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Bitcoin Programming

This book is about teaching Bitcoin programming; to help people delve deeper Exercise 6.17 The Bitcoin white paper (PDF) is stored on the blockchain.



Untitled

Programming Bitcoin. Learn How to Program Bitcoin from Scratch. Jimmy Song story pics torials fers & Dea ghlights ttings. Support. Sign Out 





Bitcoin: Un Sistema de Efectivo Electrónico Usuario-a-Usuario 1

Traducido al Español de bitcoin.org/bitcoin.pdf por Angel León - www.diariobitcoin.com. Abstracto. Una versión puramente electrónica de efectivo permitiría 



Step by Step Towards Creating a Safe Smart Contract: Lessons and

18 nov 2015 extend Bitcoin's design by offering a rich programming language for writing “smart contracts.” Smart contracts are user-defined programs ...



Programming Bitcoin

For example: “Programming Bitcoin by Jimmy Song. (O'Reilly). The creator of this transaction split up the whitepaper PDF into 64-byte chunks.



Mastering Bitcoin

If you're a programmer sell your programming skills. If you have an online store



Users Manual

Manual. Mode. Indicator. Auto-tuning. Indicator. The left diagram shows program no. 6 for BTC-9100 with version 24. The program no. for BTC-7100 is 13.



blockchain-programming-in-csharp.pdf

Blockchain Programming in C#. Authored by Nicolas Dorier. Contributor for NBitcoin. The .NET Bitcoin Framework. Co-authored With Bill Strait.



VIRTUAL CURRENCY SCHEMES OCTOBER 2012

21 oct 2012 The first case study in this report relates to Bitcoin a virtual currency ... Designed and implemented by the Japanese programmer Satoshi ...



Bitcoin Programming - kkarasavvascom

Bitcoin mining is the process of solving the PoW puzzle and selecting the next valid block in a way that is undisputed and thus achieve consensus on the current blockchain state Bitcoin uses the Hashcash PoW algorithm [1] for its mining Figure 1 4: All nodes will eventually receive all transactions but they are free to include



Bitcoin Programming

programming decentralized applications engage in blockchain governance systems reason about both privacy and scalability trade-offs among different cryptocurrencies and research and consider relevant jurisdictional guidelines and regulations The best way to be equipped to speak to engage with and apply cryptocurrency to your



Andreas M Antonopoulos

This book is mostly intended for coders If you can use a programming language this book will teach you how cryptographic currencies work how to use them and how to develop software that works with them The first few chapters are also suitable as an in-depth introduction to bitcoin for non-coders - those trying to understand the inner



Cryptocurrencies and Blockchain Technologies

1 The starting point: Bitcoin mechanics 2 Consensus protocols 3 Ethereum and decentralized applications 4 DeFi: decentralized applications in finance 5 Private transactions on a public blockchain (SNARKs and zero knowledge proofs) 6 Scaling the blockchain: getting to 10K Tx/sec 7 Interoperability among chains: bridges and wrapped coins



Simplicity: A New Language for Blockchains - Blockstream

A program in BitcoinScript is a sequence of operations for its stack machine Bitcoin Script hasconditionals but no loops thus all programs halt and the language is not Turingcomplete Originally these programs were committed as part of the output eld of aBitcoin transaction



Searches related to programming bitcoin pdf filetype:pdf

Bitcoin is a virtual monetary unit and therefore has no physical representation A Bitcoin unit is divisible and can be divided into 100 million “Satoshis” the smallest fraction of a Bitcoin The Bitcoin Blockchain is a data file that carries the records of all past Bitcoin transactions including the creation of new Bitcoin units

How to create bitcoin transactions programmatically?

    Creating Transactions Programmatically The Bitcoin node allows the creation of the basic transactions. It does not support arbitrary scripts. We can create those programmatically by explicitly specifying the locking/unlock- ing conditions.

When did you start teaching bitcoin programming?

    I started teaching Bitcoin programming in 2016. Every year I was trying to improve and update my material to keep it as relevant as possible. Luckily, Bitcoin progresses at a steady pace while always keeping backwards compatibility.

What are the inputs and outputs of a bitcoin transaction?

    6.1 Transactions A transaction sends bitcoins from one address to another and it consists of 1+ inputs and 1+ outputs. The inputs of a transaction consist of outputs of previous transactions. When an output is spend it can never be used again1. All the bitcoins are transferred elsewhere (to a recipient, back to yourself as change, etc.).

What are the features of bitcoin software?

    After installing the Bitcoin software10we can notice that it includes several executables, one providing the core functionality and the other for interaction and extra utility: bitcoind: The daemon server that implements the Bitcoin protocol and networking func- tionality. It also includes a wallet.

Cryptocurrencies and Blockchain TechnologiesDan BonehStanford UniversityCS251 Fall 2022https://cs251.stanford.edu[course videos on canvas, discussions on edstem, homework on gradescope][first project -Merkle trees -is out on the course web site]

What is a blockchain?Abstract answer: a blockchain providescoordination between many parties,when there is no single trusted partyif trusted party exists ⇒no need for a blockchain[financial systems: often no trusted party]

Blockchains: what is the new idea?2009BitcoinSeveral innovations:•A practical public append-only data structure,secured by replicationand incentives•A fixed supply asset (BTC). Digital payments, and more.

Blockchains: what is the new idea?2009BitcoinSeveral innovations:•Blockchain computer: a fully programmable environment⟹public programs that manage digital and financial assets•Composability: applications running on chain can call each other2015Ethereum

Blockchains: what is the new idea?2009Bitcoin2015Ethereumgrowth of DeFi, NFTs, DAOs 20172022

Sowhat is this good for?(1) Basic application: a digital currency (stored value)•Current largest: Bitcoin (2009), Ethereum (2015)•Global: accessible to anyone with an Internet connection

What else is it good for?(2) Decentralized applications (DAPPs)•DeFi: financial instruments managed by publicprograms •examples: stablecoins, lending, exchanges, ....•Asset management (NFTs): art, game assets, domain names.•Decentralized organizations (DAOs): (decentralized governance)•DAOs for investment, for donations, for collecting art, etc. (3) New programming model: writing decentralized programs

Assets managed by DAPPsSep. 2022StableCoinExchangeLendingExchangeLending Transaction volume24h volumeSep. 2022$26.6B$12.1B$0.88B # Active developers since launch(as of 12/31/2021)source: electric capital

Central Bank Digital Currency (CBDC)30 central banks actively working on retail CBDC[BIS survey Jan. 2019]

What is a blockchain?Data Availability / Consensus LayerExecution engine (blockchain computer)applications(DAPPs, smart contracts)user facing tools (cloud servers)Sequencer: orders transactions

Consensus layer (informal)A publicappend-only data structure:•Persistence: once added, data can never be removed*•Safety: all honest participants have the same data**•Liveness: honest participants can add new transactions•Open(?): anyone can add data (no authentication)Data Availability / Consensus layerachieved by replication

How are blocks added to chain?blockchainI am the leader6.25 BTCverifyblockverifyblockskAskBskCsigned How are blocks added to chain?blockchainI am the leader6.25 BTC...skAskBskC6.25 BTC

Why is consensus a hard problem?Tx1Tx2Tx3Tx4Tx1, Tx2, Tx3, Tx4Tx1, Tx2, Tx3, Tx4Tx1, Tx2, Tx3, Tx4Tx1, Tx2, Tx3, Tx4The good case:copies are consistent

Why is consensus a hard problem?Tx1Tx2Tx3Tx4Tx1, Tx2, Tx3, Tx4Tx3, Tx4, Tx1, Tx2Tx4, Tx3, Tx1, Tx2Tx1, Tx2, Tx4, Tx3Problems:•Network delays∆-delay∆-delaycan affect Tx order

Why is consensus a hard problem?Tx1Tx2Tx3Tx4Tx1, Tx2Tx3, Tx4Tx3, Tx4Tx1, Tx2Problems:•Network delays•Network partitionnetworkpartition

Why is consensus a hard problem?Tx1Tx2Tx4Tx1, Tx2, Tx4Tx1, Tx2, Tx4Tx1, Tx2, Tx4Problems:•crashTx3??crashed

Next layer: the blockchain computerData availability / Consensus layerblockchain computerDAPPDAPPDAPPon-chainstateDecentralized applications (DAPPs): •Run on blockchain: code and state are written on chain•Accept Tx from users ⇒state transitions are recorded on chain

Next layer: the blockchain computerData availability / Consensus layerblockchain computerDAPPDAPPDAPPend userTop layer: user facing serverson-chainstate

[source: the Block Genesis]Lots of experiments: This courseCryptographyDistributed systemsEconomics

Course organization1.The starting point: Bitcoin mechanics2.Consensus protocols3.Ethereum and decentralized applications4.DeFi: decentralized applications in finance5.Private transactions on a public blockchain(SNARKs and zero knowledge proofs)6.Scaling the blockchain: getting to 10K Tx/sec7.Interoperability among chains: bridges and wrapped coins

Course organizationcs251.stanford.edu•Homework problems, projects, final exam•Optional weekly sections on FridayPlease tell us how we can improve ...Don't wait until the end of the quarter

Let's get started ...

Cryptography Background(1)cryptographic hash functionsAn efficiently computable function :⇾where ||≫||megabyteshash value32 bytes=0,1!"#

Collision resistanceDef: a collisionfor :⇾is pair ≠∈s.t.()=()||≫||implies that manycollisions existDef:a function :⇾is collision resistantif it is "hard" to find even a single collision for (we say is a CRF)Example: SHA256: {: len()<264bytes}⇾{0,1}256details in CS255(output is 32 bytes)

Application: committing to data on a blockchainAlice has a large file . She posts ℎ=()(32 bytes)Bob reads ℎ. Later he learns 's.t.(')=ℎis a CRF ⇒Bob is convinced that '=(otherwise, and 'are a collision for )We say that ℎ=()is a binding commitment to (note: not hiding, ℎmay leak information about )

Committing to a list (of transactions)Alice has =(1,2,...,)Goal: -Alice posts a shortbinding commitment to , ℎ=commit()-Bob reads ℎ. Given ,proofπcan check that []=$Bob runs verifyℎ,,,π⇾accept/rejectsecurity: adv. cannot find (,,,)s.t.≠[]andverify(ℎ,,,)=acceptwhere ℎ=commit()32 bytes

Merkle tree (Merkle 1989)Merkle treecommitmentℎ12%"&#'list of values SGoal:•commit to list S of size n•Later prove []=$commitment

Merkle tree (Merkle 1989) [simplified]1!(%"&#'list of values SℎHHHHHHHGoal:•commit to list S of size n•Later prove []=$To prove 4=%,proof π=(,),#1!(%"#length of proof: log2commitment

Merkle tree (Merkle 1989) [simplified]1!(%"&#'list of values SℎHHHHHHHTo prove 4=%,proof π=(,),#1!(%"#Bob does:2⇽(,4)5⇽(1,2)ℎ'⇽(5,6)accept if ℎ=ℎ'commitment

Merkle tree (Merkle 1989)Thm: For a given : if is a CRF thenadv. cannot find (,,,)s.t.S=n,≠[], ℎ=commit, and verify(ℎ,,,)=accept(to prove, prove the contra-positive)How is this useful? To post a block of transactions on chainsuffices to only write commit() to chain. Keeps chain small. ⇒Later, can prove contents of every Tx.

Merkle treeTx1Tx2... TxnMerkle treeTx1Tx2... TxnMerkle treeTx1Tx2... TxnAbstract block chainblockchainblock header⊥Merkleroototherdatablock headerhashMerkleroototherdatablock headerhashMerkleroototherdataMerkle proofs are used to prove that a Tx is "on the block chain"

Another application: proof of work Goal: computational problem that•takes time Ω()to solve, but(D is called the difficulty)•solution takes time O(1) to verifyHow? :×⇾{0,1,2,...,2-1}e.g. =256•puzzle: input ∈, output ∈s.t.(,)<2/•verify(,): accept if (,)<2/

Another application: proof of work Thm: if H is a "random function" then the best algorithm requires evaluations of in expectation.Note: this is a parallel algorithm⇒the more machines I have, the faster I solve the puzzle.Proof of work is used in some consensus protocols (e.g., Bitcoin)Bitcoin uses (,)=SHA256(SHA256(.))

Cryptography background:Digital SignaturesHow to authorize a transaction

SignaturesPhysical signatures: bind transaction to authorBob agrees to pay Alice 1$Bob agrees to pay Alice 100$Problem in the digital world: anyone can copy Bob's signature from one doc to another

Digital signaturesSolution: make signature depend on documentBob agrees to pay Alice 1$secret signing key (sk)signingalgorithmsignatureSignerverifierVerifierpublic verificationkey (pk)'accept'or'reject'

Digital signatures: syntaxDef: a signature scheme is a triple of algorithms:•Gen(): outputs a key pair (pk, sk)•Sign(sk, msg) outputs sig. σ•Verify(pk, msg, σ) outputs 'accept'or 'reject'Secure signatures: (informal) Adversary who sees signatures on many messages of his choice,cannot forge a signature on a new message.

Families of signature schemes1.RSA signatures (old ... not used in blockchains):•long sigs and public keys (≥256 bytes), fast to verify2.Discrete-log signatures: Schnorrand ECDSA•short sigs (48 or 64 bytes) and public key (32 bytes)3.BLS signatures: 48 bytes, aggregatable, easy threshold4.Post-quantumsignatures: long (≥600 bytes)(Ethereum 2.0, Chia, Dfinity)(Bitcoin, Ethereum)details in CS255

Signatures on the blockchainSignatures are used everywhere:•ensure Tx authorization,•governance votes,•consensus protocol votes.verifyTxverifyTxverifyTxdatasignaturesdatasignaturessk1sk2

Next lecture: the Bitcoin blockchainEND OF LECTUREquotesdbs_dbs14.pdfusesText_20
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