Bitcoin Glossary – Terminology and Definitions

Organized such that one or more parties are in control of a service.

The reversal of a bank payment or money transfer after it was authorized. Sometimes used to commit fraud.

A unique type of Bitcoin transaction with no inputs that is created by miners after finding new blocks. This type of transaction is, in most cases, the first transaction within new a block. Coinbase transactions reward miners for their work.

The storage of Bitcoin private keys in any fashion that is disconnected from the internet. Typical cold storage includes USB drives, offline computers, or paper wallets.

A Bitcoin wallet that is in cold storage (not connected to the internet).

A bitcoin transaction is considered unconfirmed until it has been included in a block on the blockchain, at which point it has one confirmation. Each additional block is another confirmation.

An additional person or entity that has partial control over a Bitcoin wallet.

A type of currency that uses cryptography instead of a central bank to provide security and verify transactions. Bitcoin is the first cryptocurrency.

In the context of Bitcoin, cryptography is the use of mathematics to secure information. Cryptography is used to create and secure wallets, sign transactions, and verify the blockchain.