Definition
A wallet where you control your own private keys. Gives you full sovereignty over your Bitcoin but requires you to manage your own security.
Related Terms
Node
A computer running Bitcoin software that participates in the network by relaying transactions and blocks. Full nodes validate the entire blockchain independently.
Private Key
A secret cryptographic code that proves ownership of Bitcoin and allows you to send it. Must be kept secure and never shared with anyone.
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.
Proof of Work
The consensus mechanism Bitcoin uses to validate transactions. Miners must expend computational energy to solve puzzles, making it costly to attack the network.
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.