Understand The Most Used Terms In The Bitcoin World


As in today’s world the term Bitcoin is gaining popularity among people ranging from amateurs to experts. We all come across the same general terms in day to day basis. Some of us already know this term and have knowledge about where it implies whereas Some who don’t know about this term gets the better idea. This article will help to get better clarity about some of the most popular terms.
Mining:
Bitcoin mining is the method by which the transaction information distributed within the Bitcoin network validates and stores on the blockchain. It is a term used to define the processing and confirmation of payments on the Bitcoin network.
Cryptography:
Cryptography is practiced in various places to give security in the Bitcoin network. Cryptography is basically mathematical algorithms employed to encrypt and decrypt information which is used in bitcoin addresses, hash functions and the blockchain.
Decentralized:
Decentralized bitcoin network is an important aspect. The network is “decentralized,” implies that it’s void of a centralized company or entity that governs the network. Bitcoin is peer-to-peer payment network system that is powered by its users with no central authority or middlemen such as a bank or credit card company.
Hash Rate:
Hash rate is the measurement unit of the processing power of the Bitcoin network.  For example, if a network reaches a hash rate of 10 h/s, then it can process 10 trillion calculations per second.
Block Height:
The block height is simply the number of blocks combined collectively in the blockchain. Like Height 0 refers to the very first block, named the “genesis block.”
Blockchain:
The Blockchain is an encrypted, distributed database that records data, or in other words, it is a digital ledger of transactions and contracts that require to be independently recorded. One of the essential features of Blockchain is that this digital ledger is available across various computers and is not restricted to put in a single place.
Proof of Work:
A Proof-of-Work system needs its users to achieve some form of work to participate. The work must be difficult for the client but easy for the server/network to verify.

Proof of Stake:
Proof of Stake happens by a miner putting up a stake or locking up an amount of coins, to verify a block of transactions.

Is there a bitcoin term not defined here that you want us to explain for you? Let us know by commenting below.

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