Blockchain – a database, in which all Bitcoin (or other cryptocurrency) transactions are recorded chronologically and publicly.
Consensus algorithm – an algorithm that defines the way a consensus is reached on the network to verify the transactions.
Cryptocurrency wallet – an application that generates private keys and addresses and signs transactions.
Custodial – where the funds are controlled by someone else than the user.
Cryptographic hash function – an algorithm that is used to calculate a fixed-sized digest of a piece of data.
Decentralized – a system with no central points of failure or control.
Decentralized applications (dApps) – applications built on a decentralized blockchain.
Distributed ledger – a type of database that is spread across the multiple peers where the records are verified and stored simultaneously.
Digital signature – an electronic signature of a piece of data.
Fork – splitting of a cryptocurrency network into two separate valid networks.
Halving – the date on which the amount of newly created bitcoins (or other crypto coins) gets reduced in half.
Mining – a process during which cryptocurrency transactions are confirmed and new cryptocurrency units are created.
Proof-of-Stake – a method to secure blockchain transactions by using cryptocurrency units; less secure than proof-of-work.
Proof-of-Work – a method to secure blockchain transactions by using computing power.
Private key – a unique piece of information, which allows signing of transactions.
Smart contracts – a set of mathematical rules outlining a coded script that can be embedded into the blockchain to govern transactions.