Blockchain
  1. An ever-growing chain of blocks. Each block consists of bitcoin transactions and data related to it. After the transaction is created, it is broadcasted to the cryptocurrency network and then included into the block chain (in other words, transaction becomes confirmed).
  2. The technology block chain allows for transferring the assets ownership digitally. Thus, it has a great potential for smart property management or smart contracts.
Block Explorer

a service for exploring blockchain. Through the block explorer you can track Bitcoin transactions, check block and transaction info, amounts etc.

Bitcoin Transaction

a transfer of bitcoins from one wallet to another. Transactions are cryptographically secured and become legitimate as soon as they are included into the block. The process of being included into the block is called the confirmation process. Within the Bitcoin cryptocurrency, a transaction can be considered confirmed after 6 confirmations. It takes on average 10 minutes for a transaction to be confirmed. This process was undertaken in order to avoid double-spending attack.

Unconfirmed Transaction

a transaction that has not been included into the blockchain yet, but each node is informed about this transaction. Transaction can be left unconfirmed for a long period of time (not included into the blockchain) because of the following reasons:

  • If a transaction has a low priority (the longer coins are being not expended, the higher priority it has)
  • Due to a very big transaction amount
  • Due to a low set fee
Fee

the amount of bitcoins which is collected from the bitcoin transaction. The fee collected through the transaction goes to miners to encourage them to keep mining. A miner can include such amount of transactions that he prefers, thus, he can automatically increase his reward. Within the Bitcoin cryptocurrency, the user can set up a fee that he prefers, but he needs to take into account that if it is too small the transaction can stay unconfirmed for a long time.

Block

a storage that permanently records the Bitcoin Network Data. These units of code consist of block header and transactions' merkle tree . Each block is linked with the previous one and takes origin from the genesis block. The data contained in the Bitcoin block cannot be modified and deleted.

Address

an identifier of about 27 - 34 alphanumeric symbols. (Technically speaking, it is a 160-bit hash). It begins with a 1 or a 3. With a wallet service you can create an address free of charge. In order to reach a high level of anonymity,a user needs to generate an address for each new transaction.

Genesis Block

the very first block in the blockchain.

Orphan block

a block which is not included into the valid blockchain. It occurs when two or more miners simulataneously find a block. In this situation only one block can be confirmed and stored in blockchain while the other one will be rejected by the network, thus the finder will not be rewarded with the coins that the block contained.

Block Height

a number of blocks between the block and the genesis block which height is 0.

Hash

a unique identificator of transactions and blocks. Technically, it is a complex mathematical function that is used in block verification during the mining process. After a valid block hash is calculated, the miner gets fixed reward with transaction fees included into the block.

Block header

80 bytes of block data that include Block version number, hash of the Previous Block, hash of the Merkle Root, Time, Bits and the Nonce.

Double-spent attack

an attack when the same coins are used in more than one transaction.

51% attack

an attack when a miner or a mining pool extend its computing resources to the level that it becomes possible to control 51% of the Bitcoin Network computing power, thus block generation is only up to the one player giving no chance to the others.

Mempool

memory pool, files with data about valid transactions that are not included into the block as they are unconfirmed.



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