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82 lines
3.8 KiB
Plaintext
82 lines
3.8 KiB
Plaintext
=== Quick Glossary
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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 and clarification.
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address::
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((("bitcoin address")))
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((("address", see="bitcoin address")))
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((("public key", see="bitcoin address")))
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A bitcoin address looks like +1DSrfJdB2AnWaFNgSbv3MZC2m74996JafV+. It consists of a string of letters and numbers starting with a "1" (number one). Just like you ask others to send an email to your email address, you would ask others to send you bitcoin to your bitcoin address.
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bip::
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((("bip")))
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Bitcoin Improvement Proposals. A set of proposals that members of the bitcoin community have submitted to improve bitcoin. For example, BIP0021 is a proposal to improve the bitcoin URI scheme.
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bitcoin::
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((("bitcoin")))
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The name of the currency unit (the coin), the network, and the software.
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block::
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((("block")))
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A grouping of transactions, marked with a timestamp, and a fingerprint of the previous block. The block header is hashed to find a Proof-Of-Work, thereby validating the transactions. Valid blocks are added to the main blockchain by network consensus.
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blockchain::
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((("blockchain")))
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A list of validated blocks, each linking to its predecessor all the way to the genesis block.
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confirmations::
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((("confirmations")))
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Once a transaction is included in a block, it has "one confirmation." As soon as _another_ block is mined on the same blockchain, the transaction has two confirmations, etc. Six or more confirmations is considered sufficient proof that a transaction cannot be reversed.
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difficulty::
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((("difficulty")))
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A network-wide setting that controls how much computation is required to find a Proof-Of-Work.
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difficulty target::
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((("target difficulty")))
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A difficulty at which all the computation in the network will find blocks approximately every 10 minutes.
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difficulty re-targeting::
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((("difficulty re-targeting")))
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A network-wide recalculation of the difficulty that occurs once every 2,106 blocks and considers the hashing power of the previous 2,106 blocks.
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fees::
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((("fees")))
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The sender of a transaction often includes a fee to the network for processing the requested transaction. Most transactions require a minimum fee of 0.5mBTC.
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hash::
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((("hash")))
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A digital fingerprint of some binary input.
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genesis block::
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((("genesis block")))
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The first block in the blockchain, used to initialize the crypto-currency.
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miner::
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((("miner")))
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A network node that finds valid Proof-Of-Work for new blocks, by repeated hashing.
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network::
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((("network")))
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A peer-to-peer network that propagates transactions and blocks to every bitcoin node on the network.
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Proof-Of-Work::
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((("proof-of-work")))
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A piece of data that requires significant computation to find. In bitcoin, miners must find a numeric solution to the SHA256 algorithm that meets a network-wide target, the difficulty target.
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reward::
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((("reward")))
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An amount included in each new block as a reward by the network to the miner who found the Proof-Of-Work solution. It is currently 25BTC per block.
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secret key (aka private key)::
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((("secret key")))
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((("private key", see="secret key")))
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The secret number that unlocks bitcoins sent to the corresponding address. A secret key looks like +5J76sF8L5jTtzE96r66Sf8cka9y44wdpJjMwCxR3tzLh3ibVPxh+.
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transaction::
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((("transaction")))
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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.
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wallet::
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((("wallet")))
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Software that holds all your bitcoin addresses and secret keys. Use it to send, receive, and store your bitcoin. |