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| SATOSHI | a type of network where processing power and data are spread over the nodes rather than having a centralised data centre. |
| PAPER WALLET | a form of cold storage where a private key for bitcoin address is printed on a piece of paper (with or without encryption) and then all traces of the key are removed from the computer where it was generated |
| PEER TO PEER | is a peer-to-peer cryptocurrency based on the scrypt proof-of-work network. sometimes referred to as the silver of bitcoin’s gold. |
| LITECOIN | one of the first bitcoin exchanges, and at one time the most popular. mt. gox has since gone into administration. based in japan, the exchange was started by jed mccaleb in 2010. |
| DISTRIBUTED NETWORK | forks create an alternate version of the blockchain, leaving two blockchains to run simultaneously on different parts of the network. a split in the blockchain where there are temporarily two different blockchains which miners can work on. these can occur if software updates to a bitcoin client are incompatible or if developers decide that changes must be made to the programming of a coin. this deliberate change is called a “hard fork”. it can also be used to describe a separate cryptocurrency which has been split from the main blockchain, such as namecoin being a “fork” of bitcoin. |
| MT GOX | bitcoin can refer to the protocol, network or the unit of currency. strictly, bitcoin with a capital “b” refers to the protocol & the network, whilst bitcoin with a lowercase “b” is the currency. bitcoin is the first decentralised, open source cryptocurrency that runs on a global peer to peer network, without the need for middlemen and a centralised issuer. |
| AML | peer to peer (p2p) refers to the decentralized interactions between two parties or more in a highly-interconnected network. participants of a p2p network deal directly with each other through a single mediation point. |
| PROOF OF WORK | a consensus distribution algorithm that requires an active role in mining data blocks, often consuming resources, such as electricity. the more ‘work’ you do or the more computational power you provide, the more coins you are rewarded with. |
| FORK | the smallest unit of bitcoin possible. there are 100 million satoshis in a single bitcoin. |
| BITCOIN | 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. |
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| SATOSHI | the smallest unit of bitcoin possible. there are 100 million satoshis in a single bitcoin. |
| PAPER WALLET | a form of cold storage where a private key for bitcoin address is printed on a piece of paper (with or without encryption) and then all traces of the key are removed from the computer where it was generated |
| PEER TO PEER | peer to peer (p2p) refers to the decentralized interactions between two parties or more in a highly-interconnected network. participants of a p2p network deal directly with each other through a single mediation point. |
| LITECOIN | is a peer-to-peer cryptocurrency based on the scrypt proof-of-work network. sometimes referred to as the silver of bitcoin’s gold. |
| DISTRIBUTED NETWORK | a type of network where processing power and data are spread over the nodes rather than having a centralised data centre. |
| MT GOX | one of the first bitcoin exchanges, and at one time the most popular. mt. gox has since gone into administration. based in japan, the exchange was started by jed mccaleb in 2010. |
| 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. |
| PROOF OF WORK | a consensus distribution algorithm that requires an active role in mining data blocks, often consuming resources, such as electricity. the more ‘work’ you do or the more computational power you provide, the more coins you are rewarded with. |
| FORK | forks create an alternate version of the blockchain, leaving two blockchains to run simultaneously on different parts of the network. a split in the blockchain where there are temporarily two different blockchains which miners can work on. these can occur if software updates to a bitcoin client are incompatible or if developers decide that changes must be made to the programming of a coin. this deliberate change is called a “hard fork”. it can also be used to describe a separate cryptocurrency which has been split from the main blockchain, such as namecoin being a “fork” of bitcoin. |
| BITCOIN | bitcoin can refer to the protocol, network or the unit of currency. strictly, bitcoin with a capital “b” refers to the protocol & the network, whilst bitcoin with a lowercase “b” is the currency. bitcoin is the first decentralised, open source cryptocurrency that runs on a global peer to peer network, without the need for middlemen and a centralised issuer. |
