Reference
Bitcoin Glossary
Plain-English definitions for the terms people run into when learning Bitcoin. If a word still feels fuzzy, start with the beginner articles and come back here.
Sats
Short for satoshis, the smallest standard unit of Bitcoin. There are 100,000,000 sats in 1 bitcoin.
Wallet
An app or device that lets you receive, send, and manage bitcoin by controlling the keys tied to it.
Seed phrase
A set of 12 or 24 words that can restore access to a Bitcoin wallet. Treat it like a master backup.
Private key
Secret data that proves you can spend bitcoin. Whoever controls the private key controls the bitcoin.
Public key
A key related to receiving and verifying Bitcoin activity. It is less sensitive than a private key, but still part of the wallet system.
Node
A computer running Bitcoin software that checks the rules of the network and helps verify transactions.
Miner
A participant that groups transactions into blocks and helps secure Bitcoin by spending energy to produce valid blocks.
Block
A batch of Bitcoin transactions grouped together and added to the blockchain.
Blockchain
The public record of Bitcoin transactions linked together in order so the network can verify what happened.
Lightning
A payment layer built on Bitcoin that helps small payments move faster and often with lower fees.
Self-custody
Holding Bitcoin in a way where you control the keys yourself instead of trusting a company to do it for you.
Halving
A scheduled event that cuts Bitcoin's new issuance roughly in half. It is part of Bitcoin's predictable supply rules.
Inflation
The loss of purchasing power that happens when money supply grows faster than real goods and services.
Cantillon effect
The idea that new money does not reach everyone at once, so the people closest to it usually benefit before prices adjust.
UTXO
Short for Unspent Transaction Output. It is a Bitcoin bookkeeping term for spendable chunks of bitcoin inside the network.
Address
A Bitcoin destination string or QR target that tells someone where to send bitcoin.
QR code
A scannable square code that can contain a Bitcoin address or Lightning invoice.
Invoice
A payment request, especially on Lightning, that tells the payer where to send bitcoin and for how much.
Confirmation
A sign that a Bitcoin transaction has been included in a block and recognized by the network.
Need the basics in order? Start with Start Here, then use this glossary when a term shows up in an article or guide.
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