| Description |
1 online resource (480 pages) |
| Contents |
Machine generated contents note: 1. Introduction to Bitcoin -- What is Bitcoin? -- The big picture -- Step 1 Transactions -- Step 2 The Bitcoin network -- Step 3 The blockchain -- Step 4 Wallets -- Problems with money today -- Segregation -- Privacy issues -- Inflation -- Borders -- The Bitcoin approach -- Decentralized -- Limited supply -- Borderless -- How is Bitcoin used? -- Savings -- Cross-border payments -- Shopping -- Speculation -- Noncurrency uses -- How is Bitcoin valued? -- When not to use Bitcoin -- Other cryptocurrencies -- 2. Cryptographic hash functions and digital signatures -- The cookie token spreadsheet -- Cryptographic hashes -- Why are cryptographic hash functions useful? -- How does a cryptographic hash function work? -- Properties of a cryptographic hash function -- Illustration of "hard" -- Some well-known hash functions -- Exercises -- Digital signatures -- Typical use of digital signatures -- Improving cookie token security |
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Note continued: Preparation: John generates a key pair -- John signs his payment -- Lisa verifies the signature -- Private key security -- 3. Addresses -- Cookie-eating habits disclosed -- Replacing names with public keys -- New payment process -- Shortening the public key -- Hashing the public key to 20 bytes -- Why SHA256 and RIPEMD160? -- Avoiding expensive typing errors -- Base58check -- Back to privacy -- 4. Wallets -- First wallet version -- Private key backups -- A few words on password strength -- Problems with password-encrypted backups -- Hierarchical deterministic wallets -- Deriving a master extended private key -- Deriving a child extended private key -- Back to backup -- Mnemonic sentences -- Encoding a seed into a mnemonic sentence -- Decoding a mnemonic sentence into a seed -- Extended public keys -- Deriving hardened private keys -- Public key math -- Public key multiplication -- Why is this secure? -- Xpub derivation -- Public key encoding |
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Note continued: 5. Transactions -- Problems with the old system -- Paying using a transaction -- Creating the transaction -- Lisa confirms the transaction -- Anyone verifies the transaction -- Account-based and value-based systems -- Script -- Why use a program? -- Why signature script and pubkey script? -- Fancy payment types -- Multiple signatures -- Pay-to-script-hash -- Pay-to-script-hash addresses -- More stuff in transactions -- Rewards and coin creation -- Transition from version 4.0 -- Trust in Lisa -- 6. The blockchain -- Lisa can delete transactions -- Building the blockchain -- Lisa builds a block -- How does this process protect you from deletes? -- Why use a blockchain? -- Lightweight wallets -- Bloom filters obfuscate addresses -- Merkle trees -- Creating the merkle root -- Proving that a transaction is in a block -- How it really works -- Security of lightweight wallets -- 7. Proof of work -- Cloning Lisa -- Block collisions -- Drawing lucky numbers |
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Note continued: Probability of splits -- Forcing honest lucky numbers -- Producing a valid proof of work -- Why is this good? -- Comparing with lucky numbers -- What if you run out of nonces? -- Miners have to move out -- Adding more hashrate -- Problems with a high block rate -- What's fixed? -- Difficulty adjustments -- Rules for timestamps -- Chain strength vs. chain length -- What harm can miners do? -- Double spending -- Protecting against double-spend attacks -- Transaction fees -- Bigger blocks are slower -- But wasn't this about transaction fees? -- Block size is limited -- When the block subsidy is 0 -- 8. Peer-to-peer network -- The shared folder -- Let's build a peer-to-peer network -- How do peers talk? -- The network protocol -- John sends the transaction -- Tom forwards the transaction -- The cafe's lightweight wallet is notified -- Including the transaction in a block -- Notifying wallets -- More confirmations -- Leaving the cookie token system |
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Note continued: Bitcoin at a glance -- Bootstrapping the network -- Step 1 Run the software -- Step 2 Connect to nodes -- Step 3 Synchronize -- Step 4 Normal operation -- Running your own full node -- Downloading Bitcoin Core -- Verifying the software -- Unpacking and starting -- Initial blockchain download -- 9. Transactions revisited -- Time-locked transactions -- Time measurements -- Relative time locks -- Time-locked outputs -- Absolute time-locked outputs -- Relative time-locked outputs -- Atomic swaps -- Storing stuff in the Bitcoin blockchain -- Bloated UTXO set -- Creating a token in Bitcoin -- Starting the car with proof of ownership -- Replacing pending transactions -- Opt-in replace-by-fee -- Child pays for parent -- Different signature types -- 10. Segregated witness -- Problems solved by segwit -- Transaction malleability -- Inefficient signature verification -- Waste of bandwidth -- Script upgrades are hard -- Solutions -- Segwit addresses |
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Note continued: Spending your segwit output -- Verifying the segwit transaction -- Including your segwit transaction in a block -- Pay-to-witness-script-hash -- New hashing method for signatures -- Bandwidth savings -- Upgradable script -- Wallet compatibility -- Block limits -- Block size limit -- Signature operations limit -- Increasing the limits -- 11. Bitcoin upgrades -- Bitcoin forks -- Nonconsensus rule changes -- Hard forks -- Soft forks -- Differences between hard and soft forks -- Transaction replay -- Replay protection -- Upgrade mechanisms -- Using coinbase signaling -- BIP16 -- Using incremented block version number signaling -- BIP34, 66, and 65 -- Using block version bits signaling -- BIP9 -- Using BIP9 to deploy relative lock time -- Using BIP9 to deploy segwit -- User-activated soft forks -- Communicating with bitcoind -- Using curl -- Graphical user interface -- Getting to know bitcoin-cli -- Getting to work -- Creating an encrypted wallet |
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Note continued: Backing up the wallet -- Receiving money -- Sending money |
| Summary |
Grokking Bitcoin explains why Bitcoin's supporters trust it so deeply, and why you can too. This approachable book will introduce you to Bitcoin's groundbreaking technology, which is the key to this world-changing system. This illustrated, easy-to-read guide prepares you for a new way of thinking with easy-to-follow diagrams and exercises. You'll discover how Bitcoin mining works, how to accept Bitcoin, how to participate in the Bitcoin network, and how to set up a digital wallet |
| Notes |
© 2019 Manning Publications Co. All rights reserved. 2019 |
| Issuing Body |
Made available through: Safari, an O'Reilly Media Company |
| Subject |
Bitcoin.
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Cryptocurrencies.
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Electronic funds transfers.
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Electronic commerce.
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Bitcoin.
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cryptocurrencies.
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Bitcoin
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Cryptocurrencies
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Electronic commerce
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Electronic funds transfers
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Bitcoin.
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| Form |
Electronic book
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| Author |
Safari, an O'Reilly Media Company
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| LC no. |
2019285080 |
| ISBN |
9781617294648 |
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1617294640 |
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