An additional security layer used to protect accounts. It requires two forms of verification before granting access, typically a password and a one-time code sent to a user's device.
A situation where more than half of the computing power on a cryptocurrency network is controlled by a single entity or group, potentially enabling them to manipulate the blockchain by double-spending coins or preventing new transactions from being confirmed.
A unique identifier in the Bitcoin network, similar to an email address. It allows users to receive Bitcoin. Each address is intended for single use for optimal privacy and security.
Any cryptocurrency other than Bitcoin. AmberApp focuses exclusively on Bitcoin.
AML refers to the set of laws, regulations, and procedures designed to prevent criminals from disguising illegally obtained funds as legitimate income. AML programs require financial institutions and other regulated entities to monitor transactions, report suspicious activity, and conduct due diligence on clients to ensure they are not facilitating money laundering or other illicit activities. The goal is to stop the process of "laundering" money, where proceeds from criminal activities are made to appear legal, protecting the financial system from being exploited by criminals.
Hardware designed specifically for mining cryptocurrencies like Bitcoin. These devices are much more efficient at mining than general-purpose hardware like CPUs or GPUs.
The process of including multiple recipient addresses in a single transaction. This technique is used to save on transaction fees and reduce blockchain congestion.
A condition in the financial market where the prices of securities or assets like Bitcoin are falling, and widespread pessimism causes the negative sentiment to be self-sustaining. Investors anticipate losses, and selling continues.
A design document providing information about a new feature or change to Bitcoin. BIPs go through a review process before being adopted, ensuring the community has input on protocol upgrades.
Refers to the entire network or the protocol. Example: "Bitcoin is changing the financial system."
The official open-source software client for the Bitcoin network. Bitcoin Core is a full node implementation—it downloads and validates all Bitcoin transactions and blocks, allowing the user to participate in consensus. It provides users with a complete set of features necessary to interact with the Bitcoin network, including wallet functionality for sending and receiving bitcoin, as well as participating in the mining process (acts as the backend node for the actual ASIC miner and mining software)
An event that occurs approximately every four years, where the reward that Bitcoin miners receive for adding a new block to the blockchain is cut in half. This is part of Bitcoin's monetary policy, built into its protocol by its creator, Satoshi Nakamoto, to control inflation and limit the total supply of Bitcoin to 21 million.
Denotes the currency unit. Example: "I bought 0.5 bitcoin."
A collection of Bitcoin transactions that are recorded together. Blocks are added to the blockchain approximately every 10 minutes through the mining process.
The amount of new bitcoin minted and awarded to the miner who successfully adds a new block to the blockchain. This reward halves approximately every four years due to the halving mechanism.
A public ledger of all Bitcoin transactions, organised in sequential blocks. It ensures the transparency and security of the network by preventing double-spending and other forms of fraud.
The ticker symbol for Bitcoin, often used on exchanges and in financial contexts. It represents the unit of the currency.
The opposite of a bear market, where prices of assets are rising or are expected to rise. The term is often used to describe a market where investor confidence is high, leading to increased buying activity.
When a Bitcoin transaction is made, if the UTXO used is larger than the amount being sent, the excess is sent back to a new address owned by the sender, known as a change address.
A transaction fee bumping technique where a child transaction spends an output of a previously unconfirmed parent transaction, increasing the overall fee to incentivise miners to confirm both transactions.
A wallet feature that allows users to manually select which UTXOs (Unspent Transaction Outputs) to use in a transaction. This can be useful for optimising privacy and fee costs.
A method used to enhance privacy in Bitcoin transactions by combining multiple payments from different users into a single transaction, obscuring the trail of who paid whom.
A security measure for storing Bitcoin and other cryptocurrencies offline, away from internet access. Cold storage methods, such as hardware wallets, paper wallets, or offline computers, help protect private keys from online threats like hacking, malware, and phishing attacks. Cold storage is typically used for holding large amounts of Bitcoin intended for long-term investment, minimising the risk of unauthorised access. By keeping private keys in an offline environment, cold storage ensures that funds remain secure even if an online device or network is compromised.
A type of Bitcoin wallet that is not connected to the internet, providing a high level of security against online threats such as hacking or phishing attacks. Cold wallets are typically used for long-term storage of large amounts of Bitcoin. Examples include hardware wallets, paper wallets, and air-gapped computers. Cold wallets are considered one of the most secure methods of storing Bitcoin because the private keys never come into contact with an online device, reducing the risk of theft.
The process by which a Bitcoin transaction is included in a block and then added to the blockchain. A single confirmation reduces the risk of a transaction being reversed, with more confirmations providing greater security.
The technology underlying Bitcoin's security features. Cryptography ensures that transactions are secure and that only the rightful owner can spend their Bitcoin.
A wallet where a third party (like an exchange) holds the user's private keys, managing the security and access to funds on the user's behalf.
An investment strategy where users buy a fixed amount of Bitcoin at regular intervals, regardless of price. This approach helps mitigate market volatility.
The principle that no single entity controls the Bitcoin network. It operates through a distributed network of nodes, making it resistant to censorship and central points of failure.
The process by which the Bitcoin network adjusts the complexity of the mining puzzle every 2,016 blocks (~every two weeks). This ensures that new blocks are added approximately every 10 minutes, regardless of changes in the network's total hash rate.
A tiny amount of Bitcoin, often left over from transactions, that is so small it may not be worth the transaction fee required to spend it.
The randomness collected by a system to create secure private keys. High entropy ensures that private keys are difficult to guess or crack.
A trusted third party that holds funds during a transaction, releasing them once all conditions are met. Escrows are often used in Bitcoin trades to prevent fraud.
Fiat (from Latin: "let it be done") money is legal tender issued by the state or government. It is money that is not backed by a physical commodity (like energy), but rather the full faith and trust of the issuer.
A common emotional reaction in markets where investors buy an asset, like Bitcoin, out of fear that they will miss a significant price increase.
Negative information spread deliberately to cause fear and uncertainty around Bitcoin, often affecting market sentiment.
An event that occurs approximately every four years, where the reward for mining new blocks is halved. This process reduces the rate at which new Bitcoin is created and increases its scarcity.
A physical device that securely stores Bitcoin private keys offline. It is considered one of the safest ways to hold Bitcoin.
The measure of computational power per second used when mining. It's indicative of the security and health of the Bitcoin network.
A term originating from a misspelled word "hold," now used to describe the strategy of holding onto Bitcoin for the long term, regardless of market volatility.
A Bitcoin wallet connected to the internet, used for everyday transactions. Hot wallets are convenient but more vulnerable to hacking compared to cold storage options.
A regulatory requirement that businesses must follow to verify the identity of their clients. It often involves collecting personal information to comply with anti-money laundering (AML) laws.
A second-layer solution designed to enable fast and low-cost transactions. It operates off-chain, which means transactions occur outside the blockchain and are later settled on-chain.
The ease with which an asset, such as Bitcoin, can be bought or sold in the market without affecting its price. Higher liquidity means more stable prices.
A medium of exchange is one of the primary functions of money. For money to function as a medium of exchange, it must represent a standard of value, and all parties must accept that standard. Thanks to the fast transaction times on the Lightning Network, Bitcoin is increasingly being accepted as an MoE by merchants all around the world.
A collection of all the Bitcoin transactions that have been broadcasted to the network but have not yet been included in a block. Transactions wait in the mempool until they are confirmed by miners.
A data structure used in Bitcoin to efficiently and securely verify the integrity of a large number of transactions. It's part of how transactions are grouped into blocks.
The process of validating Bitcoin transactions and adding them to the blockchain. Miners use computational power to solve complex mathematical puzzles, securing the network and earning newly created bitcoins as rewards.
Money is the universal medium of exchange used by individuals to trade their time and energy with one another. It is the most marketable or saleable good in an economy. Money is a technology for storing and moving value across space and time.
A method that requires more than one private key to authorise a Bitcoin transaction. This feature is often used for added security, requiring multiple approvals before funds can be spent.
Sometimes, also called a pre-coiner. Newcoiner is a term used to describe people who are new to Bitcoin, perhaps you!? Welcome to Bitcoin. Stack Sats and HODL Hard, with Amber App.
A colloquial term among Bitcoin enthusiasts referring to the belief that Bitcoin's value will inherently increase over time due to its design.
A series of economic measures taken by U.S. President Richard Nixon in 1971, the most significant being the unilateral cancellation of the direct international convertibility of the United States dollar to gold. This event is often cited in discussions about Bitcoin as it highlights the vulnerabilities of fiat currencies.
A computer that participates in the Bitcoin network. Full nodes store a complete copy of the blockchain and help validate transactions and blocks.
Valid blocks that are not part of the main blockchain because another block at the same height was accepted first. They are not used in the blockchain's transaction history.
A physical printout of a Bitcoin private key and address. It allows for offline storage of Bitcoin, but it must be kept secure to prevent loss or theft.
A secure piece of data that grants the owner the ability to spend Bitcoin from a specific wallet. It must be kept secret to prevent unauthorised access to the funds.
The consensus mechanism used by Bitcoin, where miners solve complex mathematical puzzles to validate transactions and secure the network. It is energy-intensive but provides a high level of security
A cryptographic code associated with a private key. It generates Bitcoin addresses and can be shared openly, allowing others to send Bitcoin to that address.
A machine-readable code that stores Bitcoin addresses. Users can scan QR codes to send or receive Bitcoin easily without typing long addresses.
A sequence of 12 or 24 words that can be used to restore a Bitcoin wallet. Losing this phrase means losing access to the wallet's funds permanently.
The smallest unit of Bitcoin, representing one hundred millionth of a bitcoin (0.00000001 BTC). Named after Bitcoin's pseudonymous creator, Satoshi Nakamoto.
It refers to the supply or availability of something. It is one of the most important and fundamental attributes of money. Without scarcity, abundance grows, and anyone anywhere could conjure money out of thin air, with the stroke of a pen, or the click of a keyboard. This encourages seigniorage, which is one of the biggest problems with fiat money.
A proposed signature scheme for Bitcoin, which would offer improvements in privacy and efficiency through signature aggregation.
A sequence of 12 or 24 words used to recover a Bitcoin wallet. The seed phrase is generated when creating a wallet and must be kept safe, as it can restore access to funds.
A Bitcoin protocol upgrade that improved transaction efficiency and security. It separated the transaction signatures from the data, allowing more transactions to fit into a block.
The practice of holding and managing your own Bitcoin, using private keys. It gives users full control over their funds without relying on third parties.
A cryptographic operation that verifies a transaction's authenticity. When a user sends Bitcoin, their wallet uses the private key to sign the transaction, proving ownership without revealing the private key itself.
A backward-compatible protocol upgrade to the Bitcoin network. It allows nodes that haven't upgraded to still participate in the network.
A colloquial term for accumulating small and/or regular amounts of Bitcoin. This is commonly used in the Bitcoin community to refer to the DCA method of building up your holdings by purchasing fractions of a Bitcoin (sats, short for Satoshis) and "stacking" these over time.
A primary function of money. Something cannot be used as money if it does not store value. A store of value is an asset, commodity, or currency that maintains its value over time without depreciating. Historically, gold and silver were good stores of value because they are both relatively scarce, durable, divisible, portable and cognisable.
A Bitcoin upgrade aimed at enhancing privacy, efficiency, and the ability to execute more complex smart contracts by making different types of transactions indistinguishable from one another.
The fee users pay to incentivise miners to include their transaction in the next block. Higher fees can speed up the confirmation time.
The amount of Bitcoin left unspent after a transaction. UTXOs are used as inputs for new transactions and are what a wallet keeps track of to determine a user's balance.
A software application or hardware device that stores private keys and allows users to manage their Bitcoin. Wallets can be categorised as custodial (managed by a third party) or non-custodial (controlled by the user).
A wallet that can monitor and receive Bitcoin but cannot spend it, as it does not have access to the private keys. It's used for security and monitoring purposes.
Refers to the document published by Satoshi Nakamoto titled "Bitcoin: A Peer-to-Peer Electronic Cash System," which outlined the concept and operational basics of Bitcoin.
Used in hierarchical deterministic wallets to derive multiple Bitcoin addresses from a single seed, enhancing privacy and convenience for users without exposing private keys.
