Venturing into the world of Bitcoin is like descending into a rabbit hole. Let this glossary be a guide—illuminating key terminology, holidays, and some of the memes you will undoubtedly encounter.

Skip To: Holidays

Bitcoin Glossary

A

B

C

D

E

F

G

H

I

J

K

L

M

N

O

P

Q

R

S

T

U

V

W

X

Y

Z

#

#

51% Attack

A 51% Attack is when an entity attempts to control over half of Bitcoin's mining power...

A

Address

A Bitcoin address is a unique string of characters vital for receiving bitcoin...

Anti-Money Laundering (AMA)

AML refers to regulations and practices aimed at preventing the illegal conversion of funds...

ASIC (Application-Specific Integrated Circuit)

ASIC is a specialized hardware uniquely designed for Bitcoin mining...

B

Bitcoin (The Blockchain)

The Bitcoin blockchain is a decentralized ledger that records all Bitcoin transactions...

Bitcoin (The Network)

The decentralized system of computers that running the bitcoin protocol...

Bitcoin Core

Bitcoin Core is the reference implementation and primary software for the Bitcoin network...

Bitcoin Improvement Proposal (BIP)

A BIP is a formal proposal to introduce changes or enhancements to the Bitcoin protocol...

Block

A fundamental unit of the blockchain, a block records a set of confirmed transactions...

Block Header

A concise summary attached to each Bitcoin block, providing essential details about that block...

Block Height

Block Height is the number of blocks preceding a specific block in the Bitcoin blockchain...

Block Reward (Subsidy)

Block Reward refers to the combined sum miners receive for adding a new block to the blockchain...

Blockchain Technology

A blockchain is a database composed of interlinked blocks of information...

BTC (Currency)

A decentralized digital currency...

C

Cantillon Effect

The uneven impact of inflation on different economic sectors and individuals...

Coinbase Transaction

The Coinbase transaction is the first transaction within every Bitcoin block...

CoinJoin

CoinJoin is a Bitcoin transaction method that merges multiple payments from various senders into a single transaction...

Cold Storage

Cold storage refers to storing private keys on devices or mediums not connected to the internet...

Confirmation

A confirmation signifies a Bitcoin transaction has been included in a block on the blockchain...

Cryptography

Cryptography involves using mathematical techniques to ensure data security....

D

Difficulty Adjustment

Difficulty Adjustment in Bitcoin refers to the periodic recalibration of how hard it is for miners to create a new block.

Digital Scarcity

Digital scarcity refers to the finite nature of resources in a digital realm...

Digital Signatures

A Digital Signature in Bitcoin verifies the sender's authenticity without revealing their private key...

Distributed Ledger

A distributed ledger is a decentralized record of transactions spread across multiple locations...

Dollar-Cost Averaging (DCA)

Dollar-Cost Averaging (DCA) is an investment strategy where a fixed amount is used to buy an asset at consistent intervals...

Double Spend Problem

The double spend problem refers to the act of spending the same digital token more than once...

Dust

Dust refers to minuscule amounts of bitcoin left unspent in a transaction, often so tiny that the cost of transacting them surpasses their value...

E

Elliptic Curve Cryptography (ECC)

Elliptic Curve Cryptography (ECC) is a public-key encryption method that uses elliptic curves' properties over finite fields...

Encryption

Encryption is the transformation of plain data into a secret code, or ciphertext, to shield it from unauthorized access...

F

Fiat Money

Fiat money is government-issued currency not backed by physical commodities...

Fork

A Bitcoin fork refers to a protocol change, leading to two distinct versions of the protocol...

Full Node

A full node independently verifies the entirety of the Bitcoin blockchain...

G

Genesis Block

The Genesis Block is the inaugural block of the Bitcoin blockchain...

H

Halving Event

The Halving Event in Bitcoin is a pre-scheduled reduction in the miner's block reward...

Hard Fork

A Hard Fork in Bitcoin is a non-backward compatible protocol change that requires all users to upgrade....

Hash

A hash is a cryptographic function that converts input data into a fixed-size, unique output.

Hash Rate

Hash rate measures the computational power of the Bitcoin network, indicating how many calculations it can perform per second...

I

Immutable Record

An immutable record ensures data cannot be changed once recorded...

Inflation (Asset)

Asset inflation refers to rising prices in houses, stocks, art, etc. Central to this phenomenon is the Cantillon Effect...

Inflation (CPI)

CPI is a metric that examines the average change over time in the prices of a basket of consumer goods...

Inflation (Monetary Debasement)

Inflation referring to the devaluation of currency due to an increase in the money supply...

Inflation (Price)

The upward shift in the cost of goods and services; often driven by supply-side constraints...

J

J-curve

The J-curve represents a theoretical trajectory of an assets growth...

K

KYC (Know Your Customer)

KYC refers to regulatory requirements that compel financial institutions to verify their customers' identities...

L

Layer 2 (Secondary Layer)

Layer 2 in Bitcoin denotes a secondary protocol built atop the primary Bitcoin network to enhance scalability and transaction speeds...

Lightning Network

The Lightning Network is a Layer 2 solution for Bitcoin, enabling quick, low-cost transactions...

M

Mempool

The Mempool is a temporary storage area for unconfirmed Bitcoin transactions...

Miners (Network Participants)

A miner is an individual or entity that validates and adds transactions to the Bitcoin blockchain....

Mining (Process)

Mining in Bitcoin refers to validating and recording transactions on its blockchain...

Mining Pool

A mining pool is a collective of Bitcoin miners who combine their computational resources...

Multisignature (Multi-Sig)

Multisignature refers to a Bitcoin address that requires multiple cryptographic keys to authorize a transaction...

N

Node

A node is a computer that participates actively in the network's functions by being connected to it...

Nonce

A nonce is a 32-bit field in a Bitcoin block, adjusted by miners to achieve a specific hash value.

O

Orphaned Block

An orphaned block is a valid Bitcoin block that doesn't become part of the longest, established blockchain...

P

Payment Batching

Payment batching is a method where multiple Bitcoin payments are combined into one transaction...

Private Key

A private key is a secure cryptographic number linked to a specific address...

Proof of Work (PoW)

Proof of Work (PoW) is a consensus mechanism in Bitcoin that requires participants to perform computational tasks to validate transactions...

Public Key

A public key is an alphanumeric string vital for receiving Bitcoin.

Q

Quantitative Easing (QE)

Quantitative Easing (QE) is a monetary strategy central banks use to stimulate the economy...

R

Risk

Risk is the uncertainty of an investment's return and the chance of losing some or all of the original investment...

S

Satoshi Nakamoto

Satoshi Nakamoto is the pseudonymous creator of Bitcoin...

Satoshis (Sats)

Satoshis, often abbreviated as "sats," is the smallest unit of Bitcoin...

Seed Phrase

A seed phrase is a list of words that allows the recovery of a Bitcoin wallet...

Self-Custody

Self-custody refers to an individual's direct ownership and control over their bitcoins...

SHA-256

SHA-256 is a cryptographic hash function used prominently in Bitcoin...

Soft Fork

A soft fork is a backward-compatible protocol upgrade in blockchain technology...

T

Testnet

Testnet is an alternative Bitcoin blockchain used exclusively for testing and development purposes...

Transaction (BTC)

A transaction in Bitcoin represents the transfer of value between addresses. ..

Transaction Fee (BTC)

A fee paid to Bitcoin miners to prioritize and validate a transaction on the blockchain...

U

Unconfirmed Transaction

An unconfirmed transaction has not been added to the Bitcoin blockchain yet...

UTXO

A UTXO is the residual BTC (sats) after a transaction occurs...

V

Value Investing

An investment strategy that emphasizes the intrinsic value of a company...

W

Wallet (Custodial & Non-Custodial)

Custodial wallets holds users' private keys. Non-custodial wallets allow users to keep their private keys...

Wallet (Hardware)

A hardware wallet is a specialized device designed to store private keys...

Wallet (Hot)

A hot wallet is an online interface that manages Bitcoin keys...

Wallet (Mobile)

A bitcoin wallet designed for mobile use...

X

xPub

An xPub represents a series of Bitcoin addresses within Hierarchical Deterministic (HD) wallets...

Y

Yield Curve Control

Yield Curve Control is a policy approach in which a central bank intervenes in the bond market...

Z

Zero Confirmation Transaction (0-Conf)

A 0-Conf bitcoin transaction is one that has been broadcast to the network but hasn't yet been included in a block...

Bitcoin Memes