Bitcoin terms for newbies Part 1

The world of crypto currency can be confusing as it's advancing and changing at an alarming rate. I've compiled some basic terms for Bitcoin that should help you understand how it works, and what they mean.

Block

A block is like a page in a record book or ledger. Groups of transactions are put together in a block and the transactions are verified every ten minutes by mining. After the ten minutes are up miners move on to the next block in the blockchain. Once a block has been verified transactions are permanent and cannot be altered or reversed. That's why when sending or receiving funds it is important to wait for confirmations to make sure that your transaction has been recorded.

Blockchain

The blockchain is a public record of all transactions ever since the beginning of Bitcoin also known as the "genesis block". The blockchain is constantly being updated and added to. Every computer that's connected to the Bitcoin network gets a copy of the blockchain automatically downloaded when they join the Bitcoin network. This is called running a node.

Node

A Bitcoin node or a "full client" is a computer that has a copy of the full blockchain and is participating in the peer-to-peer network by relaying blocks and transactions to other nodes across the network.

Confirmations
A confirmation means that your transaction has been verified by the network. It is recommended to wait for at least 6 confirmations before spending those funds. Confirmations play an important role because once confirmed the transaction is final and cannot be reversed, changed or double spent.

Double Spending
When someone tries to send the same transaction to two different recipients at the same time.

Mining

Bitcoin mining refers to using a computer or other hardware to complete mathematical calculations to confirm transactions. Mining used to be very easy and could be done with everyday laptops. As the blockchain grew mining has become more and more difficult and is not recommended unless you have specialized "rigs" available. If you don't you may end up spending more on electricity than what you will make trying to line from your computer using your GPU. There are a lot of different videos on YouTube that show you the recommended setup if you're interested. There are also sites that will let you figure out how much your electric usage will cost and if it will even be profitable to mine.

I hope this helps, let me know in the comments if there's other terms you find tricky. Feel free to follow for more posts like this. And enjoy your time in the world of crypto currency!