Miner is a device or software participant that performs the computational work required to mine cryptocurrency in blockchain networks that support mining. In the context of Proof-of-Work, a miner participates in finding a solution that allows a new block to be added to the chain.

The term is used in two related senses. It can refer directly to a physical device, such as an ASIC miner, GPU farm, or computer. A miner can also refer to a network participant or software component that performs computations and interacts with the network or a pool.

Main Types of Miners

Type Features
ASIC A specialized device for a specific algorithm. It is typically characterized by high efficiency.
GPU Uses graphics processors and can be used for different algorithms and coins.
CPU Uses a computer's central processing unit. Suitable for networks whose algorithms are designed for CPU mining.

How a Miner Works

A miner receives a task through mining software or directly through a mining client. The device performs a large number of computations according to the network algorithm and sends the resulting work back.

When operating through a pool, a miner typically does not attempt to independently find a complete block during every computational cycle. It performs tasks assigned by the pool, and the results are used to measure the actual computational contribution. When mining independently, the participant operates without a pool intermediary.

Main Miner Characteristics

Several parameters are typically considered when evaluating a miner:

  • hashrate — performance when performing computations;
  • power consumption — the amount of electricity required for operation;
  • power efficiency — the ratio of performance to power consumption;
  • supported algorithm — determines which networks and coins the device can mine;
  • hardware cost — affects the payback period;
  • reliability and operating conditions — affect actual equipment availability and costs.

Therefore, a more powerful miner is not necessarily more profitable. When comparing equipment, income, energy costs, device price, and current network parameters must all be considered together.