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Quick Glossary This quick glossary contains many of the terms used in relation to bitcoin. These terms are used throughout the book, so bookmark this for a quick reference and clarification. address (aka public key) A bitcoin address looks like 1DSrfJdB2AnWaFNgSbv3MZC2m74996JafV - they consist of a string of letters and numbers starting with a “1” (number one). Just like you ask others to send an email to your email address, you would ask others to send you bitcoin to your bitcoin address. bip bitcoin The name of the currency unit (the coin), the network and the software block A grouping of transactions, marked with a timestamp, and a fingerprint of the previous block. The block header is hashed to find a proof-of-work, thereby vali‐ dating the transactions. Valid blocks are added to the main blockchain by network consensus. blockchain A list of validated blocks, each linking to its predecessor all the way to the genesis block. confirmations Once a transaction is included in a block, it has “one confirmation”. As soon as another block is mined on the same blockchain, the transaction has two confirma‐ tions etc. Six or more confirmations is considered sufficient proof that a transaction cannot be reversed. difficulty A network-wide setting that controls how much computation is required to find a proof-of-work. difficulty target A difficulty at which all the computation in the network will find blocks approxi‐ mately every 10 minutes. difficulty re-targeting A network-wide re-calculation of the difficulty which occurs once every 2106 blocks and considers the hashing power of the previous 2106 blocks. Bitcoin Improvement Proposals. A set of proposals that members of the bitcoin community have submitted to improve bitcoin. For example BIP0021 is a proposal to improve the bitcoin URI scheme. Preface | xviiPDF Image | Mastering Bitcoin
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