A cryptographic tool that ensures transaction participants can verify the validity of transactions without revealing sensitive financial data.
Proof-of-Work (PoW)
The algorithm that concurrently secures the Bitcoin blockchain, processes transactions, facilitates consensus, and mints new bitcoin.
Payment channel
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.