A peer-to-peer (P2P) network is a decentralized communication model in which every participant (or “peer”) can connect, share data, and relay messages directly with every other participant, no central server or coordinator required.

A cryptographic tool that ensures transaction participants can verify the validity of transactions without revealing sensitive financial data.

The algorithm that concurrently secures the Bitcoin blockchain, processes transactions, facilitates consensus, and mints new bitcoin.

Multisignature contracts between peers that enable instant, low-fee transactions off-chain. When the participants decide to close a channel, the final balance is then settled on the Bitcoin mainchain in a single transaction.