This quick glossary contains many of the terms used in relation to bitcoin. These terms are used throughout the book, so bookmark this for a quick reference.
address::
A bitcoin address looks like +1DSrfJdB2AnWaFNgSbv3MZC2m74996JafV+. It consists of a string of letters and numbers. It's really an encoded base58check version of a public key 160-bit hash. Just like you ask others to send an email to your email address, you would ask others to send you bitcoins to one of your bitcoin addresses.((("bitcoin address")))((("address", see="bitcoin address")))((("public key", see="bitcoin address")))
A bitcoin address looks like +1DSrfJdB2AnWaFNgSbv3MZC2m74996JafV+. It consists of a string of letters and numbers. It's really an encoded base58check version of a public key 160-bit hash. Just like you ask others to send an email to your email address, you would ask others to send you bitcoin to one of your bitcoin addresses.((("bitcoin address")))((("address", see="bitcoin address")))((("public key", see="bitcoin address")))
bip::
Bitcoin Improvement Proposals. A set of proposals that members of the bitcoin community have submitted to improve bitcoin. For example, BIP-21 is a proposal to improve the bitcoin uniform resource identifier (URI) scheme.((("bip")))
@ -30,7 +30,7 @@ coinbase transaction::
Not to be confused with Coinbase.((("coinbase transaction")))
cold storage::
Refers to keeping a reserve of bitcoins offline. Cold storage is achieved when Bitcoin private keys are created and stored in a secure offline environment. Cold storage is important for anyone with bitcoin holdings. Online computers are vulnerable to hackers and should not be used to store a significant amount of bitcoins.((("cold storage")))
Refers to keeping a reserve of bitcoin offline. Cold storage is achieved when Bitcoin private keys are created and stored in a secure offline environment. Cold storage is important for anyone with bitcoin holdings. Online computers are vulnerable to hackers and should not be used to store a significant amount of bitcoin.((("cold storage")))
Colored coins::
It's an open source Bitcoin 2.0 protocol that enables developers to create digital assets on top of Bitcoin Blockchain utilizing its functionalities beyond currency. ((("colored coins")))
@ -171,7 +171,7 @@ P2WSH::
The difference between P2SH and P2WSH (Pay to Witness Script Hash) is about the cryptographic proof location change from the scriptSig field to the witness field and the scriptPubKey that is also modified. ((("P2WSHt")))
Paper wallet::
In the most specific sense, a paper wallet is a document containing all of the data necessary to generate any number of Bitcoin private keys, forming a wallet of keys. However, people often use the term to mean any way of storing bitcoins offline as a physical document. This second definition also includes paper keys and redeemable codes. ((("Paper wallet")))
In the most specific sense, a paper wallet is a document containing all of the data necessary to generate any number of Bitcoin private keys, forming a wallet of keys. However, people often use the term to mean any way of storing bitcoin offline as a physical document. This second definition also includes paper keys and redeemable codes. ((("Paper wallet")))
Payment channels::
A Micropayment Channel or Payment Channel is class of techniques designed to allow users to make multiple Bitcoin transactions without committing all of the transactions to the Bitcoin block chain. In a typical payment channel, only two transactions are added to the block chain but an unlimited or nearly unlimited number of payments can be made between the participants. ((("Payment channels")))
ScriptSig or Signature Script, is the data generated by a spender which is almost always used as variables to satisfy a pubkey script. ((("ScriptSig")))
secret key (aka private key)::
The secret number that unlocks bitcoins sent to the corresponding address. A secret key looks like +5J76sF8L5jTtzE96r66Sf8cka9y44wdpJjMwCxR3tzLh3ibVPxh+.((("secret key")))((("private key", see="secret key")))
The secret number that unlocks bitcoin sent to the corresponding address. A secret key looks like +5J76sF8L5jTtzE96r66Sf8cka9y44wdpJjMwCxR3tzLh3ibVPxh+.((("secret key")))((("private key", see="secret key")))
Segregated Witness::
Segregated Witness is a proposed upgrade to the Bitcoin protocol which technological innovation separates signature data from Bitcoin transactions. Segregated Witness is a proposed soft fork; a change that technically makes Bitcoin’s protocol rules more restrictive. ((("Segregated Witness")))
@ -223,10 +223,10 @@ Stale Block::
Block which were successfully mined but which isn’t included on the current best block chain, likely because some other block at the same height had its chain extended first. ((("Stale Block")))
timelocks::
A Timelock is a type of encumbrance that restricts the spending of some bitcoins until a specified future time or block height. Timelocks feature prominently in many Bitcoin contracts, including payment channels and hashed timelock contracts. ((("timelocks")))
A Timelock is a type of encumbrance that restricts the spending of some bitcoin until a specified future time or block height. Timelocks feature prominently in many Bitcoin contracts, including payment channels and hashed timelock contracts. ((("timelocks")))
transaction::
In simple terms, a transfer of bitcoins from one address to another. More precisely, a transaction is a signed data structure expressing a transfer of value. Transactions are transmitted over the bitcoin network, collected by miners, and included into blocks, made permanent on the blockchain.((("transaction")))
In simple terms, a transfer of bitcoin from one address to another. More precisely, a transaction is a signed data structure expressing a transfer of value. Transactions are transmitted over the bitcoin network, collected by miners, and included into blocks, made permanent on the blockchain.((("transaction")))
Transaction Pool::
An unordered collection of transactions that are not in blocks in the main chain, but for which we have input transactions. ((("transaction pool")))
Will Binns
7 years ago
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