This is a glossary of terms related to Bitcoin and CoinZoom.

  • Address: A string of letters and numbers which cryptocurrencies can be sent to and from. A cryptocurrency address can be shared publicly, and like sending a message to an email address, a cryptocurrency address can be provided to others that wish to send you cryptocurrency. 
  • Attack Surface: In computer security, an attack surface refers to the number of places where a malicious user may be able to gain access to a system. In general, a computer running more complex software has a higher attack surface than one running simpler software.
  • Airdrop: in the cryptocurrency business, is usually a marketing option that involves sending coins or tokens to wallet addresses in order to promote awareness of a new virtual currency.
  • Bitcoin: The first global, decentralized currency.
  • Bits: A sub-unit of one cryptocurrency. There are 1,000,000 bits in one cryptocurrency.
  • Block: A collection of Cryptocurrency transactions that have occurred during a period of time (typically about 10 minutes). If the blockchain is thought of as a ledger book, a block is like one page from the book.
  • Blockchain: The authoritative record of every Cryptocurrency transaction that has ever occurred.
  • BTC: An abbreviation for the bitcoin currency.
  • Centralized: Organized such that one or more parties are in control of a service. 
  • Chargeback: The reversal of a bank payment or money transfer after it was authorized. Sometimes used to commit fraud.
  • Cold Storage: The storage of Cryptocurrency private keys in any fashion that is disconnected from the internet. Typical cold storage includes USB drives, offline computers, or paper wallets.
  • Cold Wallet: A Cryptocurrency wallet that is in cold storage (not connected to the internet).
  • Confirmations: A cryptocurrency transaction is considered unconfirmed until it has been included in a block on the blockchain, at which point it has one confirmation. Each additional block is another confirmation. CoinZoom requires 3 confirmations to consider a cryptocurrency transaction final.
  • Cosigner: An additional person or entity that has partial control over a Cryptocurrency wallet.
  • Cryptocurrency: A type of currency that uses cryptography instead of a central bank to provide security and verify transactions. Bitcoin is the first cryptocurrency.
  • Cryptography: In the context of Cryptocurrency, cryptography is the use of mathematics to secure information. Cryptography is used to create and secure wallets, sign transactions, and verify the blockchain.
  • Decentralized: Without a central authority or controlling party. Bitcoin is a decentralized network since no company, government, or individual is in control of it.
  • Destination Tag/Memo: A Destination Tag/Memo is an additional address feature necessary for identifying a transaction recipient beyond a wallet address.
  • Distributed: A distributed network is designed so that there is no central server or entity that others must connect to. Instead, network participants connect directly to each other. Bitcoin is a distributed network.
  • Encryption: The use of cryptography to encode a message such that only the intended recipient(s) can decode it. CoinZoom uses encryption to protect wallets from unauthorized access. 
  • Hash: 1) A unique identifier of a Cryptocurrency transaction. 2) A mathematical function that Cryptocurrency miners perform on blocks to make the network secure.
  • HBAR:  The native cryptocurrency of the Hedera public network. Hbars are used to power decentralized applications, build peer-to-peer payment and micropayment business models, and protect the network from malicious actors.
  • Hot Wallet: A Cryptocurrency wallet that resides on a device that is connected to the internet. A wallet installed on a desktop computer or smartphone is usually a hot wallet.
  • Internal transactions: Whenever a smart contract needs to send ETH or execute some other code on its own, they call a function which was eventually labeled as an ‘internal transaction’. They are a result of smart contract functionality.
  • Ledger: A physical or electronic log book containing a list of transactions and balances typically involving financial accounts. The Bitcoin blockchain is the first distributed, decentralized, public ledger.
  • M of N: The number of cosigners that must provide signatures (M) out of the total number of cosigners (N) in order for a multi-signature cryptocurrency transaction to take place. A common M of N value is "2 of 3" meaning two of the three cosigners' signatures are required.
  • Miner: A computer or group of computers that add new transactions to blocks and verify blocks created by other miners. Miners collect transaction fees and are rewarded with new cryptocurrencys for their services.
  • Multi-Signature: Also called multisig. A cryptocurrency transaction that requires signatures from multiple parties before it can be executed. CoinZoom multisig vaults use this type of technology.
  • Node: A participant in the Cryptocurrency network. Nodes share a copy of the blockchain and relay new transactions to other nodes.`
  • Open Source: Software whose code is made publicly available and that is free to distribute. Bitcoin is an open source project and arguably the first open source money.
  • Paper Wallet: A type of cold storage wallet where private keys are printed on a piece of paper or other physical medium.
  • Peer to Peer: A type of network where participants communicate directly with each other rather than through a centralized server. The Bitcoin network is peer to peer.
  • Private Key: A string of letters and numbers that can be used to spend cryptocurrencys associated with a specific Cryptocurrency address.

  • Proof of Stake (PoS): In a proof of stake system, the creator of the next block is determined by a randomized system that is, in part, dictated by how much of that cryptocurrency a user is holding or, in some cases, how long they have been holding that particular currency. Instead of computational power, as is the case in proof of work, the probability of creating a block and receiving the associated rewards is proportional to a user’s holding of the underlining token or cryptocurrency on the network.

  • Proof of Work: A piece of data that requires a significant amount of computation to generate but requires a minimal amount of computation to be verified as being correct. Bitcoin uses proof of work to generate new blocks.

  • Protocol: The official rules that dictate how participants on a network must communicate. Cryptocurrency's protocol specifies how each node connects with the others, how many cryptocurrencys will exist at any point in time, and defines other aspects of the network.

  • Public Key: A string of letters and numbers that is derived from a private key. A public key allows one to receive cryptocurrencys.

  • QR Code: A digital representation of a cryptocurrency public or private key that is easy to scan by digital cameras. QR codes are similar to barcodes found on physical products in that they are a machine-friendly way to embody a piece of data.
  • Signature: A portion of a Cryptocurrency transaction that proves that the owner of the private key has approved the transaction.
  • satoshi: The smallest divisible unit of one cryptocurrency. There are 100 million satoshis (8 decimal places) in one cryptocurrency. One satoshi = 0.0000001 cryptocurrencys.
  • Satoshi Nakamoto: The inventor of Bitcoin.
  • SHA-256: The specific hash function used in the mining process to secure cryptocurrency transactions.
  • Stablecoin:  Cryptocurrencies designed to minimize the volatility of the price of the stablecoin, relative to some "stable" asset or basket of assets. A stablecoin can be pegged to a cryptocurrency, fiat money, or to exchange-traded commodities (such as precious metals or industrial metals). Stablecoins redeemable in currency, commodities, or fiat money are said to be backed, whereas those tied to an algorithm are referred to as seigniorage-style (not backed).
  • Transaction: An entry in the blockchain that describes a transfer of cryptocurrencys from address to another. Cryptocurrency transactions may contain several inputs and outputs.
  • Transaction Fee: Also known as a "miner's" fee, a transaction fee is an amount of cryptocurrency included in each transaction that is collected by miners. This is to encourage miners to add the transaction to a block. A typical cryptocurrency fee amount is 0.0001 BTC. 
  • TxID or TxHash is the abbreviation of Transaction ID, which is also called transaction hash. TxID is the character field required for the marking of transfers during the transactions of blockchain assets. TxID is normally formed by the combination of several dozens of numbers and English letters.search for your crypto address or the recipient address on the blockchain explorer.   https://www.blockchain.com/explorer
  • Vault: A type of Cryptocurrency wallet provided by CoinZoom. Vault accounts add additional time-lock and security measures to protect your funds.
  • Wallet: A collection of Cryptocurrency private keys used to spend cryptocurrencys.