📖 Bitcoin Glossary
Essential Bitcoin and blockchain terms explained simply.
A
Address
A string of letters and numbers where Bitcoin can be sent. Like an email address for Bitcoin.
Austrian Economics
School of economic thought emphasizing sound money, free markets, and individual sovereignty. Heavily influenced Bitcoin's design.
B
Bitcoin (uppercase)
The protocol and network.
bitcoin (lowercase)
The currency unit (BTC).
Blockchain
A distributed ledger of all Bitcoin transactions, linked together in blocks using cryptographic hashes.
Block
A group of transactions bundled together and added to the blockchain.
C
Cantillon Effect
Economic phenomenon where new money benefits those closest to its creation first, increasing inequality.
Censorship Resistance
Bitcoin's ability to process transactions without permission from any authority.
Consensus
Agreement among network participants on the state of the blockchain.
D
Decentralization
No single entity controls Bitcoin - it's run by thousands of independent nodes.
Double-Spend Problem
The challenge of preventing digital money from being spent twice. Bitcoin solved this.
F
Fiat Money
Government-issued currency not backed by physical commodities (like gold). Examples: USD, EUR.
G
Genesis Block
The first block in the Bitcoin blockchain, mined by Satoshi Nakamoto on January 3, 2009.
H
Hash
A unique digital fingerprint created by SHA-256 algorithm. Changes completely if input changes even slightly.
Halving
Event every 210,000 blocks (~4 years) where mining rewards are cut in half.
K
Keys
Private key: Secret code that proves ownership. Public key: Derived from private key, used to receive Bitcoin.
M
Mining
Process of solving complex math puzzles to add new blocks to the blockchain and secure the network.
Mempool
Waiting area for unconfirmed transactions before they're added to a block.
N
Node
A computer running Bitcoin software that validates and relays transactions.
P
Peer-to-Peer (P2P)
Direct transactions between users without intermediaries.
Permissionless
Anyone can use Bitcoin without asking permission or providing ID.
Proof-of-Work
Mining mechanism that requires computational work to add blocks, making attacks expensive.
Q
Quarks
Bitcoin Arcade's reward currency. Earn by completing lessons and playing games.
S
Satoshi
Smallest unit of Bitcoin (0.00000001 BTC). Named after Bitcoin's creator.
Satoshi Nakamoto
Pseudonymous creator of Bitcoin. Real identity unknown.
SHA-256
Cryptographic hash function used by Bitcoin to create unique fingerprints of data.
Sound Money
Money that is scarce, durable, divisible, portable, and verifiable. Bitcoin embodies these properties.
T
Transaction
Transfer of Bitcoin from one address to another, recorded on the blockchain.
W
Wallet
Software that stores your private keys and allows you to send/receive Bitcoin.
Whitepaper
Satoshi's 9-page document "Bitcoin: A Peer-to-Peer Electronic Cash System" published October 31, 2008.
21 Million
21 Million Cap
Hard-coded maximum supply of Bitcoin. No more can ever be created.