Begriffe in Bezug auf Bitcoin-Nutzung
If you are interested in bitcoins, it is important to be familiar with the terms and conditions related to bitcoin usage. Jumping on the Bitcoin train without any knowledge or expertise about cryptocurrencies can prove to be a huge mistake. Here are some of the most common terms used in connection with Bitcoins:
• Blockchain:You cannot understand the Bitcoin without knowing what a blockchain is. Every transaction in bitcoins is registered in a general ledger account that is transparent and can be accessed and viewed by anyone and everyone. That ledger is the blockchain and it is the technology that Bitcoin was founded on. Every transaction on this blockchain is verified by a group of miners or a network of nodes rather than a single organization.
• Block:A block is an integral part of this blockchain and is used to refer to records. A block records the latest transactions, which are checked almost every 10 minutes. All blocks are connected to create a blockchain and data entered here cannot be edited or tampered with.
• Decentralization: Bitcoin is a decentralized currency, which means that it is neither issued nor regulated by a central bank or institution. It depends on a peer-to-peer protocol where the work is divided among those who own bitcoins. Users need to communicate with each other rather than going through a third-party organization.
• Cryptography:This relates to creating codes and is the very foundation for the Bitcoin. Cryptography makes this crypto asset anonymous. All data is recorded in an encrypted format; It can only be decrypted by the recipient. So nobody can access the information.
• Satoshi: This refers to Bitcoin’s smallest unit and the word comes from Satoshi Nakamoto, who was responsible for creating Bitcoin. The word was introduced when Bitcoin’s whitepaper was published a decade ago. He described a decentralized peer-to-peer payment system that aimed to solve double-spend problems and make transactions affordable and secure.
• Mining:This is the process by which Bitcoin transactions are verified. It involves the use of specialized computer hardware to perform complex mathematical calculations. This is done to verify the authenticity of transactions in order to confirm them. Read the review to trade cryptocurrency autonomously.
• Private Key: This is similar to a password used for online payment gateways. In bitcoins, they are private keys that you can use to send or receive bitcoins to or from your wallet. It is a cryptographic signature that must be kept hidden.
• Cold storage:When you keep your bitcoins safe in offline storage, it’s called cold storage. It’s exactly the backside of online or hot storage where you need to stay online for transactions. Offline storage can be done through paper wallets, USB drives, etc.
• Double expenses:This is what Bitcoin is trying to solve and it means spending the same amount of money twice. In digital currency, money appears as bits and replicating them is easy; So double spending is definitely an option. But since bitcoin transactions are verified by miners, this cannot happen. If you try to double the spend, both records will be stored on the blockchain and once the first is verified; the miner automatically invalidates the second.