Foundational terms for Bitcoin mechanics, Ethereum execution, market microstructure, and custody safety.
Bitcoin Network
These concepts describe how Bitcoin produces blocks, pays miners, and changes issuance over time.
Block RewardHalvingMiningHash Rate
- Block Reward: A block reward is the new coin issuance and fee revenue paid to a miner or validator for adding a block.
- Halving: A halving is a programmed reduction in Bitcoin's block subsidy.
- Mining: Mining is the proof-of-work process that secures Bitcoin and proposes new blocks.
- Hash Rate: Hash rate measures the computational work miners contribute to a proof-of-work network.
Ethereum Execution
Ethereum combines smart contracts, validators, and gas constraints to process on-chain applications.
- Smart Contract: A smart contract is code deployed on a blockchain that runs according to predefined rules.
- Gas Limit: A gas limit caps how much computation a transaction or block can consume.
- Validator: A validator participates in proof-of-stake consensus by proposing or attesting to blocks.
- Staking: Staking locks crypto assets to help secure a proof-of-stake network and earn rewards.
Market Structure
These terms describe how liquidity is quoted, ranked, and consumed in live markets.
Market CapOrder BookBid-Ask SpreadSlippage - Market Cap: Market cap is commonly calculated as asset price multiplied by circulating supply.
- Order Book: An order book lists current buy and sell orders on an exchange.
- Bid-Ask Spread: The bid-ask spread is the difference between the highest bid and lowest ask.
- Slippage: Slippage is the difference between expected and executed trade price.
Custody Security
Crypto security starts with key custody, phishing resistance, and stronger signing controls.
Cold WalletPhishingMultisigHardware Wallet - Cold Wallet: A cold wallet stores private keys offline to reduce exposure to online attacks.
- Phishing: Phishing tricks users into revealing credentials, seed phrases, or signing malicious transactions.
- Multisig: Multisig requires more than one key or signer to authorize a transaction.
- Hardware Wallet: A hardware wallet is a physical device that keeps private keys isolated while signing transactions.