The Bitcoin-related terminology vocabulary is a wide and profound field. With the rapid development of the cryptocurrency market, Bitcoin, as the first digital currency to use blockchain technology, has attracted much attention. Let us explore the world of Bitcoin in depth, understand the terms and concepts, and unveil the mystery of digital currency.

Bitcoin, as a representative of digital currency, has one of its core concepts as blockchain technology. Blockchain is a decentralized distributed ledger that records all information about Bitcoin transactions. Each block contains a certain amount of transaction data, which is linked together by a hash algorithm to form an unalterable data chain. This decentralized feature makes Bitcoin transactions safe and reliable, avoiding the risk of single point failure.

In the world of Bitcoin, mining is a vital process. Mining refers to the process of verifying transactions through computing power and packaging them into blocks. Miners need to solve complex mathematical problems, compete for the right to record accounts and receive a certain amount of Bitcoin rewards. This process not only maintains the security of the Bitcoin network, but also promotes the issuance of new Bitcoins.

In addition to mining, Bitcoin transactions are also an important part of the world of digital currency. Bitcoin transactions refer to the transfer of value between users through the blockchain network. Each transaction needs to be verified by the network nodes and packaged into the block before it can be completed. Bitcoin's fast transaction speed and low handling fee make it a popular payment method worldwide.

With the continuous development of the Bitcoin market, derivatives trading has gradually emerged. Derivatives such as futures contracts and options trading provide investors with more trading options and also increase market liquidity. These derivatives transactions have injected more vitality into the Bitcoin market and attracted more investors to participate.

The future development of Bitcoin has attracted much attention, especially technological innovations in privacy protection and scalability. With the rise of privacy coins, more and more digital currency projects have begun to pay attention to the protection and privacy of user data. At the same time, the scalability problem of the Bitcoin network also needs to be solved urgently to cope with the growing transaction volume and user demand.

In general, as a pioneer in the field of digital currency, Bitcoin continues to explore and innovate, leading the development direction of the entire cryptocurrency market. With the advancement of technology and the growth of the market, Bitcoin will continue to play an important role and become an important part of the digital economy era. Let us look forward to the future of Bitcoin and witness the glorious era of digital currency.

The four most famous international exchanges:

Binance INTL	OKX INTL	Gate.io INTL	Huobi INTL
China Line　APP DL	China Line　APP DL	China Line　APP DL	China Line　APP DL

Note: The above exchange logo is the official website registration link, and the text is the APP download link.

BTC

BTC is the currency unit commonly used for Bitcoin. Just as USD or $ is used for US dollars, Bitcoin is represented by BTC or B⃦.

Bitcoin

Bitcoin, the English name of Bitcoin, when capitalized, represents the concept of Bitcoin or refers to the entire Bitcoin network itself. For example: "Today I learned something about the Bitcoin protocol." Bitcoin, without capitalization, is used as a unit of account. For example: "I transferred 10 bitcoins today."

Bitcoin address

A Bitcoin address is like a physical address or an email address. It is the only information you need to provide when someone pays you in Bitcoin.

Peer-to-peer network

A peer-to-peer network is a system that allows individual nodes to interact directly with other nodes so that the entire system operates like an organized collective. For Bitcoin, the Bitcoin network is built in such a way that each user broadcasts the transactions of other users. And importantly, there is no need for banks as third parties.

Hash rate

Hash rate is a unit of measurement for the computing power of the Bitcoin network. To ensure security, the Bitcoin network must do very intensive mathematical operations. When the network reaches 10TH/sec, it means it can do 10 trillion calculations per second.

Cryptography

Cryptography is a branch of mathematics that allows us to create mathematical proofs that provide a high level of security. Cryptography is also used in e-commerce and online banking. For Bitcoin, cryptography is used to ensure that no one can use the funds in someone else's wallet, or break the blockchain. Cryptography is also used to encrypt wallets so that they cannot be used without a password.

Transaction Confirmation

A transaction confirmation means that a transaction has been confirmed by the network and is unlikely to be reversed. One confirmation is fairly secure, although for larger transactions (such as $1,000 and above), more confirmations can be expected - 6 confirmations are often chosen. Each additional confirmation reduces the risk of a transaction being reversed exponentially.

Block

A block is a record in the blockchain that contains and confirms pending transactions. On average, a new block containing transactions is added to the blockchain approximately every 10 minutes through mining.

Blockchain

The blockchain is a public record of all Bitcoin transactions in chronological order. The blockchain is shared by all Bitcoin users. It can be used to verify the balance of each Bitcoin address and prevent double spending.

Signatures

A cryptographic signature is a mathematical mechanism that allows a person to prove ownership. In the case of Bitcoin, a Bitcoin address and its private key are linked together through some mathematical magic. When your Bitcoin software signs a transaction with the corresponding private key, the entire network knows that the signature matches the corresponding Bitcoin address. However, there is no way in the world to guess your private key and steal your hard-earned Bitcoins.

Wallets

A Bitcoin wallet is roughly equivalent to a physical wallet in the Bitcoin network. The wallet actually contains your private key, which allows you to spend Bitcoins from the Bitcoin address assigned to you in the blockchain. Each Bitcoin wallet can display the total Bitcoin balance of all the Bitcoin addresses it contains, and just like a real wallet, you can pay a certain amount of Bitcoin to someone. Unlike a credit card, when you use a credit card, the merchant deducts the money from your account.

Double Spending

If a malicious user tries to pay Bitcoin to two different recipients at the same time, it is called a double spend. Mining and the blockchain will agree on which of the two records will be accepted by the Bitcoin network.

Private Key

A private key is a confidential piece of data that, through a cryptographic signature, proves that you have the right to spend bitcoins from a specific Bitcoin address. Each Bitcoin address has its own unique private key. If you use a wallet software, your private key is stored on your computer; if you use an online wallet, your private key is stored on a remote server; the private key cannot be disclosed because it can be used to spend the bitcoins in the Bitcoin address it corresponds to.

Mining

Bitcoin mining is the process of using computer hardware to perform mathematical calculations for the Bitcoin network to confirm transactions and improve security. As a reward for their services, miners can receive the transaction fees included in the transactions they confirm, as well as newly created Bitcoins. Mining is a professional and competitive market, and the bonus is divided according to the amount of calculations completed. Not all Bitcoin users mine, and it is not easy to make money from mining.