A text or notification sent to users to verify their identity or transaction details when using cryptocurrency wallets for security purposes.
A bank that supports cryptocurrency transactions and services, allowing customers to buy, sell, and use digital currencies with ease and compliance.
Cursor pagination is an API paging method that uses opaque position tokens (cursors) instead of page numbers to fetch the next/previous slice of blockchain data—e.g., transactions, blocks, or addresses—providing stable, efficient traversal even as new entries arrive.
The process of distributing control and decision-making from a central authority to a network of independent participants.
A unique, self-sovereign digital ID allowing users to control personal information without relying on centralized authorities, enhancing privacy and security online.
A derivation path is a structured sequence used in cryptocurrency wallets to generate a series of keys from a single master key.
A descriptor wallet is a type of cryptocurrency wallet that uses output descriptors to define and manage how keys and scripts are generated and organized, enhancing flexibility and security.
Hierarchical Deterministic Wallet (HD Wallet) is a cryptocurrency wallet that generates all keys and addresses from a single seed, ensuring easy backup.
Device fingerprinting: collecting unique hardware, software, and network attributes from a wallet user’s device (browser, OS, plugins, screen, IP, etc.) to identify or track them across sessions; used for fraud detection but threatens Bitcoin user privacy and pseudonymity.
Bitcoin's network automatically changes the mining difficulty roughly every two weeks to ensure a block is mined approximately every 10 minutes.
Digital currencies, tokens, and other blockchain-based assets that can be owned, transferred, or used in online transactions and electronic commerce.
A digital wallet securely stores personal identification information on electronic devices, allowing user verification and authentication for online transactions and services.
A digital code generated by public key encryption used to verify the authenticity and integrity of a digital message or transaction.
Processes and tools to handle transaction disagreements in Bitcoin ecosystems, including escrow, multisig arbitration, fraud reviews, refund policies, and mediation for merchants, exchanges, or Lightning payments without chargebacks.
A distributed system organizing data across multiple nodes for efficient storage and retrieval, using hash functions to allocate and locate data items.
A DNS Seed is a server that provides a list of active nodes or peers within a cryptocurrency network, helping new clients to quickly connect to the network.
Using the Bitcoin blockchain to prove a document’s existence and integrity by hashing it and embedding the hash in a transaction; later, anyone can verify timestamp and immutability without exposing the document’s contents.
It refers to the period when a cryptocurrency wallet or account has no activity or transactions for an extended time.
Occurs when a digital currency is spent more than once due to issues like network delay or fraud, undermining trust in transactions.
Dual funding refers to a financial arrangement where two parties simultaneously allocate funds to a transaction or project, often used in digital payment systems to ensure security and commitment from both sides.
A dust attack is a type of cyberattack in cryptocurrency where a small amount of coins or tokens are sent to multiple wallet addresses to trace transactional behavior and de-anonymize users.
The minimum transaction amount below which a transaction is considered uneconomical due to fees, often used to prevent spam on the Bitcoin network.
An Eclipse Attack is a type of cyberattack on a blockchain network where an attacker gains control of a node's incoming and outgoing connections to isolate it from the rest of the network.
Eltoo is a Bitcoin protocol proposal ensuring smooth, simple channel updates by replacing old states with new ones using a single transaction structure.
Encryption uses algorithms to transform data into a secure format, ensuring only authorized parties can access the original information, crucial for digital security.
Erlay is a protocol designed to improve the efficiency and privacy of transaction relay in the Bitcoin network by reducing bandwidth usage.
A trusted third party holds and releases funds or assets to parties involved in a transaction once specific conditions are met.
ETag is an HTTP response header used by Bitcoin Core’s REST and other blockchain APIs to identify resource versions (e.g., blocks/txs), enabling caching and conditional GETs.
Exponential backoff: a retry strategy where a node increases the wait time between repeated attempts (typically doubling each time, with randomness and a maximum). Used in Bitcoin networking (e.g., reconnections, message retries) to reduce congestion, avoid DoS, and stabilize the network.
A secondary cryptocurrency address used if the primary address becomes inaccessible, ensuring funds can still be accessed or transactions completed.
A fee is a charge by a service provider for processing transactions or using a platform, often seen in cryptocurrency exchanges and fintech services.
It calculates the optimal transaction fee needed for timely processing based on current network congestion and historical fee data in blockchain systems.
Fee sniping is a practice where miners prioritize transactions with higher fees to maximize their earnings, often at the expense of transaction processing fairness.
National money declared legal tender by a government, but not backed by a physical commodity like gold or silver.
These are services that allow users to convert traditional currency into cryptocurrency and vice versa, facilitating entry and exit from digital economies.
An insurance-like financial product ensuring that a company or individual fulfills obligations, protecting against losses from fraudulent acts or non-compliance.
Transaction completion ensuring it cannot be reversed or altered, providing certainty and trust in digital financial networks like blockchain or payment systems.
An IRS tax form crypto platforms may issue to report $600+ miscellaneous income—like referral bonuses, interest, staking or promotional rewards—from Bitcoin/crypto. A copy goes to you and the IRS and should be used to report income on your return.
A numerical risk rating assigned to a Bitcoin address or transaction by analytics services, estimating likelihood of involvement in fraud, scams, or illicit activity based on blockchain heuristics, address clustering, exposure to tainted funds, and behavioral patterns.
A full node is a computer in a blockchain network that fully enforces all the rules of the protocol by downloading and validating the entire blockchain.
FX Conversion: Exchanging one currency for another—such as converting fiat (USD, EUR) to bitcoin or vice versa—using prevailing foreign-exchange rates, typically via an exchange or payment processor, including spreads, fees, and real-time rate fluctuations.
The FX spread is the gap between bid and ask exchange rates when trading Bitcoin against fiat currencies. It represents the implicit cost of conversion set by market makers, varies by pair, venue, and liquidity, and is separate from explicit trading fees.
GDPR (General Data Protection Regulation) is the EU’s data privacy law that governs how Bitcoin and other crypto services collect, process, store, and transfer personal data of EU residents.
Geofencing is the practice of restricting access to bitcoin services or features based on a user’s geographic location, typically via IP, GPS, or compliance checks, to meet regulatory requirements, mitigate risk, or enforce jurisdictional limitations.
Nodes share information about network topology and channel states to keep the network updated and synchronized.
A graph is a visual representation of data showing relationships between entities, often used to track cryptocurrency transactions or financial trends.
Graphene is a blockchain technology framework designed to improve scalability and efficiency, commonly used in platforms like BitShares and Steem.
GraphQL is a flexible API query language and runtime that lets bitcoin applications request precisely the blockchain, transaction, or wallet data they need from supporting services or nodes in a single query, reducing overfetching and improving developer efficiency.
gRPC is a high-performance, HTTP/2-based Remote Procedure Call framework using Protocol Buffers, commonly used by Bitcoin and Lightning implementations (e.g., LND) to expose efficient, type-safe APIs for node control, wallet access, and streaming data.
Graphical User Interface: A visual interface allowing users to interact with software through graphical elements like buttons and icons instead of text-based commands.
A Hardware Security Module (HSM) is a physical device that provides secure generation, storage, and management of cryptographic keys and performs cryptographic operations.
A physical device that securely stores cryptocurrency private keys offline, protecting them from online threats and enabling secure transactions.
A hash function generates a fixed-size string from input data, ensuring data integrity by producing unique outputs for distinct inputs in blockchain technology.
Hash rate measures the computational power per second used to mine and process transactions on a blockchain, indicating network strength and security.
Hedging in bitcoin is using instruments such as futures, options, or short positions to offset and reduce price risk on BTC holdings or payments.
A hop is a single step or transaction in a multi-step blockchain or network path, used to obscure the source or destination.
A hot wallet is a cryptocurrency wallet connected to the internet for convenient, frequent transactions, but more vulnerable to hacks than offline cold storage.
Hash Time-Locked Contract is a smart contract that ensures a transaction occurs within a set time, using cryptographic hash functions for security.
HTTP Status Codes are standardized numeric responses (e.g., 200, 404, 500) returned by web servers and Bitcoin-related APIs (nodes, wallets, explorers) to indicate request results, guiding clients in handling success, redirects, client errors, and server errors.
IBAN (International Bank Account Number) is a standardized code that identifies bank accounts for international fiat transfers, commonly used to deposit to or withdraw from bitcoin exchanges.
A unique client-supplied token in payment APIs that lets servers safely retry requests, ensuring the operation (e.g., creating an invoice or withdrawal) executes at most once, preventing duplicate Bitcoin transactions.
A set of personal credentials used to verify a person's identity in digital transactions or blockchain networks, ensuring security and authenticity.
It is the ability to receive funds through a payment channel, reflecting the available balance that others can send to you.
Interoperability is the ability of different financial systems or technologies to work together, share data, and conduct transactions seamlessly across platforms.
A document detailing goods or services provided, payment terms, and total amount due, often used in cryptocurrency transactions for record-keeping and payment requests.
ISO 20022 is a global messaging standard for financial transactions, improving communication between financial institutions by providing a common language and structure.
ISO 27001 is an international standard for establishing, implementing, maintaining, and continually improving an information security management system, commonly used by Bitcoin and crypto organizations to certify robust security and risk management controls.
JSON Schema is a standard for describing and validating JSON data structures, used in Bitcoin to formally specify and verify formats for RPC responses, wallet descriptors, PSBTs, and other BIP-defined data, ensuring interoperability and consistent implementations.
JavaScript Object Notation Remote Procedure Call is a protocol for remote communication using JSON to send requests and receive responses between a client and server.
Key management involves securely creating, storing, distributing, and revoking cryptographic keys to protect digital assets and ensure secure transaction processes in fintech.
Key-Path Spend refers to the allocation of resources or expenditure directed towards critical pathways or essential activities that significantly impact an organization's strategic objectives or project outcomes.
It's a Lightning Network feature allowing users to send payments without requiring the recipient's invoice, enabling spontaneous transactions directly to their node.
Protocols enabling interoperability and communication between different blockchain networks, forming the foundational infrastructure for distributed systems and managing data transfer and consensus mechanisms.
These frameworks build on Layer 2, enhancing functionality like privacy, interoperability, or scalability for decentralized applications or blockchain networks.
LaaS provides cloud-based platforms enabling businesses to manage, store, and access secure, real-time digital ledger data without needing in-house infrastructure.
A user-friendly, email-like identifier for receiving Lightning Network payments, simplifying long wallet addresses into easy-to-share formats for rapid Bitcoin transactions.
A Lightning Improvement Proposal (LIP) is a document suggesting changes or enhancements to the Bitcoin Lightning Network protocol, seeking community feedback and consensus.
A payment request on the Bitcoin Lightning Network containing details for a transaction, like amount and destination, enabling faster and cheaper off-chain payments.
A Lightning Service Provider (LSP) is a third-party entity that facilitates transactions and liquidity services within the Bitcoin Lightning Network, enabling faster and more efficient micropayments.
The ability of an asset to be quickly bought or sold in the market without affecting its price significantly.
Liquidity Ads are financial instruments or platforms that facilitate increased market activity by advertising available liquidity for trading or investment.
Liquidity management in Bitcoin context refers to processes exchanges, traders, and institutions use to ensure sufficient funds/coins are available to meet withdrawals, trades, obligations, while optimizing capital efficiency across wallets, order books, market-making, and payment channels like Lightning.
Process of verifying a Bitcoin node, service, or channel is online and making forward progress—e.g., responding to pings, relaying blocks/transactions, or updating channel state—to detect outages, stalls, or desynchronization.
Lightning Network Command Line Interface is a tool for managing and interacting with Bitcoin's Lightning Network nodes using command-line commands.
Lightning Network Daemon software helps manage and operate Bitcoin's Lightning Network for faster and cheaper transactions by facilitating off-chain payment channels.
Lightning Network URL, a protocol allowing Bitcoin Lightning wallets to simplify transactions by handling complex operations like payments, withdrawals, and channel management with user-friendly URLs.
Local balance refers to the amount of available cryptocurrency or funds within a specific account or wallet for immediate transactions without network confirmation.
Locktime is a feature in Bitcoin transactions that sets a specific time or block height before which the transaction cannot be added to the blockchain.
Routing Bitcoin funds between the main blockchain and the Lightning Network, enabling faster, cheaper transactions without moving funds on-chain directly.
A flexible authorization token in systems that offers decentralized access control, allowing users to delegate permissions with specific constraints or conditions.
The fully operational blockchain network where cryptocurrency transactions are processed, validated, and recorded on a distributed ledger accessible to the public.
Memory Pool holds unconfirmed Bitcoin transactions waiting to be added to the blockchain by miners.
Mempool flooding is a deliberate act of overwhelming a blockchain's transaction pool with excessive transactions to slow down processing and increase fees.
Mempool policy refers to the set of rules and criteria that a Bitcoin node uses to determine whether to accept or reject unconfirmed transactions before they are included in a block.
A Merkle tree is a data structure that organizes and verifies blockchain transactions efficiently using cryptographic hashes in a hierarchical, tree-like format.
Metrics are quantitative measures used to assess Bitcoin’s network health and market dynamics, such as hash rate, difficulty, transaction throughput, mempool size, fee rates, active addresses, realized value/cap, liquidity, exchange flows, and node distribution.
Maximal Extractable Value is the profit miners or validators can make by reordering, including, or excluding transactions in a blockchain.
Labels indicating the content type of Bitcoin data in HTTP or files, guiding wallets/browsers. Examples: application/bitcoin-paymentrequest, application/bitcoin-payment, application/bitcoin-paymentack (BIP70), and commonly application/bitcoin-psbt. They ensure correct parsing, display, and security handling.
A mining pool is a coordinated group of bitcoin miners who combine hash power to find blocks more consistently, then share rewards proportionally, reducing payout variance and revenue uncertainty, usually for a small fee.
Mobile money is electronic value stored and transacted via mobile phones, enabling users to send, receive, and pay, often through custodial wallets or telecom networks, and can interface with Bitcoin for buying, selling, or spending without traditional banks.
