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Crypto & mining glossary

Plain-English definitions for wallets, security, mining and DeFi — written to be useful on their own, with a practical next step for each.

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Wallet basics

Security

Mining

ASIC Miner

An ASIC (application-specific integrated circuit) miner is a machine built to compute one specific hashing algorithm, such as Scrypt, far more efficiently than general-purpose hardware like GPUs.

Block Reward

A block reward is the payment a miner receives for adding a valid block to the chain — newly issued coins (the subsidy) plus the transaction fees in that block.

Halving

A halving is a scheduled event in some cryptocurrencies where the block subsidy paid to miners is cut in half, slowing the rate at which new coins are created.

Hashrate

Hashrate is the number of hash calculations per second a miner — or an entire blockchain network — performs, and it determines both your share of block rewards and the network's security.

Merged Mining

Merged mining (also called auxiliary proof of work) lets a miner submit the same hashing work to a parent chain and one or more compatible 'auxiliary' chains at once, earning rewards on all of them without extra energy.

Mining Difficulty

Mining difficulty is a number that sets how hard it is to find a valid block on a proof-of-work chain; the network raises or lowers it automatically to keep the average time between blocks close to its target.

Mining Pool

A mining pool is a group of miners who combine their hashing power and split the rewards in proportion to the work each contributes, turning rare large payouts into small, regular ones.

Scrypt Algorithm

Scrypt is a memory-intensive proof-of-work hashing algorithm used to secure Litecoin, Dogecoin and many related coins; it was designed to be harder to accelerate with specialized chips than Bitcoin's SHA-256.

Coins & networks

Trading & DeFi

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