Bitcoin Glossary This is a glossary of terms related to Bitcoin and Coinbase.Address: A string of letters and numbers which bitcoins can be sent to and from.A bitcoin address can be shared publicly, and like sending a message to an email address, a bitcoin address can be provided to others that wish to send you bitcoin.Attack Surface: In computer security, an attack surface refers to the number of places where a malicious user may be able to gain access to a system.In general, a computer running more complex software has a higher attack surface than one running simpler software.Bitcoin: The first global, decentralized currency.Bits: A sub-unit of one bitcoin.There are 1,000,000 bits in one bitcoin.Block: A collection of Bitcoin transactions that have occurred during a period of time (typically about 10 minutes).If the blockchain is thought of as a ledger book, a block is like one page from the book.Blockchain: The authoritative record of every Bitcoin transaction that has ever occurred.

BTC: An abbreviation for the bitcoin currency.Centralized: Organized such that one or more parties are in control of a service.Chargeback: The reversal of a bank payment or money transfer after it was authorized.Sometimes used to commit fraud.Cold Storage: The storage of Bitcoin private keys in any fashion that is disconnected from the internet.bitcoin markets krakenTypical cold storage includes USB drives, offline computers, or paper wallets.ethereum boomCold Wallet: A Bitcoin wallet that is in cold storage (not connected to the internet).bitcoin dice strategyConfirmations: A bitcoin transaction is considered unconfirmed until it has been included in a block on the blockchain, at which point it has one confirmation.bitcoin valor hoje

Each additional block is another confirmation.Coinbase requires 3 confirmations to consider a bitcoin transaction final.Cosigner: An additional person or entity that has partial control over a Bitcoin wallet.Cryptocurrency: A type of currency that uses cryptography instead of a central bank to provide security and verify transactions.bitcoin contract killerBitcoin is the first cryptocurrency.bitcoin value in zarCryptography: In the context of Bitcoin, cryptography is the use of mathematics to secure information.withdraw bitcoins btc-eCryptography is used to create and secure wallets, sign transactions, and verify the blockchain.bitcoin billionaire musicDecentralized: Without a central authority or controlling party.bitcoin kopen online

Bitcoin is a decentralized network since no company, government, or individual is in control of it.Distributed: A distributed network is designed so that there is no central server or entity that others must connect to.Instead, network participants connect directly to each other.Bitcoin is a distributed network.Encryption: The use of cryptography to encode a message such that only the intended recipient(s) can decode it.Bitcoin uses encryption to protect wallets from unauthorized access.Hash: 1) A unique identifier of a Bitcoin transaction.2) A mathematical function that Bitcoin miners perform on blocks to make the network secure.Hot Wallet: A Bitcoin wallet that resides on a device that is connected to the internet.A wallet installed on a desktop computer or smartphone is usually a hot wallet.Ledger: A physical or electronic log book containing a list of transactions and balances typically involving financial accounts.The Bitcoin blockchain is the first distributed, decentralized, public ledger.

M of N: The number of cosigners that must provide signatures (M) out of the total number of cosigners (N) in order for a multi-signature bitcoin transaction to take place.A common M of N value is "2 of 3" meaning two of the three cosigners' signatures are required.Miner: A computer or group of computers that add new transactions to blocks and verify blocks created by other miners.Miners collect transaction fees and are rewarded with new bitcoins for their services.Multi-Signature: Also called multisig.A bitcoin transaction that requires signatures from multiple parties before it can be executed.Coinbase multisig vaults use this type of technology.Node: A participant in the Bitcoin network.Nodes share a copy of the blockchain and relay new transactions to other nodes.` Open Source: Software whose code is made publicly available and that is free to distribute.Bitcoin is an open source project and arguably the first open source money.Paper Wallet: A type of cold storage wallet where private keys are printed on a piece of paper or other physical medium.

Peer to Peer: A type of network where participants communicate directly with each other rather than through a centralized server.The Bitcoin network is peer to peer.Private Key: A string of letters and numbers that can be used to spend bitcoins associated with a specific Bitcoin address.Proof of Work: A piece of data that requires a significant amount of computation to generate but requires a minimal amount of computation to be verified as being correct.Bitcoin uses proof of work to generate new blocks.Protocol: The official rules that dictate how participants on a network must communicate.Bitcoin's protocol specifies how each node connects with the others, how many bitcoins will exist at any point in time, and defines other aspects of the network.Public Key: A string of letters and numbers that is derived from a private key.A public key allows one to receive bitcoins.QR Code: A digital representation of a bitcoin public or private key that is easy to scan by digital cameras.QR codes are similar to barcodes found on physical products in that they are a machine-friendly way to embody a piece of data.

Signature: A portion of a Bitcoin transaction that proves that the owner of the private key has approved the transaction.satoshi: The smallest divisible unit of one bitcoin.There are 100 million satoshis (8 decimal places) in one bitcoin.One satoshi = 0.0000001 bitcoins.Satoshi Nakamoto: The inventor of Bitcoin.SHA-256: The specific hash function used in the mining process to secure bitcoin transactions.Transaction: An entry in the blockchain that describes a transfer of bitcoins from address to another.Bitcoin transactions may contain several inputs and outputs.Transaction Fee: Also known as a "miner's" fee, a transaction fee is an amount of bitcoin included in each transaction that is collected by miners.This is to encourage miners to add the transaction to a block.A typical bitcoin fee amount is 0.0001 BTC.Vault: A type of Bitcoin wallet provided by Coinbase.Vault accounts add additional time-lock and security measures to protect your funds.Wallet: A collection of Bitcoin private keys used to spend bitcoins.