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01_0_Introducing_Bitcoin.md
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@ -22,29 +22,19 @@ Bitcoin is a programmatic system that allows for the transfer of the bitcoin cur
Obviously, Bitcoin is the heart of this book, but it's also the originator of many other systems, including blockchains and Lightning, which are both detailed in this tutorial, and many other cryptocurrencies such as Ethereum and Litecoins, which are not.
### How Are Coins Transferred?
**How Are Coins Transferred?** Bitcoin currency isn't physical coins. Instead it's an endless series of ownership reassignments. When one person sends coins to another, that transfer is stored as a transaction. It's the transaction that actually records the ownership of the money, not any token local to the owner's wallet or their machine.
Bitcoin currency isn't physical coins. Instead it's an endless series of ownership reassignments. When one person sends coins to another, that transfer is stored as a transaction. It's the transaction that actually records the ownership of the money, not any token local to the owner's wallet or their machine.
**Who Can You Send Coins To?** The vast majority of bitcoin transactions involve coins being sent to individual people (or at least to individual Bitcoin addresses). However, more complex methodologies can be used to send bitcoins to groups of people or to scripts. These various methodologies have names like P2PKH, multisig, and P2SH.
### Who Can You Send Coins To?
The vast majority of bitcoin transactions involve coins being sent to individual people (or at least to individual Bitcoin addresses). However, more complex methodologies can be used to send bitcoins to groups of people or to scripts. These various methodologies have names like P2PKH, multisig, and P2SH.
### How Are Transactions Stored?
Transactions are combined into larger blocks of data, which are then written to the blockchain ledger. A block is built in such a way that it cannot be replaced or rewritten once several blocks have been built after it. This is what makes bitcoins non-repudiable: the decentralized global ledger where everything is recorded is effectively a permanent and unchangeable database.
**How Are Transactions Stored?** Transactions are combined into larger blocks of data, which are then written to the blockchain ledger. A block is built in such a way that it cannot be replaced or rewritten once several blocks have been built after it. This is what makes bitcoins non-repudiable: the decentralized global ledger where everything is recorded is effectively a permanent and unchangeable database.
However, the process of building these blocks is stochastic: it's somewhat random, so you can never be assured that a transaction will be placed in a specific block. There can also be changes in blocks if they're very recent, but only if they're _very_ recent. So, things become non-repudiable (and permanent and unchangeable) after a little bit of time.
### How Are Transactions Protected?
The funds contained in a Bitcoin transaction are locked with a cryptographic puzzle. These puzzles are designed so that they can be easily solved by the person who the funds were sent to. This is done using the power of public-key cryptography.
**How Are Transactions Protected?** The funds contained in a Bitcoin transaction are locked with a cryptographic puzzle. These puzzles are designed so that they can be easily solved by the person who the funds were sent to. This is done using the power of public-key cryptography.
Funds are further protected by the use of hashes. Public keys aren't actually stored in the blockchain, only public-key hashes are. This means that even if quantum computer were to come along, Bitcoin transactions would remain protected by this second level of cryptography.
### How Are Transactions Created?
The heart of each Bitcoin transaction is a FORTH-like scripting language that is used to lock the transaction. To respend the money, the recipient provides specific information to the script that proves he's the intended recipient.
**How Are Transactions Created?** The heart of each Bitcoin transaction is a FORTH-like scripting language that is used to lock the transaction. To respend the money, the recipient provides specific information to the script that proves he's the intended recipient.
However, these Bitcoin scripts are the lowest level of Bitcoin functionality. Much Bitcoin work is done through the `bitcoind` Bitcoin daemon, which is controlled through RPC commands. Many people send those RPC commands through the `bitcoin-cli` program, which provides an even simpler interface. Non-programmers don't even worry about these minutia, but instead use programmed wallets with simpler interfaces.