A
Account-based vs UTXO Model
The account-based model (used by Ethereum) maintains a global balance for each user’s address, making transactions appear like transfers between accounts. Bitcoin’s UTXO (Unspent Transaction Output) model, however, breaks transactions into distinct units called UTXOs. Each UTXO is either fully spent or remains unspent until it’s used. The UTXO model provides greater privacy and more straightforward validation, as every input in Bitcoin has a clear source, facilitating better tracking and eliminating double-spending issues.
Address Derivation Path
Address Reuse
Alert Key
Anchoring
Anti-DoS Mechanisms
Asymmetric Cryptography (related to Bitcoin key pairs)
Atomic Broadcast
Autonomy of Nodes
Autopilot Protocol (Lightning Network)
B
Base58Check Encoding
Base58Check is an encoding format used to represent Bitcoin addresses, consisting of a set of 58 alphanumeric characters that exclude easily confusable characters (like 0, O, l, and I). It includes a checksum to detect input errors, reducing the risk of mistyped addresses. Base58Check encoding is primarily used for human-readable addresses, making them easier to handle and minimizing the possibility of mistakes when copying or typing Bitcoin addresses manually.
Batching (Bitcoin transactions)
Bech32 (Bitcoin address format)
BIP (Bitcoin Improvement Proposal)
BIP 32 Key Hierarchy
BIP 44 Path
Bitnodes
Bitcoin Core
Blind Signatures (Bitcoin mixing)
Block Reward Halving
Block Template
Bloom Filters (used in SPV nodes)
C
Chain Reorganization
Chain reorganization occurs when the Bitcoin network replaces blocks from the blockchain to resolve conflicting versions. This typically happens when two miners find valid blocks simultaneously, creating a temporary fork. Nodes adopt the longest chain, causing one set of blocks to be discarded and transactions to be re-mined. Chain reorganization can potentially lead to double-spending risks if a confirmed transaction becomes part of an abandoned block.
Chaincode (extended public keys in Bitcoin)
CheckLockTimeVerify (CLTV)
CheckSequenceVerify (CSV)
CheckTemplateVerify (CTV)
Child Pays for Parent (CPFP)
Coinbase Transaction
Colored Coins (Bitcoin-based assets)
CoinJoin (Bitcoin privacy)
Cold Storage (Bitcoin)
Compact Blocks
Compact-Sized Integer (Bitcoin protocol)
Confidential Transactions (Bitcoin sidechains)
Convergence in Consensus (Bitcoin)
CPFP Carving (Bitcoin fee replacement)
Cryptocurrency Mixer (related to Bitcoin)
D
Depth of Chain (Bitcoin)
The depth of a chain refers to the number of blocks between a specific block and the most recent block in the Bitcoin blockchain. For instance, if a block has a depth of 100, it means there are 100 subsequent blocks on top of it. The depth indicates how secure and confirmed a block is, as more confirmations make a block increasingly difficult to replace, thereby reducing the chances of reorganization or double-spending.
Deterministic RNG (Random Number Generator for Bitcoin)
Deterministic Wallet (Bitcoin HD wallet)
Difficulty Retargeting
Discreet Log Contracts (DLC)
Distributed Timestamp Server (Bitcoin concept)
Double-SHA256 (Bitcoin hashing)
Dust Limit (Bitcoin transaction limit)
Dust Transactions (Bitcoin)
E
Electrum Wallet
Electrum Wallet is a lightweight Bitcoin wallet known for its speed, simplicity, and security. It uses Simplified Payment Verification (SPV) to verify transactions, meaning it does not require downloading the entire blockchain. Electrum allows users to generate HD (Hierarchical Deterministic) wallets, which makes backups simple via seed phrases. It also supports advanced features like multi-signature and cold storage, making it suitable for both beginners and advanced users.
Elliptic Curve Digital Signature Algorithm (ECDSA)
Entropy (Bitcoin wallet generation)
Entropy Source (Bitcoin key generation)
Extended Private Key (xPrv)
Extended Public Key (xPub)
Extrinsic Incentive (Bitcoin network)
F
Faucet (Bitcoin testnets)
A Bitcoin faucet is a service that gives out small amounts of Bitcoin, typically used on testnets to help developers and users experiment with transactions without using real funds. Testnet faucets provide free testnet Bitcoin, allowing developers to test applications, experiment with scripts, or simulate transactions in a risk-free environment. Faucets play an important role in ensuring accessibility to testnet coins without monetary cost, enabling robust testing before deployment on the main network.
Federated Sidechain (e.g., Liquid Network for Bitcoin)
Fee Estimation (Bitcoin transaction fees)
Full Node (Bitcoin)
Fully Noded Wallet (Bitcoin)
G
GPG Key (used in Bitcoin ecosystem)
A GPG key (GNU Privacy Guard) is a cryptographic key used in the Bitcoin ecosystem for secure communication, code signing, and verifying authenticity. Developers use GPG keys to sign Bitcoin software releases, allowing users to verify the integrity of the downloaded code. GPG keys ensure that the software is legitimate and has not been tampered with, providing a secure method for maintaining trust in the Bitcoin community and software development process.
Gossip Protocol (Bitcoin peer-to-peer)
GreenAddress (Bitcoin wallet)
H
Hardware Wallets (for Bitcoin storage)
A hardware wallet is a physical device used to store Bitcoin securely by keeping private keys offline. These wallets are designed to prevent unauthorized access, making them highly resistant to hacking and malware. Examples include Ledger and Trezor wallets. Hardware wallets are ideal for long-term storage as they reduce exposure to online threats, providing a secure way to manage Bitcoin holdings with an added layer of physical security.
Hash Function Output Length (Bitcoin SHA-256)
Hash Time-Locked Contracts (HTLC, used in Bitcoin)
Hashrate (Bitcoin mining)
Hierarchical Deterministic Wallet (HD Wallet)
Hierarchical Security Model (Bitcoin wallets)
Hot Wallet (Bitcoin storage)
Hybrid Wallet (Bitcoin)
I
Inbound Peer (Bitcoin nodes)
An inbound peer is a node that initiates a connection to another Bitcoin node to share information, such as transactions and blocks. Inbound peers are crucial for maintaining the Bitcoin network's decentralized structure, as they help propagate data across nodes and ensure redundancy. Full nodes typically allow a limited number of inbound connections to maintain network security while ensuring that the blockchain is distributed effectively across multiple network participants.
Input Script (Bitcoin transactions)
Instant Finality (related to Bitcoin Lightning Network)
Instant Payments (Bitcoin Lightning Network)
Invoice Metadata (Lightning Network)
Invoice Payment Protocol (Bitcoin)
Involuntary Chain Split (Bitcoin forks)
J
JoinMarket (Bitcoin privacy tool)
JoinMarket is an open-source privacy tool that facilitates CoinJoin transactions to improve Bitcoin transaction privacy. It connects users wanting privacy with those willing to provide liquidity in exchange for a fee, creating mixed transactions that obfuscate the link between inputs and outputs. JoinMarket is unique in its market-driven approach to incentivizing liquidity providers, making privacy more accessible while ensuring transaction participants' identities and coin flows remain difficult to trace.
JIT Compiler (related to Bitcoin smart contracts)
Juggling Outputs (Bitcoin privacy enhancement)
K
Key Regeneration (Bitcoin wallets)
Key regeneration is the process of generating new private-public key pairs in Bitcoin wallets, usually derived from an original seed phrase. With Hierarchical Deterministic (HD) wallets, users can regenerate all past and future keys from the same root seed. This makes wallet recovery easy if a user loses their wallet but still has the seed phrase, ensuring they can regain access to their Bitcoin holdings without compromising security.
Key Stretching (Bitcoin key security)
Keypool (Bitcoin wallet)
Knowledge Proof of Reserves (Bitcoin audit)
L
Libbitcoin (Bitcoin library)
Libbitcoin is an open-source Bitcoin development library that provides tools for building Bitcoin applications. It offers a set of APIs and utilities for developers to create wallets, nodes, and other services interacting with the Bitcoin blockchain. Designed for flexibility and scalability, Libbitcoin facilitates easy integration of Bitcoin functionality in custom applications, making it a valuable resource for developers building bespoke Bitcoin-related software beyond the capabilities of standard Bitcoin Core.
Lightning Atomic Swaps (Bitcoin)
Lightning Channel (Bitcoin scaling solution)
Lightning HTLC Routing (Bitcoin)
Lightning Network Daemon (LND)
Liquid Sidechain (Bitcoin)
LN Penalty (Lightning Network penalty mechanism)
Locktime (Bitcoin transaction)
Logarithmic Difficulty Adjustment (Bitcoin)
Loop In/Out (Lightning Network liquidity service)
M
Master Public Key (Bitcoin HD wallet)
A master public key in a Hierarchical Deterministic (HD) Bitcoin wallet allows users to derive an entire series of public keys and addresses without exposing the master private key. This is especially useful for tracking transactions and receiving payments securely, as it permits the creation of new receiving addresses while keeping private keys offline, which enhances privacy and reduces the risk of key compromise.
Mempool Priority (Bitcoin transactions)
Merkle Block (Bitcoin SPV proof)
Merkle Proof Path (Bitcoin transaction verification)
Merged Mining (Bitcoin-compatible altcoins)
Mini Private Key (Bitcoin wallet)
Mixer Services (Bitcoin privacy)
Multisig Script (Bitcoin multisignature transactions)
Multi-Party Computation (specific to Bitcoin security)
Multisignature Redeem Script (Bitcoin)
N
Nakamoto Consensus
Nakamoto Consensus is the consensus mechanism used by Bitcoin, combining Proof of Work (PoW) with economic incentives to maintain the integrity of the blockchain. Miners solve complex computational puzzles to propose new blocks, and the longest chain with the most accumulated work is considered the valid chain. Nakamoto Consensus ensures the network’s security and prevents double-spending by requiring significant computational effort for modifying past transactions.
Network Consensus (Bitcoin nodes)
Network Round-Trip Time (RTT, Bitcoin network)
Node Incentives (Bitcoin)
Node Propagation (Bitcoin network)
Non-Interactive Proofs (Bitcoin verification)
Non-Standard Transactions (Bitcoin protocol)
Nonce Incremental Search (Bitcoin mining)
NLockTime (Bitcoin transactions)
O
One-Time Address (Bitcoin privacy)
A one-time address is a Bitcoin address that is used only once to receive a transaction. By generating a new address for each transaction, users can significantly enhance their privacy. This method prevents blockchain observers from linking multiple transactions to the same address, making it more difficult to trace the movement of funds and deduce personal information, thereby improving the anonymity of users engaging in Bitcoin transactions.
Onion Routing (Bitcoin transaction privacy)
Open-Source Cryptography Libraries (used in Bitcoin)
OpenTimestamps (Bitcoin timestamping)
OP_RETURN (Bitcoin script)
Orphan Block (Bitcoin mining)
Output Descriptor (Bitcoin wallet)
Output Script Encoding (Bitcoin transactions)
Overlay Network (Bitcoin)
P
P2P Encryption Layer (Bitcoin network)
The Peer-to-Peer (P2P) encryption layer in the Bitcoin network is responsible for securing communication between nodes. This layer uses cryptographic protocols to encrypt data, ensuring that transactions, blocks, and other messages exchanged between nodes remain confidential and resistant to eavesdropping or tampering. P2P encryption helps maintain privacy, protects against network attacks, and ensures the integrity of messages as they propagate across the decentralized Bitcoin network
P2PK (Pay-to-PubKey, Bitcoin)
P2SH (Pay-to-Script Hash, Bitcoin)
Payment Channel (Lightning Network)
PayJoin (Bitcoin privacy)
Payment Points (Lightning Network)
Peer Discovery Protocol (Bitcoin)
Phantom Chains (Bitcoin)
Pooled Mining (Bitcoin mining)
Pre-signed Transaction Broadcast (Bitcoin)
Preimage (Bitcoin HTLC)
Proof of Burn (specific to Bitcoin)
Public Auditability (Bitcoin)
Pseudonymous Identity (Bitcoin usage)
Q
Quantitative Tightening (Bitcoin supply control)
Quantitative Tightening in Bitcoin refers to the fixed and deflationary nature of Bitcoin’s supply schedule, in which the total number of bitcoins is capped at 21 million. Unlike traditional monetary systems that may use quantitative tightening to reduce money supply, Bitcoin’s supply control is embedded in its protocol through halving events every four years, reducing the block reward by half, effectively tightening supply and creating scarcity over time.
Quantum Hardness (Bitcoin security)
Quantum Proofing Techniques (Bitcoin)
Quantum-Resistant Cryptography (Bitcoin future-proofing)
Queryable State (Bitcoin blockchain)
Quorum of Nodes (Bitcoin)
Quorum Slices (Bitcoin network)
R
Raiden Network Protocol (related to Bitcoin Lightning)
The Raiden Network Protocol is an Ethereum-based scaling solution similar in function to Bitcoin's Lightning Network. Although it is specific to Ethereum, it provides a comparable approach for enabling off-chain transactions, thereby reducing congestion on the main blockchain. In Bitcoin’s context, the Lightning Network fulfills the same purpose—facilitating quick, low-cost payments off-chain by creating secure payment channels between participants.
Randomized Path Selection (Bitcoin privacy)
Rate Limiting (SPV Nodes, Bitcoin)
Redeem Script (Bitcoin)
Regtest (Regression Testing Mode, Bitcoin)
Remote Procedure Call (RPC) Interface (Bitcoin node communication)
Replace-by-Fee (RBF, Bitcoin)
Replay Protection (Bitcoin forks)
Restoring Wallet from Mnemonic (Bitcoin wallets)
RFC6979 Deterministic Signatures (Bitcoin ECDSA)
Ring Signatures (Bitcoin privacy)
Routing Fees (Lightning Network)
S
Satoshi (Bitcoin unit)
A satoshi is the smallest unit of Bitcoin, equivalent to 0.00000001 BTC (one hundred-millionth of a Bitcoin). Named after Bitcoin's creator, Satoshi Nakamoto, this unit is used to facilitate microtransactions and represent very small amounts of Bitcoin. As the value of Bitcoin grows, satoshis are increasingly used in day-to-day transactions to make smaller payments more practical and understandable in comparison to using fractions of a Bitcoin.
Schnorr Signature (Bitcoin signature scheme)
Script Verification Cost (Bitcoin)
ScriptPubKey (Bitcoin)
Seed Entropy Bits (Bitcoin wallets)
Seed Phrase (Bitcoin wallet recovery)
Segregated Witness Script Versioning (SegWit, Bitcoin)
Signature Aggregation (Bitcoin multisig)
Signature Witness Stack (Bitcoin transactions)
Simple Payment Verification (SPV, Bitcoin)
Soft Fork (Bitcoin upgrade)
SPV Wallets (Bitcoin)
Stale Block Rate (Bitcoin mining)
State Channels (Bitcoin Lightning Network)
Static Channel Backup (Lightning Network)
Stealth Address (Bitcoin privacy)
Submarine Swaps (Bitcoin Lightning)
T
Taproot (Bitcoin upgrade)
Taproot is a major Bitcoin protocol upgrade that enhances privacy, efficiency, and flexibility by introducing a new scripting feature called Schnorr signatures. Taproot allows complex transactions, such as multi-signature contracts, to look like standard transactions on-chain, improving privacy. It also enables smaller transaction sizes, reducing fees, and allows for more complex smart contracts. Taproot was implemented to enhance scalability, user privacy, and broaden Bitcoin's potential use cases.
Threshold Signatures (Bitcoin)
Timelock (Bitcoin transactions)
Tor Hidden Services (Bitcoin privacy)
Tor V3 Nodes (Bitcoin privacy)
Transaction Clustering Analysis (Bitcoin privacy)
Transaction Graph Privacy (Bitcoin)
Transaction Malleability (Bitcoin)
Transaction Pool (Bitcoin mempool)
Transaction Size Limit (Bitcoin protocol)
Two-Factor Authentication (2FA) Wallet (Bitcoin)
U
Unconfirmed Transaction (Bitcoin)
An unconfirmed transaction is a Bitcoin transaction that has been broadcast to the network but has not yet been included in a block by a miner. Transactions remain in the mempool until they are confirmed, which typically depends on the offered transaction fee and current network congestion. Unconfirmed transactions are at risk of being delayed or replaced (e.g., via Replace-by-Fee), and they are not fully secure until confirmed by several blocks.
Unilateral Close (Lightning Channel)
Universal Basic Income (UBI) Token (Bitcoin-related experiment)
Unspent Transaction Output (UTXO Set)
URI Scheme for Bitcoin (bitcoin:)
V
Vanity Address Generation (Bitcoin)
Vanity address generation involves creating a Bitcoin address that contains a recognizable pattern, such as a name or specific sequence of characters. This process requires brute-force computation to find a public-private key pair that matches the desired address prefix, making it computationally expensive. Vanity addresses are often used for marketing or personalization purposes but come with privacy risks if not generated securely, as the key generation process can be vulnerable to compromise.
Vanity Generation Service (Bitcoin)
Verification Script (Bitcoin)
Verifiable Delay Functions (VDF, Bitcoin)
Verifiable Delay Signature (VDS, Bitcoin)
Z
Zerocoin Minting Process (Bitcoin privacy concept)
The Zerocoin minting process was an experimental privacy protocol initially proposed as an extension to Bitcoin to enhance anonymity. In this process, users could "mint" a Zerocoin by converting their bitcoins into a special coin that would later be redeemed, breaking the link to the original transaction. By doing so, it would effectively anonymize the transaction history. Though not implemented in Bitcoin, this concept later evolved into privacy-focused cryptocurrencies like Zcoin.