Definition
A second-layer payment protocol built on top of Bitcoin that enables fast, low-cost transactions through payment channels. Ideal for everyday purchases.
Related Terms
KYC (Know Your Customer)
Identity verification requirements imposed by exchanges and financial services. Typically involves providing government ID and personal information.
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.
Hot Wallet
A Bitcoin wallet that is connected to the internet. Convenient for frequent transactions but more vulnerable to hacking than cold storage.
Mining
The process of using specialized hardware to solve mathematical puzzles, validate transactions, and add new blocks to the blockchain in exchange for Bitcoin rewards.
HODL
A term originating from a misspelling of "hold." Refers to the strategy of buying and holding Bitcoin long-term rather than trading it.