Glossary
Key terms and definitions used throughout Nostr finance.
A
Alby
Popular Bitcoin Lightning wallet with browser extension and NWC support. Learn more →
B
Bech32
Encoding format used for Nostr keys (npub, nsec) and Lightning invoices.
Blocktrails
System for anchoring evolving state to Bitcoin using key tweaking. Learn more →
BOLT11
Standard format for Lightning Network payment invoices.
C
Channel (Lightning)
Payment pathway between two Lightning nodes enabling off-chain transactions.
Client
Application that connects to Nostr relays to send and receive events.
D
DID (Decentralized Identifier)
W3C standard for decentralized identifiers. DID:Nostr uses Nostr keys as DIDs. Learn more →
E
Event
The fundamental data unit in Nostr - a signed JSON object.
I
Invoice
Lightning Network payment request containing amount and destination.
K
Kind
Numeric identifier for event types in Nostr (e.g., kind 1 = text note, kind 9735 = zap receipt).
L
Lightning Address
Human-readable payment address in email format (e.g., user@service.com).
Lightning Network
Layer 2 scaling solution for Bitcoin enabling instant, low-fee payments. Learn more →
LNURL
Protocol simplifying Lightning interactions (pay, withdraw, auth).
M
Millisatoshi (msat)
One thousandth of a satoshi, used for precise Lightning amounts.
N
NIP (Nostr Implementation Possibility)
Specification documents defining how Nostr works. Learn more →
NIP-05
DNS-based identity verification for Nostr users (e.g., alice@example.com).
NIP-07
Browser extension signing protocol for Nostr.
NIP-47
Nostr Wallet Connect (NWC) specification. Learn more →
NIP-57
Lightning Zaps specification. Learn more →
NIP-75
Zap Goals (crowdfunding) specification. Learn more →
Nostr
Notes and Other Stuff Transmitted by Relays - decentralized communication protocol.
npub
Bech32-encoded Nostr public key (e.g., npub1abc...).
nsec
Bech32-encoded Nostr private key. Keep secret!
NWC (Nostr Wallet Connect)
Protocol for connecting wallets to apps via Nostr. Learn more →
P
P2PK (Pay to Public Key)
Locking mechanism where only the holder of a private key can spend.
P2TR (Pay to Taproot)
Bitcoin output type using Taproot. Nostr npubs can derive P2TR addresses directly. Learn more →
Preimage
Secret value revealed upon Lightning payment completion, serving as proof.
PSBT (Partially Signed Bitcoin Transaction)
Standard format for unsigned or partially signed Bitcoin transactions, useful for multisig and hardware wallets.
R
Relay
Server that stores and forwards Nostr events. Learn more →
RGB
Smart contract protocol for Bitcoin using client-side validation. Learn more →
S
Satoshi (sat)
Smallest unit of Bitcoin (0.00000001 BTC). Named after Bitcoin's creator.
secp256k1
Elliptic curve used by both Bitcoin and Nostr for cryptography.
Stall
Merchant's store in NIP-15 marketplace protocol.
T
Taproot
Bitcoin upgrade (BIP-340/341/342) enabling Schnorr signatures and MAST. Nostr and Taproot share the same secp256k1 cryptography with x-only public keys.
Taproot Native
The property that Nostr keys can directly control Bitcoin via P2TR addresses - no bridges or wrapping needed. Learn more →
Taproot Assets
Protocol for issuing assets on Bitcoin with Lightning support. Learn more →
V
V4V (Value for Value)
Economic model where content is free and users voluntarily pay what they think it's worth.
Verifiable Credential
W3C standard for cryptographically verifiable claims about identity.
W
Web Ledgers
Specification for mapping URIs to balances across platforms. Learn more →
WebLN
JavaScript API for Lightning wallet interactions in web browsers.
Z
Zap
Lightning Network payment tied to a Nostr event. Learn more →
Zap Goal
Crowdfunding target funded via zaps (NIP-75). Learn more →
Zap Receipt
Nostr event (kind 9735) proving a zap payment occurred.
Zap Request
Nostr event (kind 9734) initiating a zap payment.
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