects to the currency network is called a node. Nodes that enforce all of the rules of network and maintain complete copies of the blockchain are called full nodes. Most nodes on the network are lightweight instead of full nodes. Full nodes form the backbone of the network. To download the latest version of a currencies full node you should visit the currencies site for instructions, Click here for a list of the coins websites supported by Multipool.
Pool Difficulty (pDiff) - Where current target is a 256 bit number and difficulty_1_target represents a hash where the leading 32 bits are zero and the rest are one.
Pool Hash Rate Contribution - Is the sum of the total users hashrate contributions relative to a specific currency at the time the block is found, ending the current round.
Proof-of-Work (PoW) - The amount of computing power used in the process is determined using a proof-of-work scheme by sending computational puzzles to the miners known as a CPU cost function or a proof-of-work function. Parts of the SHA-256, Scrypt and X11 algorithms are used in cryptocurrency as proof-of-work functions to determine the amount of computing power contributed to the network by individual mining hardware.
- Hardware Errors - Are recorded and displayed by mining hardware. The various error codes for mining service are:
- 20 - Other/Unknown
- 21 - Job not found (=stale)
- 25 - Not subscribed
Reward System - Methodology for calculating proportional user shares relative to mining rewards.
Round - The time period between two blocks found by the pool. The time varies depending on your pools luck in finding a hash below a certain target, the smaller the time period, the greater your pool’s luck.
Stale Block - Once the current block is solved everyone must stop working on that blocks header, and restart their work with a new block header. Continuing to work on the old block header is working on a "stale block".
Target Hash - Is the 256 bit (169 digits long) and is found in the block header.
User ID # - Your unique user identification number
Variable Difficulty (varDiff) - Multipool.us assigns higher difficult tasks to stronger miners and lower difficulty tasks to weaker miners so that an average communication frequency is roughly the same for all miners. varDiff assigns exactly so much work to each miner that allows it to send results back to the pool 16 to 20 times per minute. For example, a difficulty of 11 will result in finding 11 times less hashes, but you’ll be rewarded 11 shares per submission.</li>
Withdrawal Methods - The 3 cryptocurrency withdrawal methods available at Multipool.us are:
- Auto Pay Threshold - Runs every 30 minutes once a miners balance has reached the lowest payout threshold, no fee and no minimum.
- Daily Pay Threshold - Daily pay once a day if a miners balance is above the lowest payout threshold, no fee and no minimum.
- On-Demand TX Fee - On demand withdrawal requests are added to the next autopay payment, which are sent every 30 minutes. On demand withdrawals that are below the minimum withdrawal amount are subject to this fee schedule.
Withdrawal Statuses - Once a withdrawal is requested, it goes through a few phases on the network.
- Withdrawal Requested - The currency withdrawal request has been received and is planned to be submitted in the next auto payout, which happen every 30 minutes on the half-hour.
- Confirmations Required - # of nodes required to verify a transaction before it is considered verified updating the transaction status to confirmed. The number required varies from currency to currency, but can be referenced on Multipool’s payout list.
- Confirmed - Once a withdrawal is confirmed, it should be moved to your completed withdrawals and display a transaction ID, a time stamp and appear in the wallet you sent the currency to.
- Auto Payout Pending - An auto payout has been initiated and is awaiting network confirmations.
- Daily Payout Pending - A Daily payout has been initiated and is awaiting network confirmations.