Frequently asked questions

What Is Bitcoin?

Bitcoin is a decentralized digital currency created in January 2009. It follows the ideas set out in a white paper by the mysterious and pseudonymous Satoshi Nakamoto.12 The identity of the person or persons who created the technology is still a mystery. Bitcoin offers the promise of lower transaction fees than traditional online payment mechanisms do, and unlike government-issued currencies, it is operated by a decentralized authority.


Bitcoin is known as a type of cryptocurrency because it uses cryptography to keep it secure. There are no physical bitcoins, only balances kept on a public ledger that everyone has transparent access to (although each record is encrypted). All Bitcoin transactions are verified by a massive amount of computing power via a process known as “mining.” Bitcoin is not issued or backed by any banks or governments, nor is an individual bitcoin valuable as a commodity. Despite it not being legal tender in most parts of the world, Bitcoin is very popular and has triggered the launch of hundreds of other cryptocurrencies, collectively referred to as altcoins. Bitcoin is commonly abbreviated as BTC when traded.



  • Launched in 2009, Bitcoin is the world’s largest cryptocurrency by market capitalization.
  • Unlike fiat currency, Bitcoin is created, distributed, traded, and stored with the use of a decentralized ledger system, known as a blockchain.
  • Bitcoin’s history as a store of value has been turbulent; it has gone through several cycles of boom and bust over its relatively short lifespan.
  • As the earliest virtual currency to meet widespread popularity and success, Bitcoin has inspired a host of other cryptocurrencies in its wake.

Source > https://www.investopedia.com/terms/b/bitcoin.asp 


Master seed

Your Wallet & Its Master Seed

When you create your Blockchain Wallet, a unique master seed is created. This master seed is the nucleus of your specific wallet, and is used to derive every individual bitcoin address that you’ll use to send and request bitcoin.

Quick tip: Learn more about HD wallets here

Client Side Encryption Means Only You Have Access to Your Wallet

We do not store your bitcoins, we only provide you with the software you need to store them yourself. Your wallet is encrypted on your device with your personal password. Your password acts as your decryption key to both lock and unlock your wallet — your wallet cannot be accessed without it. Because we don’t know or store your password (we can’t even reset it), only you are able to unlock and decrypt your wallet.


We’ve Got Your Back(up)

Your encrypted wallet is automatically backed up to our servers. To safely store your wallet, we add another layer of security by encrypting your wallet a second time. Securely storing your wallet on our servers ensures that you can access your wallet from any (and all) of your different devices.

Wallet ID

Decrypting your wallet couldn’t be easier

When you access your wallet with your Wallet ID (a unique identifier specific to your wallet) and password, your browser uses our API to download your encrypted wallet backup, before safely decrypting it on your device.

Backup Phrase

Your Backup Phrase – The Failsafe

Your Backup Phrase is made up of 12 random words, and is an encoded version of your master seed (and an industry standard). It acts as a backup and allows you to access your bitcoins and ether regardless of the wallet software you’re using. In the event that you lose your password, or choose to use another wallet provider, your Backup Phrase is all you need to regain access to your funds.

Quick tip: You can find your 12 word Backup Phrase in your Security Center after creating your wallet. Write this phrase down and keep it somewhere safe.

Atomic Swap


What Is an Atomic Swap?

An atomic swap is an exchange of cryptocurrencies from separate blockchains. The swap is conducted between two entities without a third party’s involvement. The idea is to remove centralized intermediaries like regulated exchanges and give token owners total control.


The term atomic derives from the term “atomic state” in which a state has no substates; it either happens or it doesn’t—there is no other alternative. This refers to the state of the cryptocurrency transaction; it happens or it doesn’t.


Most atomic swap-enabled wallets and blockchains use smart contracts. Smart contracts are programs within blockchains that execute when certain conditions are met. In this case, the conditions are that each party agrees to the transaction before a timer runs out. Using a smart contract in the trade prevents either party from stealing a cryptocurrency from the other.


Atomic swaps are also called cross-chain atomic swaps.



  • An atomic swap is a cryptocurrency exchange between two parties that wish to exchange tokens from different blockchains.
  • Atomic swaps are helpful if you only have one cryptocurrency but need to use another in a transaction.
  • Special wallets or exchange services are needed to conduct an atomic swap because the technique is still being developed and refined.

Understanding Atomic Swaps

Each cryptocurrency is supported by a blockchain, designed only to accept transactions in specific tokens. For example, Bitcoin (BTC) has a blockchain, and ETH (ether) has another. You cannot easily exchange BTC and ETH without first converting to fiat currency then buying the other; another technique is to convert between cryptocurrencies and exchanges multiple times to get the one you want. Atomic swaps allow you to exchange tokens from different blockchains in one trade.

SOURCE > https://www.investopedia.com/terms/a/atomic-swaps.asp