Glossary

A decentralized digital currency that operates without a central bank or single administrator.

A bundle of Bitcoin transactions that are verified and permanently added to the blockchain together, roughly every ten minutes.

The amount of new Bitcoin a miner receives for successfully adding a block to the blockchain.

A public, distributed ledger that records all Bitcoin transactions in chronological order.

Each new block added to the blockchain after your transaction's block, making the transaction progressively harder to reverse.

The risk of spending the same digital money twice, which Bitcoin's design prevents.

A small payment attached to a Bitcoin transaction that incentivizes miners to include it in the next block.

Government-issued currency that is not backed by a physical commodity like gold.

An event that cuts the Bitcoin block reward in half approximately every four years.

A gradual rise in prices that reduces how much each unit of money can buy over time.

A record of all financial transactions. In Bitcoin, the blockchain serves as a public, distributed ledger that anyone can verify.

The process of using computational power to verify transactions and add new blocks to the blockchain.

A computer that stores a full copy of the Bitcoin blockchain and helps verify transactions and blocks.

A secret number that proves ownership of Bitcoin and authorizes transactions. Whoever holds the private key controls the funds.

A cryptographic key derived from your private key, used to generate Bitcoin addresses where others can send you funds.

The smallest unit of Bitcoin. 1 Bitcoin = 100,000,000 satoshis.

A limited supply that cannot be easily increased, making something more valuable as demand grows.

A set of 12 or 24 words that serves as a master backup for all private keys in a Bitcoin wallet.

The maximum number of Bitcoin that will ever exist: exactly 21 million.

A transfer of Bitcoin from one address to another, recorded permanently on the blockchain.

Software or a physical device that stores your private keys, giving you access to your Bitcoin on the blockchain.