Definition
Identity verification requirements imposed by exchanges and financial services. Typically involves providing government ID and personal information.
Related Terms
Hot Wallet
A Bitcoin wallet that is connected to the internet. Convenient for frequent transactions but more vulnerable to hacking than cold storage.
Lightning Network
A second-layer payment protocol built on top of Bitcoin that enables fast, low-cost transactions through payment channels. Ideal for everyday purchases.
HODL
A term originating from a misspelling of "hold." Refers to the strategy of buying and holding Bitcoin long-term rather than trading it.
Mempool
The waiting area for unconfirmed Bitcoin transactions. When you send Bitcoin, your transaction sits in the mempool until a miner includes it in a block.
Hash Rate
The total computational power being used to mine and process Bitcoin transactions. A higher hash rate means greater network security.