Mining Pool

Mining pools may contain hundreds or thousands of miners using specialized protocols. In all these schemes B stands for a block reward minus pool fee and p is a probability of finding a block in a share attempt (p = 1/D, where D is current block difficulty). A pool can support "variable share difficulty" feature, which means that a miner can select the share target (the lower bound of share difficulty) on his own and change p accordingly. The list of pools for mining is extensive – in the world there are more than a thousand. The vast majority of users work through bitcoin pools. The level of complexity of the production of this currency is so high that alone, even with a supercomputer profit is not obtained. Therefore, all new pools are formed. There are other cryptocurrencies, younger than bitcoin, which are faster and easier to mine. But they do not have real value in the network, and they can only earn with the hope that in the future their rate will grow, and this is more like speculative mining.


Bitcoin network is a peer-to-peer payment network that operates on a cryptographic protocol. Users send and receive bitcoins, the units of currency, by broadcasting digitally signed messages to the network using bitcoin cryptocurrency wallet software. Transactions are recorded into a distributed, replicated public database known as the blockchain, with consensus achieved by a proof-of-work system called mining. Satoshi Nakamoto, the designer of bitcoin claimed that design and coding of bitcoin begun in 2007. The project was released in 2009 as open source software. The Blockchain network requires minimal structure to share transactions. An ad hoc decentralized network of volunteers is sufficient. Messages are broadcast on a best effort basis, and nodes can leave and rejoin the network at will. Upon reconnection, a node downloads and verifies new blocks from other nodes to complete its local copy of the blockchain.

Non-Fungible Token (NFT)

A non-fungible token (NFT) is a unit of data on a digital ledger called a blockchain, where each NFT can represent a unique digital item, and thus they are not interchangeable. NFTs can represent digital files such as art, audio, videos, items in video games and other forms of creative work. While the digital files themselves are infinitely reproducible, the NFTs representing them are tracked on their underlying blockchains and provide buyers with proof of ownership.

Stablecoin (Fiat Token)

Stablecoins are cryptocurrencies designed to minimize the volatility of the price of the stablecoin, relative to some "stable" asset or basket of assets. A stablecoin can be pegged to a cryptocurrency, fiat money, or to exchange-traded commodities (such as precious metals or industrial metals).


Token is a unit of value issued by a tech or crypto start-up, intended to be a piece in the ecosystem of their technology platform or project. Tokens are supported by blockchains. They only physically exist in the form of registry entries in said blockchain. Initially, most tokens were based on the ERC20 protocol by Ethereum.


A transaction is a transfer of value between Bitcoin wallets that gets included in the blockchain. Bitcoin transactions are not immediate. When a user wishes to send bitcoins, information is broadcast from her wallet to the (users in the) network, who verify that she has enough coins, and that they have never been spent before. Once validated, miners will include this transaction – along with others – in a new block in the blockchain. This is called a transaction confirmation.

Transaction Fee

Transaction fees are a fee that spenders may include in any Bitcoin on-chain transaction. The fee may be collected by the miner who includes the transaction in a block.