Glossary Bitcoin

Bitcoin Vocabulary

The Ethereum Blockchain hosts many →dApps and →Smart contracts. →Smart Contracts must be written on the Ethereum Blockchain in the programming language →Solidity. However, the →Casper update will cause an →Hardfork of the Ethereum network and then make Ethereum a →POS block chain. Decentralized — In a decentralized Bitcoin Vocabulary system, the users are linked to each other via →P2P. Anyone can join a decentralized network, it is difficult to take offline and – in the best case – almost impossible to hack. Decentralized autonomous organization — A decentralised autonomous organisation is an organisation which is regulated by →Smart contracts.

Difficult to solve, easy to verify that they have been solved correctly. The Halving, or halvening is when the Bitcoin block reward is cut in half. An Exit Scam is when a company runs away with other people’s bitcoin or cryptocurrency. Currently a number of legacy finance companies are trying to launch a Bitcoin ETF to allow investors to gain access to bitcoin price exposure without having to hodl their own bitcoin. A Distributed Ledger is one of the primary characteristics of a blockchain. The distribution of all of the information on the blockchain is what allows bitcoin to work.

Block Explorer

A seed phrase written down on a piece of paper is also considered a paper wallet. A Micro-Transaction is a very small payment that wasn’t possible until the invention of bitcoin. The Bitcoin lightning network is working to make transactions smaller than a single satoshi. Cryptography is a math-based protocol used to encrypt/decrypt data and make digital signatures.

Bitcoin Vocabulary

Day traders — A person who tries to generate profit through active trading (from → cryptocurrencies). A day trader typically only holds a cryptocurrency for a short time (usually a maximum of a few hours) before selling it for another currency. Coinmarketcap — Usually refers to the crypto currency website But Coinmarketcap (coin market capitalizations) also means the current price multiplied by the number of all tokens.

Mobile Wallet

A Mixer, also known as a Bitcoin Mixer, is a service to increase the anonymity of Bitcoin transactions. The Lightning Network is a second layer scaling solution built on top of the Bitcoin blockchain. Bitcoin Dominance is a metric used to define the share of Bitcoin’s market cap compared to the rest of the crypto market. Bitcoin Improvement Proposals (BIPs) are formal documents that propose changes, enhancements, or additions to the Bitcoin protocol or related processes. Batching is the process of grouping multiple transactions together. A bag holder is someone holding a large quantity of a given cryptocurrency that has been purchased as a part of an investor’s portfolio that has not been sold.

Consensus is the agreement between all of the bitcoin nodes on the current state of the blockchain. The Block Size is the amount of information that is included in a bitcoin block. A Bitcoin Exchange is any service that allows you to buy and sell bitcoin for other currencies. Some exchanges are for buying and selling bitcoin with fiat currencies like USD, GBP, EUR, etc. while others may exclusively buy and sell cryptocurrencies. Big blocker is often used as an insult since increasing the block size leads to an increase in the cost of running a node and centralization of the network.

Moscow Time

An important difference, however, is that each address should only be used for a single transaction. A cryptographically-verifiable receipt created using parts of a payment request and a confirmed transaction. Opcode which returns true if one or more provided signatures (m) sign the correct parts of a transaction and match one or more provided public keys (n). The end-node in a certificate chain; in the payment protocol, it is the certificate belonging to the receiver of satoshis. A token is a programmable digital asset with its own codebase that resides on an already existing block chain. Tokens are used to help facilitate the creation of decentralized applications.

A special field used as the sole input for coinbase transactions. The coinbase allows claiming the block reward and provides up to 100 bytes for arbitrary data. A chain of blocks with each block referencing the block that preceded it.

Don’t Trust, Verify

Binance — Binance is one of the largest →cryptocurrency exchanges. Block producer — In some → cryptocurrencies, only a few → nodes can publish a → block (for example → EOS). Bitstamp — The Bitstamp is a → cryptocurrency exchange on which → Fiat can be exchanged for → Crypto. Bitfinex — The Bitfinex is a → cryptocurrency exchange on which → Fiat can be exchanged for → Crypto. Specialized silicon chips which process SHA-256 algorithms in order to mind cryptocurrency and validate transactions. Arbitrage — taking advantage of the different cryptocurrency prices, of the same coin, from one exchange to the other.

Bitcoin Vocabulary

Bitcoin adopts a similar approach, whereby each user/node broadcasts the transactions of others on the network, without a central bank. A particular Bitcoin wallet and its corresponding private key are connected via cryptographic wizardry. Using an appropriate private key, your Bitcoin wallet signs a transaction, which is easy for the entire network to validate that the amount of Bitcoin being sent corresponds to your signature.