A mobile wallet is a digital application on a smartphone that stores credit card information for making electronic payments or managing cryptocurrencies.
MPP allows a large payment to be divided into smaller parts sent over multiple routes within a network, increasing efficiency and success rates.
A multi-signature wallet requires multiple private keys from different users to authorize a cryptocurrency transaction, enhancing security and reducing the risk of unauthorized access.
A Nacha file is the standardized ACH batch file format used by U.S. banks, containing records for credits/debits. In crypto/Bitcoin, it’s used by exchanges/fintechs to originate or settle fiat transfers to/from customers’ bank accounts.
Name matching: validating a payee’s human-readable name against a trusted identity (e.g., X.509 certificate/host) in payment protocols, so wallets display and pay the intended recipient; security depends on proper certificate/hostname verification and CA trust.
A digital-only bank offering financial services through mobile apps or websites without physical branches, focusing on user-friendly interfaces and low fees.
The physical or logical arrangement of nodes and connections in a network, determining how data flows within a cryptocurrency or fintech system.
A computer that participates in a blockchain network by maintaining a copy of the ledger and validating transactions.
A user-defined name for a Bitcoin network node that helps identify it easily, often used for personalization or branding within the network.
A Node Announcement is a message broadcasted on a network to advertise the presence, identity, and capabilities of a node to other network participants.
A node operator maintains and verifies transactions on a blockchain network, ensuring data integrity and network operation by running specialized software on connected devices.
A random or semi-random number generated for a specific transaction or mining process to ensure uniqueness and prevent replay in blockchain networks.
A Nostro account is a fiat bank account that a crypto exchange or broker holds at another bank, in its own name and foreign currency, to facilitate cross-border funding, settlements, and withdrawals related to bitcoin trading and operations.
OAuth 2.0 is an authorization framework enabling Bitcoin wallets and exchanges to let users grant third‑party apps limited account access via tokens without sharing passwords.
Observability is the ability to monitor and infer Bitcoin system behavior—nodes, mempools, transactions, and Lightning channels—through exposed metrics, logs, traces, and on-chain/network data, enabling reliability and debugging while affecting privacy by revealing patterns to third-party observers.
OFAC screening is checking Bitcoin addresses, users, and transactions against the U.S. Treasury’s OFAC sanctions lists to block or flag prohibited activity, helping exchanges, custodians, and miners maintain sanctions compliance and avoid facilitating illicit payments.
Transactions processed outside the blockchain to increase speed and reduce fees, often involving trusted third parties or separate networks.
Offers (Bolt 12) are a proposed feature for the Lightning Network that allows users to create and share reusable payment requests with enhanced privacy and flexibility.
Transactions or activities directly recorded and verified on a blockchain, ensuring transparency, security, and immutability within the decentralized network.
Analyzing blockchain data to track transactions, assess network health, and derive insights on cryptocurrency activities using publicly accessible ledger information.
Onion routing conceals data through multiple layers of encryption, routing it through several network nodes to enhance privacy and anonymity in digital communication.
Op_Return is a Bitcoin script opcode used to embed arbitrary data in a transaction, effectively making the output unspendable.
A proposed Bitcoin feature allowing users to lock coins in a secure vault and recover them if compromised before a set delay expires.
Open loop: a payment system where value can move outside the issuer’s network—interoperable with external wallets, banks, or rails. In Bitcoin, users can send coins anywhere or cash out, unlike closed-loop systems limited to a single provider or merchant.
OpenAPI is a standardized specification for describing Bitcoin-related REST APIs, enabling consistent documentation, client/server code generation, and easier integration across wallets, exchanges, and node services.
A block in a blockchain that is not part of the main chain due to being mined almost simultaneously with another block.
Over-the-counter refers to trading financial instruments directly between parties without using a central exchange, often for large transactions in cryptocurrencies or stocks.
Over-the-Counter Desk facilitates direct cryptocurrency trades between buyers and sellers, often involving large volumes, outside traditional exchanges, offering privacy and personalized service.
The amount of funds a Lightning Network node can send to other nodes before needing an inbound balance increase.
An Output Descriptor is a string format that describes a set of Bitcoin transaction outputs, including their scripts and spending conditions.
P2PKH (Pay-to-Public-Key-Hash) is a Bitcoin transaction type that locks funds to a Bitcoin address, which is a hash of a public key, requiring the corresponding private key to unlock the funds.
P2SH (Pay-to-Script-Hash) is a Bitcoin transaction type that allows the sender to commit funds to a script hash, enabling the recipient to unlock the funds by providing a script that matches that hash and the necessary data to satisfy the script conditions.
Pagination is the process of dividing large Bitcoin data sets—such as transaction lists, blocks, or API query results—into sequential pages with limit/offset or cursor parameters to enable efficient retrieval, navigation, and display without loading all records at once.
PSBT is a Bitcoin transaction format that allows multiple parties to collaboratively sign a transaction without needing all private keys present at once.
Pathfinding is the process of determining optimal routes for transactions or data through a network to minimize fees and maximize efficiency.
A method allowing multiple blockchain transactions between parties without recording each on-chain, enhancing speed and reducing fees until closure.
Proof that a Bitcoin transaction has been included in the blockchain; each new block after the containing block counts as an additional confirmation, increasing settlement confidence and lowering double-spend risk.
Payment forwarding involves routing digital currency payments through intermediaries to reach the final recipient, often optimizing transaction efficiency and reducing costs.
A unique cryptographic value generated from a preimage used to authenticate and verify Lightning Network transactions ensuring security and preventing double-spending.
A secret value in blockchain transactions used to unlock a hash, allowing the transfer of funds in hashed time-lock contracts.
A payment rail is the infrastructure or network allowing transactions and money transfers between parties domestically or internationally, like banks or digital platforms.
An identifier or memo attached to a Bitcoin payment that links it to an invoice, order, or purpose, enabling reconciliation. Implemented via BIP21 fields, Lightning invoice description, or OP_RETURN.
Payment reversal: undoing a previously sent payment. In Bitcoin, this usually means a double-spend or chain reorg attempt before/with few confirmations; after sufficient confirmations, reversals are practically impossible.
PCI DSS is the Payment Card Industry Data Security Standard, a set of security requirements for organizations that store, process, or transmit cardholder data, relevant to crypto exchanges and bitcoin services that accept card payments or run fiat on-ramps.
Individuals or nodes with equal status in a decentralized network who can directly interact or transact without intermediaries.
PEP Screening: checking customers against lists of Politically Exposed Persons to identify higher AML/CTF risk in Bitcoin services (exchanges, custodians). Flags users with public office ties for enhanced due diligence, monitoring, and potential restrictions to prevent money laundering and corruption.
PKCE (Proof Key for Code Exchange) is an OAuth 2.0 extension that thwarts authorization code interception by binding public clients via a one-time code verifier and derived code challenge.
Port forwarding is configuring your router to map an external port (e.g., 8333) to your Bitcoin node’s local IP, enabling inbound peers and improving network connectivity.
A private channel is a Lightning Network connection allowing two parties to transact off-chain privately without broadcasting details to the wider Bitcoin network.
A secret code in cryptocurrency that allows you to access and manage your digital assets, ensuring only you can authorize transactions.
Production environment: The live Bitcoin network and operational systems handling real funds and transactions, distinct from test or staging; includes nodes, wallets, exchanges, and mining infrastructure in active use.
A promo code is a short alphanumeric token provided by bitcoin services or exchanges that customers enter during sign‑up, deposit, or checkout to unlock discounts, fee reductions, bonus sats, or other promotional rewards.
Proof of Address is a cryptographic demonstration that you control a specific Bitcoin address by signing a message with its private key, allowing others to verify ownership using the address/public key without revealing the private key or spending any funds.
Proof of Payment is verifiable evidence that a Bitcoin transaction occurred and settled, typically demonstrated by a transaction ID and confirmations on the blockchain, optionally with signed messages or receipts tying it to specific parties or invoices.
Proof of Work (PoW) and Proof of Stake (PoS) are consensus mechanisms for validating transactions and securing blockchain networks through computational power or coin holdings, respectively.
Protobuf (Protocol Buffers) is Google's schema-based, language‑neutral format for serializing structured data, used in some Bitcoin and Lightning implementations (e.g., gRPC APIs like LND) to define messages and efficiently encode/decode them across networks and languages.
A set of rules and standards that govern how data is exchanged between computers in a network, ensuring secure and consistent communication.
PSD2 is the European Union’s revised Payment Services Directive that mandates strong customer authentication and open banking APIs, enabling third‑party payment initiation and account access, affecting bitcoin/crypto on‑ramps and compliance when integrating bank transfers or payment services.
A publicly visible payment path in Bitcoin's Lightning Network that allows anyone to route transactions between nodes for faster and cheaper payments.
A method of paying by scanning a QR code that encodes a Bitcoin address or BIP21 URI, pre-filling amount and metadata, enabling fast, error-free wallet-to-wallet transactions without typing addresses.
A request for information from a database to retrieve specific data, often used in blockchain or fintech systems to analyze transactions.
Rate limiting is a policy in Bitcoin nodes or services that caps how many transactions, messages, or requests they accept, relay, or process per time unit to mitigate spam and DoS, protect resources, and maintain network reliability.
Assets that exist physically like real estate, commodities, or equities, which can be tokenized or represented on blockchain for digital trading or investment.
Realized Capitalization measures a cryptocurrency's value by totaling each coin's last moved price, reflecting the network's actual usage over speculative market value.
Reconciliation in Bitcoin is the process of matching internal records (wallet balances, deposits, withdrawals, fees) to the blockchain, confirming transactions and resolving discrepancies from unconfirmed transactions, reorgs, or operational errors to ensure accurate accounting, custody, and risk controls.
A reward, typically in bitcoin or account credit, given by an exchange, wallet, or service to users who refer new customers, often triggered when the referral signs up, deposits, or trades, incentivizing user growth through affiliate or invite programs.
A long-lived credential used in OAuth-style authentication for Bitcoin apps or exchanges to obtain new short-lived access tokens without re-authenticating the user, maintaining secure API sessions while limiting exposure if an access token is compromised.
Remittance is the transfer of money—often across borders—typically sent by migrants to family, and in a bitcoin context refers to using the Bitcoin network to send these payments globally with lower fees, faster settlement, and fewer intermediaries than traditional remittance services.
Remittance Advice is a notice sent by a payer detailing a bitcoin payment—amount, transaction ID, date, purpose, and invoice references—so the recipient can reconcile the on-chain transfer with their accounts and confirm funds match a specific obligation.
A REST API in Bitcoin is an HTTP-based interface exposing endpoints to query blocks, transactions, mempool data, and broadcast transactions, enabling applications to interact programmatically with nodes and services using simple, stateless requests.
Revocation, in Bitcoin or Fintech, means canceling or invalidating a transaction, certificate, or key to prevent its future use or validation.
Reward redemption: Spending a matured coinbase output—the block subsidy plus fees—by the winning miner or pool, typically after 100-block maturity, to transfer funds to usable addresses or distribute payouts to participants.
A security model where permissions are assigned to roles (e.g., admin, trader, auditor), not individuals, to control access to Bitcoin systems, wallets, keys, and operations.
A rollup is a Layer 2 scaling solution that processes transactions off-chain, reducing congestion and fees while maintaining blockchain security.
Routing involves determining the most efficient path for transactions or data to travel through a network to reach their destination.
A fee paid to network nodes for forwarding a payment transaction from sender to receiver on the Bitcoin Lightning Network.
In Bitcoin’s Lightning Network, “routing number” informally denotes the node and channel identifiers (public keys, channel IDs, fees) used to route payments between nodes, since Bitcoin lacks traditional bank-style routing numbers.
Sanctions screening: compliance process where exchanges, wallets, miners, and other VASPs check users, entities, and Bitcoin addresses/transactions against government sanctions lists (e.g., OFAC) to block prohibited dealings, report hits, and mitigate legal and regulatory risk.
An isolated testing setup for Bitcoin development—like testnet, signet, or regtest—where transactions, scripts, and applications can be tried safely without real funds, affecting mainnet, or permanent consequences; used for debugging, experimentation, and validation.
The smallest unit of Bitcoin currency, equal to 0.00000001 BTC, used for precise transactions and named after Bitcoin's creator, Satoshi Nakamoto.
Schnorr signatures enhance Bitcoin's efficiency by allowing multiple signatures to be combined into one, improving transaction privacy and reducing blockchain space usage.
Script-Path Spend refers to the expenditure associated with the execution of scripts along a specific path in a blockchain or similar technology, often influencing transaction costs or computational resources.
A Software Development Kit (SDK) is a collection of libraries, tools, documentation, and sample code that helps developers build Bitcoin applications, interact with nodes or wallets, manage keys and transactions, and integrate blockchain functionality into their software.
Processes and tools for securely generating, storing, accessing, rotating, and auditing sensitive data—like private keys, seed phrases, and API credentials—used by Bitcoin wallets, nodes, and services.
A sequence of words used to recover cryptocurrency wallets, allowing users to regain access to their digital assets in case of loss or theft.
SegWit is a Bitcoin protocol upgrade that separates transaction signatures to increase block capacity and improve scalability, efficiency, and security.
Individuals independently manage and secure their own cryptocurrency or digital assets without relying on third-party services or institutions.
Semantic Versioning is a versioning scheme using MAJOR.MINOR.PATCH numbers to convey backward-compatibility: increment MAJOR for breaking changes, MINOR for new features compatible with previous versions, and PATCH for backward-compatible bug fixes, aiding clear upgrade decisions in Bitcoin software and libraries.
SEPA Credit Transfer is a euro bank transfer within the Single Euro Payments Area, used by exchanges to deposit or withdraw fiat for bitcoin trades; low-cost, IBAN-based, usually same/next-day.
An automated, non-personal wallet/account controlled by a Bitcoin service (exchange, payment processor) to process deposits/withdrawals and operational tasks. It holds keys—often a hot wallet—and uses APIs to transact on behalf of users or backend systems.
A blockchain network facilitating the final confirmation and recording of transactions, ensuring secure, immutable, and completed transactions between parties.
Shamir's Secret Sharing (SSS) splits a secret into parts, requiring a specific number of parts to reconstruct the original secret.
Independent blockchains linked to a main blockchain allowing assets to be securely transferred between them, enabling scalability and new features without altering the main chain.
Digital signatures verify the authenticity and integrity of a message or transaction, ensuring it was sent by the claimed sender in cryptocurrencies.
Signet is a Bitcoin test network that uses centrally coordinated signatures to control block production, enabling stable, customizable testing environments without real economic value, mitigating spam and reorgs compared to public testnets like testnet and providing predictable faucet and policy behavior.
The difference between the expected price of a trade and the price at which the trade is actually executed, often due to market volatility.
A self-executing contract with terms written into code that automatically enforces and verifies agreements on a blockchain without intermediaries.
SOC 2 is an independent audit standard that evaluates a service organization’s controls for security, availability, processing integrity, confidentiality, and privacy, often used by Bitcoin custodians and exchanges to prove robust data and system protection.
Source of Funds is the verifiable origin of money used to buy or transact bitcoin, required by AML/KYC checks, evidenced by salary, business income, investments, mining proceeds, loans, or gifts, to demonstrate funds are legitimate and not illicit.
Documentation proving how a customer accumulated their total wealth used in crypto activity—e.g., salaries, business profits, mining, investments—distinct from transaction-specific source of funds.
