Definition
A decentralized digital currency created in 2009 by the pseudonymous Satoshi Nakamoto. Bitcoin operates on a peer-to-peer network without any central authority.
Related Terms
Address
A string of letters and numbers that represents a destination for Bitcoin payments. Similar to an email address, you share it with others to receive Bitcoin.
Block
A collection of Bitcoin transactions that are bundled together and added to the blockchain. Each block references the previous block, forming a chain.
Blockchain
A distributed, immutable ledger that records every Bitcoin transaction ever made. Each block contains a set of transactions and links to the previous block.
Block Reward
The amount of new Bitcoin awarded to miners for successfully adding a new block to the blockchain. Currently 3.125 BTC per block after the 2024 halving.
Cold Storage
A method of storing Bitcoin offline, away from internet-connected devices. Hardware wallets and paper wallets are common forms of cold storage.