Users can employ the Bitcoin network without operating <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-full-node/">full nodes</strong></a> by utilizing an SPV client. It&rsquo;s difficult to run full nodes on low-powered devices such as smartphones because they have specific storage and processing requirements. Therefore, <strong>SPV clients can ask full nodes only for information about their wallets.</strong></p>\n<p>The simplest way to get this information is to make full nodes aware of the keys of the user. This way only relevant transactions would be transmitted to them. However, this is a bad option because the user's privacy would be compromised this way.</p>\n<p>Though downloading all transactions just to delete the majority of them also wouldn&rsquo;t be a good option because it would waste a lot of <strong><a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-bandwidth/">bandwidth. </strong>That&rsquo;s where a Bloom filter comes to the rescue.</p>\n<p><strong>Imagine that Anna is a client and John is a full node.</strong> Anna has a costly transaction but she doesn&rsquo;t want John to know about it. Thus, she needs to find a way to \"mask\" her transaction. To do that, she creates a Bloom filter. Let&rsquo;s say that it looks like that:</p>\n<p style=\"text-align: center;\"><span style=\"font-size: 36px;\">3 4 2 1 6 8 7 5 0 9</span></p>\n<p>She runs the transaction data through two distinct <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-hash-function/">hash functions</strong></a>. Each of these functions ends up choosing two values from the string of numbers you can see above. Let&rsquo;s say these values come out to be 2 and 8.</p>\n<p style=\"text-align: center;\"><span style=\"font-size: 36px;\">3 4 <span style=\"color: #ba372a;\">2</span> 1 6 <span style=\"color: #ba372a;\">8</span> 7 5 0 9</span></p>\n<p>After that, Anna sends the filter to John. It's obvious that there's no possibility of knowing what data Anna has submitted to the filter based solely on this grid.</p>\n<p>Though if John had the whole set that contains Anna's data, he could hash it and search for similarities in the filter. If there was a match, it's possible that it was the data that Anna asked for.</p>\n<p>However, several inputs are likely to refer to 2 and 8 at the same time. Therefore, John wouldn&rsquo;t be able to tell which part of the data Anna is actually interested in. Thus, he would return all of the matches, which Anna would then sort through.</p>\n<p>Obviously, the process is much more complex than that. However, it does illustrate the fact that <strong>the Bloom filter disguises the actual interests of the client.</strong></p>\n<p>Bloom filter might not the best method to retrieve the desired information because it also has some privacy concerns. However, it&rsquo;s still a better option than simply putting an undisguised request to a node.</p>","level":"medium","meta_title":"What is Bloom Filter? 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Assets?","featured_image_id":6542,"status":"published","chapter_id":7,"language":"en","order":5,"modified_content":null,"preview_url":"https://www.bitdegree.org/crypto/learn/how-to-get-free-crypto","featured_image":{"id":6542,"uuid":"4fceb9ab-391e-4ef9-b00d-c871a49878a3","public_url":"https://assets.bitdegree.org/crypto/storage/media/how-to-get-free-crypto.o.jpg","path":"crypto/storage/media/how-to-get-free-crypto.o.jpg","original_path":"crypto/storage/media/how-to-get-free-crypto.jpg","name":"how-to-get-free-crypto.o.jpg","original_name":"how-to-get-free-crypto.jpg","title":null,"alt":null,"width":768,"height":478,"disk":"spaces","status":"uploaded","readable_file_size":"93.93KB"},"youtube_video":null},{"slug":"how-to-arbitrage-crypto","title":"What is Crypto Arbitrage: The Main Principles","featured_image_id":null,"status":"published","chapter_id":7,"language":"en","order":6,"modified_content":null,"preview_url":"https://www.bitdegree.org/crypto/learn/how-to-arbitrage-crypto","featured_image":null,"youtube_video":null},{"slug":"what-is-fud","title":"What is FUD: How to Use It to Your Advantage While Investing in Crypto?","featured_image_id":11394,"status":"published","chapter_id":7,"language":"en","order":7,"modified_content":null,"preview_url":"https://www.bitdegree.org/crypto/learn/what-is-fud","featured_image":{"id":11394,"uuid":"defd32c5-d3e1-4e66-9f58-e2ee316bad3a","public_url":"https://assets.bitdegree.org/crypto/storage/optimized/what-is-fud-featured-image.jpg","path":"crypto/storage/optimized/what-is-fud-featured-image.jpg","original_path":"crypto/storage/original/what-is-fud-featured-image.jpg","name":"what-is-fud-featured-image.jpg","original_name":"what-is-fud-featured-image.jpg","title":null,"alt":null,"width":1024,"height":576,"disk":"spaces","status":"uploaded","readable_file_size":"65.30KB"},"youtube_video":null},{"slug":"investing-in-cryptocurrency","title":"Investing in Cryptocurrency: How to Manage Your Risks?","featured_image_id":null,"status":"published","chapter_id":7,"language":"en","order":8,"modified_content":null,"preview_url":"https://www.bitdegree.org/crypto/learn/investing-in-cryptocurrency","featured_image":null,"youtube_video":null},{"slug":"what-is-a-rug-pull-in-crypto","title":"What is a Rug Pull in Crypto?","featured_image_id":6532,"status":"published","chapter_id":7,"language":"en","order":9,"modified_content":null,"preview_url":"https://www.bitdegree.org/crypto/learn/what-is-a-rug-pull-in-crypto","featured_image":{"id":6532,"uuid":"be8043fb-078c-4487-9af9-d2d9c2b574ea","public_url":"https://assets.bitdegree.org/crypto/storage/media/what-is-a-rug-pull-in-crypto.o.jpg","path":"crypto/storage/media/what-is-a-rug-pull-in-crypto.o.jpg","original_path":"crypto/storage/media/what-is-a-rug-pull-in-crypto.jpg","name":"what-is-a-rug-pull-in-crypto.o.jpg","original_name":"what-is-a-rug-pull-in-crypto.jpg","title":null,"alt":null,"width":768,"height":478,"disk":"spaces","status":"uploaded","readable_file_size":"92.28KB"},"youtube_video":null},{"slug":"how-to-avoid-rug-pulls-in-crypto","title":"How to Spot and Avoid Rug Pulls?","featured_image_id":6555,"status":"published","chapter_id":7,"language":"en","order":10,"modified_content":null,"preview_url":"https://www.bitdegree.org/crypto/learn/how-to-avoid-rug-pulls-in-crypto","featured_image":{"id":6555,"uuid":"80cbed9d-3b4b-45d9-9a85-d2d8108c0f32","public_url":"https://assets.bitdegree.org/crypto/storage/media/how-to-avoid-rug-pulls.o.jpg","path":"crypto/storage/media/how-to-avoid-rug-pulls.o.jpg","original_path":"crypto/storage/media/how-to-avoid-rug-pulls.jpg","name":"how-to-avoid-rug-pulls.o.jpg","original_name":"how-to-avoid-rug-pulls.jpg","title":null,"alt":null,"width":768,"height":478,"disk":"spaces","status":"uploaded","readable_file_size":"111.99KB"},"youtube_video":null},{"slug":"how-to-avoid-crypto-taxes","title":"The Key Legal Techniques of Avoiding Crypto Taxes","featured_image_id":6526,"status":"published","chapter_id":7,"language":"en","order":11,"modified_content":null,"preview_url":"https://www.bitdegree.org/crypto/learn/how-to-avoid-crypto-taxes","featured_image":{"id":6526,"uuid":"1e44162c-ef1d-4010-81b4-9e8d1809aedf","public_url":"https://assets.bitdegree.org/crypto/storage/media/how-to-avoid-crypto-taxes.o.jpg","path":"crypto/storage/media/how-to-avoid-crypto-taxes.o.jpg","original_path":"crypto/storage/media/how-to-avoid-crypto-taxes.jpg","name":"how-to-avoid-crypto-taxes.o.jpg","original_name":"how-to-avoid-crypto-taxes.jpg","title":null,"alt":null,"width":768,"height":478,"disk":"spaces","status":"uploaded","readable_file_size":"99.10KB"},"youtube_video":null}]},{"id":8,"title":"Crypto 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About","featured_image_id":null,"status":"published","chapter_id":8,"language":"en","order":2,"modified_content":null,"preview_url":"https://www.bitdegree.org/crypto/learn/best-technical-analysis-indicators-for-crypto","featured_image":null,"youtube_video":null},{"slug":"what-is-candlesticks","title":"Technical Analysis: What are Candlesticks, Trendlines, and Patterns?","featured_image_id":null,"status":"published","chapter_id":8,"language":"en","order":3,"modified_content":null,"preview_url":"https://www.bitdegree.org/crypto/learn/what-is-candlesticks","featured_image":null,"youtube_video":null},{"slug":"how-to-track-new-crypto-coins","title":"Crypto Tracking: How to Track Your Favorite Coins & Tokens?","featured_image_id":null,"status":"published","chapter_id":8,"language":"en","order":4,"modified_content":null,"preview_url":"https://www.bitdegree.org/crypto/learn/how-to-track-new-crypto-coins","featured_image":null,"youtube_video":null},{"slug":"how-to-research-crypto","title":"Crypto Research Fundamentals & Social Signals: Your Daily Trading Strategy","featured_image_id":null,"status":"published","chapter_id":8,"language":"en","order":5,"modified_content":null,"preview_url":"https://www.bitdegree.org/crypto/learn/how-to-research-crypto","featured_image":null,"youtube_video":null}]},{"id":9,"title":"Mining","slug":"mining","updated":false,"chapter":"https://assets.bitdegree.org/crypto/assets/crypto-book/chapters/learn-crypto-mining.jpg","chapter_simple":"https://assets.bitdegree.org/crypto/assets/crypto-book/chapters-simple/crypto-mining-101.jpg","rating":80,"sections":[]},{"id":10,"title":"Crypto Terms","updated":false,"chapter":"https://assets.bitdegree.org/crypto/assets/crypto-book/chapters/crypto-101-glossary.jpg","chapter_simple":"https://assets.bitdegree.org/crypto/assets/crypto-book/chapters-simple/crypto-glossary-101.jpg","rating":100,"sections":["A","B","C","D","E","F","G","H","I","J","K","L","M","N","O","P","Q","R","S","T","U","V","W","X","Y","Z"]}],"nextSection":{"id":962,"original_id":null,"author_id":43,"translator_id":null,"title":"What is Break-Even Point (BEP)?","slug":"what-is-break-even-point-bep","section":"B","keyword":"Break-Even Point (BEP)","status":"published","definition":"when total revenue and total cost are exactly the same.","content":"<p><strong>Break-Even Point (BEP)</strong> is a financial term used to describe the amount of sales that cover the total cost. It&rsquo;s a situation where <strong>the total revenue is equal to the total cost</strong>. Meaning the company didn&rsquo;t suffer losses but also didn&rsquo;t generate profit. In this type of situation, all expenses have been paid for.</p>\n<p>BEP is a useful tool in financial analysis. It evaluates income and fixed operational costs. BEP is often used by both individuals and organizations in a variety of different fields including <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-cryptocurrency/">cryptocurrencies. In essence, <strong>it helps companies understand where they stand when it comes to profitability</strong>. BEP analysis can answer questions such as how profitable the business is, or how close it is to becoming profitable.</p>\n<p>When it comes to the world of cryptocurrency, BEP analysis comes in useful when trying to calculate profits and losses. This helps crypto traders to make the necessary changes to their trading strategies.</p>\n<p>Moreover, BEP is <strong>a mining profitability indicator</strong>. It takes into account the price of the mined cryptocurrency and various factors such as the <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-mining-rig/">mining rig</strong></a> components, electricity consumption, and costs.</p>","level":"easy","meta_title":"What is Break-Even Point (BEP)? Definition & Meaning | Crypto Wiki","meta_description":"Break-Even Point (BEP) meaning: Break-Even Point (BEP) - when total revenue and total cost are exactly the same.","meta_keywords":null,"language":"en","created_at":"2022-05-17T12:30:22.000000Z","updated_at":"2022-06-07T11:49:23.000000Z","preview_url":"https://www.bitdegree.org/crypto/learn/crypto-terms/what-is-break-even-point-bep"},"prevSection":{"id":960,"original_id":null,"author_id":43,"translator_id":null,"title":"What is Bitcoin Core?","slug":"what-is-bitcoin-core","section":"B","keyword":"Bitcoin Core","status":"published","definition":"a piece of software that allows running nodes.","content":"<p><strong>Bitcoin Core</strong> is <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-open-source/">open-source software that <strong>enables users to connect to the <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-bitcoin/">Bitcoin network and run <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-node/">nodes. This means that users can validate blocks and verify transactions independently. In turn, a <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-trustless/">trustless environment is guaranteed.</p>\n<p>Moreover, Bitcoin Core functions as a <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-cold-wallet/">cold wallet</strong></a>. Users can also link their external wallets and validate their transactions.</p>\n<p>Frequent Bitcoin users can benefit from running Bitcoin Core. It offers <strong>enhanced privacy</strong> and <strong>security</strong> features. Users that run Bitcoin Core can avoid some disadvantages related to <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-software-wallet/">software wallets</strong></a> that interact with third-party servers which leaves their IP address exposed.&nbsp;</p>\n<p>It was launched in 2009 by <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/who-is-satoshi-nakamoto/">Satoshi Nakamoto</strong></a> under the name Bitcoin. In order to avoid mix-ups with the Bitcoin cryptocurrency, it was renamed Bitcoin Core in 2014.</p>\n<p>Bitcoin Core is constantly updated by the Core development team that operates in a completely decentralized way. Many of the developers choose to remain anonymous just like the creator of Bitcoin.</p>","level":"easy","meta_title":"What is Bitcoin Core? Definition & Meaning | Crypto Wiki","meta_description":"Bitcoin Core meaning: Bitcoin Core - a piece of software that allows running nodes.","meta_keywords":null,"language":"en","created_at":"2022-05-17T11:18:40.000000Z","updated_at":"2022-06-07T11:49:23.000000Z","preview_url":"https://www.bitdegree.org/crypto/learn/crypto-terms/what-is-bitcoin-core"},"currentChapter":"B","currentSection":"what-is-bloom-filter","chapterTitle":"B","readingLevel":"medium"},"url":"/crypto/learn/crypto-terms/what-is-bloom-filter","version":"cdd198d50cbe5c9c21c9329d7c096ffc"}" class="container-fluid d-flex crypto-book p-0">

All Crypto From

Scratch!

Crypto 101 Handbook

Chapter 1: Blockchain

• 1.1

  What is the Blockchain?
  1.2

  Anonymous & Decentralized Blockchains: The Cornerstone of Crypto
  1.3

  What is a Blockchain Transaction in Crypto?
  1.4

  The Different Types of Crypto Fees Explained
  1.5

  The Key Notion Behind the Concept of Bridging in Crypto
  1.6

  Different Types of Blockchains: What to Look Out For?

Chapter 2: Cryptocurrencies

• 2.1

  What is a Cryptocurrency?
  2.2

  How Does Cryptocurrency Work?
  2.3

  Is Cryptocurrency a Good Investment? The Pros & Cons
  2.4

  Coin VS Token: How Do They Differ?
  2.5

  What are Stablecoins, Altcoins & Wrapped Coins?
  2.6

  Bitcoin: the Pioneer of the Crypto World
  2.7

  The Ultimate Blockchain for dApp Creation: Ethereum
  2.8

  What is Cardano and What is It Used For?
  2.9

  Shiba Inu: the Dogecoin Killer
  2.10

  Is Solana an Improved Version of Ethereum?
  2.11

  The Bridge Between Blockchains: Polkadot
  2.12

  Polygon: the Essential Scaling Solution for Ethereum
  2.13

  The Practical Use of Crypto

Chapter 3: Crypto Exchanges

• 3.1

  How do Cryptocurrency Exchanges Work?
  3.2

  DEX VS CEX: Two Sides of the Crypto Exchange Industry
  3.3

  Crypto Day Trading: The Difference Between Buying, Trading, and Swapping
  3.4

  KYC & AML: The Key to Complying With Legal Industry Standards
  3.5

  From Fiat to Crypto: How to Buy Crypto for the First Time
  3.6

  Taking Profits: Turning Crypto Into Fiat
  3.7

  You’ve Got Crypto: What Can You Do With It?

Chapter 4: Crypto Wallets

• 4.1

  What is a Crypto Wallet?
  4.2

  Hot Wallet VS Cold Wallet: Which One to Pick?
  4.3

  What are Non-Custodial Crypto Wallets?
  4.4

  Metamask: The Leading Non-Custodial Wallet
  4.5

  The Key Crypto Wallet Safety Practices: How Safe Can Crypto Be?

Chapter 5: NFTs

• 5.1

  What are Non-Fungible Tokens (NFTs)?
  5.2

  NFT Trading: The Ins and Outs
  5.3

  Tips and Tricks of Choosing the Right NFTs
  5.4

  How to Store NFTs: Best Practices
  5.5

  How to Create Your Own NFTs?
  5.6

  Making Passive Money with NFTs

Chapter 6: dApps & Defi

• 6.1

  What is Decentralized Finance (DeFi)?
  6.2

  DeFi 2.0: The New Version of Decentralized Finance
  6.3

  What Are dApps and How Do They Work?
  6.4

  Picking the Right dApps: Dos and Don'ts
  6.5

  Web 3.0: The Future of the Internet
  6.6

  What is the Core Purpose of Smart Contracts?
  6.7

  The Notion of a Decentralized Autonomous Ogranization (DAO)
  6.8

  What is the Goal of Staking Crypto Assets?
  6.9

  What is a Liquidity Pool and How Does It Work?
  6.10

  Automated Market Maker: the Cornerstone of the Decentralized Crypto Exchange Industry
  6.11

  The Main Yield Farming Techniques
  6.12

  Crypto Oracles: The Link Between Blockchain and Outside World Data
  6.13

  The Peculiarities of Decentralized Crypto Gambling
  6.14

  Metaverse: A New Perception of Reality

Chapter 7: Trading & Investing

• 7.1

  Where Can You Trade Cryptocurrencies?
  7.2

  Investing in Crypto: What Investing Options Do You Have?
  7.3

  ICO vs IDO vs IEO: Which One is the One?
  7.4

  What are Crypto Airdrops and How to Get Them?
  7.5

  How to Get Free Crypto Assets?
  7.6

  What is Crypto Arbitrage: The Main Principles
  7.7

  What is FUD: How to Use It to Your Advantage While Investing in Crypto?
  7.8

  Investing in Cryptocurrency: How to Manage Your Risks?
  7.9

  What is a Rug Pull in Crypto?
  7.10

  How to Spot and Avoid Rug Pulls?
  7.11

  The Key Legal Techniques of Avoiding Crypto Taxes

Chapter 8: Crypto Analysis

• 8.1

  Bearish and Bullish Markets: Do They Matter?
  8.2

  5 Best Crypto Technical Analysis Indicators You Must Know About
  8.3

  Technical Analysis: What are Candlesticks, Trendlines, and Patterns?
  8.4

  Crypto Tracking: How to Track Your Favorite Coins & Tokens?
  8.5

  Crypto Research Fundamentals & Social Signals: Your Daily Trading Strategy

Chapter 9: Mining

coming soon

Chapter 10: Crypto Terms

• 10.1

  All Crypto Terms

# ABCDEFGHIJKLMNOPQRSTUVWXYZ