Definition
The process of using specialized hardware to solve mathematical puzzles, validate transactions, and add new blocks to the blockchain in exchange for Bitcoin rewards.
Related Terms
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.
Multisig (Multi-Signature)
A security setup that requires multiple private keys to authorize a transaction. For example, a 2-of-3 multisig needs any 2 of 3 keys to spend Bitcoin.
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.
Node
A computer running Bitcoin software that participates in the network by relaying transactions and blocks. Full nodes validate the entire blockchain independently.
KYC (Know Your Customer)
Identity verification requirements imposed by exchanges and financial services. Typically involves providing government ID and personal information.