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  1. Knowledge Base
  2. Bitcoin Basics

Glossary

Blockchain

A decentralized and distributed ledger that records all transactions across a network of computers. The Bitcoin blockchain is the founding technology that enables the existence of cryptocurrency.

Cryptocurrency

Digital or virtual currency that uses cryptography for security. Bitcoin is a prime example of a cryptocurrency.

Private Key

A secret cryptographic key that allows the owner to access and control their cryptocurrency holdings. It must be kept confidential to maintain the security of the wallet.

Public Key

A cryptographic key derived from the private key and used to generate the wallet address. It is shared publicly and is used for receiving cryptocurrency.

Wallet Address

A unique identifier associated with a cryptocurrency wallet, used to receive funds. It is derived from the public key.

Seed Phrase (or Secret Recovery Phrase)

A series of words that serve as a backup for the private key. It is essential for wallet recovery in case of loss or device failure.

Multi-Signature (Multisig)

A security feature requiring multiple private keys to authorize a Bitcoin transaction. It adds an extra layer of protection against unauthorized access.

Hardware Wallet

A physical device designed to securely store private keys offline, reducing the risk of online hacking.

Software Wallet

A digital application or program that allows users to store and manage their cryptocurrency. UniSat Wallet is an example of a software wallet.

Decentralized Finance (DeFi)

A financial ecosystem built on blockchain technology, aiming to recreate traditional financial systems with decentralized, open-source alternatives.

Smart Contracts

Self-executing contracts with the terms of the agreement directly written into code. They run on blockchain networks like Ethereum, facilitating trustless and automated transactions.

Transaction Fee

The fee paid to miners to process and verify transactions on the blockchain. It varies based on network congestion and transaction complexity.

Non-Fungible Token (NFT)

Unique digital assets representing ownership or proof of authenticity for items like art, collectibles, or virtual real estate.

Cold Storage

Keeping private keys or seed phrases in an offline, secure environment to protect against online hacking attempts.

Peer-to-Peer (P2P)

Transactions that occur directly between two parties without the need for intermediaries.

Confirmation

The process of validating a transaction on the blockchain by multiple nodes, ensuring its accuracy and security.

KYC (Know Your Customer)

Verification processes to confirm the identity of wallet owners, complying with regulatory requirements.

HD Wallet (Hierarchical Deterministic Wallet)

A wallet that generates a hierarchical tree of keys from a single seed, making it easier to manage multiple addresses.

Web3

The next generation of the internet, focused on decentralized protocols and applications, including blockchain-based technologies.

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Last updated 1 year ago

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