Bitcoin is on the path to becoming world's leading currency in value while it has already bypassed most of the currencies that are in use on the day to day basis. The demand increases with crypto entrepreneurs increasing awareness of the blockchain and its cryptocurrencies. Due to scarcity bitcoin has potential to become our most valuable currency over the next couple of years, pegging that community will come to the understanding that bitcoin should never be forked and drops the idea from their minds. We are dedicating this article to type out a Bitcoin Lexicon so to speak in order to help spreading of awareness to an easier level.
Explaining Counterparts That Make Bitcoin
The Blockchain - Distributed ledger or a decentralized database that keeps records of all of the transactions performed on the network. What makes it unique compared to the private bank ledgers or government ledgers in general is that all of the information is publicly available on the internet while being synced between different nodes/processors so no one could tamper with the submit data. When a transaction has been submit on the network it cannot be falsified without the consent of each and every one of the processors operating on the blockchain (network). The name comes from the fact that once a pack of transactions has been relayed to the network it is chained up with the other packs which create the tamper-proof environment. Bitcoin Miners - Miners are the same nodes or processors who pack up all of the transactions into one block, solve the cryptography puzzle and distribute them all on the blockchain. Names might spike some confusion to any new person hearing the terms for the first time so it is extremely important whenever you are spreading awareness to follow up with the explanation on what it actually means. This will avoid confusion where people might think that bitcoin is mined the same way as you get any other ore on earth. Bitcoin Block - In general it is exactly what the name suggest a block or a pack of all of the new transactions that are now relayed to the network and chained up with the previous blocks in order to tamper proof them. Bitcoin (BTC) - Some might argue that BTC should never be considered a currency since it doesn't exist in the physical form but this is not the right way to look at it. You see with typical currencies banks and governments can go ahead and print them into circulation as they choose, despite the deflation effect it might have. Now bitcoin is a internet currency that has been generated through a cryptography puzzle solving and there will ever be only 21 million units in circulation. No one can add extra bitcoin just because they choose to do so and thus should be considered more valuable currency than any paper one. Cryptography - The art of writing and solving codes. Decentralization - Moving authority or the decision making from one organization to the public. Thanks to the blockchain being a part of a large network of computers it creates a public decentralized platform in which the decision making is not left to one person or authority and everything has to be correspondent with the other computers on the select chain. Confirmation - Whenever you send out a transaction it will be pending until one of the miners picks and packs it up into the block they are relaying on to the blockchain. As soon as this has happened your transaction will receive its first confirmation and will follow with a new one with each following block. Bitcoin transaction is considered fully confirmed when it has been packed into at least 6 blocks but in reality most of the places count it to be confirmed with one already since the resources necessary to perform a double spend attack are way too huge for one person to achieve that nowadays. Bitcoin Double Spend - Is a method that some users might have tried in the early days of bitcoin when the hashing power of nodes was smaller than it is now. In a nutshell it is where two different transactions are trying to spend the same account balance into two different destinations. Bitcoin Wallet - Just like you have a wallet for your paper currency then there are specially developed crypto wallets for the bitcoin. Place where you store your bitcoin. Private Key - Bitcoin Private Key is like your safety deposit box key merged with PIN-number in one. When someone stores the key for you then in reality it is like they are in control of your wealth. It is extremely important to use a wallet where you are the sole person in control of your private key so no one could steal them from you. If someone controls your key then they have your bitcoin.
Keep Spreading Bitcoin Awareness
We must keep the fight against decentralization in full speed at all times and this little guide will help you to spread awareness to any of the new bitcoin users out there. Make sure to give as much information as necessary and don't fix yourself on the terminology without giving the meaning behind them. This will create a confused users base and this is not in the best interest of bitcoin or the blockchain technology. Spread the awareness with correct information and meaning to it!