Common terms in Cryptocurrency:
ASIC is an acronym for “Application Specific Integrated Circuit”. ASICs are silicon chips specifically designed to do a single task- process SHA-256 hashing problems to mine new bitcoins.
Bitcoin with a capital ‘B’ is used to describe the network or protocol that bitcoin runs on.
bitcoin with a lowercase ‘b’ represent the digital token that is used on the Bitcoin network.
A unit that describes one bitcoin, same as USD for one United States Dollar.
There are 1,000,000 bits per bitcoin so 1 bit = 0.000001 BTC.
Central ledger refers to a ledger maintained by a central agency.
The smallest measurement of bitcoin. 1 Satoshi = 0.00000001 BTC.
a public key that you can send to anyone who wants to send you a payment. Bitcoin address is a long string of alphanumeric characters, something like that – hN5qfH1vgxDCLL17i3DA9F2gzrHR7dZF.
Every public key (bitcoin address) has a private key associated with it. Anyone with access to your private keys can spend your bitcoin from any computer worldwide.
A bitcoin wallet is a program that manages all of your bitcoin addresses and allows you to save, send and receive bitcoin.
A mathematical operation that lets someone prove their sole ownership over their wallet.
A block is group of bitcoin transactions that are being processed & confirmed. Roughly every 10 minutes a miner will find a new block.
A confirmation means your transaction was processed by bitcoin miners and added to a new block on the blockchain. It is generally accepted that after 6 confirmations the transaction cannot be reversed by anyone.
A publicly shared record of every bitcoin transaction that has ever been processed.
When a malicious user tries to send their bitcoin to two different people at the same time. The miners will decide which of the transactions is accepted into the network. The other will be rejected by the network.
Bitcoin mining is making computers do complex mathematical calculations for the Bitcoin network to confirm user’s bitcoin transactions in a block.
Hashrate is the speed at which a block is discovered and the rate at which the related math problem is solved.
an altcoin is the community accepted name for any coin that isn’t Bitcoin.
A fee which can be added to a transaction which is used as an incentive to add the bitcoin transaction to a block. A high fee has a priority over transactions with a lower fee.
A fork is the permanent divergence of an alternative operating version of the current blockchain.
Multisig, or multisignature, is having more than one signature to approve a transaction.
A computer connected to the Bitcoin network. A node supports the network through validation and relaying of transactions while receiving a copy of the full blockchain itself.
A change to the blockchain protocol that makes previously invalid blocks/transactions valid, and therefore requires all users to upgrade their clients.
Initial Coin Offering is an event in which a new cryptocurrency sells advance tokens from its overall coinbase. ICOs are frequently used for developers of a new cryptocurrency to raise capital
Don’t forget to get a wallet – Keep your coins safe!
It is strongly advised not to store your cryptocurrency on an exchange, only on a dedicated wallet that you own. Here you can read more about what is a Bitcoin Wallet.