Key Terms Newbies Should Know About the Bitcoin Community
Bitcoin and blockchain terminology can be difficult to understand and remember, especially for users that are new to this field. If you’re a complete beginner, you might have difficulty getting a solid grasp of the Bitcoin community and how it operates.
However, there are plenty of resources available online for free here. You can expand your knowledge and learn more about Bitcoin.
A good place to start is to learn key terms that will help you improve your knowledge and make better decisions about your funds. This is particularly important if you’re looking to add BTC to your financial portfolio. So, let’s take a look at some of the key terms that you should be aware of when you are just starting off as investor in the Bitcoin community.
Blockchain Technology
Blockchain technology is the foundation of Bitcoin. This is a hash-linked peer- to peer-based data structure where BTC transactions are added to the network, recorded, and processed.
It’s called the ‘blockchain’ because the BTC transactions are added to a so-called block, and each block is connected via cryptography in a chain of blocks. The design of the blockchain network is what makes the system tamper-proof and the BTC transactions secure. More specifically, the network features three parts – the blockchain, the peer-to-peer network of computer systems (nodes), and the proof of work consensus mechanism.
It’s also worth mentioning that the blockchain network is public, decentralized, and transparent, but personal and sensitive information about the users is excluded as information on the network.
Online Trading Sites
Online trading sites are marketplaces where you can invest in BTC, exchange BTC for other currencies, or sell your Bitcoin tokens. There are also automated crypto trading sites where the orders are conducted automatically without manual input read more
This trading system is one of the first platforms that utilize both Artificial Intelligence technology and blockchain technology to execute highly accurate trading for its members. In fact, it is widely known that this system generates a profit of up to 60% on a daily basis, and you can earn up to $4,000 in one day off trading here. You only need to make an initial investment of $250 to create an account here.
Bitcoin Mining
Actually, the primary component of the blockchain network is Bitcoin mining which is a process that is facilitated across an array of computer systems around the world, while each node has a copy of the blockchain.
Each node acts as a server that is able to add and process blooks of transactions. The miners gain a block reward for processing the transactions, and by doing that, they solve a computational puzzle which is a mechanism put in place by the creator of Bitcoin and blockchain – Satoshi Nakamoto – with the purpose to solve the double-spending problem of digital currencies.
Block of Transactions
As we mentioned earlier, blocks of transactions are a crucial part of blockchain technology. One block is approximately 1 MB in size, and it consists of multiple BTC transactions. It should be noted that each BTC transaction is irreversible, and the block includes a reference to the previous block in the network.
Bitcoin ATMs
Bitcoin ATM is a kiosk where you can purchase BTC and exchange your fiat currencies for BTC. Also, there are some Bitcoin ATMs that offer a bi-directional functionality of selling and buying BTC. The popularity of Bitcoin ATMs has been rising exponentially since Bitcoin became one of the largest crypto assets on the market, so today, there are over 2,000 BTC ATMs in the USA alone.
Bitcoin
Bitcoin is the cryptocurrency that is introduced via blockchain technology, and it is also available for purchase on online trading sites. This is the world’s first decentralized virtual currency, which is fully impacted by the relationship between supply and demand in the crypto market.
