# Glossary

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## Glossary

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### A

**Application-Specific Integrated Circuit (ASIC)**\
Hardware built exclusively for Bitcoin mining. ASICs perform Proof of Work calculations with maximum efficiency and are the equipment type used in Omnes infrastructure.

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### B

**Bitcoin (BTC)**\
The original decentralized digital asset created in 2009. Bitcoin is secured by the Proof of Work consensus mechanism and mined through computational competition among miners.

**Block Reward**\
The total incentive earned by a miner for successfully validating and appending a new block to the Bitcoin blockchain. It consists of two components:

1. Newly issued Bitcoin — A fixed subsidy of BTC created with each block (currently 3.125 BTC as of the most recent halving).
2. Transaction fees — The total of all fees paid by users for the transactions included in that block.

The block reward is the primary economic driver of Bitcoin mining and is distributed approximately every 10 minutes to the miner or mining pool that discovers a valid block hash.

Over time, the subsidy portion of the block reward halves every 210,000 blocks (roughly every 4 years), reducing Bitcoin issuance and reinforcing its scarcity. Eventually, block rewards will consist entirely of transaction fees once all 21 million BTC have been mined.

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### C

**Compute Power**\
The total hashing capability of a mining device or network, measured in hashes per second. Omnes delivers compute capacity through structured institutional contracts.&#x20;

**Cold Wallet**\
An offline storage method for Bitcoin that protects assets from online threats such as hacking or malware. Cold wallets are not connected to the internet and are considered one of the most secure ways to store Bitcoin, particularly for long-term holders or institutional asset managers.

Omnes clients are responsible for the custody of their mined rewards, and cold wallets are a recommended solution for secure storage.

**Examples of cold wallets:**

* [Ledger](https://www.ledger.com/) – A leading hardware wallet provider offering Ledger Nano S Plus and Ledger Nano X for secure cold storage.
* [Trezor](https://trezor.io/) – A trusted hardware wallet brand offering the Trezor Model 5 and Trezor Model 3 for advanced offline storage.

We recommend sourcing cold wallets directly from the manufacturer and following all recommended security practices during setup.

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### D

**Difficulty**\
A numeric value that defines how hard it is for miners to find a valid block on the Bitcoin network. It determines the target that a block hash must be below in order to be accepted by the network.

Difficulty is adjusted every 2,016 blocks based on the total computational power (hashrate) currently securing the network. A higher difficulty means it takes more work, on average, to discover a valid block.

Difficulty is designed to keep the average block time close to 10 minutes, regardless of how many miners are active.

Example:\
If the network hashrate rises significantly, the next difficulty adjustment will increase the difficulty, making it harder to mine a block. This ensures block production does not speed up beyond Bitcoin’s intended schedule.

**Difficulty Adjustment**\
The automatic process that recalibrates the mining difficulty of the Bitcoin network every 2,016 blocks, roughly every two weeks.

The adjustment ensures that blocks continue to be mined at an average interval of 10 minutes, regardless of changes in total network hashrate.\
If blocks were mined faster than expected during the previous period, difficulty increases. If blocks were mined too slowly, difficulty decreases.

This mechanism keeps the issuance of new Bitcoin steady over time and maintains network stability as miners enter or leave the network.

Example:\
If global hashrate increases sharply, causing blocks to be mined every 8 minutes instead of 10, the next difficulty adjustment will increase the difficulty to slow down block production back to the target interval.

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### E

**Epoch**\
In Bitcoin, an epoch refers to the fixed interval of **2,016 blocks** between each automatic difficulty adjustment. This period typically lasts about **two weeks**, assuming the network maintains its target of one block every ten minutes.

At the end of each epoch, the Bitcoin protocol recalculates the mining difficulty based on how long the previous 2,016 blocks took to mine. If blocks were mined faster than expected, difficulty increases; if they were slower, it decreases.

Epochs ensure the network remains stable and predictable by maintaining a consistent block time, regardless of fluctuations in total hashrate.

Example:\
If miners collectively increase their hashrate and mine 2,016 blocks in only 12 days, the next epoch will begin with a higher difficulty setting to restore the 10-minute block interval.

**Estimated Difficulty Adjustment**\
The projected percentage change in Bitcoin’s mining difficulty for the next epoch, based on current block production speed and real-time network hashrate trends.

This estimate updates continuously as new blocks are mined. If blocks are being found faster than the 10-minute target, the estimate trends upward, signaling a likely difficulty increase. If blocks are slower, it trends downward, indicating a potential decrease.

Miners and institutions monitor this estimate closely to anticipate profitability shifts, plan deployments, and adjust operational strategies ahead of the actual adjustment at block 2,016.

**Exahash (EH/s)**\
A unit of measurement equal to one quintillion (1,000,000,000,000,000,000) hashes per second. It is used to quantify large-scale Bitcoin mining power.

1 EH/s equals:

* 1,000 petahashes per second (PH/s)
* 1,000,000 terahashes per second (TH/s)

Example:\
If each Antminer S21 delivers 200 TH/s, then:

* 1 EH/s = 1,000,000 TH/s
* 1,000,000 TH/s ÷ 200 TH/s per S21 = 5,000 S21 miners

So, a 1 EH/s deployment is equivalent to running 5,000 Antminer S21 units at full capacity.

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### F

**FPPS (Full Pay Per Share)**

A common mining pool payout model where miners are paid for each valid share submitted, including both block rewards and transaction fees.

**Full Node**\
A computer that fully validates Bitcoin transactions and blocks according to the protocol’s rules.

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### G

**Gigahash (GH/s)**\
One billion hashes calculated per second. Commonly used to describe the performance of early generation mining devices.

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### H

**Halving**\
A scheduled protocol event that occurs every 210,000 Bitcoin blocks, reducing the block reward by 50 percent. This happens roughly once every four years.

Halvings are built into Bitcoin’s monetary policy to ensure a predictable and decreasing issuance rate over time. When Bitcoin launched in 2009, the block reward was 50 BTC. After each halving, that amount is cut in half, eventually trending toward zero.

Halvings impact miner revenue directly and often influence broader market dynamics. They are seen as a key mechanism that reinforces Bitcoin’s scarcity, contributing to its long-term value proposition.

Omnes mining contracts are priced and structured with an understanding of halving cycles and their effect on hashprice and network incentives.

**Hash**\
The output of a cryptographic function that secures Bitcoin’s network by validating transactions and blocks.

**Hashprice**\
Hashprice is the measure of how much revenue one unit of Bitcoin mining hashrate earns over a given time period, typically expressed in USD per petahash per second per day.

It is calculated based on four primary factors:

* The current Bitcoin price in USD
* The Bitcoin network difficulty
* The size of the block reward (including both newly issued Bitcoin and transaction fees)
* The average number of blocks mined per day

As miners solve new blocks and transaction fees vary, hashprice fluctuates throughout the day.\
Higher Bitcoin prices, lower network difficulty, or larger transaction fees all contribute to a higher hashprice.\
Conversely, rising difficulty or lower Bitcoin prices tend to reduce hashprice.

Hashprice serves as a critical benchmark for mining profitability and is used to price hashrate contracts, assess operational strategies, and value mining infrastructure.

**Hashrate**\
Hashrate is the total computational power used to secure the Bitcoin network and validate new blocks. It measures how many cryptographic calculations a mining system can perform every second.

Hashrate is expressed in units such as:

* TH/s (terahashes per second) — one trillion hashes per second
* PH/s (petahashes per second) — one quadrillion hashes per second
* EH/s (exahashes per second) — one quintillion hashes per second

Higher hashrate increases the probability of successfully mining a block and earning rewards. On a network-wide scale, hashrate reflects the total energy and compute resources protecting Bitcoin from attack.

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### K

**KYC (Know Your Customer)**\
The compliance process for verifying the identity of individual clients accessing the Omnes Investor portal.

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### M

**Market Capitalization**\
The total dollar value of all Bitcoin in circulation, calculated as Bitcoin price multiplied by circulating supply.

**Mempool**\
Short for Memory Pool, the mempool is a temporary holding area where all valid but unconfirmed Bitcoin transactions wait to be included in a block.

When a Bitcoin transaction is broadcast to the network, it first enters the mempool of individual nodes, where it remains until a miner selects it for confirmation. Transactions with higher fees are typically prioritized by miners, especially during times of network congestion.

The size and activity of the mempool affect transaction confirmation times and fee rates across the network.

Live View:\
You can explore real-time Bitcoin network activity, including current mempool size, fee estimates, and pending transactions, at [mempool.space](https://mempool.space), a public, open-source, Bitcoin explorer designed for transparency and visibility.

**Mining Pool**\
A group of miners that combine computational power to increase the probability of earning block rewards, distributing earnings proportionally.

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### N

**Network Hashrate**\
The total combined computational power being used by all miners around the world to secure the Bitcoin network and attempt to discover new blocks.

Measured in exahashes per second (EH/s), the network hashrate reflects how many hashing operations are being performed globally every second. It is a key indicator of the overall health, security, and competitiveness of the Bitcoin mining ecosystem.

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### P

**Petahash (PH/s)**\
A unit of measurement equal to one quadrillion (1,000,000,000,000,000) hashes per second. It is commonly used to describe medium to large-scale mining deployments.

1 PH/s equals:

* 1,000 terahashes per second (TH/s)
* 0.001 exahashes per second (EH/s)

Example:\
If each Antminer S21 produces 200 TH/s, then:

* 1 PH/s = 1,000 TH/s
* 1,000 TH/s ÷ 200 TH/s per S21 = 5 S21 miners

So, a 1 PH/s deployment is equivalent to running 5 Antminer S21 units at full capacity

**Power Consumption**\
The amount of electrical energy required to operate a mining device, measured in watts (W). Power consumption directly impacts mining efficiency, operational costs, and infrastructure requirements.

Each mining model consumes a specific amount of power depending on its hashrate, design, and cooling system.

Example:\
An Antminer S21 rated at 200 TH/s consumes approximately 3,700 watts per unit.\
This means:

* 5 S21 units (1 PH/s) consume about 18,500 watts (18.5 kW)
* 5,000 S21 units (1 EH/s) consume about 18.5 megawatts (MW)

Understanding power consumption is critical for calculating profitability, power capacity planning, and evaluating hosting options.

**Proof of Work (PoW)**\
The consensus algorithm that secures the Bitcoin network by requiring miners to solve complex cryptographic puzzles using computational power. This process ensures that transactions are valid and that new blocks are added to the blockchain in a reliable and tamper-resistant sequence.

Miners compete by generating hashes until one finds a result that meets the current difficulty target. The successful miner earns the right to create the next block and receives a reward consisting of newly issued Bitcoin and transaction fees.

Proof of Work plays a critical role in protecting the network from fraud and manipulation. It creates a direct link between real-world energy expenditure and network security, making attacks costly and unlikely.

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### S

**SHA-256**\
SHA-256 (Secure Hash Algorithm 256-bit) is the cryptographic hash function used in the Bitcoin protocol. It takes an input of any length and produces a fixed 256-bit (32-byte) output, commonly represented as a 64-character hexadecimal string.

SHA-256 is used in two critical areas of Bitcoin:

1. Proof of Work – Miners repeatedly hash block header data through SHA-256 to find a valid hash below the network's difficulty target.
2. Address generation – Bitcoin addresses are derived from hashed versions of public keys using SHA-256 and RIPEMD-160.

**Spot Hashprice**\
The real-time market price for Bitcoin mining hashrate.

Hashprice represents how much revenue one petahash per second (PH/s) of hashrate is expected to earn in a single day, expressed in USD. It is influenced by Bitcoin’s price, network difficulty, block reward size, and average transaction fees.

Because Bitcoin's block rewards and transaction fees vary with every new block mined, spot hashprice continuously fluctuates in real time. It is a dynamic metric that miners and institutions monitor closely to assess mining profitability and optimize deployment strategies.

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### T

**Terahash (TH/s)**\
A unit of measurement equal to one trillion (1,000,000,000,000) hashes per second. It represents the computational speed of individual mining devices or small-scale operations.

Terahash is the most common unit used to describe the output of a single ASIC miner.

Example:\
The Antminer S21 produces approximately 200 TH/s, meaning it performs 200 trillion hashing operations every second.\
A deployment of 10 S21 units would deliver 2,000 TH/s, or 2 PH/s in total.

**Transaction Fee**\
Fees included in Bitcoin transactions that are paid to miners along with block rewards.

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### V

**Virgin Bitcoin**\
Bitcoin that has been freshly mined and has never been transferred from the miner’s payout address to any other wallet or exchange. It has no transaction history beyond its creation in the block reward, making it traceable only to its origin in the blockchain.

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### W

**Wallet Address**\
A unique string of alphanumeric characters that represents a destination on the Bitcoin network where BTC can be received and stored.

Bitcoin wallet addresses are derived from public keys using cryptographic algorithms and typically begin with “1”, “3”, or “bc1” depending on the address format (Legacy, P2SH, or SegWit). Each address is designed to be tamper-proof, non-reversible, and unique to the user.

Example:\
1A1zP1eP5QGefi2DMPTfTL5SLmv7DivfNa

**Whitelisted Address**\
An approved payout address configured in advance to receive Bitcoin rewards, enhancing security by restricting withdrawals only to trusted destinations.

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