VBit Crypto Mining Glossary
PEER-TO-PEER – A peer-to-peer network means that computers in the network transact without needing a centralized third party as an intermediary.
PRIVATE KEY – A string of data that gives you access to Bitcoins in a specific wallet. Hackers try to steal private keys which means they control the digital assets under it.
PROOF OF WORK (POW) – This is the consensus confirmation algorithm of the Bitcoin network. Miners need to first find a specific nonce or function output ending in 0s when trying to add the next block. The miners use trial and error and block rewards generally are proportionate to miners hashing power in the network. POW is a vital concept in Bitcoin decentralization but has also become challenged by the more popular Proof of Stake consensus in recent years.
PUBLIC ADDRESS – Represents the crypto hash of a public key. It can be given out or published anywhere, and it allows you to receive Bitcoin.