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| HARD FORK | an exchange in which traders make deals with each other directly, rather than relying on a central exchange to mediate between them |
| LIQUIDITY | a type of fork that renders previously invalid transactions valid, and vice versa. this type of fork requires all nodes and users to upgrade to the latest version of the protocol software. |
| OTC EXCHANGE | the ability to buy and sell an asset easily, with pricing that stays roughly similar between trades. a suitably large community of buyers and sellers is important for liquidity. the result of an illiquid market is price volatility, and the inability to easily determine the value of an asset. |
| CROWDSOURCING | anti-money laundering techniques are used to stop people converting illegally obtained funds, to appear as though they have been earned legally. aml mechanisms can be legal or technical in nature. regulators frequently apply aml techniques to bitcoin exchanges. |
| LIGHT NODE | a computer on a blockchain network that only verifies a limited number of transactions relevant to its dealings, making use of the simplified payment verification (spv) mode. |
| BIP | the pooling of resources such as information or money contributed by the general population, to a goal. this is usually done online via websites where people can donate. |
| EXCHANGE | a place where buyers and sellers can trade bitcoins or other cryptocurrencies. |
| KYC | know your client/customer rules force financial institutions to vet the people they are doing business with, ensuring that they are legitimate. |
| AML | distributed ledgers are ledgers in which data is stored across a network of decentralized nodes. a distributed ledger does not have to have its own currency and may be permissioned and private. |
| DISTRIBUTED LEDGER | an acronym for “bitcoin improvement proposals” which can be submitted by anyone who wants to improve the bitcoin network. |
| |  |
| HARD FORK | a type of fork that renders previously invalid transactions valid, and vice versa. this type of fork requires all nodes and users to upgrade to the latest version of the protocol software. |
| LIQUIDITY | the ability to buy and sell an asset easily, with pricing that stays roughly similar between trades. a suitably large community of buyers and sellers is important for liquidity. the result of an illiquid market is price volatility, and the inability to easily determine the value of an asset. |
| OTC EXCHANGE | an exchange in which traders make deals with each other directly, rather than relying on a central exchange to mediate between them |
| CROWDSOURCING | the pooling of resources such as information or money contributed by the general population, to a goal. this is usually done online via websites where people can donate. |
| LIGHT NODE | a computer on a blockchain network that only verifies a limited number of transactions relevant to its dealings, making use of the simplified payment verification (spv) mode. |
| BIP | an acronym for “bitcoin improvement proposals” which can be submitted by anyone who wants to improve the bitcoin network. |
| EXCHANGE | a place where buyers and sellers can trade bitcoins or other cryptocurrencies. |
| KYC | know your client/customer rules force financial institutions to vet the people they are doing business with, ensuring that they are legitimate. |
| AML | anti-money laundering techniques are used to stop people converting illegally obtained funds, to appear as though they have been earned legally. aml mechanisms can be legal or technical in nature. regulators frequently apply aml techniques to bitcoin exchanges. |
| DISTRIBUTED LEDGER | distributed ledgers are ledgers in which data is stored across a network of decentralized nodes. a distributed ledger does not have to have its own currency and may be permissioned and private. |
