Glossary

Address – Bitcoin address is used to send and receive Bitcoin transactions. The address consists of a sequence of letters (uppercase and lowercase letters) and numbers, as well as a QR code.

Altcoin – the name of cryptocurrency, which is an alternative to Bitcoin. An example of an altcoin is Litecoin, Ripple or Ethereum.

ASIC – acronym for Application Specific Integrated Circuit, which is a chip designed to perform one type of operation. In the case of Bitcoin, they are used to extract Bitcoins.

Bitcoin – a decentralized p2p currency based on open source code. Here you can read more about Bitcoin.

Bitcoin ATM  – like ordinary ATMs, Bitcoin ATMs provide Bitcoin people with depositing regular currencies.

BitcoinWhitepaper – a manifesto written by Satoshi Nakamoto in 2008, describes the Bitcoin protocol and the reason why it was created.

Blockchain – this is a set of all blocks that have been extracted since the moment of starting the Bitcoin network. Each block contains current transactions made on the network.

BTC – abbreviation for Bitcoin, as well as unit for 1 Bitcoin.

Confirmation – successful confirmation of transactions in the Bitcoin network and its addition to Blockchain in a given block.

Cold wallet – Bitcoin (or other cryptocurrency) storage, where the wallet is not connected to the Internet. It can be a paper wallet, USB stick or hardware wallet.

Cryptocurrency – a currency based on mathematics and cryptography, the most famous of which is Bitcoin

Difficulty – a number that determines how difficult it is to mine a new block. As the computing power of the network increases, the level of difficulty increases.

Ethereum – a platform for creating decentralized applications based on Blockchain technology. Its currency is Ether.

Ether (ETH) – Ethereum platform token.

Fiat – fiat currencies such as PLN or EUR.

Faucet – a service that allows you to get some bitcoin parts for free (eg 1000 satoshi) at intervals such as: daily or hourly

Genesis Block – the first block in a blockchain

ICO (Initial Coin Offering) – organized by start-ups to collect funds for the start or development of their activities. As a result, ICO start-up, in return for deposited funds, issues tokens (which have a different form) that they share with investors.

Input – the input side of a given transaction in the blockchain network.

Litecoin (LTC) – one of the leading altcoins. See our description of Litecoina here.

Namecoin – one of the first altcoins, allows users to buy domain names using this currency

Node – a computer connected to the Bitcoin network.

Mining – the process of creating (extracting) new bitcoins using computer hardware.

mBTC – 1 thousandth bitcoin (0.001 BTC)

Micro-transaction – the ability to pay for services or things in small amounts, thanks to the fact that Bitcoin is divisible to 8 decimal places. Microtransactions are listed as one of Bitcoin’s main utility.

Mixer – the process of mixing Bitcoins from different people by changing their addresses. This can help increase privacy and anonymity, but it can also be used to launder money. For this reason, the mixing services are very controversial.

Mt. Gox – one of the first Bitcoin stock exchanges, is famous for the fact that about 850,000 bitcoins that were stored on it were lost or stolen – at that time it was 450,000,000 USD.

Output – the output side of the given transaction in the blockchain network.

Paper Wallet – paper portfolio versions, one of the safer methods for storing cryptocurrencies.

Proof of Work – a method of mining cryptocurrency involving the load of our computer in order to generate a hash.

Proof of Stake – a method of cryptocurrency mining, which is based primarily on rewarding the user for the fact that he has a working currency in the portfolio, and not on real mining and using the full computing power of the processor and graphics card.

Private key – an alphanumeric string used to “sign” a transaction, it contains mathematical proof that the transaction comes from the owner of the portfolio.

Public key – is generated from the private key by multiplying elliptic curves. Then, using the next cryptographic methods, the proper address is created, which can be compared to the e-mail address – this is in fact our BTC address to which we can send coins

Premining – preliminary mining of cryptocurrencies, before it is available to the public, is usually performed by its creators.

QR code – just like a barcode on products, the QR code has a Bitcoin address.

Roadmap – ICO project based development plan.

Satoshi – the smallest value to which BTC can be divided. One Bitcoin is equal to one million satoshi.

Satoshi Nakamoto – creator of Bitcoin and author of the original whitepaper and Bitcoin code. His true identity is unknown to the world. It is not out of the question that the “creator” of BTC was really a group of people.

Silk Road – a website, part of the “dark-web”, which was in fact a black online market. You could buy illegal drugs, organs or rent assassins online. The site used cryptocurrency such as Bitcoin and was closed in 2013 by the FBI.

TOR – a program used by Internet users for online anonymity. Repeatedly used also by people trying to gain access to the Silk Road.

Token – Tokens are issued as part of the ICO. I can have a variety of forms – usually the payment method of a given platform, although this is not the norm.

Wallet – Bitcoin storage method. There are various types of wallets – online, offline (software), equipment and paper – with different levels of security.

Leave a Reply

Your email address will not be published.

Pin It on Pinterest