arno/bitcoinbook
1
0
Fork 0
mirror of https://github.com/bitcoinbook/bitcoinbook synced 2025-01-11 00:01:03 +00:00
Code Issues Releases Wiki Activity

Edited ch05.asciidoc with Atlas code editor

Browse Source
This commit is contained in:
judymcconville@roadrunner.com 2017-05-03 11:03:53 -07:00
parent 7f9e524f12
commit 5b2fb70bac
1 changed files with 4 additions and 4 deletions
Show Stats Download Patch File Download Diff File Expand all files Collapse all files

8
ch05.asciidoc
View File

@ -11,7 +11,7 @@ In this chapter we will look at the second meaning, where wallets are containers
=== Wallet Technology Overview
((("wallets", "technology of", id="Wtechnology05")))In this section we summarize the various technologies used to construct user-friendly, secure, and flexible bitcoin wallets.
In this section we summarize the various technologies used to construct user-friendly, secure, and flexible bitcoin wallets.
((("wallets", "contents of")))A common misconception about bitcoin is that bitcoin wallets contain bitcoin. In fact, the wallet contains only keys. The "coins" are recorded in the blockchain on the bitcoin network. Users control the coins on the network by signing transactions with the keys in their wallets. ((("keychains")))In a sense, a bitcoin wallet is a _keychain_.
@ -139,11 +139,11 @@ By writing down this mnemonic, Gabriel created a backup (see <<mnemonic_paper_ba
A 12-word mnemonic is shown in the table, for simplicity. In fact, most hardware wallets generate a more secure 24-word mnemonic. The mnemonic is used in exactly the same way, regardless of length.
====
For the first implementation of his web store, Gabriel uses a single bitcoin address, generated on his Trezor device. This single address is used by all customers for all orders. As we will see, this approach has some drawbacks and can be improved upon with HD wallets.((("", startref="Wtechnology05")))
For the first implementation of his web store, Gabriel uses a single bitcoin address, generated on his Trezor device. This single address is used by all customers for all orders. As we will see, this approach has some drawbacks and can be improved upon with HD wallets.
=== Wallet Technology Details
((("wallets", "technology of", id="Wdetails05")))Let's now examine each of the important industry standards that are used by many bitcoin wallets, in detail.
Let's now examine each of the important industry standards that are used by many bitcoin wallets, in detail.
[[mnemonic_code_words]]
==== Mnemonic Code Words (BIP-39)
@ -476,7 +476,7 @@ The first-level "purpose" is always set to +44'+. The second-level "coin_type" s
The third level of the tree is "account," which allows users to subdivide their wallets into separate logical subaccounts, for accounting or organizational purposes. For example, an HD wallet might contain two bitcoin "accounts": m/44++&#x27;++/0++&#x27;++/0++&#x27;++ and m/44++&#x27;++/0++&#x27;++/1++&#x27;++. Each account is the root of its own subtree.
((("keys and addresses", see="also public and private keys")))On the fourth level, "change," an HD wallet has two subtrees, one for creating receiving addresses and one for creating change addresses. Note that whereas the previous levels used hardened derivation, this level uses normal derivation. This is to allow this level of the tree to export extended public keys for use in a nonsecured environment. Usable addresses are derived by the HD wallet as children of the fourth level, making the fifth level of the tree the "address_index." For example, the third receiving address for bitcoin payments in the primary account would be M/44++&#x27;++/0++&#x27;++/0++&#x27;++/0/2. <<table_4-9>> shows a few more examples.((("", startref="Wdetails05")))
((("keys and addresses", see="also public and private keys")))On the fourth level, "change," an HD wallet has two subtrees, one for creating receiving addresses and one for creating change addresses. Note that whereas the previous levels used hardened derivation, this level uses normal derivation. This is to allow this level of the tree to export extended public keys for use in a nonsecured environment. Usable addresses are derived by the HD wallet as children of the fourth level, making the fifth level of the tree the "address_index." For example, the third receiving address for bitcoin payments in the primary account would be M/44++&#x27;++/0++&#x27;++/0++&#x27;++/0/2. <<table_4-9>> shows a few more examples.
[[table_4-9]]
.BIP-44 HD wallet structure examples