A bitcoin address is a string of characters that represents a wallet that can send and receive cryptocurrency. It is akin to a real-life address, email or website. Every address is unique and denotes the location of a wallet on the blockchain.

Air gap

An isolated computer or network which has no network interfaces connected to other networks, with a physical (or conceptual) air gap (not connected to the Internet).

Bitcoin Address

A Bitcoin address is similar to a physical address or an email. It is the only information you need to provide for someone to pay you with Bitcoin. Addresses are anonymous and do not contain information about the owner. A bitcoin address can be obtained for freeusing specialized Bitcoin software. Bitcoin address example: 14qViLJfdGaP7EeHnDyJbBGQysnCpwk3gd. Addresses can be generated at no cost by any user of Bitcoin.

Bitcoin Network

The bitcoin network is a peer-to-peer payment network that operates on a cryptographic protocol. Users send and receive bitcoins, the units of currency, by broadcasting digitally signed messages to the network using bitcoin cryptocurrency wallet software. Transactions are recorded into a distributed, replicated public database known as the blockchain, with consensus achieved by a proof-of-work system called mining. Satoshi Nakamoto, the designer of bitcoin, claimed that design and coding of bitcoin began in 2007. The project was released in 2009 as open source software.


A bitcoin block is a permanently recorded file containing information on transactions. Each block includes the cryptographic hash of the prior block in the blockchain, linking the two. The linked blocks form a blockchain. If you think of blockchain as a big spreadsheet in the cloud, then each row in the spreadsheet might be a block.

Bug Bounty

A bug bounty program is a deal offered by many websites, organizations and software developers by which individuals can receive recognition and compensation for reporting bugs, especially those pertaining to security exploits and vulnerabilities.

Certificate Authority (CA)

In cryptography, a certificate authority or certification authority (CA) is an entity that issues digital certificates. A digital certificate certifies the ownership of a public key by the named subject of the certificate. This allows others (relying parties) to rely upon signatures or on assertions made about the private key that corresponds to the certified public key.

Closed Source

Proprietary software, also known as non-free software, is computer software for which the software's publisher or another person reserves some rights from licensees to use, modify, share modifications, or share the software.

Cold Storage / Cold Wallet

Cold storage in the context of Bitcoin refers to storing Bitcoins offline and spending without the private keys controlling them ever being online. This resists theft by hackers and malware, and is often a necessary security precaution especially dealing with large amounts of Bitcoin. For example, a Bitcoin exchange which offers an instant withdrawal feature, and might be a steward over hundreds of thousands of Bitcoins. To minimize the possibility that an intruder could steal the entire reserve in a security breach, the operator of the website keeps the majority of the reserve in cold storage, or in other words, not present on the web server or any other online computer. The only amount kept on the server is the amount needed to cover anticipated withdrawals in one day.


Cryptography is the branch of mathematics that lets us create mathematical proofs that provide high levels of security. Online commerce and banking already uses cryptography. In the case of Bitcoin, cryptography is used to make it impossible for anybody to spend funds from another user's wallet or to corrupt the block chain. It can also be used to encrypt a wallet, so that it cannot be used without a password.