Imagine a website giving out tiny amounts of Bitcoin for doing tasks like filling out surveys or clicking ads. It’s like getting free samples at a store, but with Bitcoin.

A block is like a page in a record book. For example, each block contains multiple Bitcoin transactions that occurred within a set period, and it gets added to the blockchain.

If you think of the blockchain as a staircase, the block height is how many steps (or blocks) have been added since the very first step. For example, "Block height 1000" means it’s the 1,000th block since the start.

Block time is the average time it takes to add a new block. In Bitcoin, this usually takes about 10 minutes. It’s like waiting 10 minutes for a new page to be written in the blockchain ledger.

The blockchain is like a digital public ledger that records every Bitcoin transaction. For instance, if Alice sends Bob 1 Bitcoin, it gets recorded permanently on the blockchain for everyone to see.

A cold wallet stores Bitcoin offline for added security. For example, a USB stick holding your Bitcoin keys kept in a safe is considered a cold wallet because it’s not connected to the internet.

This is like waiting for a check to clear after making a payment. In Bitcoin, it takes time for a transaction to be added to the blockchain and confirmed by miners.

When a transaction is added to a block, it has one confirmation. The more confirmations it receives (e.g., six confirmations), the more secure the transaction becomes against reversal.

Bitcoin is an example of a cryptocurrency, which is digital money that relies on cryptographic techniques for security. It’s like digital cash that you can store and spend electronically.

A cryptographic key is like a digital key that locks and unlocks your Bitcoin transactions. For instance, a public key can be shared to receive Bitcoin, but only the private key can unlock and spend it.

Mining difficulty changes to ensure blocks are mined about every 10 minutes. For example, if more miners join and it gets easier, the network will make it harder to maintain the balance.

Double spending means attempting to spend the same Bitcoin twice. For instance, if Alice tries to use her Bitcoin to pay both Bob and Charlie, the blockchain prevents this by verifying only one valid transaction.

This is a problem that Bitcoin prevents. If Alice tries to send the same Bitcoin to Bob and Charlie, only one transaction will be accepted, avoiding fraud.

Dust refers to an amount of Bitcoin so small it’s not worth spending, like having 0.00001 BTC when transaction fees are higher. It’s similar to having pennies that cost more to spend than their actual value.

A fork is when Bitcoin’s network splits into two versions. For example, Bitcoin Cash was created from a fork of Bitcoin in 2017, due to disagreements on how to scale the network.

A full node stores a complete copy of the blockchain and helps verify transactions. For instance, running a Bitcoin Core full node at home allows you to contribute to keeping the network decentralized.

An HSM is a physical device for storing cryptographic keys. For example, banks use HSMs to secure Bitcoin private keys from hackers, like locking up important keys in a digital vault.

A hardware wallet, like a Ledger or Trezor, stores your Bitcoin offline. It’s like keeping your cash in a physical safe to protect it from online hackers.

A hash is like a digital fingerprint. For example, every block has a unique hash that represents all the transactions inside. If anything changes, the hash also changes, which helps prevent tampering.

An HD wallet generates many Bitcoin addresses from a single seed phrase. For example, if you want to receive payments repeatedly, an HD wallet will keep generating new addresses while staying under one account.

The Lightning Network is like a fast track for Bitcoin transactions. It allows small payments to be made instantly off-chain, reducing wait times and costs.

The mempool is where pending Bitcoin transactions wait before being confirmed. For example, it’s like the waiting room before miners pick which transactions to add to the next block.

A miner uses specialized equipment to solve puzzles, adding transactions to the blockchain and earning rewards. For example, miners verify that Alice’s payment to Bob is valid before adding it to the blockchain.

Mining involves solving complex math problems to secure the network and confirm transactions. For example, miners compete to add the next block and earn Bitcoin as a reward.

A mnemonic phrase is a list of 12-24 words that backs up your wallet. For example, if you lose access to your wallet, using the phrase lets you restore your Bitcoin.

A node is a computer connected to the Bitcoin network that helps validate and relay transactions. For example, every time Alice sends Bitcoin to Bob, nodes across the world check and verify the transaction.

An orphaned transaction is one that hasn’t been confirmed yet, often due to network issues. It’s like an email stuck in your outbox—it’s valid, but it hasn’t been sent successfully.

A private key is a secret code needed to access your Bitcoin. For example, it’s like a password that unlocks access to your funds. Anyone with your private key can spend your Bitcoin

Proof of Work is a system that miners use to secure Bitcoin by solving puzzles. It’s like proving you’ve done a lot of hard work before you can get the reward.

A public key is like your Bitcoin receiving address. For example, you share your public key so others can send you Bitcoin, but they cannot use it to take your Bitcoin.

A replay attack is when someone repeats a transaction on another chain without permission. For example, if Bitcoin forks, a transaction on one chain could be copied to the other, leading to unintended consequences.

Miners get rewarded with Bitcoin for adding a new block. For example, after solving a cryptographic puzzle, a miner might receive 6.25 Bitcoin for their work.

Script is a programming language used to set conditions for Bitcoin transactions. For instance, a multi-signature script may require both Alice and Bob to approve a transaction before it goes through.

ScriptSig is part of a Bitcoin transaction that shows you have the authority to spend the coins. It’s like proving your identity with a signature when cashing a check.

A digital signature proves a transaction is authorized by the rightful owner. For example, signing a transaction with your private key shows it was indeed authorized by you.

SegWit is an upgrade that moved signature data outside of transaction data, allowing more transactions per block. It’s like storing your luggage separately so more passengers can fit into a bus.

A soft fork is an update to Bitcoin’s software that is backward-compatible. For instance, older nodes can still recognize new blocks even if they don’t use the updated software.

SPV lets you verify Bitcoin transactions without downloading the entire blockchain. For example, it’s like verifying your bank balance without looking at all past transactions.

Bitcoin’s total supply is capped at 21 million coins. For instance, unlike the dollar, which can be printed without limit, Bitcoin is designed to be finite, similar to gold.

A transaction is the act of transferring Bitcoin between two addresses. For example, sending 0.5 BTC to Bob records that amount on the blockchain as being transferred from you to him.

A fee paid to miners to process your transaction. For example, you might pay a higher fee if you want your transaction confirmed more quickly during busy times.

Bitcoin is trustless, meaning users don’t need to trust each other to make transactions. The blockchain’s transparency ensures everyone plays by the same rules.

A Bitcoin wallet that requires two steps to verify identity. For example, it may ask for your password and a code sent to your phone to keep your funds more secure.

Vanity addresses are customized Bitcoin addresses with specific characters. For example, "1LoveBTC…" could be generated for personal branding or fun.