@ -121,25 +121,25 @@ For the purposes of this book, we will be demonstrating the use of a variety of
==== Quick Start
((("getting started", "quick start example", id="GSquick01")))((("wallets", "quick start example", id="Wquick01")))((("use cases", "buying coffee", id="aliceone")))Alice, who we introduced in <<user-stories>>, is not a technical user and only recently heard about bitcoin from her friend Joe. While at a party, Joe is once again enthusiastically explaining bitcoin to all around him and is offering a demonstration. Intrigued, Alice asks how she can get started with bitcoin. Joe says that a mobile wallet is best for new users and he recommends a few of his favorite wallets. Alice downloads "Mycelium" for Android and installs it on her phone.
((("getting started", "quick start example", id="GSquick01")))((("wallets", "quick start example", id="Wquick01")))((("use cases", "buying coffee", id="aliceone")))Alice, who we introduced in <<user-stories>>, is not a technical user and only recently heard about bitcoin from her friend Joe. While at a party, Joe is once again enthusiastically explaining bitcoin to all around him and is offering a demonstration. Intrigued, Alice asks how she can get started with bitcoin. Joe says that a mobile wallet is best for new users and he recommends a few of his favorite wallets. Alice downloads "Bluewallet" for Android and installs it on her phone.
When Alice runs Mycelium for the first time, as with many bitcoin wallets, the application automatically creates a new wallet for her. Alice sees the wallet on her screen, as shown in <<mycelium-welcome>> (note: do _not_ send bitcoin to this sample address, it will be lost forever).
When Alice runs Bluewallet for the first time, she chooses the option to create a new Bitcoin wallet, and takes a moment **away from Joe and all other parties** to write down a secret mneumonic phrase _in order_ on a piece of paper. As explained by the mobile wallet and by Joe earlier, the mneumonic phrase allows Alice to restore her wallet in case she loses her mobile device and grants her access to her funds on another device. After creating her wallet and securing her mneumonic phrase, Alice can tap on her wallet to see her bitcoin amount, transaction history, as well as two buttons that allow her to either _receive_ or _send_ bitcoin, shown in <<bluewallet-welcome>>.
[[mycelium-welcome]]
.The Mycelium Mobile Wallet
image::images/mbc2_0101.png["MyceliumWelcome"]
[[bluewallet-welcome]]
.The Bluewallet Mobile Wallet
image::images/bw_0101.png["BluewalletWelcome"]
((("addresses", "bitcoin wallet quick start example")))((("QR codes", "bitcoin wallet quick start example")))((("addresses", see="also keys and addresses")))The most important part of this screen is Alice's _bitcoin address_. On the screen it appears as a long string of letters and numbers: +1Cdid9KFAaatwczBwBttQcwXYCpvK8h7FK+. Next to the wallet's bitcoin address is a QR code, a form of barcode that contains the same information in a format that can be scanned by a smartphone camera. The QR code is the square with a pattern of black and white dots. Alice can copy the bitcoin address or the QR code onto her clipboard by tapping the QR code, or the Receive button. In most wallets, tapping the QR code will also magnify it, so that it can be more easily scanned by a smartphone camera.
((("addresses", "bitcoin wallet quick start example")))((("QR codes", "bitcoin wallet quick start example")))((("addresses", see="also keys and addresses"))) The main wallet view displays the bitcoin amount, transaction history, and _Receive_ and _Send_ buttons. In addition, many wallets feature the ability to purchase Bitcoin directly through an exchange or similar service where you can offer fiat money in return for cryptocurrency, which is done by <<bitcoin_price>> and selling to the wallet user at or above this price. The _Buy Bitcoin_ button would allow Alice to purchase Bitcoin in this fashion.
Alice is now ready to start using her new bitcoin wallet. ((("", startref="GSquick01")))((("", startref="Wquick01"))) Her wallet application randomly generated a private key (described in more detail in <<private_keys>>) which will be used to derive bitcoin addresses that direct to her wallet. At this point, her bitcoin addresses are not known to the bitcoin network or "registered" with any part of the bitcoin system. Her bitcoin addresses are simply random numbers that correspond to her private key that she can use to control access to the funds. The addresses are generated independently by her wallet without reference or registration with any service. In fact, in most wallets, there is no association between a bitcoin address and any externally identifiable information including the user's identity. Until the moment an address is referenced as the recipient of value in a transaction posted on the bitcoin ledger, the bitcoin address is simply part of the vast number of possible addresses that are valid in bitcoin. Only once an address has been associated with a transaction does it become part of the known addresses in the network.
Alice clicks on the _Receive_ button, which displays a QR code along with a bitcoin address. The QR code is the square with a pattern of black and white dots. Next to the wallet's bitcoin address is a QR code, a form of barcode that contains the same information in a format that can be scanned by a smartphone camera. Alice can copy the bitcoin address onto her clipboard by tapping it. In most wallets, tapping the QR code will also magnify it, so that it can be more easily scanned by a smartphone camera. Of note, when receiving funds to a new mobile wallet for the first time, many wallets will often re-verify that you have indeed secured your mneumonic phrase in order. This can range from a simple prompt to requiring the user to manually re-enter _in order_ the phrase.
[TIP]
====
((("addresses", "security of")))((("security", "bitcoin addresses")))Bitcoin addresses start with 1, 3, or bc1. Like email addresses, they can be shared with other bitcoin users who can use them to send bitcoin directly to your wallet. There is nothing sensitive, from a security perspective, about the bitcoin address. It can be posted anywhere without risking the security of the account. Unlike email addresses, you can create new addresses as often as you like, all of which will direct funds to your wallet. In fact, many modern wallets automatically create a new address for every transaction to maximize privacy. A wallet is simply a collection of addresses and the keys that unlock the funds within.
====
Alice is now ready to receive funds. Her wallet application randomly generated a private key (described in more detail in <<private_keys>>) together with its corresponding bitcoin address. At this point, her bitcoin address is not known to the bitcoin network or "registered" with any part of the bitcoin system. Her bitcoin address is simply a number that corresponds to a key that she can use to control access to the funds. It was generated independently by her wallet without reference or registration with any service. In fact, in most wallets, there is no association between the bitcoin address and any externally identifiable information including the user's identity. Until the moment this address is referenced as the recipient of value in a transaction posted on the bitcoin ledger, the bitcoin address is simply part of the vast number of possible addresses that are valid in bitcoin. Only once it has been associated with a transaction does it become part of the known addresses in the network.
Alice is now ready to start using her new bitcoin wallet.((("", startref="GSquick01")))((("", startref="Wquick01")))
[[getting_first_bitcoin]]
==== Getting Your First Bitcoin
@ -182,7 +182,7 @@ In addition to these various sites and applications, most bitcoin wallets will a
==== Sending and Receiving Bitcoin
((("getting started", "sending and receiving bitcoin", id="GSsend01")))((("spending bitcoin", "bitcoin wallet quick start example")))((("spending bitcoin", see="also transactions")))Alice has decided to exchange $10 US dollars for bitcoin, so as not to risk too much money on this new technology. She gives Joe $10 in cash, opens her Mycelium wallet application, and selects Receive. This displays a QR code with Alice's first bitcoin address.
((("getting started", "sending and receiving bitcoin", id="GSsend01")))((("spending bitcoin", "bitcoin wallet quick start example")))((("spending bitcoin", see="also transactions")))Alice has decided to exchange $10 US dollars for bitcoin, so as not to risk too much money on this new technology. She gives Joe $10 in cash, opens her Bluewallet mobile wallet application, and selects Receive. This displays a QR code with Alice's first bitcoin address.
Joe then selects Send on his smartphone wallet and is presented with a screen containing two inputs:
@ -97,7 +97,7 @@ These standards may change or may become obsolete by future developments, but fo
The standards have been adopted by a broad range of software and hardware bitcoin wallets, making all these wallets interoperable. A user can export a mnemonic generated on one of these wallets and import it in another wallet, recovering all transactions, keys, and addresses.
((("hardware wallets")))((("hardware wallets", see="also wallets")))Some example of software wallets supporting these standards include (listed alphabetically) Breadwallet, Copay, Multibit HD, and Mycelium. Examples of hardware wallets supporting these standards include (listed alphabetically) KeepKey, Ledger, and Trezor.
((("hardware wallets")))((("hardware wallets", see="also wallets")))Some example of software wallets supporting these standards include (listed alphabetically) Bluewallet, Breadwallet, Copay, and Multibit HD. Examples of hardware wallets supporting these standards include (listed alphabetically) KeepKey, Ledger, and Trezor.
The following sections examine each of these technologies in detail.
Will Binns
3 years ago
committed by
