Bitcoin Glossary

The term Altcoin is used when referring to blockchain based cryptocurrencies that have little recognition or market cap.

ASIC is a specialized integrated circuit that is designed for a particular use. ASCI stands for application-specific integrated circuit (ASIC). In the cryptocurrency community these chips are used for mining coins.

ASIC Miner
An ASIC Miner houses your ASCI chip. When connected to the network these do the work of mining coins.

Bitcoin Index
This refers to a method for comparing 1 Bitcoin with numerous other fiat currencies, usually the US dollar, the Yen and the Euro.

BitPay is software Company who’s product allows for merchants to accept bitcoin payments.

A blockchain is a public record of the transactions of a particular coin. It is used to track and confirm transactions.

Block reward
A block reward is the compensation given to miners for hashing blocks.

BTC is the official short form for Bitcoin, as CAN is for Canadian dollars.

Cryptocurrency refers to any digital currency that is secured by means of cryptography.

Difficulty is a term used to express how hard it is to mine a block.

Elliptic Curve Digital Signature Algorithm ensures the veracity of transactions.

An Exchange is a website that allows the trading of Bitcoin and Altcoins.

A faucet refers to a method of giving away altcoins to entice people to support the currency.

Fiat currency refers to regular national currencies we are all used to (e.g. Canadian and US Dollar.)

Genesis block
This term refers the the first block created in any crytocurrency blockchain.

Hash is a mathematical function that coverts data sets of any length into fixed length and compositions.

Hash rate
Hash rate refers to the quantity of hashes a miner’s equipment can attain in a set amount of time.

Megahashes/sec refers to the quantity of hashes a miner’s equipment can attain in a second.

The term mining refers to the act for creating new coins and verifying transactions in a Blockchain based cryptocurrency network. See more in our Mining section.

Output refers to the destination address of a bitcoin transaction.

Paper Wallet
A paper wallet is a way to store your Cryptocurrency offline. The document contains the public addresses and private keys.

Proof of work
Proof of work is a term that refers to the bitcoin verification system that derives its power from computational effort.

Public key
A public key in cryptocurrency refers to a string of alphanumeric digits commonly called an address.

SHA-256 is the cryptographic function that dictates how the hash is constructed in the Bitcoin ecosystem.

Transaction Fee
Charges applied to some transactions in order to reward miners for processing the blocks/transactions.

A wallet is a software program or website that stores your public and private keys and allows you to send and receive cryptocurrency.

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