flywithu/Learning-Bitcoin-from-the-Command-Line
1
1
Fork 0
mirror of https://github.com/ChristopherA/Learning-Bitcoin-from-the-Command-Line.git synced 2025-06-08 16:36:32 +00:00
Code Issues Releases Wiki Activity

Testing new format.

Browse Source
This commit is contained in:
Shannon Appelcline 2018-08-14 12:57:07 -07:00 committed by GitHub
parent 265b56a135
commit 4c509e5c87
No known key found for this signature in database
GPG Key ID: 4AEE18F83AFDEB23
1 changed files with 4 additions and 4 deletions
Show Stats Download Patch File Download Diff File Expand all files Collapse all files

8
01_0_Introducing_Bitcoin.md
View File

@ -22,15 +22,15 @@ 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. 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?** 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. **_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.
**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. 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. 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.