Glossary

A blockchain scaling technique that splits the network into smaller parallel chains, each processing a subset of transactions.

The cryptographic hash function used by Bitcoin’s proof-of-work algorithm to secure the network.

The blockchain layer that provides finality and dispute resolution for transactions processed on higher layers.

A large sell order or cluster of sell orders at a specific price level that creates resistance to further price increases.

A digital identity model where individuals control their own identity data using cryptographic keys.

The practice of holding your own cryptocurrency private keys without delegating control to any third-party service.

A Bitcoin protocol upgrade that separated signature data from transaction data, increasing block capacity.

The earliest stage of fundraising for a cryptocurrency project, typically involving small investments from founders.

A sequence of 12 to 24 random words that serves as a master backup for a cryptocurrency wallet.

A digital token that represents ownership in a real-world asset like equity, real estate, or debt, subject to securities regulations.