Definitions
A to H
cryptocurrency. A digital currency for which encryption techniques are used to regulate its use and generate its release. Unlike fiat currency — like US dollars, euros, yen and ringgit — cryptocurrency is not regulated or controlled by any government or agency.
Bitcoin. A digital cryptocurrency using peer-to-peer technology for nearly instant payments. Bitcoin was invented by an unidentified programmer, or group of programmers, under the pseudonym Satoshi Nakamoto.
Bitcoin address. Also called a key, a string of alphanumeric characters used to receive Bitcoin. Whereas public addresses typically begin with a 1 or 3, private addresses — or addresses that aren’t visible to all users — typically begin with a 5 or 6.
Bitcoin exchange. An online website or platform that allows users to buy and sell Bitcoin for other currencies.
blockchain. A public digital ledger in which the entire history of a cryptocurrency is recorded chronologically.
block reward. The amount of cryptocurrency mined after a “miner” has succeeded in solving a hash.
digital wallet. Sometimes called an e-wallet, an electronic system or app that securely stores personal information, payment details and passwords so that a consumer can make digital payments online or at retail stores that accept it.
hash. A computational puzzle that a cryptocurrency “miner” must solve in order to add the next block on a blockchain.
I to O
mining. A process by which a cryptocurrency is released into the world. “Miners” complete a computational puzzle to be rewarded with a block of currency along the public blockchain.
node. A computer connected to the Bitcoin network.
P to Z
proof of work. A hash — or computational puzzle to unlock a cryptocurrency — that is so difficult, it could only have been solved through significant work or power.
proof of stake. A system that replaces the concept of “mining” a cryptocurrency with a consensus algorithm, whereby miners put up a stake of their currency to verify a block of transactions.