Some Coinbit words you might hear
Coinbit provides a new approach to payments and, as such, there are some new words that might become a part of your vocabulary. Don't worry, even the humble television created new words!
Table of contents
A Coinbit address is similar to a physical address or an email. It is the only information you need to provide for someone to pay you with Coinbit. An important difference, however, is that each address should only be used for a single transaction.
Bit is a sub-unit of a Coinbit: 1,000,000 bits are equal to 1 Coinbit (CBT or B⃦). This unit is usually more suitable for pricing services.
Coinbit – with capitalization, is used when talking about Coinbit network or describing the concept of Coinbit, e.g. “I was learning about the Coinbit protocol today.”
coinbit – without capitalization, is used when describing coinbits as a unit of account. e.g. “I sent ten coinbits today.”; it is also often abbreviated CBT.
The blockchain is a public record of Coinbit transactions in chronological order. All Coinbit users share the blockchain. It is used to verify the permanence of Coinbit transactions and to prevent double spending.
CBT is an abbreviation used to mark one coinbit (B⃦).
Confirmation means that a transaction has been processed by the network and is thus unlikely to be reversed. Transactions receive a confirmation when they are included in a block and for each subsequent block. For transferring large amounts of money, it is better to wait for 6 confirmations or even more. Each confirmation decreases the risk of a reversed transaction exponentially.
Cryptography is the branch of mathematics that lies in the base of providing high levels of security. Online commerce and banking already use cryptography; in case of Coinbit, cryptography is used to make it impossible for anybody to spend funds from another user’s wallet. Moreover, it is also almost impossible to corrupt blockchain because of encrypting.
Double spending is the matter when a user tries to spend his/her coinbits on two different recipients at the same time. Blockchain is the technology which helps to calculate which of the two operations will be written down in blockchain and, therefore, which will be considered valid.
We measure the processing power of the Coinbit network using the hash rate. The Coinbit network must quickly and permanently make mathematical operations for security purposes. For example, when the network reaches a hash rate of 10 terahashes per second, it means it can make 10 trillion calculations per second.
We define coinbit mining as a process of using computer hardware to do mathematical operations necessary to confirm transactions and increase security in Coinbit network. Along with newly created coinbit, coinbit miners can collect transaction fees for the transactions they confirm, as a reward for their services. Mining is a competitive market where the more you calculate, the more you get. This is not the easiest way to make coinbits, though coinbit miners definitely have their privileges.
Peer-to-peer systems (P2P) allow each individual to interact directly with the others. Speaking of Coinbit, the network is built in such a way that each user is broadcasting the transactions of other users. No bank is required as a third party.
A secret piece of data that proves your right to spend coinbits from a specific wallet through a cryptographic signature is called a private key. Your private keys are stored in your computer in case of using a software wallet; otherwise, they are stored on remote servers. Private keys confirm your identity, so it is essential to keep them by yourself.
Someone may prove their ownership upon something using a cryptographic signature. A Coinbit wallet and its private keys are linked, so when your Coinbit software signs a transaction with the appropriate private key(s), the whole network can see that the signature matches the coinbits being spent. In addition, there is no way for the other people to guess your private key to steal your coinbits.
A Coinbit wallet almost equals to a physical wallet on the Coinbit network. It shows you the total balance of all coinbits, it controls and lets you pay a specific amount to a specific person, just like a real wallet. Therefore, with Coinbit wallet you have no merchant charge.