Bitcoin Glossary: 200+ Terms & Definitions You Should Know
- 17 de fevereiro de 2021
- 11
- Cryptocurrency exchange
It is used to verify the permanence of Bitcoin transactions and to prevent double spending. A token represents an asset issued on an existing blockchain; the transfer of tokens https://www.tokenexus.com/ and the addresses that currently hold them are the subject of the network’s consensus activities. There are many types of tokens; see also ‘ERC-20’ and ‘ERC-721’ entries.
Bitcoin Improvement Proposal (BIP)
A softfork is a change to the bitcoin protocol wherein only previously valid blocks/transactions are made invalid. Since old nodes will recognise the new blocks as valid, a softfork is backward-compatible. One copy of it is hashed to create a P2SH address (used in an actual pubkey script) and another copy is placed in the spending signature script to enforce its conditions.
Uncle Block (Ommer Block)
A slot, under Ethereum Proof of Stake consensus, is a 12-second period of time during which a new block may (or may not) be proposed. Functioning by itself, not controlled by any other party other than itself. Self-executing smart contracts cut costs and overhead by removing the need for an arbitrator and trust toward a third party. An asset is considered more ‘liquid’ if it can easily be converted into cash, and therefore, ‘liquidity’ refers to the availability of assets to a company or market. Conversely, the harder it is to turn an asset into cash, the more illiquid the asset.
- A well-formed block which is no longer part of the difficultywise-longest and well-formed blockchain.
- Permissioned blockchains or ledgers contain highly-verifiable data sets because the consensus process creates a digital signature, which can be seen by all parties.
- Alphanumeric is any combination of numbers and letters to create a larger number or letter set.
- A Hardware Wallet is a physical piece of hardware that has been designed specifically to store bitcoin private keys.
- Consensus on a permissioned ledger is conducted by the trusted actors, such as government departments, banks, or other known entities.
- Whoever finds the next bitcoin block is rewarded with newly minted bitcoins.
- Blocks which were successfully mined but which aren’t included on the current best block chain, likely because some other block at the same height had its chain extended first.
Automated Market Maker (AMM) [Updated]
As the name indicates, the difficulty bomb was a software mechanism that increased block verification difficulty, making it more expensive and difficult–eventually, prohibitively so–to mine a new block. Through economic incentive, and later, the raw Bitcoin Vocabulary limitations of computing power, this forced the shift to PoS consensus. Digital currency that is based on mathematics and uses encryption techniques to regulate the creation of units of currency as well as the verification of funds transfers.
Internal Transaction
A Confirmation on a bitcoin transaction verifies that the transaction has been included in a block. The more confirmations that a transaction has, the more secure it is. While small transactions typically only need 1 confirmation, 6 confirmations is considered very secure for larger transactions. Burn is a term used to describe bitcoins that are lost and gone forever. If you have lost the private key for an address, the bitcoin at that address is considered burnt or has been burned.
- Crypto is a general term used to refer to cryptography, cryptocurrency, or the entire cryptocurrency industry.
- A Bitcoin Transaction is recorded on the blockchain when any user sends bitcoin from one address to another.
- A private blockchain requires a verification process for new participants.
- A Confirmation on a bitcoin transaction verifies that the transaction has been included in a block.
- A testnet is a blockchain network that mirrors, as closely as possible, the current conditions of a corresponding ‘main’ network.
Under the Proof of Work (PoW) consensus mechanism, miners received rewards for being the first to mine a new block. However, at times a block would be mined just after, and in competition with, the last block. This block, known as an ommer and previously as an uncle, could get rolled into subsequent blocks and the miner of the original ommer would get a partial block reward. All of this functionality was deprecated as of the launch of the Beacon Chain. When discussing Non-Fungible Tokens (NFTs), “fungibility” refers to an object’s ability to be exchanged for another.
Decentralized Marketplace
WIF is most commonly found on paper wallets so that it can be imported to another wallet. A Transaction Confirmation is when a bitcoin transaction that has been sent is added to the blockchain by a bitcoin miner. 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. Hot wallets are considered to be much less secure than cold wallets.
Add Comment