Paper Wallet: Defined in CryptoCurrency

Paper Wallet: Defined in CryptoCurrency

 

A paper wallet is simply a piece of paper containing the information needed to access and spend your cryptocurrency. 

A wallet is software that interacts with the network of recordings (blockchain) and lets users receive, store, and send their digital money. 

Paper wallets are often used to backup the information to access your money or

Peer to Peer [P2P]: Defined in CryptoCurrency

Peer to Peer [P2P]: Defined in CryptoCurrency

 

Peer to peer or P2P for short, is defined as a connection between two or more computers that allow them to share information, files or other data directly.

The word peer itself just means someone who is equal to another. Peers might share the same history, skills, power, etc.

In a peer to peer network, there are no privileged peers with special rights or advantages. Every peer has the same rights and they all share the workload.

Output: Defined in CryptoCurrency

Output: Defined in CryptoCurrency

Output is defined as cryptocurrency going out of your digital wallet. Cryptocurrency coming into your digital wallet is known as an “input”.

Let’s say you want to spend 10 bitcoin, if you have 3 inputs (3, 9, and 15) then the first two are combined (3+9=12) and both are sent out as outputs.After transaction fees are spent, the remaining balance (about 2 bitcoin) is sent back to you as an input.

Your output is always another person’s input. And reversely, your input is always another’s output.

Over The Counter [OTC]: Defined in CryptoCurrency

Over The Counter [OTC]: Defined in CryptoCurrency

Over The Counter is defined as a transaction made outside of an exchange.Often abbreviated as OTC, these transactions are slower and cannot be programmed like transactions on an exchange.

The disadvantage of transactions on an exchange is that large transactions shift the price. Let’s say Johnny is selling his bitcoin for $10,000, Bill is selling his for $11,000, Alice is selling hers for $12,000, and so on. 

A big purchase will clear out Johnny, Bill, Alice and the rest of the sellers causing an increased price. Increased prices means a higher cost for big buyers.

The advantage of OTC purchases are that they are not as visible as those on an exchange and will likely not shift the price at all. Bitcoin ATMs, payment processors are two ways you can make OTC purchases.

Orphan: Defined in CryptoCurrency

Orphan: Defined in CryptoCurrency

Orphan describes a block that has been abandoned and will not be built upon. Blockchain is technology for creating permanent, secure digital recordings. 

 

If you imagine the blockchain as a book of records, then each page in that book is what is known as a “block”. A block is simply a recording of information. 

Blocks are attached to each other making what is known as the blockchain. 

 Because many computers are maintaining the blockchain, occasionally two blocks are created at the same time. 

Since only one block can be created at a time, only one will be continued and built upon, the other block will be abandoned and is known as an orphan

Open Source: Defined in CryptoCurrency

Open Source: Defined in CryptoCurrency

Open source describes any type of technology that is made public and can be seen, changed, and shared. 

The term is usually used for computer technology that has been made available to anyone and is not protected.

Open Source: Defined in CryptoCurrency

Open Source: Defined in CryptoCurrency

Open source describes any type of technology that is made public and can be seen, changed, and shared. 

The term is usually used for computer technology that has been made available to anyone and is not protected.