well coined: virtual currency terms to know

BTC and bit

BTC is the common abbreviation used to denote one Bitcoin while a bit refers to a sub-unit of Bitcoin. 1,000,000 bits = 1 BTC. Cryptocurrency A broad term given to digital currencies that work on a peer-to-peer basis and use blockchain technology — instead of banks — to conduct transactions between individuals. Peer-to-peer An online system that eliminates the ‘middleman’ for transaction purposes — such as a bank. Peer-to-peer arrangements allow individuals to deal with each other directly. Blockchain A digital file that acts as a general ledger among those involved in a cryptocurrency network. Although everyone can view its virtual transactions, the blockchain is sealed to prevent possible tampering. Mining The process of producing cryptocurrency units using a certain amount of effort – for example, Bitcoin mining requires significant computing power.