MINESOURCE-LED TOPIC GUIDE

Bitcoin mining: Proof of Work and operations

Connect the search for a valid hash, block-template construction, pool operations and operating costs. Distinguish miner revenue from profit and from authority to change rules.

46connected coordinates

162Source links

01What this field explains

A miner seeks a header hash that does not exceed the target. Valid proof of work is insufficient if the rest of the block breaks the rules. The template creator selects transactions. In a pool the operator often performs this role; the owner of hashing equipment may not control selection. Mining consumes electricity and hardware. Rewards include new issuance and fees; revenue is not profit, and pool payouts depend on the pool's terms.

Primary sources

Dominant hashing power can facilitate censorship or reorganization of one's own payments. It does not by itself provide keys to others' coins or permission to create an excessive reward. A return calculation needs current inputs and complete costs. Bitcoin Core v29.0 is an implementation example, not a claim to be the latest version. Linked entries have their own sources and reviews.

02Start with these coordinates

A curated path from first principles to the details that matter.

Network · HASH

Mining

How pending payments become a confirmed block, what miners get paid for, and why everyone else still needs to check their work.

Open entry Open source

Network · ASIC

ASIC Miner

An ASIC Miner makes vast numbers of attempts to find a new Bitcoin block. Here is what its performance means, why it consumes electricity, and why switching it on does not guarantee an income.

Open entry Open source

Protocol · 2016

Difficulty Adjustment

How Bitcoin adjusts the effort required to mine, keeping the long-term average close to one new block every ten minutes.

Open entry Open source

Network · POOL

Mining Pool

A Mining Pool lets miners work together and receive smaller ongoing rewards instead of waiting to find a block themselves. It matters what the pool pays for, who holds unpaid funds, and who chooses the transactions.

Open entry Open source

Mining · HP

Hashprice

Petr is considering a mining machine. He knows its hashrate but needs to estimate the revenue it might produce under current conditions. Hashprice helps with that: it translates mining power into expected gross revenue over a period of time. Electricity and other expenses come afterwards. The same number on a chart can therefore mean very different outcomes for two operators.

Open entry Open source

Mining · IMM

Immersion Cooling

Electronics submerged in liquid may look like an accident. With Immersion Cooling, it is deliberate: a suitable electrically insulating fluid surrounds the components and carries away their heat. Mining machines need not rely on air from their own fans. The heat has not disappeared, though. The entire path from the hot chip, through the bath and out of the facility must work — and that is what determines whether immersion actually helps.

Open entry Open source

03Explore the connected entries

Definitions, mechanisms, people and source data connected to this field.

HASHMiningNetwork · 5 §2016Difficulty AdjustmentProtocol · 3 §ASICASIC MinerNetwork · 11 §POOLMining PoolNetwork · 10 §HPHashpriceMining · 4 §J/THASIC EfficiencyMining · 5 §J/THJoules per TerahashMining · 6 §SHAREMining ShareMining · 4 §SDIFFShare DifficultyMining · 4 §TARGETMining TargetMining · 5 §XNONCEExtranonceMining · 5 §BTPLBlock TemplateMining · 5 §GBTgetblocktemplateMining · 5 §JNPJob NegotiationMining · 4 §FEE%Pool FeeMining · 5 §FPPSFull Pay Per ShareMining · 5 §STALE%Stale RateMining · 6 §ORPHOrphan BlockMining · 8 §LATMining LatencyMining · 4 §POOL-CMining Pool CentralizationMining · 6 §BOOSTASICBoostMining · 6 §FWMining FirmwareMining · 8 §AUTOAutotuningMining · 7 §UNDERUnderclockingMining · 7 §OVEROverclockingMining · 6 §IMMImmersion CoolingMining · 6 §HYDROHydro CoolingMining · 4 §AIRAir CoolingMining · 5 §UPUptimeMining · 6 §CUTCurtailmentMining · 6 §E-ARBEnergy ArbitrageMining · 5 §FLAREFlare Gas MiningMining · 4 §LFGLandfill Gas MiningMining · 6 §CH₄Methane MitigationMining · 5 §BTMBehind-the-Meter MiningMining · 4 §OFFGRIDOff-Grid MiningMining · 5 §GRIDGrid-Connected MiningMining · 6 §PPAPower Purchase AgreementMining · 5 §HR-FWDHashrate ForwardMining · 5 §HEDGEMining HedgingMining · 4 §CAPITMiner CapitulationMining · 7 §FARMMining FarmMining · 8 §BWHBlock Withholding AttackMining · 4 §MINPAYPayout ThresholdMining · 5 §CNBANChina Mining Ban 2021Mining · 6 §ENERGYThermodynamic MoneyMining · 8 §

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