Bitcoin

Bitcoin is a proof of work cryptocurrency.

This article covers some specific aspects of the Bitcoin protocol.

My Bitcoin Address is: 1HDp1gU3rgrRNKqrKorz8uWCpHUNdyGqXm

Overview

Bitcoin is a decentralized protocol that operates in an untrusted peer to peer environment while still being a reliable method to exchange credits (bitcoins) between people.

For detailed information, read the Bitcoin paper or one of the many sites out there.

Address / Keys

An address consists of a public / private key pair.

Brain Wallets

A brain wallet allows for the generation of the public/private key pair using a passphrase. It is accomplished by:

1. Converting a pass phrase into a private key
   • PrivateKey = SHA256(PassPhrase)
2. Generate a public key using the private key
   • PublicKey = privateToPublic(PrivateKey)
3. Generate the bitcoin address
   • Hash = SHA256(PublicKey)
   • Hash160 = RIPEMD160(Hash) (used by transactions)
   • Address = Base58Check(Hash160)

The publickey can either be uncompressed or compressed. A compressed public key is simply a truncated key where the missing parts can be recomputed.