Definition of Bitcoin wallet PCMag

"Bitcoin that are not in your wallet with keys you control are not your Bitcoin." - by this definition the Lightning Network is an altcoin.

We hear the trope "LN transactions are Bitcoin transactions" all the time.
Let's examine that.
I think most of us would say that if Alice and Bob each have an account on Coinbase worth 1 btc then we might say that both Alice and Bob own Bitcoins. After all they each can check their Coinbase balance and it says 1 btc.
But Alice and Bob are choosing to leave their Bitcoin on an exchange. What we know after MtGox is that COINBASE owns the 2 Bitcoins associated with Alice and Bob's accounts. Alice and Bob each own an IOU for one Bitcoin payable on demand by Coinbase. If Coinbase blows up tomorrow there is nothing on the blockchain that proves that Alice or Bob owned any Bitcoin at all. In fact if Coinbase blows up, Coinbase still controls the 2 Bitcoins belonging to Alice and Bob.
And if Alice sends her Bitcoin to Bob on Coinbase? Coinbase generates a ledger entry for this transaction but it is Coinbase, not Bob, who controls the Bitcoin.
So we say that "Bitcoin that are not in a wallet whose keys you control, are not your Bitcoin." What we will see is that when one uses Lightning, the Bitcoin associated with that transaction are "not in a wallet with keys you control" and therefore "not your Bitcoin" - in fact they aren't Bitcoin at all, but IOUs of other Bitcoin just like the Coinbase transaction.
A transaction that happens like the one on Coinbase is called an off-chain transaction. The key thing to note is that off-chain transactions do not reassign Bitcoins to a new owner. They are simply IOUs that indicate that this transfer needs to happen sometime in the future. That's why off chain transactions are best thought of as IOUs or promissory notes.
So along comes Lightning. Lightning promises, using some interesting cryptography, to offer instant p2p transactions. That part is great. But are these Bitcoin transactions?
Well they're clearly denominated in Bitcoin. But so were Alice and Bob's Coinbase accounts. We have to find out at what point a Lightning transaction produces a true "Bitcoin transaction" - assigning coins to a unique Bitcoin wallet that the recipient controls.
Turns out that Lightning transactions are IOUs just like Coinbase transactions. So while a Lightning transaction appears to instantly transfer Bitcoins, in reality it instantly signs an IOU. The Bitcoin are not transferred until some other time in the future (this is the step called "settlement").
So where are the actual Bitcoins while all these Bitcoin-IOU transactions are going on? They are held in a Lightning hub.
Now "Hub" is a word the Lightning devs don't use anymore - they will tell you that Lightning is not "hub and spoke", "but peer to peer." "Hub" fell out of use with good reasons - hubs are bad. Remember Bitcoin is censorship resistant: any given miner might choose to reject your transaction, but any other miner is free to include it. But if Lightning transactions go through hubs, then any hub might be able to censor transactions between its "spokes." So devs stress that Lightning is really peer-to-peer.
It turns out that just because a technology allows peer to peer connections doesn't mean it will form into a peer to peer network topology.
We can see that tcpip is inherently peer to peer but produces a strong set of hubs and spokes (do you run your own Web or mail servers?)
Lightning works the same way. While the technology allows any user to create a "channel" with any other user (making it inherently peer to peer) in practice nobody can leave channels open to everyone they pay. Since opening and closing channels each requires a Bitcoin transaction, it is inefficient to even open a channel unless one will frequently transact over that channel. Since each channel ties up Bitcoins that cannot be spent elsewhere until the channel is closed, then each channel represents a unique cost to hold open.
So you can't use Lightning to pay for coffee peer to peer. It would take a confirmed on chain transaction to establish a channel between you and the coffee shop, then a Lightning transaction to pay for the coffee, then another Bitcoin transaction to close the channel. That's three transactions to replace one regular Bitcoin transaction.
You could create a channel and fund it with enough Bitcoin to pay for all possible coffees. That would let you pay via Lightning peer to peer with the coffee shop. But it would also require you to essentially prepay all your future coffees up front.
Of course this is not how Lightning advocates expect you to use their payment network. You are expected to place your funds in a hub server. That server will maintain open channels with other hubs. So when you want to pay for coffee, the hub server where you store your funds signs an IOU with the hub server where the coffee shop stores its funds and sends it over to that hub. The "peers" never actually transact.
So where are the Bitcoin? On the hubs. Not in your control.
When the coffee shop owner receives the Lightning transaction, she received an IOU for Bitcoins from the purchaser. The Bitcoins stayed on the hub.
So hubs are like banks and Lightning is like SWIFT: you keep you Bitcoin on a hub, and the hub "empowers" your Bitcoin to be instantly transactable over Lightning with other hubs, at the expense of having to trust a third party with your Bitcoins.
Now it's true that I am comparing Lightning to other off chain transactions like Coinbase and that there are differences.
In software we have this concept called "leaky abstractions." What this means is that when we try to hide something messy with a simplifying abstraction, something invariably gets lost. A transaction on Coinbase is an example. If Alice sends Bob some Bitcoin, actually performing the transaction is hard: it takes time and costs money to move Bitcoin on the blockchain. But if I create an abstraction of the Bitcoin that Alice wants to send Bob, I can transfer the abstraction immediately and for free, and handle the underlying details later. Bob and Alice can be unaware that the Bitcoin they thought they exchanged were really only symbols in a database - at least until Coinbase blows up. Then it becomes painfully aware that the "symbol is not the thing."
A Coinbase transaction is an example of a kind of leaky abstraction. As long as everything works, the "abstract" transaction on Coinbase is "pretty much as good as" a real transaction on the blockchain. But if something goes wrong, only the real transaction counts.
Gold and fiat money are another example. A paper certificate for one ounce of gold really is almost as good as one ounce of gold (better, in some ways). But the symbol is not the thing: people can sell all the real gold making the paper worthless.
All of this speaks to the fact that a Lightning transaction - which exchanges IOUs for future Bitcoins that users do not hold in wallets they themselves control - is not a Bitcoin transaction, but a transaction of IOUs. It is an abstraction.
Now Lightning isn't a fallible human system like paper fiat. Lightning relies on computer science to theoretically make it impossible to steal Bitcoin or inflate the money supply.
Lightning may work perfectly - but it's still just IOUs, not actual Bitcoin in my wallet that I control, verifiable by every full node on the network. Any imperfections in Lightning contribute to the "leakiness" of its ability to abstract a Bitcoin transaction.
In the end, all software engineers will tell you that "all non trivial abstractions are leaky." The less trivial, the more leaky. And the more leaky the abstraction, the less the abstraction is worth relative to a real transaction. A Lightning transaction is clearly worth less than the equivalent on chain transaction.
So Lightning isn't Bitcoin any more than paper gold is real gold, and therefore should be considered an alternative money (altcoin) based on Bitcoin IOUs.
submitted by tsontar to btc [link] [comments]

Bittrex Wallet Removal list and Bitcoin Private is definitely not one of them!

Bittrex Wallet Removal list and Bitcoin Private is definitely not one of them! submitted by LamboshiNakamooto to BitcoinPrivate [link] [comments]

"Bitcoin that are not in your wallet with keys you control are not your Bitcoin." - by this definition the Lightning Network is an altcoin.

We hear the trope "LN transactions are Bitcoin transactions" all the time. Let's examine that. I think most of us would say that if Alice and Bob each have an account on Coinbase worth 1 btc then we might say that both Alice and Bob own Bitcoins. After all they each can check their Coinbase balance and it says 1 btc. But Alice and Bob are choosing to leave their Bitcoin on an exchange. What we know after MtGox is that COINBASE owns the 2 Bitcoins associated with Alice and Bob's accounts. Alice and Bob each own an IOU for one Bitcoin payable on demand by Coinbase. If Coinbase blows up tomorrow there is nothing on the blockchain that proves that Alice or Bob owned any Bitcoin at all. In fact if Coinbase blows up, Coinbase still controls the 2 Bitcoins belonging to Alice and Bob. And if Alice sends her Bitcoin to Bob on Coinbase? Coinbase generates a ledger entry for this transaction but it is Coinbase, not Bob, who controls the Bitcoin. So we say that "Bitcoin that are not in a wallet whose keys you control, are not your Bitcoin." What we will see is that when one uses Lightning, the Bitcoin associated with that transaction are "not in a wallet with keys you control" and therefore "not your Bitcoin" - in fact they aren't Bitcoin at all, but IOUs of other Bitcoin just like the Coinbase transaction. A transaction that happens like the one on Coinbase is called an off-chain transaction. The key thing to note is that off-chain transactions do not reassign Bitcoins to a new owner. They are simply IOUs that indicate that this transfer needs to happen sometime in the future. That's why off chain transactions are best thought of as IOUs or promissory notes. So along comes Lightning. Lightning promises, using some interesting cryptography, to offer instant p2p transactions. That part is great. But are these Bitcoin transactions? Well they're clearly denominated in Bitcoin. But so were Alice and Bob's Coinbase accounts. We have to find out at what point a Lightning transaction produces a true "Bitcoin transaction" - assigning coins to a unique Bitcoin wallet that the recipient controls. Turns out that Lightning transactions are IOUs just like Coinbase transactions. So while a Lightning transaction appears to instantly transfer Bitcoins, in reality it instantly signs an IOU. The Bitcoin are not transferred until some other time in the future (this is the step called "settlement"). So where are the actual Bitcoins while all these Bitcoin-IOU transactions are going on? They are held in a Lightning hub. Now "Hub" is a word the Lightning devs don't use anymore - they will tell you that Lightning is not "hub and spoke", "but peer to peer." "Hub" fell out of use with good reasons - hubs are bad. Remember Bitcoin is censorship resistant: any given miner might choose to reject your transaction, but any other miner is free to include it. But if Lightning transactions go through hubs, then any hub might be able to censor transactions between its "spokes." So devs stress that Lightning is really peer-to-peer. It turns out that just because a technology allows peer to peer connections doesn't mean it will form into a peer to peer network topology. We can see that tcpip is inherently peer to peer but produces a strong set of hubs and spokes (do you run your own Web or mail servers?) Lightning works the same way. While the technology allows any user to create a "channel" with any other user (making it inherently peer to peer) in practice nobody can leave channels open to everyone they pay. Since opening and closing channels each requires a Bitcoin transaction, it is inefficient to even open a channel unless one will frequently transact over that channel. Since each channel ties up Bitcoins that cannot be spent elsewhere until the channel is closed, then each channel represents a unique cost to hold open. So you can't use Lightning to pay for coffee peer to peer. It would take a confirmed on chain transaction to establish a channel between you and the coffee shop, then a Lightning transaction to pay for the coffee, then another Bitcoin transaction to close the channel. That's three transactions to replace one regular Bitcoin transaction. You could create a channel and fund it with enough Bitcoin to pay for all possible coffees. That would let you pay via Lightning peer to peer with the coffee shop. But it would also require you to essentially prepay all your future coffees up front. Of course this is not how Lightning advocates expect you to use their payment network. You are expected to place your funds in a hub server. That server will maintain open channels with other hubs. So when you want to pay for coffee, the hub server where you store your funds signs an IOU with the hub server where the coffee shop stores its funds and sends it over to that hub. The "peers" never actually transact. So where are the Bitcoin? On the hubs. Not in your control. When the coffee shop owner receives the Lightning transaction, she received an IOU for Bitcoins from the purchaser. The Bitcoins stayed on the hub. So hubs are like banks and Lightning is like SWIFT: you keep you Bitcoin on a hub, and the hub "empowers" your Bitcoin to be instantly transactable over Lightning with other hubs, at the expense of having to trust a third party with your Bitcoins. Now it's true that I am comparing Lightning to other off chain transactions like Coinbase and that there are differences. In software we have this concept called "leaky abstractions." What this means is that when we try to hide something messy with a simplifying abstraction, something invariably gets lost. A transaction on Coinbase is an example. If Alice sends Bob some Bitcoin, actually performing the transaction is hard: it takes time and costs money to move Bitcoin on the blockchain. But if I create an abstraction of the Bitcoin that Alice wants to send Bob, I can transfer the abstraction immediately and for free, and handle the underlying details later. Bob and Alice can be unaware that the Bitcoin they thought they exchanged were really only symbols in a database - at least until Coinbase blows up. Then it becomes painfully aware that the "symbol is not the thing." A Coinbase transaction is an example of a kind of leaky abstraction. As long as everything works, the "abstract" transaction on Coinbase is "pretty much as good as" a real transaction on the blockchain. But if something goes wrong, only the real transaction counts. Gold and fiat money are another example. A paper certificate for one ounce of gold really is almost as good as one ounce of gold (better, in some ways). But the symbol is not the thing: people can sell all the real gold making the paper worthless. All of this speaks to the fact that a Lightning transaction - which exchanges IOUs for future Bitcoins that users do not hold in wallets they themselves control - is not a Bitcoin transaction, but a transaction of IOUs. It is an abstraction. Now Lightning isn't a fallible human system like paper fiat. Lightning relies on computer science to theoretically make it impossible to steal Bitcoin or inflate the money supply. Lightning may work perfectly - but it's still just IOUs, not actual Bitcoin in my wallet that I control, verifiable by every full node on the network. Any imperfections in Lightning contribute to the "leakiness" of its ability to abstract a Bitcoin transaction. In the end, all software engineers will tell you that "all non trivial abstractions are leaky." The less trivial, the more leaky. And the more leaky the abstraction, the less the abstraction is worth relative to a real transaction. A Lightning transaction is clearly worth less than the equivalent on chain transaction. So Lightning isn't Bitcoin any more than paper gold is real gold, and therefore should be considered an alternative money (altcoin) based on Bitcoin IOUs.
submitted by 22funnybunny to Bitcoin [link] [comments]

First time buyer: I purchased .0087 bitcoin from Coinbase Friday and later realized that I should definitely absolutely take it off Coinbase immediately once the transaction goes through. What wallet should I purchase and what should I do from here?

submitted by InconspicuousD to Bitcoin [link] [comments]

11-21 18:23 - 'You should probably read the definition of scam, read the description of the wallet, and actually try using it because spewing a bunch of bullshit isn't helping your cause.' by /u/thirdworldsociety removed from /r/Bitcoin within 0-8min

'''
You should probably read the definition of scam, read the description of the wallet, and actually try using it because spewing a bunch of bullshit isn't helping your cause.
'''
Context Link
Go1dfish undelete link
unreddit undelete link
Author: thirdworldsociety
submitted by removalbot to removalbot [link] [comments]

If I was a Rofschild-controlled government agency, and I therefore didn't particularly like Bitcoin, then I'd definitely invest in quantum computing so I could break wallets' private keys and mine nonces. Just sayin'.

If I was a Rofschild-controlled government agency, and I therefore didn't particularly like Bitcoin, then I'd definitely invest in quantum computing so I could break wallets' private keys and mine nonces. Just sayin'. submitted by fiercemodern to conspiracy [link] [comments]

When will Trezor have a definite update to claim Bitcoin Cash? Should i use beta wallet or wait if i am in no rush?

I guess the title says it all. Can anyone tell me what to do if i am in no rush to claim my Bitcoin Cash? Should i use the beta wallet or is it safer to just wait? Any idea when a final update to the wallet will allow to claim Bitcoin Cash with no problems? Thank you for your help
submitted by gonflynn to TREZOR [link] [comments]

Does anyone have a definitive 'best way' to Sweep a bitcoin wallet to get my BCH out?

Wondering what trusted wallet and/or address generator is best currently
submitted by Kooriki to Bitcoincash [link] [comments]

Fear in Ver and Jihan: In BIP148 fails devs can code a new POW, continue with the blockchain, and also zero out Roger and Bitmain's bitcoin balances in the code or adjust the blockchain. 😂 I'm sure the community can identify Rogers wallet. There will definitely be consensus in such an altcoin.

Luke jr says it's fair game. It's doable! https://www.reddit.com/Bitcoin/comments/6msyk5/if_bip148_fails/dk45hjc/?context=3
submitted by baronofbitcoin to Bitcoin [link] [comments]

Bitcoins are redefining the definition of money in your digital wallet with the actual one. Here are the top 10 facts that every Bitcoin enthusiast must know, even if you are not one, just read them and you’ll end up one bitcoin miner.

Bitcoins are redefining the definition of money in your digital wallet with the actual one. Here are the top 10 facts that every Bitcoin enthusiast must know, even if you are not one, just read them and you’ll end up one bitcoin miner. submitted by Sankaranarayanan to BitcoinAll [link] [comments]

"Bitcoin that are not in your wallet with keys you control are not your Bitcoin." - by this definition the Lightning Network is an altcoin. /r/Bitcoin

submitted by BitcoinAllBot to BitcoinAll [link] [comments]

"Bitcoin that are not in your wallet with keys you control are not your Bitcoin." - by this definition the Lightning Network is an altcoin. /r/btc

submitted by BitcoinAllBot to BitcoinAll [link] [comments]

Ive searched and nothing definitive came up, I want to cash out my mycelium wallet as simply and easily as possible. /r/Bitcoin

Ive searched and nothing definitive came up, I want to cash out my mycelium wallet as simply and easily as possible. /Bitcoin submitted by BitcoinAllBot to BitcoinAll [link] [comments]

First time buyer: I purchased .0087 bitcoin from Coinbase Friday and later realized that I should definitely absolutely take it off Coinbase immediately once the transaction goes through. What wallet should I purchase and what should I do from here? /r/Bitcoin

First time buyer: I purchased .0087 bitcoin from Coinbase Friday and later realized that I should definitely absolutely take it off Coinbase immediately once the transaction goes through. What wallet should I purchase and what should I do from here? /Bitcoin submitted by BitcoinAllBot to BitcoinAll [link] [comments]

Bitcoin Discussion • I finally got my hands on a Trezor. Definitely one of the best hardware wallets out there.

submitted by btcforumbot to BtcForum [link] [comments]

This is the Definitive Crypto Hardware Bitcoin Wallet

This is the Definitive Crypto Hardware Bitcoin Wallet submitted by OlavOlsm to btc [link] [comments]

Does anyone have a definitive 'best way' to Sweep a bitcoin wallet to get my BCH out? /r/Bitcoincash

Does anyone have a definitive 'best way' to Sweep a bitcoin wallet to get my BCH out? /Bitcoincash submitted by BitcoinAllBot to BitcoinAll [link] [comments]

I'd definitely pay for Pandora + and a lot of other web-services like youtube red, if they integrated with my bitcoin wallet provider. /r/Bitcoin

I'd definitely pay for Pandora + and a lot of other web-services like youtube red, if they integrated with my bitcoin wallet provider. /Bitcoin submitted by BitcoinAllBot to BitcoinAll [link] [comments]

I'd definitely pay for Pandora + and a lot of other web-services like youtube red, if they integrated with my bitcoin wallet provider.

Trying to make my transactions and bill paying more efficient, tired of waiting in lines: online and retail. Remember taking a look at Coins.ph and they're able to pay for internet bills, electric...basically everything straight from their wallet. Can't really do shit with my coinbase account, except get tracked...
submitted by bitcoinglobe to Bitcoin [link] [comments]

Fear in Ver and Jihan: In BIP148 fails devs can code a new POW, continue with the blockchain, and also zero out Roger and Bitmain's bitcoin balances in the code or adjust the blockchain. I'm sure the community can identify Rogers wallet. There will definitely be consensus in such a /r/Bitcoin

Fear in Ver and Jihan: In BIP148 fails devs can code a new POW, continue with the blockchain, and also zero out Roger and Bitmain's bitcoin balances in the code or adjust the blockchain. I'm sure the community can identify Rogers wallet. There will definitely be consensus in such a /Bitcoin submitted by BitcoinAllBot to BitcoinAll [link] [comments]

Ultimate glossary of crypto currency terms, acronyms and abbreviations

I thought it would be really cool to have an ultimate guide for those new to crypto currencies and the terms used. I made this mostly for beginner’s and veterans alike. I’m not sure how much use you will get out of this. Stuff gets lost on Reddit quite easily so I hope this finds its way to you. Included in this list, I have included most of the terms used in crypto-communities. I have compiled this list from a multitude of sources. The list is in alphabetical order and may include some words/terms not exclusive to the crypto world but may be helpful regardless.
2FA
Two factor authentication. I highly advise that you use it.
51% Attack:
A situation where a single malicious individual or group gains control of more than half of a cryptocurrency network’s computing power. Theoretically, it could allow perpetrators to manipulate the system and spend the same coin multiple times, stop other users from completing blocks and make conflicting transactions to a chain that could harm the network.
Address (or Addy):
A unique string of numbers and letters (both upper and lower case) used to send, receive or store cryptocurrency on the network. It is also the public key in a pair of keys needed to sign a digital transaction. Addresses can be shared publicly as a text or in the form of a scannable QR code. They differ between cryptocurrencies. You can’t send Bitcoin to an Ethereum address, for example.
Altcoin (alternative coin): Any digital currency other than Bitcoin. These other currencies are alternatives to Bitcoin regarding features and functionalities (e.g. faster confirmation time, lower price, improved mining algorithm, higher total coin supply). There are hundreds of altcoins, including Ether, Ripple, Litecoin and many many others.
AIRDROP:
An event where the investors/participants are able to receive free tokens or coins into their digital wallet.
AML: Defines Anti-Money Laundering laws**.**
ARBITRAGE:
Getting risk-free profits by trading (simultaneous buying and selling of the cryptocurrency) on two different exchanges which have different prices for the same asset.
Ashdraked:
Being Ashdraked is essentially a more detailed version of being Zhoutonged. It is when you lose all of your invested capital, but you do so specifically by shorting Bitcoin. The expression “Ashdraked” comes from a story of a Romanian cryptocurrency investor who insisted upon shorting BTC, as he had done so successfully in the past. When the price of BTC rose from USD 300 to USD 500, the Romanian investor lost all of his money.
ATH (All Time High):
The highest price ever achieved by a cryptocurrency in its entire history. Alternatively, ATL is all time low
Bearish:
A tendency of prices to fall; a pessimistic expectation that the value of a coin is going to drop.
Bear trap:
A manipulation of a stock or commodity by investors.
Bitcoin:
The very first, and the highest ever valued, mass-market open source and decentralized cryptocurrency and digital payment system that runs on a worldwide peer to peer network. It operates independently of any centralized authorities
Bitconnect:
One of the biggest scams in the crypto world. it was made popular in the meme world by screaming idiot Carlos Matos, who infamously proclaimed," hey hey heeeey” and “what's a what's a what's up wasssssssssuuuuuuuuuuuuup, BitConneeeeeeeeeeeeeeeeeeeeeeeect!”. He is now in the mentally ill meme hall of fame.
Block:
A package of permanently recorded data about transactions occurring every time period (typically about 10 minutes) on the blockchain network. Once a record has been completed and verified, it goes into a blockchain and gives way to the next block. Each block also contains a complex mathematical puzzle with a unique answer, without which new blocks can’t be added to the chain.
Blockchain:
An unchangeable digital record of all transactions ever made in a particular cryptocurrency and shared across thousands of computers worldwide. It has no central authority governing it. Records, or blocks, are chained to each other using a cryptographic signature. They are stored publicly and chronologically, from the genesis block to the latest block, hence the term blockchain. Anyone can have access to the database and yet it remains incredibly difficult to hack.
Bullish:
A tendency of prices to rise; an optimistic expectation that a specific cryptocurrency will do well and its value is going to increase.
BTFD:
Buy the fucking dip. This advise was bestowed upon us by the gods themselves. It is the iron code to crypto enthusiasts.
Bull market:
A market that Cryptos are going up.
Consensus:
An agreement among blockchain participants on the validity of data. Consensus is reached when the majority of nodes on the network verify that the transaction is 100% valid.
Crypto bubble:
The instability of cryptocurrencies in terms of price value
Cryptocurrency:
A type of digital currency, secured by strong computer code (cryptography), that operates independently of any middlemen or central authoritie
Cryptography:
The art of converting sensitive data into a format unreadable for unauthorized users, which when decoded would result in a meaningful statement.
Cryptojacking:
The use of someone else’s device and profiting from its computational power to mine cryptocurrency without their knowledge and consent.
Crypto-Valhalla:
When HODLers(holders) eventually cash out they go to a place called crypto-Valhalla. The strong will be separated from the weak and the strong will then be given lambos.
DAO:
Decentralized Autonomous Organizations. It defines A blockchain technology inspired organization or corporation that exists and operates without human intervention.
Dapp (decentralized application):
An open-source application that runs and stores its data on a blockchain network (instead of a central server) to prevent a single failure point. This software is not controlled by the single body – information comes from people providing other people with data or computing power.
Decentralized:
A system with no fundamental control authority that governs the network. Instead, it is jointly managed by all users to the system.
Desktop wallet:
A wallet that stores the private keys on your computer, which allow the spending and management of your bitcoins.
DILDO:
Long red or green candles. This is a crypto signal that tells you that it is not favorable to trade at the moment. Found on candlestick charts.
Digital Signature:
An encrypted digital code attached to an electronic document to prove that the sender is who they say they are and confirm that a transaction is valid and should be accepted by the network.
Double Spending:
An attack on the blockchain where a malicious user manipulates the network by sending digital money to two different recipients at exactly the same time.
DYOR:
Means do your own research.
Encryption:
Converting data into code to protect it from unauthorized access, so that only the intended recipient(s) can decode it.
Eskrow:
the practice of having a third party act as an intermediary in a transaction. This third party holds the funds on and sends them off when the transaction is completed.
Ethereum:
Ethereum is an open source, public, blockchain-based platform that runs smart contracts and allows you to build dapps on it. Ethereum is fueled by the cryptocurrency Ether.
Exchange:
A platform (centralized or decentralized) for exchanging (trading) different forms of cryptocurrencies. These exchanges allow you to exchange cryptos for local currency. Some popular exchanges are Coinbase, Bittrex, Kraken and more.
Faucet:
A website which gives away free cryptocurrencies.
Fiat money:
Fiat currency is legal tender whose value is backed by the government that issued it, such as the US dollar or UK pound.
Fork:
A split in the blockchain, resulting in two separate branches, an original and a new alternate version of the cryptocurrency. As a single blockchain forks into two, they will both run simultaneously on different parts of the network. For example, Bitcoin Cash is a Bitcoin fork.
FOMO:
Fear of missing out.
Frictionless:
A system is frictionless when there are zero transaction costs or trading retraints.
FUD:
Fear, Uncertainty and Doubt regarding the crypto market.
Gas:
A fee paid to run transactions, dapps and smart contracts on Ethereum.
Halving:
A 50% decrease in block reward after the mining of a pre-specified number of blocks. Every 4 years, the “reward” for successfully mining a block of bitcoin is reduced by half. This is referred to as “Halving”.
Hardware wallet:
Physical wallet devices that can securely store cryptocurrency maximally. Some examples are Ledger Nano S**,** Digital Bitbox and more**.**
Hash:
The process that takes input data of varying sizes, performs an operation on it and converts it into a fixed size output. It cannot be reversed.
Hashing:
The process by which you mine bitcoin or similar cryptocurrency, by trying to solve the mathematical problem within it, using cryptographic hash functions.
HODL:
A Bitcoin enthusiast once accidentally misspelled the word HOLD and it is now part of the bitcoin legend. It can also mean hold on for dear life.
ICO (Initial Coin Offering):
A blockchain-based fundraising mechanism, or a public crowd sale of a new digital coin, used to raise capital from supporters for an early stage crypto venture. Beware of these as there have been quite a few scams in the past.
John mcAfee:
A man who will one day eat his balls on live television for falsely predicting bitcoin going to 100k. He has also become a small meme within the crypto community for his outlandish claims.
JOMO:
Joy of missing out. For those who are so depressed about missing out their sadness becomes joy.
KYC:
Know your customer(alternatively consumer).
Lambo:
This stands for Lamborghini. A small meme within the investing community where the moment someone gets rich they spend their earnings on a lambo. One day we will all have lambos in crypto-valhalla.
Ledger:
Away from Blockchain, it is a book of financial transactions and balances. In the world of crypto, the blockchain functions as a ledger. A digital currency’s ledger records all transactions which took place on a certain block chain network.
Leverage:
Trading with borrowed capital (margin) in order to increase the potential return of an investment.
Liquidity:
The availability of an asset to be bought and sold easily, without affecting its market price.
of the coins.
Margin trading:
The trading of assets or securities bought with borrowed money.
Market cap/MCAP:
A short-term for Market Capitalization. Market Capitalization refers to the market value of a particular cryptocurrency. It is computed by multiplying the Price of an individual unit of coins by the total circulating supply.
Miner:
A computer participating in any cryptocurrency network performing proof of work. This is usually done to receive block rewards.
Mining:
The act of solving a complex math equation to validate a blockchain transaction using computer processing power and specialized hardware.
Mining contract:
A method of investing in bitcoin mining hardware, allowing anyone to rent out a pre-specified amount of hashing power, for an agreed amount of time. The mining service takes care of hardware maintenance, hosting and electricity costs, making it simpler for investors.
Mining rig:
A computer specially designed for mining cryptocurrencies.
Mooning:
A situation the price of a coin rapidly increases in value. Can also be used as: “I hope bitcoin goes to the moon”
Node:
Any computing device that connects to the blockchain network.
Open source:
The practice of sharing the source code for a piece of computer software, allowing it to be distributed and altered by anyone.
OTC:
Over the counter. Trading is done directly between parties.
P2P (Peer to Peer):
A type of network connection where participants interact directly with each other rather than through a centralized third party. The system allows the exchange of resources from A to B, without having to go through a separate server.
Paper wallet:
A form of “cold storage” where the private keys are printed onto a piece of paper and stored offline. Considered as one of the safest crypto wallets, the truth is that it majors in sweeping coins from your wallets.
Pre mining:
The mining of a cryptocurrency by its developers before it is released to the public.
Proof of stake (POS):
A consensus distribution algorithm which essentially rewards you based upon the amount of the coin that you own. In other words, more investment in the coin will leads to more gain when you mine with this protocol In Proof of Stake, the resource held by the “miner” is their stake in the currency.
PROOF OF WORK (POW) :
The competition of computers competing to solve a tough crypto math problem. The first computer that does this is allowed to create new blocks and record information.” The miner is then usually rewarded via transaction fees.
Protocol:
A standardized set of rules for formatting and processing data.
Public key / private key:
A cryptographic code that allows a user to receive cryptocurrencies into an account. The public key is made available to everyone via a publicly accessible directory, and the private key remains confidential to its respective owner. Because the key pair is mathematically related, whatever is encrypted with a public key may only be decrypted by its corresponding private key.
Pump and dump:
Massive buying and selling activity of cryptocurrencies (sometimes organized and to one’s benefit) which essentially result in a phenomenon where the significant surge in the value of coin followed by a huge crash take place in a short time frame.
Recovery phrase:
A set of phrases you are given whereby you can regain or access your wallet should you lose the private key to your wallets — paper, mobile, desktop, and hardware wallet. These phrases are some random 12–24 words. A recovery Phrase can also be called as Recovery seed, Seed Key, Recovery Key, or Seed Phrase.
REKT:
Referring to the word “wrecked”. It defines a situation whereby an investor or trader who has been ruined utterly following the massive losses suffered in crypto industry.
Ripple:
An alternative payment network to Bitcoin based on similar cryptography. The ripple network uses XRP as currency and is capable of sending any asset type.
ROI:
Return on investment.
Safu:
A crypto term for safe popularized by the Bizonnaci YouTube channel after the CEO of Binance tweeted
“Funds are safe."
“the exchage I use got hacked!”“Oh no, are your funds safu?”
“My coins better be safu!”


Sats/Satoshi:
The smallest fraction of a bitcoin is called a “satoshi” or “sat”. It represents one hundred-millionth of a bitcoin and is named after Satoshi Nakamoto.
Satoshi Nakamoto:
This was the pseudonym for the mysterious creator of Bitcoin.
Scalability:
The ability of a cryptocurrency to contain the massive use of its Blockchain.
Sharding:
A scaling solution for the Blockchain. It is generally a method that allows nodes to have partial copies of the complete blockchain in order to increase overall network performance and consensus speeds.
Shitcoin:
Coin with little potential or future prospects.
Shill:
Spreading buzz by heavily promoting a particular coin in the community to create awareness.
Short position:
Selling of a specific cryptocurrency with an expectation that it will drop in value.
Silk road:
The online marketplace where drugs and other illicit items were traded for Bitcoin. This marketplace is using accessed through “TOR”, and VPNs. In October 2013, a Silk Road was shut down in by the FBI.
Smart Contract:
Certain computational benchmarks or barriers that have to be met in turn for money or data to be deposited or even be used to verify things such as land rights.
Software Wallet:
A crypto wallet that exists purely as software files on a computer. Usually, software wallets can be generated for free from a variety of sources.
Solidity:
A contract-oriented coding language for implementing smart contracts on Ethereum. Its syntax is similar to that of JavaScript.
Stable coin:
A cryptocoin with an extremely low volatility that can be used to trade against the overall market.
Staking:
Staking is the process of actively participating in transaction validation (similar to mining) on a proof-of-stake (PoS) blockchain. On these blockchains, anyone with a minimum-required balance of a specific cryptocurrency can validate transactions and earn Staking rewards.
Surge:
When a crypto currency appreciates or goes up in price.
Tank:
The opposite of mooning. When a coin tanks it can also be described as crashing.
Tendies
For traders , the chief prize is “tendies” (chicken tenders, the treat an overgrown man-child receives for being a “Good Boy”) .
Token:
A unit of value that represents a digital asset built on a blockchain system. A token is usually considered as a “coin” of a cryptocurrency, but it really has a wider functionality.
TOR: “The Onion Router” is a free web browser designed to protect users’ anonymity and resist censorship. Tor is usually used surfing the web anonymously and access sites on the “Darkweb”.
Transaction fee:
An amount of money users are charged from their transaction when sending cryptocurrencies.
Volatility:
A measure of fluctuations in the price of a financial instrument over time. High volatility in bitcoin is seen as risky since its shifting value discourages people from spending or accepting it.
Wallet:
A file that stores all your private keys and communicates with the blockchain to perform transactions. It allows you to send and receive bitcoins securely as well as view your balance and transaction history.
Whale:
An investor that holds a tremendous amount of cryptocurrency. Their extraordinary large holdings allow them to control prices and manipulate the market.
Whitepaper:

A comprehensive report or guide made to understand an issue or help decision making. It is also seen as a technical write up that most cryptocurrencies provide to take a deep look into the structure and plan of the cryptocurrency/Blockchain project. Satoshi Nakamoto was the first to release a whitepaper on Bitcoin, titled “Bitcoin: A Peer-to-Peer Electronic Cash System” in late 2008.
And with that I finally complete my odyssey. I sincerely hope that this helped you and if you are new, I welcome you to crypto. If you read all of that I hope it increased, you in knowledge.
my final definition:
Crypto-Family:
A collection of all the HODLers and crypto fanatics. A place where all people alike unite over a love for crypto.
We are all in this together as we pioneer the new world that is crypto currency. I wish you a great day and Happy HODLing.
-u/flacciduck
feel free to comment words or terms that you feel should be included or about any errors I made.
Edit1:some fixes were made and added words.
submitted by flacciduck to CryptoCurrency [link] [comments]

Just had my Blockchain wallet that I've had for a couple years emptied out. It only had around 0.5 BTC in it but it definitely stings. /r/Bitcoin

Just had my Blockchain wallet that I've had for a couple years emptied out. It only had around 0.5 BTC in it but it definitely stings. /Bitcoin submitted by BitcoinAllBot to BitcoinAll [link] [comments]

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How to Find Your Wallet Address with Trust Wallet - YouTube

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