What is Bitcoin? Key crypto terms and what they mean

Bitcoin is a decentralized digital currency that was created in 2009 by an unknown person or group of people using the name Satoshi Nakamoto. It operates on a technology called blockchain, which is a distributed ledger that records all transactions made with Bitcoin.

Key crypto terms:

• Cryptocurrency: A digital or virtual currency that uses cryptography for security and operates independently of a central authority.
• Blockchain: A decentralized, distributed ledger that records transactions across many computers in such a way that the registered transactions cannot be altered retrospectively.
• Wallet: A virtual purse that holds your cryptocurrency tokens or coins. It stores public and private keys that allow you to send and receive cryptocurrencies.
• Mining: The process where transactions are verified and added to the blockchain ledger. Miners use powerful computers to solve complex mathematical problems in order to validate transactions.
• Hash: A cryptographic function that converts an input (such as a transaction) into a fixed-length string of characters, which is unique to that input.

Understanding these key terms will help you navigate the world of cryptocurrencies, including Bitcoin, and make informed decisions about investing or using them.