CryptoCurrency Terminology

CryptoCurrency Terminology

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Bit

A 1,000,000 bits per bitcoin equals 1 bit or 0.000001 BTC.   
(Cheaper items are denominated in bits.)

Bitcoin

Bitcoin with a capital "B" is used to describe the network or protocol that bitcoin runs on.
bitcoin with a lowercase "b" represent a digital token also known as virtual money, digital money, cryptocurrency or money used on the Bitcoin network.

Bitcoin Address

or a public key, is like a bank account number.  Give your bitcoin address (public key) to anyone you want to receive virtual/digital funds and/or payment from.  One is best to consider using a new bitcoin address (public key) for each transaction.

Block

Is a group of virtual / digital transactions being processed and confirmed. ​

Blockchain

A publicly shared record of every digital transaction that has ever been processed.  The blockchain is in chronological order to easily navigate where ones transactions came from and where they go after one send them to someone else.  Approximately, every ten minutes a new block is added to the blockchain through mining.

Blockchain Assets

Bitcoin was the first blockchain asset.  More blockchain assets included but not limited to: Ethereum, Litecoin and Dash.  Blockchain assets carry unique properties and is priced by markets independently.  Blockchain assets inherently have different utility, areas of focus, values, beliefs and overall culture backing the asset.

Blockchain Markets

Hyper-speed 24/7 worldwide markets available to anyone, any age, anywhere.

BTC

Common unit to describe one bitcoin.  Example: USD represents one United States Dollar.

Confirmation

One's transaction was processed by miner(s) and added to a new block on the blockchain.  A confirmation may take up to "accepted" after 6 confirmations for your transaction to be set in stone globally and cannot be reversed by anyone.

Cryptocurrency

Digital a/k/a virtual fiat currency using cryptography / encryption techniques for security to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank.

Digital Assets

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Double Spend

A malicious user tries to send a virtual / digital transaction to two different receivers at the same time to pay for services with the same virtual / digital currency/money.  Miners decide which transactions is accepted into the network.   One transaction will receive confirmation, the other will be rejected by the network.  They are rare and difficult to pull off.

Exodus

Software to secure, manage and trade blockchain assets.

Hash Rate

A measurement of computer processing power of virtual / digital miners.  Miners earn virtual / digital for their share of the network hash rate, so they are incentivized to have the highest hash rate possible.  This works out for everyone because the security of the virtual / digital network increases as the network hash rate grows.

Mining

Trying to get computers to do complex mathematical calculations for the virtual / digital currency network to confirm a user's virtual / digital transactions in a block.  Miners greatly increase the security of the network and are rewarded with new virtual / digital currency and transaction fees for their efforts.

Private Key

Every public key (virtual / digital address) has a private key associated with it.  A private key is a secret piece of data that proves your right to spend virtual / digital money / currency from your wallet.  Private key(s) maybe stored 1) on your computer if you use a software wallet or 2) stored on some remote servers if you use a web wallet.  Virtual / digital money / currency if NOT encrypt in ones wallet makes it very easy for someone to steal your private keys.  Anyone with access to your private keys can spend your virtual / digital money / currency from any computer from anywhere in the world.

Wallet

A wallet is your virtual / digital location holding your assets.  One can manage all of their virtual / digital addresses and allows one to save or spend their assets.

Satoshi

A penny of bitcoin.
Example:  1 Satoshi = 0.00000001 BTC (One bitcoin)  The smallest measurement of bitcoin.

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