Posts

Bitcoin Transactions via Digital Signature

The private key creates the public key,  which in turn creates the address  – and due to some clever mathematics using  elliptic curves  and modular arithmetic in finite fields the process is achieved. First though let’s remind ourselves of the process.  The sender generates a private key and public key. They then sign the message with the signature and send their public key, the signature and the message to the network (as the network is peer to peer each full node in the network validates each transaction) – The node or receiver then checks using the verification algorithm that the message has been signed by the sender, which can only be done by the holder of the private key to the public key that is sent. Using elliptic curves and their properties the signer, or sender, creates three points – remembering that the Bitcoin curve is defined as below: y 2 =x 3 +7 mod n where n=1.158x10 77 1.1 Take the message and convert it to a number by hashing it – then multiply by the gene
Post a Comment
Read more

How to Join Bitcoin Network?

To join the bitcoin network and start using the currency, all a user has to do is download an application or use a web application. Since bitcoin is a standard, there are many implementations of the bitcoin client software. There is also a “reference implementa‐ tion”, also known as the Satoshi Client, which is managed as an open source project by a team of developers and is derived from the original implementation written by Satoshi Nakamoto. The three primary forms of bitcoin clients are: Full Client: A full client, or “full node” is a client that stores the entire history of bitcoin trans‐ actions (every transaction by every user, ever), manages the user’s wallets and can initiate transactions directly on the bitcoin network. This is similar to a standalone email server, in that it handles all aspects of the protocol without relying on any other servers or third party services. Light Client: A lightweight client stores the user’s wallet but relies on third-party owned
Post a Comment
Read more

What is Bitcoin?

Image
Protocol to manage digital currency and process payments between users. It is a collection of concepts and technologies that form a digital money ecosystem. • First proposed by “Satoshi Nakamoto” • No central authority (Federal Reserve) or banks to manage transactions • Decentralized, P2P system. Means Bitcoin is a fully distributed ,peer to peer system. As such there is no central server. Bitcoins are created through a process called mining.
Post a Comment
Read more