diff --git a/.travis.yml b/.travis.yml new file mode 100644 index 00000000..dcb212e8 --- /dev/null +++ b/.travis.yml @@ -0,0 +1,21 @@ +language: python +python: + - 2.7 + - 3.6 +branches: + only: + - develop + - first_edition + - second_edition +install: + - pip install flake8 # pytest # add other testing frameworks later +before_script: + # stop the build if there are Python syntax errors or undefined names + - time flake8 . --count --select=E901,E999,F821,F822,F823 --show-source --statistics + # exit-zero treats all errors as warnings. The GitHub editor is 127 chars wide + - time flake8 . --count --exit-zero --max-complexity=10 --max-line-length=127 --statistics +script: + - true # add other tests here +notifications: + on_success: change + on_failure: always diff --git a/README.md b/README.md index 7ba66c6a..831a64f7 100644 --- a/README.md +++ b/README.md @@ -1,20 +1,32 @@ +Code Examples: ![travis_ci](https://travis-ci.org/bitcoinbook/bitcoinbook.svg?branch=develop) + # Mastering Bitcoin Mastering Bitcoin is a book for developers, but the first two chapters cover bitcoin at a level that is approachable to non-programmers. Anyone with a basic understanding of technology can read the first two chapters and get a great understanding of bitcoin. -This repository contains the complete [first edition](https://github.com/bitcoinbook/bitcoinbook/tree/first_edition), published in Dec 2014, and the complete [second edition](https://github.com/bitcoinbook/bitcoinbook/tree/second_edition), published in June 2017. +This repository contains the complete [first edition, second print](https://github.com/bitcoinbook/bitcoinbook/releases/tag/Edition1Print2), published in Dec 2014, and the complete [second edition, second print](https://github.com/bitcoinbook/bitcoinbook/releases/tag/second_edition_print2), published in July 2017, as published by O'Reilly Media in paperback and ebook formats. # Issues, Errors, Comments, Contributions -If you know how to make a pull request to contribute a fix, please write the correction and use a pull request to submit it for consideration against the [develop branch](https://github.com/bitcoinbook/bitcoinbook/tree/develop). Otherwise, please submit an issue, explaining the error or comment. If you would like to contribute extensive changes or new material, please coordinate with the author first. Contact forms can be found on his website https://antonopoulos.com/ +If you know how to make a pull request to contribute a fix, please write the correction and use a pull request to submit it for consideration against the [develop branch](https://github.com/bitcoinbook/bitcoinbook/tree/develop). If you are making several changes, please use a separate commit for each to make it easier to cherry-pick or resolve conflicts. Otherwise, please submit an issue, explaining the error or comment. If you would like to contribute extensive changes or new material, please coordinate with the author first. Contact forms can be found on his website https://antonopoulos.com/ + +# Reading this book (Where is the PDF?) + +To read this book, see [book.asciidoc](https://github.com/bitcoinbook/bitcoinbook/blob/develop/book.asciidoc). Click on each of the chapters to read in your browser. This is not as convenient as reading a PDF or an ebook on your e-reader. Convenience costs money (see below). + +The 2nd edition of "Mastering Bitcoin" is available under a CC-BY-NC-ND license, not a CC-BY-SA license. + +It is deliberately not available as a PDF. Why? Because a PDF is a "derivative" product, which is what the ND prohibits. That's because the publisher (O'Reilly Media) is a for-profit publisher and puts considerable resources behind distributing the book. The book will eventually (within a year of publication) be released under a CC-BY-SA license, at which point PDF and translations will be allowed. Until then, making PDF copies violates the license and hurts the publisher's (and the author's) ability to make a living. Furthermore, if you make it so the publisher can't recoup their investment, they will delay the release into CC-BY-SA. + +Please don't create or distribute PDFs until the license is changed to CC-BY-SA. It is rare for a publisher to agree to even a CC-BY-NC-ND license. Don't make it harder for free culture by violating even that, already generous, license. # Published -"Mastering Bitcoin (Second Edition): Programming the Open Blockchain" is now available in paperback and e-book formats by many book sellers, worldwide: +"Mastering Bitcoin (Second Edition, Second Print): Programming the Open Blockchain" is now available in paperback and e-book formats by many book sellers, worldwide: * [Amazon](https://www.amazon.com/Mastering-Bitcoin-Programming-Open-Blockchain/dp/1491954388) -Mastering Bitcoin (First Edition) is also published in Japanese, Korean and Chinese (Simplified) by publishers in the respective countries. +Mastering Bitcoin (First Edition Second Print) is also published in Japanese, Korean and Chinese (Simplified) by publishers in the respective countries. Mastering Bitcoin (Open Edition), based on the First Edition has been translated by volunteers into more than a dozen languages. Translations are available for free under CC-BY-SA license on https://bitcoinbook.info @@ -34,9 +46,7 @@ Thank you O'Reilly Media! ## Mastering Bitcoin - Second Edition -The [second_edition](https://github.com/bitcoinbook/bitcoinbook/tree/second_edition) branch, is the source for the published versions of Mastering Bitcoin (Second Edition). - -The tag [second_edition_print_1](https://github.com/bitcoinbook/bitcoinbook/releases/tag/second_edition_print_1), corresponds to the first print of the second edition. +The tags [second_edition_print_1](https://github.com/bitcoinbook/bitcoinbook/releases/tag/second_edition_print_1) and [second_edition_print2](https://github.com/bitcoinbook/bitcoinbook/releases/tag/second_edition_print2), correspond to the first (June 8th 2017) and second (July 20th 2017) print of Mastering Bitcoin (Second Edition), as published by O'Reilly Media. Creative Commons License
Mastering Bitcoin - Second Edition by Andreas M. Antonopoulos LLC is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License. diff --git a/appdx-bitcore.asciidoc b/appdx-bitcore.asciidoc index e0e5b7e8..4fbc2850 100644 --- a/appdx-bitcore.asciidoc +++ b/appdx-bitcore.asciidoc @@ -4,7 +4,7 @@ == Bitcore -((("Bitcore", id="bitcore17")))Bitcore is a suite of tools provided by BitPay. Its goal is to provide easy-to-use tools for Bitcoin developers. Almost all of Bitcore's code is written in JavaScript. There are some modules written specifically for NodeJS. Finally, the "node" module of Bitcore includes Bitcoin Core's C++ code. Please see https://bitcore.io for more information. +((("Bitcore", id="bitcore16")))Bitcore is a suite of tools provided by BitPay. Its goal is to provide easy-to-use tools for Bitcoin developers. Almost all of Bitcore's code is written in JavaScript. There are some modules written specifically for NodeJS. Finally, the "node" module of Bitcore includes Bitcoin Core's C++ code. Please see https://bitcore.io for more information. === Bitcore's Feature List @@ -91,7 +91,7 @@ Broadcasting a transaction to the Bitcoin network 1. Copy the code below into a file called _broadcast.js_. 2. The +tx+ and +rbfTx+ variables are the output of +tx.serialize()+ and +rbfTx.serialize()+, respectively. 3. In order to replace-by-fee, the peer must support bitcoind option +mempoolreplace+ and have it set to +1+. -4. Run the file node _broadcast.js_((("", startref="bitcore17"))): +4. Run the file node _broadcast.js_((("", startref="bitcore16"))): ---- var p2p = require('bitcore-p2p'); diff --git a/appdx-bx.asciidoc b/appdx-bx.asciidoc index bf89bbba..b4fd2a55 100644 --- a/appdx-bx.asciidoc +++ b/appdx-bx.asciidoc @@ -1,9 +1,9 @@ [[appdx_bx]] [appendix] -== Bitcoin Explorer (bx) Commands((("Bitcoin Explorer (bx) commands", id="BX19"))) +== Bitcoin Explorer (bx) Commands -Bitcoin Explorer (bx) is a command-line tool that offers a variety of commands for key management and transaction construction. It is part of the libbitcoin bitcoin library. +((("Bitcoin Explorer (bx) commands", id="BX18_1", range="startofrange")))Bitcoin Explorer (bx) is a command-line tool that offers a variety of commands for key management and transaction construction. It is part of the libbitcoin bitcoin library. ---- Usage: bx COMMAND [--help] @@ -95,7 +95,7 @@ Generate a random "seed" value using the +seed+ command, which uses the operatin ---- $ bx seed | bx ec-new > private_key -$ cat private_key +$ cat private_key 73096ed11ab9f1db6135857958ece7d73ea7c30862145bcc4bbc7649075de474 ---- @@ -103,14 +103,14 @@ Now, generate the public key from that private key using the +ec-to-public+ comm ---- $ bx ec-to-public < private_key > public_key -$ cat public_key +$ cat public_key 02fca46a6006a62dfdd2dbb2149359d0d97a04f430f12a7626dd409256c12be500 ---- We can reformat the +public_key+ as an address using the +ec-to-address+ command. We pass the _public_key_ into standard input: ---- -$ bx ec-to-address < public_key +$ bx ec-to-address < public_key 17re1S4Q8ZHyCP8Kw7xQad1Lr6XUzWUnkG ---- @@ -178,4 +178,4 @@ $ bx mnemonic-decode < words eb68ee9f3df6bd4441a9feadec179ff1 ---- -Mnemonic encoding can make the seed easier to record and even remember.((("", startref="BX19"))) +Mnemonic encoding can make the seed easier to record and even remember.(((range="endofrange", startref="BX18_1"))) diff --git a/appdx-pycoin.asciidoc b/appdx-pycoin.asciidoc index 43a3078d..9fd32208 100644 --- a/appdx-pycoin.asciidoc +++ b/appdx-pycoin.asciidoc @@ -9,7 +9,7 @@ The pycoin library supports both Python 2 (2.7.x) and Python 3 (after 3.3) and c === Key Utility (KU) -((("key utility (ku)", id="keyutil18")))The command-line utility +ku+ ("key utility") is a Swiss Army knife for manipulating keys. It supports BIP-32 keys, WIF, and addresses (bitcoin and alt coins). Following are some examples. +((("key utility (ku)", id="keyutil17")))The command-line utility +ku+ ("key utility") is a Swiss Army knife for manipulating keys. It supports BIP-32 keys, WIF, and addresses (bitcoin and alt coins). Following are some examples. Create a BIP-32 key using the default entropy sources of GPG and _/dev/random_: @@ -329,7 +329,7 @@ Dogecoin address : DFpN6QqFfUm3gKNaxN6tNcab1FArL9cZLE ==== Transaction Utility (TX) -((("transaction utility (TX)", id="TX18"))) +((("transaction utility (TX)", id="TX17"))) The command-line utility +tx+ will display transactions in human-readable form, fetch base transactions from pycoin's transaction cache or from web services (blockchain.info, blockcypher.com, blockr.io and chain.so are currently supported), merge transactions, add or delete inputs or outputs, and sign transactions. Following are some examples. @@ -405,7 +405,7 @@ Total fees 0.00000 mBTC all incoming transaction values validated ---- -((("", startref="TX18")))Now, let's look at unspent outputs for a specific address (UTXO). In block #1, we see a coinbase transaction to +12c6DSiU4Rq3P4ZxziKxzrL5LmMBrzjrJX+. Let's use +fetch_unspent+ to find all coins in this address: +((("", startref="TX17")))Now, let's look at unspent outputs for a specific address (UTXO). In block #1, we see a coinbase transaction to +12c6DSiU4Rq3P4ZxziKxzrL5LmMBrzjrJX+. Let's use +fetch_unspent+ to find all coins in this address: ---- $ fetch_unspent 12c6DSiU4Rq3P4ZxziKxzrL5LmMBrzjrJX diff --git a/appdx-segwit.asciidoc b/appdx-segwit.asciidoc deleted file mode 100644 index 37086cf9..00000000 --- a/appdx-segwit.asciidoc +++ /dev/null @@ -1,355 +0,0 @@ -[[segwit]] -[appendix] -== Segregated Witness - -((("segwit (Segregated Witness)", id="segwit16")))Segregated Witness (segwit) is an upgrade to the bitcoin consensus rules and network protocol, proposed and implemented as a BIP-9 soft-fork that is currently (mid-2017) pending activation. - -In cryptography, the term "witness" is used to describe a solution to a cryptographic puzzle. In bitcoin terms, the witness satisfies a cryptographic condition placed on a unspent transaction output (UTXO). - -In the context of bitcoin, a digital signature is _one type of witness_, but a witness is more broadly any solution that can satisfy the conditions imposed on an UTXO and unlock that UTXO for spending. The term “witness” is a more general term for an “unlocking script” or “scriptSig.” - -Before segwit’s introduction, every input in a transaction was followed by the witness data that unlocked it. The witness data was embedded in the transaction as part of each input. The term _segregated witness_, or _segwit_ for short, simply means separating the signature or unlocking script of a specific output. Think "separate scriptSig," or “separate signature” in the simplest form. - -Segregated Witness therefore is an architectural change to bitcoin that aims to move the witness data from the +scriptSig+ (unlocking script) field of a transaction into a separate _witness_ data structure that accompanies a transaction. Clients may request transaction data with or without the accompanying witness data. - -In this section we will look at some of the benefits of Segregated Witness, describe the mechanism used to deploy and implement this architecture change, and demonstrate the use of Segregated Witness in transactions and addresses. - -[role="pagebreak-before"] -Segregated Witness is defined by the following BIPs: - -https://github.com/bitcoin/bips/blob/master/bip-0141.mediawiki[BIP-141] :: The main definition of Segregated Witness. - -https://github.com/bitcoin/bips/blob/master/bip-0143.mediawiki[BIP-143] :: Transaction Signature Verification for Version 0 Witness Program - -https://github.com/bitcoin/bips/blob/master/bip-0144.mediawiki[BIP-144] :: Peer Services—New network messages and serialization formats - -https://github.com/bitcoin/bips/blob/master/bip-0145.mediawiki[BIP-145] :: getblocktemplate Updates for Segregated Witness (for mining) - - -==== Why Segregated Witness? - -Segregated Witness is an architectural change that has several effects on the scalability, security, economic incentives, and performance of bitcoin: - -Transaction Malleability :: By moving the witness outside the transaction, the transaction hash used as an identifier no longer includes the witness data. Since the witness data is the only part of the transaction that can be modified by a third party (see <>), removing it also removes the opportunity for transaction malleability attacks. With Segregated Witness, transaction hashes become immutable by anyone other than the creator of the transaction, which greatly improves the implementation of many other protocols that rely on advanced bitcoin transaction construction, such as payment channels, chained transactions, and lightning networks. - -Script Versioning :: With the introduction of Segregated Witness scripts, every locking script is preceded by a _script version_ number, similar to how transactions and blocks have version numbers. The addition of a script version number allows the scripting language to be upgraded in a backward-compatible way (i.e., using soft fork upgrades) to introduce new script operands, syntax, or semantics. The ability to upgrade the scripting language in a nondisruptive way will greatly accelerate the rate of innovation in bitcoin. - -Network and Storage Scaling :: The witness data is often a big contributor to the total size of a transaction. More complex scripts such as those used for multisig or payment channels are very large. In some cases these scripts account for the majority (more than 75%) of the data in a transaction. By moving the witness data outside the transaction, Segregated Witness improves bitcoin’s scalability. Nodes can prune the witness data after validating the signatures, or ignore it altogether when doing simplified payment verification. The witness data doesn’t need to be transmitted to all nodes and does not need to be stored on disk by all nodes. - -Signature Verification Optimization :: Segregated Witness upgrades the signature functions (+CHECKSIG+, +CHECKMULTISIG+, etc.) to reduce the algorithm's computational complexity. Before segwit, the algorithm used to produce a signature required a number of hash operations that was proportional to the size of the transaction. Data-hashing computations increased in O(n^2^) with respect to the number of signature operations, introducing a substantial computational burden on all nodes verifying the signature. With segwit, the algorithm is changed to reduce the complexity to O(n). - -Offline Signing Improvement :: Segregated Witness signatures incorporate the value (amount) referenced by each input in the hash that is signed. Previously, an offline signing device, such as a hardware wallet, would have to verify the amount of each input before signing a transaction. This was usually accomplished by streaming a large amount of data about the previous transactions referenced as inputs. Since the amount is now part of the commitment hash that is signed, an offline device does not need the previous transactions. If the amounts do not match (are misrepresented by a compromised online system), the signature will be invalid. - -==== How Segregated Witness Works - -At first glance, Segregated Witness appears to be a change to how transactions are constructed and therefore a transaction-level feature, but it is not. In fact, Segregated Witness is also a change to how individual UTXO are spent and therefore is a per-output feature. - -A transaction can spend Segregated Witness outputs or traditional (inline-witness) outputs or both. Therefore, it does not make much sense to refer to a transaction as a “Segregated Witness transaction.” Rather we should refer to specific transaction inputs as “Segregated Witness inputs." - -When a transaction spends an UTXO, it must provide a witness. In a traditional UTXO, the locking script requires that witness data be provided _inline_ in the input part of the transaction that spends the UTXO. A Segregated Witness UTXO, however, specifies a locking script that can be satisfied with witness data outside of the input (segregated). - -==== Soft Fork (Backward Compatibility) - -Segregated Witness is a significant change to the way outputs and transactions are architected. Such a change would normally require a simultaneous change in every bitcoin node and wallet to change the consensus rules—what is known as a hard fork. Instead, segregated witness is introduced with a much less disruptive change, which is backward compatible, known as a soft fork. This type of upgrade allows nonupgraded software to ignore the changes and continue to operate without any disruption. - -Segregated Witness outputs are constructed so that older systems that are not segwit-aware can still validate them. To an old wallet or node, a Segregated Witness output looks like an output that _anyone can spend_. Such outputs can be spent with an empty signature, therefore the fact that there is no signature inside the transaction (it is segregated) does not invalidate the transaction. Newer wallets and mining nodes, however, see the Segregated Witness output and expect to find a valid witness for it in the transaction’s witness data. - -==== Segregated Witness Output and Transaction Examples - -Let’s look at some of our example transactions and see how they would change with Segregated Witness. We’ll first look at how a Pay-to-Public-Key-Hash (P2PKH) payment is transformed with the Segregated Witness program. Then, we’ll look at the Segregated Witness equivalent for Pay-to-Script-Hash (P2SH) scripts. Finally, we’ll look at how both of the preceding Segregated Witness programs can be embedded inside a P2SH script. - -[[p2wpkh]] -===== Pay-to-Witness-Public-Key-Hash (P2WPKH) - -In <>, ((("use cases", "buying coffee", id="aliced")))Alice created a transaction to pay Bob for a cup of coffee. That transaction created a P2PKH output with a value of 0.015 BTC that was spendable by Bob. The output’s script looks like this: - -.Example P2PKH output script ----- -DUP HASH160 ab68025513c3dbd2f7b92a94e0581f5d50f654e7 EQUALVERIFY CHECKSIG ----- - -With Segregated Witness, Alice would create a Pay-to-Witness-Public-Key-Hash (P2WPKH) script, which looks like this: - -.Example P2WPKH output script ----- -0 ab68025513c3dbd2f7b92a94e0581f5d50f654e7 ----- - -As you can see, a Segregated Witness output’s locking script is much simpler than a traditional output. It consists of two values that are pushed on to the script evaluation stack. To an old (nonsegwit-aware) bitcoin client, the two pushes would look like an output that anyone can spend and does not require a signature (or rather, can be spent with an empty signature). To a newer, segwit-aware client, the first number (0) is interpreted as a version number (the _witness version_) and the second part (20 bytes) is the equivalent of a locking script known as a _witness program_. The 20-byte witness program is simply the hash of the public key, as in a P2PKH script - -Now, let’s look at the corresponding transaction that Bob uses to spend this output. For the original script (nonsegwit), Bob’s transaction would have to include a signature within the transaction input: - -.Decoded transaction showing a P2PKH output being spent with a signature ----- -[...] -“Vin” : [ -"txid": "0627052b6f28912f2703066a912ea577f2ce4da4caa5a5fbd8a57286c345c2f2", -"vout": 0, - "scriptSig": “”, -] -[...] ----- - -However, to spend the Segregated Witness output, the transaction has no signature on that input. Instead, Bob’s transaction has an empty +scriptSig+ and includes a Segregated Witness, outside the transaction itself: - -.Decoded transaction showing a P2WPKH output being spent with separate witness data ----- -[...] -“Vin” : [ -"txid": "0627052b6f28912f2703066a912ea577f2ce4da4caa5a5fbd8a57286c345c2f2", -"vout": 0, - "scriptSig": “”, -] -[...] -“witness”: “” -[...] ----- - -===== Wallet construction of P2WPKH - -It is extremely important to note that P2WPKH should only be created by the payee (recipient) and not converted by the sender from a known public key, P2PKH script, or address. The sender has no way of knowing if the recipient's wallet has the ability to construct segwit transactions and spend P2WPKH outputs. - -Additionally, P2WPKH outputs must be constructed from the hash of a _compressed_ public key. Uncompressed public keys are nonstandard in segwit and may be explicitly disabled by a future soft fork. If the hash used in the P2WPKH came from an uncompressed public key, it may be unspendable and you may lose funds. P2WPKH outputs should be created by the payee's wallet by deriving a compressed public key from their private key. - -[WARNING] -==== -P2WPKH should be constructed by the payee (recipient) by converting a compressed public key to a P2WPKH hash. You should never transform a P2PKH script, bitcoin address, or uncompressed public key to a P2WPKH witness script. -==== - -[[p2wsh]] -===== Pay-to-Witness-Script-Hash (P2WSH) - -The ((("use cases", "import/export", id="mohamappd")))second type of witness program corresponds to a Pay-to-Script-Hash (P2SH) script. We saw this type of script in <>. In that example, P2SH was used by Mohammed's company to express a multisignature script. Payments to Mohammed's company were encoded with a locking script like this: - -.Example P2SH output script ----- -HASH160 54c557e07dde5bb6cb791c7a540e0a4796f5e97e EQUAL ----- - -This P2SH script references the hash of a _redeem script_ that defines a 2-of-3 multisignature requirement to spend funds. To spend this output, Mohammed's company would present the redeem script (whose hash matches the script hash in the P2SH output) and the signatures necessary to satisfy that redeem script, all inside the transaction input: - -.Decoded transaction showing a P2SH output being spent ----- -[...] -“Vin” : [ -"txid": "abcdef12345...", -"vout": 0, - "scriptSig": “ <2 PubA PubB PubC PubD PubE 5 CHECKMULTISIG>”, -] ----- - -Now, let's look at how this entire example would be upgraded to segwit. If Mohammed's customers were using a segwit-compatible wallet, they would make a payment, creating a Pay-to-Witness-Script-Hash (P2WSH) output that would look like this: - -.Example P2WSH output script ----- -0 9592d601848d04b172905e0ddb0adde59f1590f1e553ffc81ddc4b0ed927dd73 ----- - -Again, as with the example of P2WPKH, you can see that the Segregated Witness equivalent script is a lot simpler and omits the various script operands that you see in P2SH scripts. Instead, the Segregated Witness program consists of two values pushed to the stack: a witness version (0) and the 32-byte SHA256 hash of the redeem script. - -[TIP] -==== -While P2SH uses the 20-byte +RIPEMD160(SHA256(script))+ hash, the P2WSH witness program uses a 32-byte +SHA256(script)+ hash. This difference in the selection of the hashing algorithm is deliberate and is used to differentiate between the two types of witness programs (P2WPKH and P2WSH) by the length of the hash and to provide stronger security to P2WSH (128 bits versus 80 bits of P2SH). - -==== - -Mohammed's company can spend outputs the P2WSH output by presenting the correct redeem script and sufficient signatures to satisfy it. Both the redeem script and the signatures would be segregated _outside_ the spending transaction as part of the witness data. Within the transaction input, Mohammed's ((("", startref="mohamappd")))wallet would put an empty +scriptSig+: - -.Decoded transaction showing a P2WSH output being spent with separate witness data ----- -[...] -“Vin” : [ -"txid": "abcdef12345...", -"vout": 0, - "scriptSig": “”, -] -[...] -“witness”: “ <2 PubA PubB PubC PubD PubE 5 CHECKMULTISIG>” -[...] ----- - -===== Differentiating between P2WPKH and P2WSH - -In the previous two sections, we demonstrated two types of witness programs: <> and <>. Both types of witness programs consist of a single byte version number followed by a longer hash. They look very similar, but are interpreted very differently: one is interpreted as a public key hash, which is satisfied by a signature and the other as a script hash, which is satisfied by a redeem script. The critical difference between them is the length of the hash: - -* The public key hash in P2WPKH is 20 bytes -* The script hash in P2WSH is 32 bytes - -This is the one difference that allows a wallet to differentiate between the two types of witness programs. By looking at the length of the hash, a wallet can determine what type of witness program it is, P2WPKH or P2WSH. - -==== Upgrading to Segregated Witness - -As we can see from the previous examples, upgrading to Segregated Witness is a two-step process. First, wallets must create special segwit type outputs. Then, these outputs can be spent by wallets that know how to construct Segregated Witness transactions. In the examples, Alice's wallet was segwit-aware and able to create special outputs with Segregated Witness scripts. Bob's wallet is also segwit-aware and able to spend those outputs. What may not be obvious from the example is that in practice, Alice's wallet needs to _know_ that Bob uses a segwit-aware wallet and can spend these outputs. Otherwise, if Bob's wallet is not upgraded and Alice tries to make segwit payments to Bob, Bob's wallet will not be able to detect these payments. - -[TIP] -==== -For P2WPKH and P2WSH payment types, both the sender and the recipient wallets need to be upgraded to be able to use segwit. Furthermore, the sender's wallet needs to know that the recipient's wallet is segwit-aware. -==== - -Segregated Witness will not be implemented simultaneously across the entire network. Rather, Segregated Witness is implemented as a backward-compatible upgrade, where _old and new clients can coexist_. Wallet developers will independently upgrade wallet software to add segwit capabilities. The P2WPKH and P2WSH payment types are used when both sender and recipient are segwit-aware. The traditional P2PKH and P2SH will continue to work for nonupgraded wallets. That leaves two important scenarios, which are addressed in the next section: - -* Ability of a sender's wallet that is not segwit-aware to make a payment to a recipient's wallet that can process segwit transactions - -* Ability of a sender's wallet that is segwit-aware to recognize and distinguish between recipients that are segwit-aware and ones that are not, by their _addresses_ - -===== Embedding Segregated Witness inside P2SH - -Let's assume, for example, that Alice's wallet is not upgraded to segwit, but Bob's wallet is upgraded and can handle segwit transactions. Alice and Bob can use "old" non-segwit transactions. But Bob would likely want to use segwit to reduce transaction fees, taking advantage of the discount that applies to witness data. - -In this case Bob's wallet can construct a P2SH address that contains a segwit script inside it. Alice's wallet sees this as a "normal" P2SH address and can make payments to it without any knowledge of segwit. Bob's wallet can then spend this payment with a segwit transaction, taking full advantage of segwit and reducing transaction fees. - -Both forms of witness scripts, P2WPKH and P2WSH, can be embedded in a P2SH address. The first is noted as P2SH(P2WPKH) and the second is noted as P2SH(P2WSH). - -===== Pay-to-Witness-Public-Key-Hash inside Pay-to-Script-Hash - -The first form of witness script we will examine is P2SH(P2WPKH). This is a Pay-to-Witness-Public-Key-Hash witness program, embedded inside a Pay-to-Script-Hash script, so that it can be used by a wallet that is not aware of segwit. - -Bob's wallet constructs a P2WPKH witness program with Bob's public key. This witness program is then hashed and the resulting hash is encoded as a P2SH script. The P2SH script is converted to a bitcoin address, one that starts with a "3," as we saw in the <> section. - -Bob's wallet starts with the P2WPKH witness program we saw earlier: - -.Bob's P2WPKH witness program ----- -0 ab68025513c3dbd2f7b92a94e0581f5d50f654e7 ----- - -The P2WPKH witness program consists of the witness version and Bob's 20-byte public key hash. - -Bob's wallet then hashes the preceding witness program, first with SHA256, then with RIPEMD160, producing another 20-byte hash: - -.HASH160 of the P2WPKH witness program ----- -3e0547268b3b19288b3adef9719ec8659f4b2b0b ----- - -[role="pagebreak-before"] -The hash of the witness program is then embedded in a P2SH script: - ----- -HASH160 3e0547268b3b19288b3adef9719ec8659f4b2b0b EQUAL ----- - -Finally, the P2SH script is converted to a P2SH bitcoin address: - -.P2SH address ----- -37Lx99uaGn5avKBxiW26HjedQE3LrDCZru ----- - -Now, Bob can display this address for customers to pay for their coffee. Alice's wallet can make a payment to +37Lx99uaGn5avKBxiW26HjedQE3LrDCZru+, just as it would to any other bitcoin address. Even though Alice's wallet has no support for segwit, the payment it creates can be spent by Bob with a segwit transaction.((("", startref="aliced"))) - -===== Pay-to-Witness-Script-Hash inside Pay-to-Script-Hash - -Similarly, a P2WSH witness program for a multisig script or other complicated script can be embedded inside a P2SH script and address, making it possible for any wallet to make payments that are segwit compatible. - -As we saw in <>, Mohammed's ((("use cases", "import/export")))company is using Segregated Witness payments to multisignature scripts. To make it possible for any client to pay his company, regardless of whether their wallets are upgraded for segwit, Mohammed's wallet can embed the P2WSH witness program inside a P2SH script. - -First, Mohammed's wallet creates the P2WSH witness program that corresponds to the multisignature script, hashed with SHA256: - -.Mohammed's wallet creates a P2WSH witness program ----- -0 9592d601848d04b172905e0ddb0adde59f1590f1e553ffc81ddc4b0ed927dd73 ----- - -Then, the witness program itself is hashed with SHA256 and RIPEMD160, producing a new 20-byte hash, as used in traditional P2SH: - -.The HASH160 of the P2WSH witness program ----- -86762607e8fe87c0c37740cddee880988b9455b2 ----- - -Next, Mohammed's wallet puts the hash into a P2SH script: - ----- -HASH160 86762607e8fe87c0c37740cddee880988b9455b2 EQUAL ----- - -Finally, the wallet constructs a bitcoin address from this script: - -.P2SH bitcoin address ----- -3Dwz1MXhM6EfFoJChHCxh1jWHb8GQqRenG ----- - -Now, Mohammed's clients can make payments to this address without any need to support segwit. Mohammed's company can then construct segwit transactions to spend these payments, taking advantage of segwit features including lower transaction fees. - -===== Segregated Witness addresses - -After segwit is deployed on the bitcoin network, it will take some time until wallets are upgraded. It is quite likely therefore that segwit will mostly be used embedded in P2SH, as we saw in the previous section, at least for several months. - -Eventually, however, almost all wallets will be able to support segwit payments. At that time it will no longer be necessary to embed segwit in P2SH. It is therefore likely that a new form of bitcoin address will be created, one that indicates the recipient is segwit-aware and that directly encodes a witness program. There have been a number of proposals for a Segregated Witness address scheme, but none have been actively pursued. - -[[segwit_txid]] -===== Transaction identifiers - -((("transaction IDs (txid)")))One of the greatest benefits of Segregated Witness is that it eliminates third-party transaction malleability. - -Before segwit, transactions could have their signatures subtly modified by third parties, changing their transaction ID (hash) without changing any fundamental properties (inputs, outputs, amounts). This created opportunities for denial-of-service attacks as well as attacks against poorly written wallet software that assumed unconfirmed transaction hashes were immutable. - -With the introduction of Segregated Witness, transactions have two identifiers, +txid+ and +wtxid+. The traditional transaction ID +txid+ is the double-SHA256 hash of the serialized transaction, without the witness data. A transaction +wtxid+ is the double-SHA256 hash of the new serialization format of the transaction with witness data. - -The traditional +txid+ is calculated in exactly the same way as with a nonsegwit transaction. However, since the segwit transaction has empty ++scriptSig++s in every input, there is no part of the transaction that can be modified by a third party. Therefore, in a segwit transaction, the +txid+ is immutable by a third party, even when the transaction is unconfirmed. - -The +wtxid+ is like an "extended" ID, in that the hash also incorporates the witness data. If a transaction is transmitted without witness data, then the +wtxid+ and +txid+ are identical. Note than since the +wtxid+ includes witness data (signatures) and since witness data may be malleable, the +wtxid+ should be considered malleable until the transaction is confirmed. Only the +txid+ of a segwit transaction can be considered immutable by third parties and only if _all_ the inputs of the transaction are segwit inputs. - -[TIP] -==== -Segregated Witness transactions have two IDs: +txid+ and +wtxid+. The +txid+ is the hash of the transaction without the witness data and the +wtxid+ is the hash inclusive of witness data. The +txid+ of a transaction where all inputs are segwit inputs is not susceptible to third-party transaction malleability. -==== - -==== Segregated Witness' New Signing Algorithm - -Segregated Witness modifies the semantics of the four signature verification functions (+CHECKSIG+, +CHECKSIGVERIFY+, +CHECKMULTISIG+, and +CHECKMULTISIGVERIFY+), changing the way a transaction commitment hash is calculated. - -Signatures in bitcoin transactions are applied on a _commitment hash_, which is calculated from the transaction data, locking specific parts of the data indicating the signer's commitment to those values. For example, in a simple +SIGHASH_ALL+ type signature, the commitment hash includes all inputs and outputs. - -Unfortunately, the way the commitment hash was calculated introduced the possibility that a node verifying the signature can be forced to perform a significant number of hash computations. Specifically, the hash operations increase in O(n^2^) with respect to the number of signature operations in the transaction. An attacker could therefore create a transaction with a very large number of signature operations, causing the entire bitcoin network to have to perform hundreds or thousands of hash operations to verify the transaction. - -Segwit represented an opportunity to address this problem by changing the way the commitment hash is calculated. For segwit version 0 witness programs, signature verification occurs using an improved commitment hash algorithm as specified in BIP-143. - -The new algorithm achieves two important goals. Firstly, the number of hash operations increases by a much more gradual O(n) to the number of signature operations, reducing the opportunity to create denial-of-service attacks with overly complex transactions. Secondly, the commitment hash now also includes the value (amounts) of each input as part of the commitment. This means that a signer can commit to a specific input value without needing to "fetch" and check the previous transaction referenced by the input. In the case of offline devices, such as hardware wallets, this greatly simplifies the communication between the host and the hardware wallet, removing the need to stream previous transactions for validation. A hardware wallet can accept the input value "as stated" by an untrusted host. Since the signature is invalid if that input value is not correct, the hardware wallet doesn't need to validate the value before signing the input. - -==== Economic Incentives for Segregated Witness - -Bitcoin mining nodes and full nodes incur costs for the resources used to support the bitcoin network and the blockchain. As the volume of bitcoin transactions increases, so does the cost of resources (CPU, network bandwidth, disk space, memory). Miners are compensated for these costs through fees that are proportional to the size (in bytes) of each transaction. Nonmining full nodes are not compensated, so they incur these costs because they have a need to run an authoritative fully validating full-index node, perhaps because they use the node to operate a bitcoin business. - -Without transaction fees, the growth in bitcoin data would arguably increase dramatically. Fees are intended to align the needs of bitcoin users with the burden their transactions impose on the network, through a market-based price discovery mechanism. - -The calculation of fees based on transaction size treats all the data in the transaction as equal in cost. But from the perspective of full nodes and miners, some parts of a transaction carry much higher costs. Every transaction added to the bitcoin network affects the consumption of four resources on nodes: - -Disk Space :: Every transaction is stored in the blockchain, adding to the total size of the blockchain. The blockchain is stored on disk, but the storage can be optimized by “pruning” older transactions. - -CPU :: Every transaction must be validated, which requires CPU time. - -Bandwidth :: Every transaction is transmitted (through flood propagation) across the network at least once. Without any optimization in the block propagation protocol, transactions are transmitted again as part of a block, doubling the impact on network capacity. - -Memory :: Nodes that validate transactions keep the UTXO index or the entire UTXO set in memory to speed up validation. Because memory is at least one order of magnitude more expensive than disk, growth of the UTXO set contributes disproportionately to the cost of running a node. - -As you can see from the list, not every part of a transaction has an equal impact on the cost of running a node or on the ability of bitcoin to scale to support more transactions. The most expensive part of a transaction are the newly created outputs, as they are added to the in-memory UTXO set. By comparison, signatures (aka witness data) add the least burden to the network and the cost of running a node, because witness data are only validated once and then never used again. Furthermore, immediately after receiving a new transaction and validating witness data, nodes can discard that witness data. If fees are calculated on transaction size, without discriminating between these two types of data, then the market incentives of fees are not aligned with the actual costs imposed by a transaction. In fact, the current fee structure actually encourages the opposite behavior, because witness data is the largest part of a transaction. - -The incentives created by fees matter because they affect the behavior of wallets. All wallets must implement some strategy for assembling transactions that takes into consideration a number of factors, such as privacy (reducing address reuse), fragmentation (making lots of loose change), and fees. If the fees are overwhelmingly motivating wallets to use as few inputs as possible in transactions, this can lead to UTXO picking and change address strategies that inadvertently bloat the UTXO set. - -Transactions consume UTXO in their inputs and create new UTXO with their outputs. A transaction, therefore, that has more inputs than outputs will result in a decrease in the UTXO set, whereas a transaction that has more outputs than inputs will result in an increase in the UTXO set. Let’s consider the _difference_ between inputs and outputs and call that the “Net-new-UTXO.” That’s an important metric, as it tells us what impact a transaction will have on the most expensive network-wide resource, the in-memory UTXO set. A transaction with positive Net-new-UTXO adds to that burden. A transaction with a negative Net-new-UTXO reduces the burden. We would therefore want to encourage transactions that are either negative Net-new-UTXO or neutral with zero Net-new-UTXO. - -Let’s look at an example of what incentives are created by the transaction fee calculation, with and without Segregated Witness. We will look at two different transactions. Transaction A is a 3-input, 2-output transaction, which has a Net-new-UTXO metric of –1, meaning it consumes one more UTXO than it creates, reducing the UTXO set by one. Transaction B is a 2-input, 3-output transaction, which has a Net-new-UTXO metric of 1, meaning it adds one UTXO to the UTXO set, imposing additional cost on the entire bitcoin network. Both transactions use multisignature (2-of-3) scripts to demonstrate how complex scripts increase the impact of segregated witness on fees. Let’s assume a transaction fee of 30 satoshi per byte and a 75% fee discount on witness data: - -++++ -
-
Without Segregated Witness
-
-

Transaction A fee: 25,710 satoshi

-

Transaction B fee: 18,990 satoshi

-
- -
With Segregated Witness
-
-

Transaction A fee: 8,130 satoshi

-

Transaction B fee: 12,045 satoshi

-
-
-++++ - - -Both transactions are less expensive when segregated witness is implemented. But comparing the costs between the two transactions, we see that before Segregated Witness, the fee is higher for the transaction that has a negative Net-new-UTXO. After Segregated Witness, the transaction fees align with the incentive to minimize new UTXO creation by not inadvertently penalizing transactions with many inputs. - -Segregated Witness therefore has two main effects on the fees paid by bitcoin users. Firstly, segwit reduces the overall cost of transactions by discounting witness data and increasing the capacity of the bitcoin blockchain. Secondly, segwit’s discount on witness data corrects a misalignment of incentives that may have inadvertently created more bloat in the UTXO set.((("", startref="segwit16"))) diff --git a/book.asciidoc b/book.asciidoc index 5ae3e541..4ee73e54 100644 --- a/book.asciidoc +++ b/book.asciidoc @@ -34,8 +34,6 @@ include::appdx-scriptops.asciidoc[] include::appdx-bips.asciidoc[] -include::appdx-segwit.asciidoc[] - include::appdx-bitcore.asciidoc[] include::appdx-pycoin.asciidoc[] diff --git a/ch01.asciidoc b/ch01.asciidoc index 0936d45c..7b98df00 100644 --- a/ch01.asciidoc +++ b/ch01.asciidoc @@ -47,7 +47,7 @@ When cryptography started becoming more broadly available and understood in the ((("Nakamoto, Satoshi")))((("distributed computing")))((("bitcoin", "history of")))Bitcoin was invented in 2008 with the publication of a paper titled "Bitcoin: A Peer-to-Peer Electronic Cash System,"footnote:["Bitcoin: A Peer-to-Peer Electronic Cash System," Satoshi Nakamoto (https://bitcoin.org/bitcoin.pdf).] written under the alias of Satoshi Nakamoto (see <>). Nakamoto combined several prior inventions such as b-money and HashCash to create a completely decentralized electronic cash system that does not rely on a central authority for currency issuance or settlement and validation of transactions. ((("Proof-of-Work algorithm")))((("decentralized systems", "consensus in")))((("mining and consensus", "Proof-of-Work algorithm")))The key innovation was to use a distributed computation system (called a "Proof-of-Work" algorithm) to conduct a global "election" every 10 minutes, allowing the decentralized network to arrive at _consensus_ about the state of transactions. ((("double-spend problem")))((("spending bitcoin", "double-spend problem")))This elegantly solves the issue of double-spend where a single currency unit can be spent twice. Previously, the double-spend problem was a weakness of digital currency and was addressed by clearing all transactions through a central clearinghouse. -The bitcoin network started in 2009, based on a reference implementation published by Nakamoto and since revised by many other programmers. The implementation of the Proof-of-Work algorithm (mining) that provides security and resilience for bitcoin has increased in power exponentially, and now exceeds the combined processing power of the world's top supercomputers. Bitcoin's total market value has at times exceeded $35 billion US dollars, depending on the bitcoin-to-dollar exchange rate. The largest transaction processed so far by the network was $150 million US dollars, transmitted instantly and processed without any fees. +The bitcoin network started in 2009, based on a reference implementation published by Nakamoto and since revised by many other programmers. The implementation of the Proof-of-Work algorithm (mining) that provides security and resilience for bitcoin has increased in power exponentially, and now exceeds the combined processing power of the world's top supercomputers. Bitcoin's total market value has at times exceeded $135 billion US dollars, depending on the bitcoin-to-dollar exchange rate. The largest transaction processed so far by the network was $400 million US dollars, transmitted instantly and processed for a fee of $1. Satoshi Nakamoto withdrew from the public in April 2011, leaving the responsibility of developing the code and network to a thriving group of volunteers. The identity of the person or people behind bitcoin is still unknown. ((("open source licenses")))However, neither Satoshi Nakamoto nor anyone else exerts individual control over the bitcoin system, which operates based on fully transparent mathematical principles, open source code, and consensus among participants. The invention itself is groundbreaking and has already spawned new science in the fields of distributed computing, economics, and econometrics. @@ -92,7 +92,7 @@ Each of these stories is based on the real people and real industries currently ==== Choosing a Bitcoin Wallet -((("security", "wallet selection")))Bitcoin wallets are one of the most actively developed applications in the bitcoin ecosystem. There is intense competition, and while a new wallet is probably being developed right now, several wallets from last year are no longer actively maintained. Many wallets focus on specific platforms or specific uses and some are more suitable for beginners while others are filled with features for advanced users. Choosing a wallet is highly subjective and depends on the use and user expertise. It is therefore impossible to recommend a specific brand or project of wallet. However, we can categorize bitcoin wallets according to their platform and function and provide some clarity about all the different types of wallets that exist. Better yet, moving money between bitcoin wallets is easy, cheap, and fast, so it is worth trying out several different wallets until you find one that fits your needs. +((("security", "wallet selection")))Bitcoin wallets are one of the most actively developed applications in the bitcoin ecosystem. There is intense competition, and while a new wallet is probably being developed right now, several wallets from last year are no longer actively maintained. Many wallets focus on specific platforms or specific uses and some are more suitable for beginners while others are filled with features for advanced users. Choosing a wallet is highly subjective and depends on the use and user expertise. It is therefore impossible to recommend a specific brand or wallet. However, we can categorize bitcoin wallets according to their platform and function and provide some clarity about all the different types of wallets that exist. Better yet, moving keys or seeds between bitcoin wallets is relatively easy, so it is worth trying out several different wallets until you find one that fits your needs. [role="pagebreak-before"] Bitcoin wallets can be categorized as follows, according to the platform: diff --git a/ch02.asciidoc b/ch02.asciidoc index f2411d2f..0d94e9df 100644 --- a/ch02.asciidoc +++ b/ch02.asciidoc @@ -73,11 +73,11 @@ A description for the payment: "Purchase at Bob's Cafe" Alice uses her smartphone to scan the barcode on display. Her smartphone shows a payment of +0.0150 BTC+ to +Bob's Cafe+ and she selects Send to authorize the payment. Within a few seconds (about the same amount of time as a credit card authorization), Bob sees the transaction on the register, completing the transaction. -In the following sections we will examine this transaction in more detail. We'll see how Alice's wallet constructed it, how it was propagated across the network, how it was verified, and finally, how Bob can spend that amount in subsequent transactions. +In the following sections, we will examine this transaction in more detail. We'll see how Alice's wallet constructed it, how it was propagated across the network, how it was verified, and finally, how Bob can spend that amount in subsequent transactions. [NOTE] ==== -((("fractional values")))((("milli-bitcoin")))((("satoshis")))The bitcoin network can transact in fractional values, e.g., from millibitcoin (1/1000th of a bitcoin) down to 1/100,000,000th of a bitcoin, which is known as a satoshi. Throughout this book we’ll use the term “bitcoin” to refer to any quantity of bitcoin currency, from the smallest unit (1 satoshi) to the total number (21,000,000) of all bitcoin that will ever be mined. +((("fractional values")))((("milli-bitcoin")))((("satoshis")))The bitcoin network can transact in fractional values, e.g., from millibitcoin (1/1000th of a bitcoin) down to 1/100,000,000th of a bitcoin, which is known as a satoshi. Throughout this book, we’ll use the term “bitcoin” to refer to any quantity of bitcoin currency, from the smallest unit (1 satoshi) to the total number (21,000,000) of all bitcoin that will ever be mined. ==== You can examine Alice's transaction to Bob's Cafe on the blockchain using a block explorer site (<>): @@ -92,7 +92,7 @@ https://blockexplorer.com/tx/0627052b6f28912f2703066a912ea577f2ce4da4caa5a5fbd8a === Bitcoin Transactions -((("transactions", "defined")))In simple terms, a transaction tells the network that the owner of some bitcoin value has authorized the transfer of that value to another owner. The new owner can now spend the bitcoin by creating another transaction that authorizes transfer to another owner, and so on, in a chain of ownership. +((("transactions", "defined")))In simple terms, a transaction tells the network that the owner of some bitcoin value has authorized the transfer of that value to another owner. The new owner can now spend the bitcoin by creating another transaction that authorizes the transfer to another owner, and so on, in a chain of ownership. ==== Transaction Inputs and Outputs @@ -114,7 +114,7 @@ image::images/mbc2_0204.png["Transaction chain"] ==== Making Change -((("change, making")))((("change addresses")))((("addresses", "change addresses")))Many bitcoin transactions will include outputs that reference both an address of the new owner and an address of the current owner, called the _change_ address. This is because transaction inputs, like currency notes, cannot be divided. If you purchase a $5 US dollar item in a store but use a $20 US dollar bill to pay for the item, you expect to receive $15 US dollars in change. The same concept applies with bitcoin transaction inputs. If you purchased an item that costs 5 bitcoin but only had a 20 bitcoin input to use, you would send one output of 5 bitcoin to the store owner and one output of 15 bitcoin back to yourself as change (less any applicable transaction fee). Importantly, the change address does not have to be the same address as that of the input and for privacy reasons is often a new address from the owner's wallet. +((("change, making")))((("change addresses")))((("addresses", "change addresses")))Many bitcoin transactions will include outputs that reference both an address of the new owner and an address of the current owner, called the _change_ address. This is because transaction inputs, like currency notes, cannot be divided. If you purchase a $5 US dollar item in a store but use a $20 US dollar bill to pay for the item, you expect to receive $15 US dollars in change. The same concept applies to bitcoin transaction inputs. If you purchased an item that costs 5 bitcoin but only had a 20 bitcoin input to use, you would send one output of 5 bitcoin to the store owner and one output of 15 bitcoin back to yourself as change (less any applicable transaction fee). Importantly, the change address does not have to be the same address as that of the input and for privacy reasons is often a new address from the owner's wallet. Different wallets may use different strategies when aggregating inputs to make a payment requested by the user. They might aggregate many small inputs, or use one that is equal to or larger than the desired payment. Unless the wallet can aggregate inputs in such a way to exactly match the desired payment plus transaction fees, the wallet will need to generate some change. This is very similar to how people handle cash. If you always use the largest bill in your pocket, you will end up with a pocket full of loose change. If you only use the loose change, you'll always have only big bills. People subconsciously find a balance between these two extremes, and bitcoin wallet developers strive to program this balance. @@ -146,7 +146,7 @@ image::images/mbc2_0207.png["Distributing Transaction"] ==== Getting the Right Inputs -((("outputs and inputs", "locating and tracking inputs")))Alice's wallet application will first have to find inputs that can pay for the amount she wants to send to Bob. Most wallets keep track of all the available outputs belonging to addresses in the wallet. Therefore, Alice's wallet would contain a copy of the transaction output from Joe's transaction, which was created in exchange for cash (see <>). A bitcoin wallet application that runs as a full-node client actually contains a copy of every unspent output from every transaction in the blockchain. This allows a wallet to construct transaction inputs as well as quickly verify incoming transactions as having correct inputs. However, because a full-node client takes up a lot of disk space, most user wallets run "lightweight" clients that track only the user's own unspent outputs. +((("outputs and inputs", "locating and tracking inputs")))Alice's wallet application will first have to find inputs that can pay the amount she wants to send to Bob. Most wallets keep track of all the available outputs belonging to addresses in the wallet. Therefore, Alice's wallet would contain a copy of the transaction output from Joe's transaction, which was created in exchange for cash (see <>). A bitcoin wallet application that runs as a full-node client actually contains a copy of every unspent output from every transaction in the blockchain. This allows a wallet to construct transaction inputs as well as quickly verify incoming transactions as having correct inputs. However, because a full-node client takes up a lot of disk space, most user wallets run "lightweight" clients that track only the user's own unspent outputs. If the wallet application does not maintain a copy of unspent transaction outputs, it can query the bitcoin network to retrieve this information using a variety of APIs available by different providers or by asking a full-node using an application programming interface (API) call. <> shows a API request, constructed as an HTTP GET command to a specific URL. This URL will return all the unspent transaction outputs for an address, giving any application the information it needs to construct transaction inputs for spending. We use the simple command-line HTTP client _cURL_ to retrieve the response. @@ -285,4 +285,4 @@ As Bob spends the payments received from Alice and other customers, he extends t .Alice's transaction as part of a transaction chain from Joe to Gopesh image::images/mbc2_0210.png["Alice's transaction as part of a transaction chain"] -In this chapter, we saw how transactions build a chain that moves value from owner to owner. We also tracked Alice's transaction, from the moment it was created in her wallet, through the bitcoin network and to the miners who recorded it on the blockchain. In the rest of this book we will examine the specific technologies behind wallets, addresses, signatures, transactions, the network, and finally mining.((("", startref="BCover02")))((("", startref="DCSover02"))) ((("", startref="UCcoffee02"))) +In this chapter, we saw how transactions build a chain that moves value from owner to owner. We also tracked Alice's transaction, from the moment it was created in her wallet, through the bitcoin network and to the miners who recorded it on the blockchain. In the rest of this book, we will examine the specific technologies behind wallets, addresses, signatures, transactions, the network, and finally mining.((("", startref="BCover02")))((("", startref="DCSover02"))) ((("", startref="UCcoffee02"))) diff --git a/ch04.asciidoc b/ch04.asciidoc index db0fe5d5..836cf674 100644 --- a/ch04.asciidoc +++ b/ch04.asciidoc @@ -60,7 +60,7 @@ The bitcoin private key is just a number. You can pick your private keys randoml The first and most important step in generating keys is to find a secure source of entropy, or randomness. Creating a bitcoin key is essentially the same as "Pick a number between 1 and 2^256^." The exact method you use to pick that number does not matter as long as it is not predictable or repeatable. Bitcoin software uses the underlying operating system's random number generators to produce 256 bits of entropy (randomness). Usually, the OS random number generator is initialized by a human source of randomness, which is why you may be asked to wiggle your mouse around for a few seconds. -More precisely, the private key can be any number between +1+ and +n - 1+, where n is a constant (n = 1.158 * 10^77^, slightly less than 2^256^) defined as the order of the elliptic curve used in bitcoin (see <>). To create such a key, we randomly pick a 256-bit number and check that it is less than +n - 1+. In programming terms, this is usually achieved by feeding a larger string of random bits, collected from a cryptographically secure source of randomness, into the SHA256 hash algorithm, which will conveniently produce a 256-bit number. If the result is less than +n - 1+, we have a suitable private key. Otherwise, we simply try again with another random number. +More precisely, the private key can be any number between +0+ and +n - 1+ inclusive, where n is a constant (n = 1.158 * 10^77^, slightly less than 2^256^) defined as the order of the elliptic curve used in bitcoin (see <>). To create such a key, we randomly pick a 256-bit number and check that it is less than +n+. In programming terms, this is usually achieved by feeding a larger string of random bits, collected from a cryptographically secure source of randomness, into the SHA256 hash algorithm, which will conveniently produce a 256-bit number. If the result is less than +n+, we have a suitable private key. Otherwise, we simply try again with another random number. [WARNING] ==== @@ -332,6 +332,7 @@ Let's look at the complete process of creating a bitcoin address, from a private [[addr_example]] .Creating a Base58Check-encoded bitcoin address from a private key ==== +[role="c_less_space"] [source, cpp] ---- include::code/addr.cpp[] diff --git a/ch05.asciidoc b/ch05.asciidoc index cff94a3a..3fc07dda 100644 --- a/ch05.asciidoc +++ b/ch05.asciidoc @@ -65,7 +65,7 @@ image::images/mbc2_0503.png["HD wallet"] HD wallets offer two major advantages over random (nondeterministic) keys. First, the tree structure can be used to express additional organizational meaning, such as when a specific branch of subkeys is used to receive incoming payments and a different branch is used to receive change from outgoing payments. Branches of keys can also be used in corporate settings, allocating different branches to departments, subsidiaries, specific functions, or accounting categories. -The second advantage of HD wallets is that users can create a sequence of public keys without having access to the corresponding private keys. This allows HD wallets to be used on an insecure server or in a receive-only capacity, issuing a different public key for each transaction. The public keys need to be preloaded or derived in advance, yet the server doesn't have the private keys that can spend the funds. +The second advantage of HD wallets is that users can create a sequence of public keys without having access to the corresponding private keys. This allows HD wallets to be used on an insecure server or in a receive-only capacity, issuing a different public key for each transaction. The public keys do not need to be preloaded or derived in advance, yet the server doesn't have the private keys that can spend the funds. ==== Seeds and Mnemonic Codes (BIP-39) @@ -299,7 +299,7 @@ There is also a BIP-39 generator implemented in a standalone webpage, which is e .A BIP-39 generator as a standalone web page image::images/mbc2_0508.png["BIP-39 generator web-page"] -((("", startref="mnemonic05")))((("", startref="BIP3905")))The page ( https://iancoleman.github.io/bip39/) can be used offline in a browser, or accessed online. +((("", startref="mnemonic05")))((("", startref="BIP3905")))The page (https://iancoleman.github.io/bip39/) can be used offline in a browser, or accessed online. ==== Creating an HD Wallet from the Seed @@ -430,6 +430,7 @@ To counter this risk, HD wallets use an alternative derivation function called _ .Hardened derivation of a child key; omits the parent public key image::images/mbc2_0513.png["ChildHardPrivateDerivation"] +[role="pagebreak-before"] When the hardened private derivation function is used, the resulting child private key and chain code are completely different from what would result from the normal derivation function. The resulting "branch" of keys can be used to produce extended public keys that are not vulnerable, because the chain code they contain cannot be exploited to reveal any private keys. Hardened derivation is therefore used to create a "gap" in the tree above the level where extended public keys are used. In simple terms, if you want to use the convenience of an xpub to derive branches of public keys, without exposing yourself to the risk of a leaked chain code, you should derive it from a hardened parent, rather than a normal parent. As a best practice, the level-1 children of the master keys are always derived through the hardened derivation, to prevent compromise of the master keys. @@ -452,10 +453,10 @@ The "ancestry" of a key is read from right to left, until you reach the master k |======= |HD path | Key described | m/0 | The first (0) child private key from the master private key (m) -| m/0/0 | The first grandchild private key of the first child (m/0) -| m/0'/0 | The first normal grandchild of the first _hardened_ child (m/0') -| m/1/0 | The first grandchild private key of the second child (m/1) -| M/23/17/0/0 | The first great-great-grandchild public key of the first great-grandchild of the 18th grandchild of the 24th child +| m/0/0 | The first grandchild private key from the first child (m/0) +| m/0'/0 | The first normal grandchild from the first _hardened_ child (m/0') +| m/1/0 | The first grandchild private key from the second child (m/1) +| M/23/17/0/0 | The first great-great-grandchild public key from the first great-grandchild from the 18th grandchild from the 24th child |======= ===== Navigating the HD wallet tree structure diff --git a/ch06.asciidoc b/ch06.asciidoc index 30ee8c07..7c0f3d7a 100644 --- a/ch06.asciidoc +++ b/ch06.asciidoc @@ -171,7 +171,7 @@ Here are some hints: To build a transaction, a wallet selects from the UTXO it controls, UTXO with enough value to make the requested payment. Sometimes one UTXO is enough, other times more than one is needed. For each UTXO that will be consumed to make this payment, the wallet creates one input pointing to the UTXO and unlocks it with an unlocking script. -Let's look at the components of an input in greater detail. The first part of an input is a pointer to an UTXO by reference to the transaction hash and sequence number where the UTXO is recorded in the blockchain. The second part is an unlocking script, which the wallet constructs in order to satisfy the spending conditions set in the UTXO. Most often, the unlocking script is a digital signature and public key proving ownership of the bitcoin. However, not all unlocking scripts contain signatures. The third part is a sequence number, which will be discussed later. +Let's look at the components of an input in greater detail. The first part of an input is a pointer to an UTXO by reference to the transaction hash and an output index, which identifies the specific UTXO in that transaction. The second part is an unlocking script, which the wallet constructs in order to satisfy the spending conditions set in the UTXO. Most often, the unlocking script is a digital signature and public key proving ownership of the bitcoin. However, not all unlocking scripts contain signatures. The third part is a sequence number, which will be discussed later. Consider our example in <>. The transaction inputs are an array (list) called +vin+: @@ -351,7 +351,7 @@ For example, if you consume a 20-bitcoin UTXO to make a 1-bitcoin payment, you m ((("use cases", "charitable donations")))((("charitable donations")))Now let's look at a different scenario. Eugenia, our children's charity director in the Philippines, has completed a fundraiser to purchase schoolbooks for the children. She received several thousand small donations from people all around the world, totaling 50 bitcoin, so her wallet is full of very small payments (UTXO). Now she wants to purchase hundreds of schoolbooks from a local publisher, paying in bitcoin. -As Eugenia's wallet application tries to construct a single larger payment transaction, it must source from the available UTXO set, which is composed of many smaller amounts. That means that the resulting transaction will source from more than a hundred small-value UTXO as inputs and only one output, paying the book publisher. A transaction with that many inputs will be larger than one kilobyte, perhaps a kilobyte or several kilobytes in size. As a result, it will require a much higher fee than the median-sized transaction. +As Eugenia's wallet application tries to construct a single larger payment transaction, it must source from the available UTXO set, which is composed of many smaller amounts. That means that the resulting transaction will source from more than a hundred small-value UTXO as inputs and only one output, paying the book publisher. A transaction with that many inputs will be larger than one kilobyte, perhaps several kilobytes in size. As a result, it will require a much higher fee than the median-sized transaction. Eugenia's wallet application will calculate the appropriate fee by measuring the size of the transaction and multiplying that by the per-kilobyte fee. Many wallets will overpay fees for larger transactions to ensure the transaction is processed promptly. The higher fee is not because Eugenia is spending more money, but because her transaction is more complex and larger in size--the fee is independent of the transaction's bitcoin value.((("", startref="Tout06"))) @@ -610,8 +610,8 @@ In addition, there is a modifier flag +SIGHASH_ANYONECANPAY+, which can be combi [options="header"] |======================= |SIGHASH flag| Value | Description -| ALL\|ANYONECANPAY | 0x81 | Signature applies to one inputs and all outputs -| NONE\|ANYONECANPAY | 0x82 | Signature applies to one inputs, none of the outputs +| ALL\|ANYONECANPAY | 0x81 | Signature applies to one input and all outputs +| NONE\|ANYONECANPAY | 0x82 | Signature applies to one input, none of the outputs | SINGLE\|ANYONECANPAY | 0x83 | Signature applies to one input and the output with the same index number |======================= diff --git a/ch07.asciidoc b/ch07.asciidoc index a6fae6c6..781c4378 100644 --- a/ch07.asciidoc +++ b/ch07.asciidoc @@ -7,7 +7,7 @@ In the previous chapter, we introduced the basic elements of bitcoin transactions and looked at the most common type of transaction script, the P2PKH script. In this chapter we will look at more advanced scripting and how we can use it to build transactions with complex conditions. -First, we will look at _multisignature_ scripts. Next, we will examine the second most common transaction script, _Pay-to-Script-Hash_, which opens up a whole world of complex scripts. Then, we will examine new script operators that add a time dimension to bitcoin, through _timelocks_. +First, we will look at _multisignature_ scripts. Next, we will examine the second most common transaction script, _Pay-to-Script-Hash_, which opens up a whole world of complex scripts. Then, we will examine new script operators that add a time dimension to bitcoin, through _timelocks_. Finally, we will look at _Segregated Witness_, an architectural change to the structure of transactions. [[multisig]] === Multisignature @@ -128,7 +128,26 @@ If the placeholders are replaced by actual public keys (shown here as 520-bit nu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his entire script can instead be represented by a 20-byte cryptographic hash, by first applying the SHA256 hashing algorithm and then applying the RIPEMD160 algorithm on the result. The 20-byte hash of the preceding script is: +This entire script can instead be represented by a 20-byte cryptographic hash, by first applying the SHA256 hashing algorithm and then applying the RIPEMD160 algorithm on the result. + +We use +libbitcoin-explorer+ (+bx+) to produce the script hash, as follows: + +---- +echo \ +2 \ +[04C16B8698A9ABF84250A7C3EA7EEDEF9897D1C8C6ADF47F06CF73370D74DCCA01CDCA79DCC5C395D7EEC6984D83F1F50C900A24DD47F569FD4193AF5DE762C587] \ +[04A2192968D8655D6A935BEAF2CA23E3FB87A3495E7AF308EDF08DAC3C1FCBFC2C75B4B0F4D0B1B70CD2423657738C0C2B1D5CE65C97D78D0E34224858008E8B49] \ +[047E63248B75DB7379BE9CDA8CE5751D16485F431E46117B9D0C1837C9D5737812F393DA7D4420D7E1A9162F0279CFC10F1E8E8F3020DECDBC3C0DD389D9977965] \ +[0421D65CBD7149B255382ED7F78E946580657EE6FDA162A187543A9D85BAAA93A4AB3A8F044DADA618D087227440645ABE8A35DA8C5B73997AD343BE5C2AFD94A5] \ +[043752580AFA1ECED3C68D446BCAB69AC0BA7DF50D56231BE0AABF1FDEEC78A6A45E394BA29A1EDF518C022DD618DA774D207D137AAB59E0B000EB7ED238F4D800] \ +5 CHECKMULTISIG \ +| bx script-encode | bx sha256 | bx ripemd160 +54c557e07dde5bb6cb791c7a540e0a4796f5e97e +---- + + +The 20-byte hash of Mohammed's redeem script is: + ---- 54c557e07dde5bb6cb791c7a540e0a4796f5e97e @@ -471,7 +490,7 @@ So, when do we use +VERIFY+ and when do we use +IF+? If all we are trying to do [TIP] ==== -((("EQUAL opcode")))((("opcodes", "EQUAL")))((("EQUALVERIFY opcode")))((("opcodes", "EQUALVERIFY")))An opcode such as +EQUAL+ will push the result (+TRUE+/+FALSE+) onto the stack, leaving it there for evaluation by subsequent opcodes. In contrast, the opcode +EQUALVERIFY+ suffix does not leave anything on the stack. Opcodes that end in +VERIFY+ do not leave the result on the stack. +((("EQUAL opcode")))((("opcodes", "EQUAL")))((("EQUALVERIFY opcode")))((("opcodes", "EQUALVERIFY")))An opcode such as +EQUAL+ will push the result (+TRUE+/+FALSE+) onto the stack, leaving it there for evaluation by subsequent opcodes. In contrast, the opcode +EQUALVERIFY+ suffix does not leave anything on the stack. Opcodes that end in +VERIFY+ do not leave the result on the stack. ==== ==== Using Flow Control in Scripts @@ -598,4 +617,390 @@ A few more things to consider when reading this example. See if you can find the * How do the partners "reset" the clock every 29 or 89 days to prevent the lawyer from accessing the funds? -* Why do some +CHECKSIG+ opcodes in this script have the +VERIFY+ suffix while others don't?((("", startref="Tadv07")))((("", startref="Scomplex07")))((("", startref="mohamseventwo"))) +* Why do some +CHECKSIG+ opcodes in this script have the +VERIFY+ suffix while others don't?((("", startref="Scomplex07")))((("", startref="mohamseventwo"))) + +[[segwit]] +=== Segregated Witness + +((("segwit (Segregated Witness)", id="Ssegwit07")))Segregated Witness (segwit) is an upgrade to the bitcoin consensus rules and network protocol, proposed and implemented as a BIP-9 soft-fork that was activated on bitcoin's mainnet on August 1st, 2017. + +In cryptography, the term "witness" is used to describe a solution to a cryptographic puzzle. In bitcoin terms, the witness satisfies a cryptographic condition placed on a unspent transaction output (UTXO). + +In the context of bitcoin, a digital signature is _one type of witness_, but a witness is more broadly any solution that can satisfy the conditions imposed on an UTXO and unlock that UTXO for spending. The term “witness” is a more general term for an “unlocking script” or “scriptSig.” + +Before segwit’s introduction, every input in a transaction was followed by the witness data that unlocked it. The witness data was embedded in the transaction as part of each input. The term _segregated witness_, or _segwit_ for short, simply means separating the signature or unlocking script of a specific output. Think "separate scriptSig," or “separate signature” in the simplest form. + +Segregated Witness therefore is an architectural change to bitcoin that aims to move the witness data from the +scriptSig+ (unlocking script) field of a transaction into a separate _witness_ data structure that accompanies a transaction. Clients may request transaction data with or without the accompanying witness data. + +In this section we will look at some of the benefits of Segregated Witness, describe the mechanism used to deploy and implement this architecture change, and demonstrate the use of Segregated Witness in transactions and addresses. + +[role="pagebreak-before"] +Segregated Witness is defined by the following BIPs: + +https://github.com/bitcoin/bips/blob/master/bip-0141.mediawiki[BIP-141] :: The main definition of Segregated Witness. + +https://github.com/bitcoin/bips/blob/master/bip-0143.mediawiki[BIP-143] :: Transaction Signature Verification for Version 0 Witness Program + +https://github.com/bitcoin/bips/blob/master/bip-0144.mediawiki[BIP-144] :: Peer Services—New network messages and serialization formats + +https://github.com/bitcoin/bips/blob/master/bip-0145.mediawiki[BIP-145] :: getblocktemplate Updates for Segregated Witness (for mining) + +https://github.com/bitcoin/bips/blob/master/bip-0173.mediawiki[BIP-173] +:: Base32 address format for native v0-16 witness outputs + + +==== Why Segregated Witness? + +Segregated Witness is an architectural change that has several effects on the scalability, security, economic incentives, and performance of bitcoin: + +Transaction Malleability :: By moving the witness outside the transaction, the transaction hash used as an identifier no longer includes the witness data. Since the witness data is the only part of the transaction that can be modified by a third party (see <>), removing it also removes the opportunity for transaction malleability attacks. With Segregated Witness, transaction hashes become immutable by anyone other than the creator of the transaction, which greatly improves the implementation of many other protocols that rely on advanced bitcoin transaction construction, such as payment channels, chained transactions, and lightning networks. + +Script Versioning :: With the introduction of Segregated Witness scripts, every locking script is preceded by a _script version_ number, similar to how transactions and blocks have version numbers. The addition of a script version number allows the scripting language to be upgraded in a backward-compatible way (i.e., using soft fork upgrades) to introduce new script operands, syntax, or semantics. The ability to upgrade the scripting language in a nondisruptive way will greatly accelerate the rate of innovation in bitcoin. + +Network and Storage Scaling :: The witness data is often a big contributor to the total size of a transaction. More complex scripts such as those used for multisig or payment channels are very large. In some cases these scripts account for the majority (more than 75%) of the data in a transaction. By moving the witness data outside the transaction, Segregated Witness improves bitcoin’s scalability. Nodes can prune the witness data after validating the signatures, or ignore it altogether when doing simplified payment verification. The witness data doesn’t need to be transmitted to all nodes and does not need to be stored on disk by all nodes. + +Signature Verification Optimization :: Segregated Witness upgrades the signature functions (+CHECKSIG+, +CHECKMULTISIG+, etc.) to reduce the algorithm's computational complexity. Before segwit, the algorithm used to produce a signature required a number of hash operations that was proportional to the size of the transaction. Data-hashing computations increased in O(n^2^) with respect to the number of signature operations, introducing a substantial computational burden on all nodes verifying the signature. With segwit, the algorithm is changed to reduce the complexity to O(n). + +Offline Signing Improvement :: Segregated Witness signatures incorporate the value (amount) referenced by each input in the hash that is signed. Previously, an offline signing device, such as a hardware wallet, would have to verify the amount of each input before signing a transaction. This was usually accomplished by streaming a large amount of data about the previous transactions referenced as inputs. Since the amount is now part of the commitment hash that is signed, an offline device does not need the previous transactions. If the amounts do not match (are misrepresented by a compromised online system), the signature will be invalid. + +==== How Segregated Witness Works + +At first glance, Segregated Witness appears to be a change to how transactions are constructed and therefore a transaction-level feature, but it is not. Rather, Segregated Witness is a change to how individual UTXO are spent and therefore is a per-output feature. + +A transaction can spend Segregated Witness outputs or traditional (inline-witness) outputs or both. Therefore, it does not make much sense to refer to a transaction as a “Segregated Witness transaction.” Rather we should refer to specific transaction outputs as “Segregated Witness outputs." + +When a transaction spends an UTXO, it must provide a witness. In a traditional UTXO, the locking script requires that witness data be provided _inline_ in the input part of the transaction that spends the UTXO. A Segregated Witness UTXO, however, specifies a locking script that can be satisfied with witness data outside of the input (segregated). + +==== Soft Fork (Backward Compatibility) + +Segregated Witness is a significant change to the way outputs and transactions are architected. Such a change would normally require a simultaneous change in every bitcoin node and wallet to change the consensus rules—what is known as a hard fork. Instead, segregated witness is introduced with a much less disruptive change, which is backward compatible, known as a soft fork. This type of upgrade allows nonupgraded software to ignore the changes and continue to operate without any disruption. + +Segregated Witness outputs are constructed so that older systems that are not segwit-aware can still validate them. To an old wallet or node, a Segregated Witness output looks like an output that _anyone can spend_. Such outputs can be spent with an empty signature, therefore the fact that there is no signature inside the transaction (it is segregated) does not invalidate the transaction. Newer wallets and mining nodes, however, see the Segregated Witness output and expect to find a valid witness for it in the transaction’s witness data. + +==== Segregated Witness Output and Transaction Examples + +Let’s look at some of our example transactions and see how they would change with Segregated Witness. We’ll first look at how a Pay-to-Public-Key-Hash (P2PKH) payment is transformed with the Segregated Witness program. Then, we’ll look at the Segregated Witness equivalent for Pay-to-Script-Hash (P2SH) scripts. Finally, we’ll look at how both of the preceding Segregated Witness programs can be embedded inside a P2SH script. + +[[p2wpkh]] +===== Pay-to-Witness-Public-Key-Hash (P2WPKH) + +In <>, ((("use cases", "buying coffee", id="aliced")))Alice created a transaction to pay Bob for a cup of coffee. That transaction created a P2PKH output with a value of 0.015 BTC that was spendable by Bob. The output’s script looks like this: + +.Example P2PKH output script +---- +DUP HASH160 ab68025513c3dbd2f7b92a94e0581f5d50f654e7 EQUALVERIFY CHECKSIG +---- + +With Segregated Witness, Alice would create a Pay-to-Witness-Public-Key-Hash (P2WPKH) script, which looks like this: + +.Example P2WPKH output script +---- +0 ab68025513c3dbd2f7b92a94e0581f5d50f654e7 +---- + +As you can see, a Segregated Witness output’s locking script is much simpler than a traditional output. It consists of two values that are pushed on to the script evaluation stack. To an old (nonsegwit-aware) bitcoin client, the two pushes would look like an output that anyone can spend and does not require a signature (or rather, can be spent with an empty signature). To a newer, segwit-aware client, the first number (0) is interpreted as a version number (the _witness version_) and the second part (20 bytes) is the equivalent of a locking script known as a _witness program_. The 20-byte witness program is simply the hash of the public key, as in a P2PKH script + +Now, let’s look at the corresponding transaction that Bob uses to spend this output. For the original script (nonsegwit), Bob’s transaction would have to include a signature within the transaction input: + +.Decoded transaction showing a P2PKH output being spent with a signature +---- +[...] +“Vin” : [ +"txid": "0627052b6f28912f2703066a912ea577f2ce4da4caa5a5fbd8a57286c345c2f2", +"vout": 0, + "scriptSig": “”, +] +[...] +---- + +However, to spend the Segregated Witness output, the transaction has no signature on that input. Instead, Bob’s transaction has an empty +scriptSig+ and includes a Segregated Witness, outside the transaction itself: + +.Decoded transaction showing a P2WPKH output being spent with separate witness data +---- +[...] +“Vin” : [ +"txid": "0627052b6f28912f2703066a912ea577f2ce4da4caa5a5fbd8a57286c345c2f2", +"vout": 0, + "scriptSig": “”, +] +[...] +“witness”: “” +[...] +---- + +===== Wallet construction of P2WPKH + +It is extremely important to note that P2WPKH should only be created by the payee (recipient) and not converted by the sender from a known public key, P2PKH script, or address. The sender has no way of knowing if the recipient's wallet has the ability to construct segwit transactions and spend P2WPKH outputs. + +Additionally, P2WPKH outputs must be constructed from the hash of a _compressed_ public key. Uncompressed public keys are nonstandard in segwit and may be explicitly disabled by a future soft fork. If the hash used in the P2WPKH came from an uncompressed public key, it may be unspendable and you may lose funds. P2WPKH outputs should be created by the payee's wallet by deriving a compressed public key from their private key. + +[WARNING] +==== +P2WPKH should be constructed by the payee (recipient) by converting a compressed public key to a P2WPKH hash. You should never transform a P2PKH script, bitcoin address, or uncompressed public key to a P2WPKH witness script. +==== + +[[p2wsh]] +===== Pay-to-Witness-Script-Hash (P2WSH) + +The ((("use cases", "import/export", id="mohamappd")))second type of witness program corresponds to a Pay-to-Script-Hash (P2SH) script. We saw this type of script in <>. In that example, P2SH was used by Mohammed's company to express a multisignature script. Payments to Mohammed's company were encoded with a locking script like this: + +.Example P2SH output script +---- +HASH160 54c557e07dde5bb6cb791c7a540e0a4796f5e97e EQUAL +---- + +This P2SH script references the hash of a _redeem script_ that defines a 2-of-3 multisignature requirement to spend funds. To spend this output, Mohammed's company would present the redeem script (whose hash matches the script hash in the P2SH output) and the signatures necessary to satisfy that redeem script, all inside the transaction input: + +.Decoded transaction showing a P2SH output being spent +---- +[...] +“Vin” : [ +"txid": "abcdef12345...", +"vout": 0, + "scriptSig": “ <2 PubA PubB PubC PubD PubE 5 CHECKMULTISIG>”, +] +---- + +Now, let's look at how this entire example would be upgraded to segwit. If Mohammed's customers were using a segwit-compatible wallet, they would make a payment, creating a Pay-to-Witness-Script-Hash (P2WSH) output that would look like this: + +.Example P2WSH output script +---- +0 9592d601848d04b172905e0ddb0adde59f1590f1e553ffc81ddc4b0ed927dd73 +---- + +Again, as with the example of P2WPKH, you can see that the Segregated Witness equivalent script is a lot simpler and omits the various script operands that you see in P2SH scripts. Instead, the Segregated Witness program consists of two values pushed to the stack: a witness version (0) and the 32-byte SHA256 hash of the redeem script. + +[TIP] +==== +While P2SH uses the 20-byte +RIPEMD160(SHA256(script))+ hash, the P2WSH witness program uses a 32-byte +SHA256(script)+ hash. This difference in the selection of the hashing algorithm is deliberate and is used to differentiate between the two types of witness programs (P2WPKH and P2WSH) by the length of the hash and to provide stronger security to P2WSH (128 bits of security in P2WSH versus 80 bits of security in P2SH). + +==== + +Mohammed's company can spend outputs the P2WSH output by presenting the correct redeem script and sufficient signatures to satisfy it. Both the redeem script and the signatures would be segregated _outside_ the spending transaction as part of the witness data. Within the transaction input, Mohammed's ((("", startref="mohamappd")))wallet would put an empty +scriptSig+: + +.Decoded transaction showing a P2WSH output being spent with separate witness data +---- +[...] +“Vin” : [ +"txid": "abcdef12345...", +"vout": 0, + "scriptSig": “”, +] +[...] +“witness”: “ <2 PubA PubB PubC PubD PubE 5 CHECKMULTISIG>” +[...] +---- + +===== Differentiating between P2WPKH and P2WSH + +In the previous two sections, we demonstrated two types of witness programs: <> and <>. Both types of witness programs consist of a single byte version number followed by a longer hash. They look very similar, but are interpreted very differently: one is interpreted as a public key hash, which is satisfied by a signature and the other as a script hash, which is satisfied by a redeem script. The critical difference between them is the length of the hash: + +* The public key hash in P2WPKH is 20 bytes +* The script hash in P2WSH is 32 bytes + +This is the one difference that allows a wallet to differentiate between the two types of witness programs. By looking at the length of the hash, a wallet can determine what type of witness program it is, P2WPKH or P2WSH. + +==== Upgrading to Segregated Witness + +As we can see from the previous examples, upgrading to Segregated Witness is a two-step process. First, wallets must create special segwit type outputs. Then, these outputs can be spent by wallets that know how to construct Segregated Witness transactions. In the examples, Alice's wallet was segwit-aware and able to create special outputs with Segregated Witness scripts. Bob's wallet is also segwit-aware and able to spend those outputs. What may not be obvious from the example is that in practice, Alice's wallet needs to _know_ that Bob uses a segwit-aware wallet and can spend these outputs. Otherwise, if Bob's wallet is not upgraded and Alice tries to make segwit payments to Bob, Bob's wallet will not be able to detect these payments. + +[TIP] +==== +For P2WPKH and P2WSH payment types, both the sender and the recipient wallets need to be upgraded to be able to use segwit. Furthermore, the sender's wallet needs to know that the recipient's wallet is segwit-aware. +==== + +Segregated Witness will not be implemented simultaneously across the entire network. Rather, Segregated Witness is implemented as a backward-compatible upgrade, where _old and new clients can coexist_. Wallet developers will independently upgrade wallet software to add segwit capabilities. The P2WPKH and P2WSH payment types are used when both sender and recipient are segwit-aware. The traditional P2PKH and P2SH will continue to work for nonupgraded wallets. That leaves two important scenarios, which are addressed in the next section: + +* Ability of a sender's wallet that is not segwit-aware to make a payment to a recipient's wallet that can process segwit transactions + +* Ability of a sender's wallet that is segwit-aware to recognize and distinguish between recipients that are segwit-aware and ones that are not, by their _addresses_. + +===== Embedding Segregated Witness inside P2SH + +Let's assume, for example, that Alice's wallet is not upgraded to segwit, but Bob's wallet is upgraded and can handle segwit transactions. Alice and Bob can use "old" non-segwit transactions. But Bob would likely want to use segwit to reduce transaction fees, taking advantage of the discount that applies to witness data. + +In this case Bob's wallet can construct a P2SH address that contains a segwit script inside it. Alice's wallet sees this as a "normal" P2SH address and can make payments to it without any knowledge of segwit. Bob's wallet can then spend this payment with a segwit transaction, taking full advantage of segwit and reducing transaction fees. + +Both forms of witness scripts, P2WPKH and P2WSH, can be embedded in a P2SH address. The first is noted as P2SH(P2WPKH) and the second is noted as P2SH(P2WSH). + +===== Pay-to-Witness-Public-Key-Hash inside Pay-to-Script-Hash + +The first form of witness script we will examine is P2SH(P2WPKH). This is a Pay-to-Witness-Public-Key-Hash witness program, embedded inside a Pay-to-Script-Hash script, so that it can be used by a wallet that is not aware of segwit. + +Bob's wallet constructs a P2WPKH witness program with Bob's public key. This witness program is then hashed and the resulting hash is encoded as a P2SH script. The P2SH script is converted to a bitcoin address, one that starts with a "3," as we saw in the <> section. + +Bob's wallet starts with the P2WPKH witness program we saw earlier: + +.Bob's P2WPKH witness program +---- +0 ab68025513c3dbd2f7b92a94e0581f5d50f654e7 +---- + +The P2WPKH witness program consists of the witness version and Bob's 20-byte public key hash. + +Bob's wallet then hashes the preceding witness program, first with SHA256, then with RIPEMD160, producing another 20-byte hash: + +.HASH160 of the P2WPKH witness program +---- +3e0547268b3b19288b3adef9719ec8659f4b2b0b +---- + +[role="pagebreak-before"] +The hash of the witness program is then embedded in a P2SH script: + +---- +HASH160 3e0547268b3b19288b3adef9719ec8659f4b2b0b EQUAL +---- + +Finally, the P2SH script is converted to a P2SH bitcoin address: + +.P2SH address +---- +37Lx99uaGn5avKBxiW26HjedQE3LrDCZru +---- + +Now, Bob can display this address for customers to pay for their coffee. Alice's wallet can make a payment to +37Lx99uaGn5avKBxiW26HjedQE3LrDCZru+, just as it would to any other bitcoin address. Even though Alice's wallet has no support for segwit, the payment it creates can be spent by Bob with a segwit transaction.((("", startref="aliced"))) + +===== Pay-to-Witness-Script-Hash inside Pay-to-Script-Hash + +Similarly, a P2WSH witness program for a multisig script or other complicated script can be embedded inside a P2SH script and address, making it possible for any wallet to make payments that are segwit compatible. + +As we saw in <>, Mohammed's ((("use cases", "import/export")))company is using Segregated Witness payments to multisignature scripts. To make it possible for any client to pay his company, regardless of whether their wallets are upgraded for segwit, Mohammed's wallet can embed the P2WSH witness program inside a P2SH script. + +First, Mohammed's wallet creates the P2WSH witness program that corresponds to the multisignature script, hashed with SHA256: + +.Mohammed's wallet creates a P2WSH witness program +---- +0 9592d601848d04b172905e0ddb0adde59f1590f1e553ffc81ddc4b0ed927dd73 +---- + +Then, the witness program itself is hashed with SHA256 and RIPEMD160, producing a new 20-byte hash, as used in traditional P2SH: + +.The HASH160 of the P2WSH witness program +---- +86762607e8fe87c0c37740cddee880988b9455b2 +---- + +Next, Mohammed's wallet puts the hash into a P2SH script: + +---- +HASH160 86762607e8fe87c0c37740cddee880988b9455b2 EQUAL +---- + +Finally, the wallet constructs a bitcoin address from this script: + +.P2SH bitcoin address +---- +3Dwz1MXhM6EfFoJChHCxh1jWHb8GQqRenG +---- + +Now, Mohammed's clients can make payments to this address without any need to support segwit. Mohammed's company can then construct segwit transactions to spend these payments, taking advantage of segwit features including lower transaction fees. + +===== Segregated Witness addresses + +Even after segwit activation, it will take some time until most wallets are upgraded. At first, segwit will be embedded in P2SH, as we saw in the previous section, to ease compatibility between segit-aware and unaware wallets. + +However, once wallets are broadly supporting segwit, it makes sense to encode witness scripts directly in a native address format designed for segwit, rather than embed it in P2SH. + +The native segwit address format is defined in BIP-173: + +https://github.com/bitcoin/bips/blob/master/bip-0173.mediawiki[BIP-173] +:: Base32 address format for native v0-16 witness outputs + +BIP-173 only encodes witness (P2WPKH and P2WSH) scripts. It is not compatible with non-segwit P2PKH or P2SH scripts. BIP-173 is a checksummed Base32 encoding, as compared to the Base58 encoding of a "traditional" bitcoin address. BIP-173 addesses are also called _bech32_ addresses, pronounced "beh-ch thirty two", alluding to the use of a "BCH" error detection algorithm and 32-character encoding set. + +BIP-173 addresses use 32 lower-case-only alphanumeric character set, carefully selected to reduce errors from misreading or mistyping. By choosing a lower-case-only character set, bech32 is easier to read, speak, and 45% more efficient to encode in QR codes. + +The BCH error detection algorithm is a vast improvement over the previous checksum algorithm (from Base58Check), allowing not only detection but also _correction_ of errors. Address-input interfaces (such as text-fields in forms) can detect and highlight which character was most likely mistyped when they detect an error. + +From the BIP-173 specification, here are some examples of bech32 addresses: + +Mainnet P2WPKH:: bc1qw508d6qejxtdg4y5r3zarvary0c5xw7kv8f3t4 +Testnet P2WPKH:: tb1qw508d6qejxtdg4y5r3zarvary0c5xw7kxpjzsx +Mainnet P2WSH:: bc1qrp33g0q5c5txsp9arysrx4k6zdkfs4nce4xj0gdcccefvpysxf3qccfmv3 +Testnet P2WSH:: tb1qrp33g0q5c5txsp9arysrx4k6zdkfs4nce4xj0gdcccefvpysxf3q0sl5k7 + +As you can see in these examples, a segwit bech32 string is up to 90 characters long and consists of three parts: + +The human readable part:: This prefix "bc" or "tb" identifying mainnet or testnet. + +The separator:: The digit "1", which is not part of the 32-character encoding set and can only appear in this position as a separator + +The data part:: A minimum of 6 alphanumeric characters, the checksum encoded witness script + +At this time, only a few wallets accept or produce native segwit bech32 addresses, but as segwit adoption increases, you will see these more and more often. + +[[segwit_txid]] +===== Transaction identifiers + +((("transaction IDs (txid)")))One of the greatest benefits of Segregated Witness is that it eliminates third-party transaction malleability. + +Before segwit, transactions could have their signatures subtly modified by third parties, changing their transaction ID (hash) without changing any fundamental properties (inputs, outputs, amounts). This created opportunities for denial-of-service attacks as well as attacks against poorly written wallet software that assumed unconfirmed transaction hashes were immutable. + +With the introduction of Segregated Witness, transactions have two identifiers, +txid+ and +wtxid+. The traditional transaction ID +txid+ is the double-SHA256 hash of the serialized transaction, without the witness data. A transaction +wtxid+ is the double-SHA256 hash of the new serialization format of the transaction with witness data. + +The traditional +txid+ is calculated in exactly the same way as with a nonsegwit transaction. However, since the segwit transaction has empty ++scriptSig++s in every input, there is no part of the transaction that can be modified by a third party. Therefore, in a segwit transaction, the +txid+ is immutable by a third party, even when the transaction is unconfirmed. + +The +wtxid+ is like an "extended" ID, in that the hash also incorporates the witness data. If a transaction is transmitted without witness data, then the +wtxid+ and +txid+ are identical. Note than since the +wtxid+ includes witness data (signatures) and since witness data may be malleable, the +wtxid+ should be considered malleable until the transaction is confirmed. Only the +txid+ of a segwit transaction can be considered immutable by third parties and only if _all_ the inputs of the transaction are segwit inputs. + +[TIP] +==== +Segregated Witness transactions have two IDs: +txid+ and +wtxid+. The +txid+ is the hash of the transaction without the witness data and the +wtxid+ is the hash inclusive of witness data. The +txid+ of a transaction where all inputs are segwit inputs is not susceptible to third-party transaction malleability. +==== + +==== Segregated Witness' New Signing Algorithm + +Segregated Witness modifies the semantics of the four signature verification functions (+CHECKSIG+, +CHECKSIGVERIFY+, +CHECKMULTISIG+, and +CHECKMULTISIGVERIFY+), changing the way a transaction commitment hash is calculated. + +Signatures in bitcoin transactions are applied on a _commitment hash_, which is calculated from the transaction data, locking specific parts of the data indicating the signer's commitment to those values. For example, in a simple +SIGHASH_ALL+ type signature, the commitment hash includes all inputs and outputs. + +Unfortunately, the way the commitment hash was calculated introduced the possibility that a node verifying the signature can be forced to perform a significant number of hash computations. Specifically, the hash operations increase in O(n^2^) with respect to the number of signature operations in the transaction. An attacker could therefore create a transaction with a very large number of signature operations, causing the entire bitcoin network to have to perform hundreds or thousands of hash operations to verify the transaction. + +Segwit represented an opportunity to address this problem by changing the way the commitment hash is calculated. For segwit version 0 witness programs, signature verification occurs using an improved commitment hash algorithm as specified in BIP-143. + +The new algorithm achieves two important goals. Firstly, the number of hash operations increases by a much more gradual O(n) to the number of signature operations, reducing the opportunity to create denial-of-service attacks with overly complex transactions. Secondly, the commitment hash now also includes the value (amounts) of each input as part of the commitment. This means that a signer can commit to a specific input value without needing to "fetch" and check the previous transaction referenced by the input. In the case of offline devices, such as hardware wallets, this greatly simplifies the communication between the host and the hardware wallet, removing the need to stream previous transactions for validation. A hardware wallet can accept the input value "as stated" by an untrusted host. Since the signature is invalid if that input value is not correct, the hardware wallet doesn't need to validate the value before signing the input. + +==== Economic Incentives for Segregated Witness + +Bitcoin mining nodes and full nodes incur costs for the resources used to support the bitcoin network and the blockchain. As the volume of bitcoin transactions increases, so does the cost of resources (CPU, network bandwidth, disk space, memory). Miners are compensated for these costs through fees that are proportional to the size (in bytes) of each transaction. Nonmining full nodes are not compensated, so they incur these costs because they have a need to run an authoritative fully validating full-index node, perhaps because they use the node to operate a bitcoin business. + +Without transaction fees, the growth in bitcoin data would arguably increase dramatically. Fees are intended to align the needs of bitcoin users with the burden their transactions impose on the network, through a market-based price discovery mechanism. + +The calculation of fees based on transaction size treats all the data in the transaction as equal in cost. But from the perspective of full nodes and miners, some parts of a transaction carry much higher costs. Every transaction added to the bitcoin network affects the consumption of four resources on nodes: + +Disk Space :: Every transaction is stored in the blockchain, adding to the total size of the blockchain. The blockchain is stored on disk, but the storage can be optimized by “pruning” older transactions. + +CPU :: Every transaction must be validated, which requires CPU time. + +Bandwidth :: Every transaction is transmitted (through flood propagation) across the network at least once. Without any optimization in the block propagation protocol, transactions are transmitted again as part of a block, doubling the impact on network capacity. + +Memory :: Nodes that validate transactions keep the UTXO index or the entire UTXO set in memory to speed up validation. Because memory is at least one order of magnitude more expensive than disk, growth of the UTXO set contributes disproportionately to the cost of running a node. + +As you can see from the list, not every part of a transaction has an equal impact on the cost of running a node or on the ability of bitcoin to scale to support more transactions. The most expensive part of a transaction are the newly created outputs, as they are added to the in-memory UTXO set. By comparison, signatures (aka witness data) add the least burden to the network and the cost of running a node, because witness data are only validated once and then never used again. Furthermore, immediately after receiving a new transaction and validating witness data, nodes can discard that witness data. If fees are calculated on transaction size, without discriminating between these two types of data, then the market incentives of fees are not aligned with the actual costs imposed by a transaction. In fact, the current fee structure actually encourages the opposite behavior, because witness data is the largest part of a transaction. + +The incentives created by fees matter because they affect the behavior of wallets. All wallets must implement some strategy for assembling transactions that takes into consideration a number of factors, such as privacy (reducing address reuse), fragmentation (making lots of loose change), and fees. If the fees are overwhelmingly motivating wallets to use as few inputs as possible in transactions, this can lead to UTXO picking and change address strategies that inadvertently bloat the UTXO set. + +Transactions consume UTXO in their inputs and create new UTXO with their outputs. A transaction, therefore, that has more inputs than outputs will result in a decrease in the UTXO set, whereas a transaction that has more outputs than inputs will result in an increase in the UTXO set. Let’s consider the _difference_ between inputs and outputs and call that the “Net-new-UTXO.” That’s an important metric, as it tells us what impact a transaction will have on the most expensive network-wide resource, the in-memory UTXO set. A transaction with positive Net-new-UTXO adds to that burden. A transaction with a negative Net-new-UTXO reduces the burden. We would therefore want to encourage transactions that are either negative Net-new-UTXO or neutral with zero Net-new-UTXO. + +Let’s look at an example of what incentives are created by the transaction fee calculation, with and without Segregated Witness. We will look at two different transactions. Transaction A is a 3-input, 2-output transaction, which has a Net-new-UTXO metric of –1, meaning it consumes one more UTXO than it creates, reducing the UTXO set by one. Transaction B is a 2-input, 3-output transaction, which has a Net-new-UTXO metric of 1, meaning it adds one UTXO to the UTXO set, imposing additional cost on the entire bitcoin network. Both transactions use multisignature (2-of-3) scripts to demonstrate how complex scripts increase the impact of segregated witness on fees. Let’s assume a transaction fee of 30 satoshi per byte and a 75% fee discount on witness data: + +++++ +
+
Without Segregated Witness
+
+

Transaction A fee: 25,710 satoshi

+

Transaction B fee: 18,990 satoshi

+
+ +
With Segregated Witness
+
+

Transaction A fee: 8,130 satoshi

+

Transaction B fee: 12,045 satoshi

+
+
+++++ + + +Both transactions are less expensive when segregated witness is implemented. But comparing the costs between the two transactions, we see that before Segregated Witness, the fee is higher for the transaction that has a negative Net-new-UTXO. After Segregated Witness, the transaction fees align with the incentive to minimize new UTXO creation by not inadvertently penalizing transactions with many inputs. + +Segregated Witness therefore has two main effects on the fees paid by bitcoin users. Firstly, segwit reduces the overall cost of transactions by discounting witness data and increasing the capacity of the bitcoin blockchain. Secondly, segwit’s discount on witness data corrects a misalignment of incentives that may have inadvertently created more bloat in the UTXO set.((("", startref="Tadv07")))((("", startref="Ssegwit07"))) diff --git a/ch09.asciidoc b/ch09.asciidoc index e195befd..fe4180e5 100644 --- a/ch09.asciidoc +++ b/ch09.asciidoc @@ -15,7 +15,7 @@ One way to think about the blockchain is like layers in a geological formation, === Structure of a Block -((("blocks", "structure of")))((("blockchain (the)", "block structure")))A block is a container data structure that aggregates transactions for inclusion in the public ledger, the blockchain. The block is made of a header, containing metadata, followed by a long list of transactions that make up the bulk of its size. The block header is 80 bytes, whereas the average transaction is at least 250 bytes and the average block contains more than 500 transactions. A complete block, with all transactions, is therefore 1,000 times larger than the block header. <> describes the structure of a block. +((("blocks", "structure of")))((("blockchain (the)", "block structure")))A block is a container data structure that aggregates transactions for inclusion in the public ledger, the blockchain. The block is made of a header, containing metadata, followed by a long list of transactions that make up the bulk of its size. The block header is 80 bytes, whereas the average transaction is at least 400 bytes and the average block contains more than 1900 transactions. A complete block, with all transactions, is therefore 10,000 times larger than the block header. <> describes the structure of a block. [[block_structure1]] [role="pagebreak-before"] @@ -57,7 +57,7 @@ The nonce, difficulty target, and timestamp are used in the mining process and w Note that the block hash is not actually included inside the block's data structure, neither when the block is transmitted on the network, nor when it is stored on a node's persistence storage as part of the blockchain. Instead, the block's hash is computed by each node as the block is received from the network. The block hash might be stored in a separate database table as part of the block's metadata, to facilitate indexing and faster retrieval of blocks from disk. -A second way to identify a block is by its position in the blockchain, called the pass:[block height. The first block ever created is at block height 0 (zero) and is the] pass:[same block that was previously referenced by the following block hash] +000000000019d6689c085ae165831e934ff763ae46a2a6c172b3f1b60a8ce26f+. A block can thus be identified two ways: by referencing the block hash or by referencing the block height. Each subsequent block added "on top" of that first block is one position "higher" in the blockchain, like boxes stacked one on top of the other. The block height on January 1, 2017 was approximately 446,000, meaning there were 446,000 blocks stacked on top of the first block created in January 2009. +A second way to identify a block is by its position in the blockchain, called the pass:[block height. The first block ever created is at block height 0 (zero) and is the] pass:[same block that was previously referenced by the following block hash] +000000000019d6689c085ae165831e934ff763ae46a2a6c172b3f1b60a8ce26f+. A block can thus be identified in two ways: by referencing the block hash or by referencing the block height. Each subsequent block added "on top" of that first block is one position "higher" in the blockchain, like boxes stacked one on top of the other. The block height on January 1, 2017 was approximately 446,000, meaning there were 446,000 blocks stacked on top of the first block created in January 2009. Unlike the block hash, the block height is not a unique identifier. Although a single block will always have a specific and invariant block height, the reverse is not true—the block height does not always identify a single block. Two or more blocks might have the same block height, competing for the same position in the blockchain. This scenario is discussed in detail in the section <>. The block height is also not a part of the block's data structure; it is not stored within the block. Each node dynamically identifies a block's position (height) in the blockchain when it is received from the bitcoin network. The block height might also be stored as metadata in an indexed database table for faster retrieval. @@ -320,7 +320,7 @@ $ bitcoin-cli -testnet getblockchaininfo You can also run on testnet3 with other full-node implementations, such as +btcd+ (written in Go) and +bcoin+ (written in JavaScript), to experiment and learn in other programming languages and frameworks. -In early 2017, testnet3 supports all the features of mainnet, in addition to Segregated Witness (see <>), which has yet to activate on mainnet. Therefore, testnet3 can also be used to test Segregated Witness features.((("", startref="testnet09"))) +In early 2017, testnet3 supports all the features of mainnet, including Segregated Witness (see <>). Therefore, testnet3 can also be used to test Segregated Witness features.((("", startref="testnet09"))) ==== Segnet—The Segregated Witness Testnet diff --git a/ch10.asciidoc b/ch10.asciidoc index 54868a8f..6459529f 100644 --- a/ch10.asciidoc +++ b/ch10.asciidoc @@ -208,6 +208,7 @@ $ bitcoin-cli getrawtransaction d5ada064c6417ca25c4308bd158c34b77e1c0eca2a73cda1 ---- [source,json] +[role="c_less_space"] ---- { "hex" : "01000000010000000000000000000000000000000000000000000000000000000000000000ffffffff0f03443b0403858402062f503253482fffffffff0110c08d9500000000232102aa970c592640d19de03ff6f329d6fd2eecb023263b9ba5d1b81c29b523da8b21ac00000000", @@ -258,6 +259,7 @@ The calculation can be seen in function +GetBlockSubsidy+ in the Bitcoin Core cl [[getblocksubsidy_source]] .Calculating the block reward—Function GetBlockSubsidy, Bitcoin Core Client, main.cpp ==== +[role="c_less_space"] [source, cpp] ---- CAmount GetBlockSubsidy(int nHeight, const Consensus::Params& consensusParams) @@ -443,6 +445,7 @@ Now, if we change the phrase, we should expect to see completely different hashe [[sha256_example_generator]] .SHA256 script for generating many hashes by iterating on a nonce ==== +[role="c_less_space"] [source, python] ---- include::code/hash_example.py[] diff --git a/ch12.asciidoc b/ch12.asciidoc index bfeed9e0..6599b671 100644 --- a/ch12.asciidoc +++ b/ch12.asciidoc @@ -263,7 +263,7 @@ The funding transaction consumes one or more inputs from Emma's wallet, sourcing Once the funding transaction is confirmed, Emma can start streaming video. Emma's software creates and signs a commitment transaction that changes the channel balance to credit 0.01 millibit to Fabian's address and refund 35.99 millibits back to Emma. The transaction signed by Emma consumes the 36 millibits output created by the funding transaction and creates two outputs: one for her refund, the other for Fabian's payment. The transaction is only partially signed—it requires two signatures (2-of-2), but only has Emma's signature. When Fabian's server receives this transaction, it adds the second signature (for the 2-of-2 input) and returns it to Emma together with 1 second worth of video. Now both parties have a fully signed commitment transaction that either can redeem, representing the correct up-to-date balance of the channel. Neither party broadcasts this transaction to the network. -In the next round, Emma's software creates and signs another commitment transaction (commitment #2) that consumes the _same_ 2-of-2 output from the funding transaction. The second commitment transaction allocates one output of 0.2 millibits to Fabian's address and one output of 35.98 millibits back to Emma's address. This new transaction is payment for two cumulative seconds of video. Fabian's software signs and returns the second commitment transaction, together with the another second of video. +In the next round, Emma's software creates and signs another commitment transaction (commitment #2) that consumes the _same_ 2-of-2 output from the funding transaction. The second commitment transaction allocates one output of 0.02 millibits to Fabian's address and one output of 35.98 millibits back to Emma's address. This new transaction is payment for two cumulative seconds of video. Fabian's software signs and returns the second commitment transaction, together with another second of video. In this way, Emma's software continues to send commitment transactions to Fabian's server in exchange for streaming video. The balance of the channel gradually accumulates in favor of Fabian, as Emma consumes more seconds of video. Let's say Emma watches 600 seconds (10 minutes) of video, creating and signing 600 commitment transactions. The last commitment transaction (#600) will have two outputs, splitting the balance of the channel, 6 millibits to Fabian and 30 millibits to Emma. @@ -426,7 +426,7 @@ IF ELSE # Refund after timeout. CHECKLOCKTIMEVERIFY DROP - CHECKSIG + CHECKSIG ENDIF ---- diff --git a/code/ec-math.py b/code/ec-math.py index f550e7ba..668fa455 100644 --- a/code/ec-math.py +++ b/code/ec-math.py @@ -30,7 +30,10 @@ def random_secret(): def get_point_pubkey(point): - key = ('03' if point.y() & 1 else '02') + '%064x' % point.x() + if (point.y() % 2) == 1: + key = '03' + '%064x' % point.x() + else: + key = '02' + '%064x' % point.x() return key.decode('hex') diff --git a/code/get-utxo.py b/code/get-utxo.py index ebce0083..2b3ffef1 100644 --- a/code/get-utxo.py +++ b/code/get-utxo.py @@ -8,7 +8,7 @@ address = '1Dorian4RoXcnBv9hnQ4Y2C1an6NJ4UrjX' # The API URL is https://blockchain.info/unspent?active=
# It returns a JSON object with a list "unspent_outputs", containing UTXO, like this: -#{ "unspent_outputs":[ +# { "unspent_outputs":[ # { # "tx_hash":"ebadfaa92f1fd29e2fe296eda702c48bd11ffd52313e986e99ddad9084062167", # "tx_index":51919767, @@ -19,7 +19,7 @@ address = '1Dorian4RoXcnBv9hnQ4Y2C1an6NJ4UrjX' # "confirmations":28691 # }, # ... -#]} +# ]} resp = requests.get('https://blockchain.info/unspent?active=%s' % address) utxo_set = json.loads(resp.text)["unspent_outputs"] diff --git a/code/hash_example.py b/code/hash_example.py index 3f6e6771..d5e69b2b 100644 --- a/code/hash_example.py +++ b/code/hash_example.py @@ -9,10 +9,10 @@ text = "I am Satoshi Nakamoto" for nonce in range(20): # add the nonce to the end of the text - input = text + str(nonce) + input_data = text + str(nonce) # calculate the SHA-256 hash of the input (text+nonce) - hash = hashlib.sha256(input).hexdigest() + hash_data = hashlib.sha256(input_data).hexdigest() # show the input and hash result - print(input, '=>', hash) + print(input_data, '=>', hash_data) diff --git a/code/key-to-address-ecc-example.py b/code/key-to-address-ecc-example.py index 2a206535..72f958a1 100644 --- a/code/key-to-address-ecc-example.py +++ b/code/key-to-address-ecc-example.py @@ -35,7 +35,7 @@ print("Public Key (hex) is:", hex_encoded_public_key) # Compress public key, adjust prefix depending on whether y is even or odd (public_key_x, public_key_y) = public_key compressed_prefix = '02' if (public_key_y % 2) == 0 else '03' -hex_compressed_public_key = compressed_prefix + bitcoin.encode(public_key_x, 16) +hex_compressed_public_key = compressed_prefix + (bitcoin.encode(public_key_x, 16).zfill(64)) print("Compressed Public Key (hex) is:", hex_compressed_public_key) # Generate bitcoin address from public key diff --git a/code/pycoin_example.py b/code/pycoin_example.py index 0791732c..05761caa 100755 --- a/code/pycoin_example.py +++ b/code/pycoin_example.py @@ -8,6 +8,7 @@ from pycoin.key.validate import is_address_valid, is_wif_valid from pycoin.services import spendables_for_address from pycoin.tx.tx_utils import create_signed_tx + def get_address(which): while 1: print("enter the %s address=> " % which, end='') @@ -17,6 +18,7 @@ def get_address(which): return address print("invalid address, please try again") + src_address = get_address("source") spendables = spendables_for_address(src_address) print(spendables) diff --git a/code/rpc_block.py b/code/rpc_block.py index bd7899ab..52fc28ff 100644 --- a/code/rpc_block.py +++ b/code/rpc_block.py @@ -27,11 +27,8 @@ for txid in transactions: for output in decoded_tx['vout']: # Add up the value of each output tx_value = tx_value + output['value'] - - # Add the value of this transaction to the total + + # Add the value of this transaction to the total block_value = block_value + tx_value print("Total value in block: ", block_value) - - - diff --git a/copyright.html b/copyright.html index 99817f06..74cd3170 100644 --- a/copyright.html +++ b/copyright.html @@ -33,6 +33,7 @@
  • 2017-06-01: First Release
    • +
  • 2017-07-21: Second Release
diff --git a/glossary.asciidoc b/glossary.asciidoc index 5982f8c3..f72a6032 100644 --- a/glossary.asciidoc +++ b/glossary.asciidoc @@ -32,8 +32,8 @@ coinbase transaction:: cold storage:: Refers to keeping a reserve of bitcoin offline. Cold storage is achieved when Bitcoin private keys are created and stored in a secure offline environment. Cold storage is important for anyone with bitcoin holdings. Online computers are vulnerable to hackers and should not be used to store a significant amount of bitcoin. -Colored coins:: - It's an open source Bitcoin 2.0 protocol that enables developers to create digital assets on top of Bitcoin Blockchain utilizing its functionalities beyond currency. +colored coins:: + An open source Bitcoin 2.0 protocol that enables developers to create digital assets on top of bitcoin blockchain utilizing its functionalities beyond currency. confirmations:: Once a transaction is included in a block, it has one confirmation. As soon as _another_ block is mined on the same blockchain, the transaction has two confirmations, and so on. Six or more confirmations is considered sufficient proof that a transaction cannot be reversed. @@ -55,13 +55,13 @@ difficulty retargeting:: difficulty target:: A difficulty at which all the computation in the network will find blocks approximately every 10 minutes. -Double spending:: - Double-spending is the result of successfully spending some money more than once. Bitcoin protects against double spending by verifying each transaction added to the block chain to ensure that the inputs for the transaction had not previously already been spent. +double spending:: + Double spending is the result of successfully spending some money more than once. Bitcoin protects against double spending by verifying each transaction added to the block chain to ensure that the inputs for the transaction had not previously already been spent. ECDSA:: Elliptic Curve Digital Signature Algorithm or ECDSA is a cryptographic algorithm used by Bitcoin to ensure that funds can only be spent by their rightful owners. -Extra Nonce:: +extra nonce:: As difficulty increased, miners often cycled through all 4 billion values of the nonce without finding a block. Because the coinbase script can store between 2 and 100 bytes of data, miners started using that space as extra nonce space, allowing them to explore a much larger range of block header values to find valid blocks. fees:: @@ -73,27 +73,27 @@ fork:: genesis block:: The first block in the blockchain, used to initialize the cryptocurrency. -Hard Fork:: - Hard Fork, also known as Hard-Forking Change, is a permanent divergence in the blockchain, commonly occurs when non-upgraded nodes can’t validate blocks created by upgraded nodes that follow newer consensus rules. - Not to be confused with Fork, Soft fork, Software fork or Git fork. +hard fork:: + Hard fork, also known as Hard-Forking Change, is a permanent divergence in the blockchain, commonly occurs when non-upgraded nodes can’t validate blocks created by upgraded nodes that follow newer consensus rules. + Not to be confused with fork, soft fork, software fork or Git fork. -Hardware Wallet:: - A hardware Wallet is a special type of bitcoin wallet which stores the user's private keys in a secure hardware device. +hardware wallet:: + A hardware wallet is a special type of bitcoin wallet which stores the user's private keys in a secure hardware device. hash:: A digital fingerprint of some binary input. hashlocks:: - A Hashlock is a type of encumbrance that restricts the spending of an output until a specified piece of data is publicly revealed. Hashlocks have the useful property that once any hashlock is opened publicly, any other hashlock secured using the same key can also be opened. This makes it possible to create multiple outputs that are all encumbered by the same hashlock and which all become spendable at the same time. + A hashlock is a type of encumbrance that restricts the spending of an output until a specified piece of data is publicly revealed. Hashlocks have the useful property that once any hashlock is opened publicly, any other hashlock secured using the same key can also be opened. This makes it possible to create multiple outputs that are all encumbered by the same hashlock and which all become spendable at the same time. -HD Protocol:: +HD protocol:: The Hierarchical Deterministic (HD) key creation and transfer protocol (BIP32), which allows creating child keys from parent keys in a hierarchy. -HD Wallet:: +HD wallet:: Wallets using the Hierarchical Deterministic (HD Protocol) key creation and transfer protocol (BIP32). -HD Wallet Seed:: - HD Wallet Seed or Root Seed is a potentially-short value used as a seed to generate the master private key and master chain code for an HD wallet. +HD wallet seed:: + HD wallet seed or root seed is a potentially-short value used as a seed to generate the master private key and master chain code for an HD wallet. HTLC:: A Hashed TimeLock Contract or HTLC is a class of payments that use hashlocks and timelocks to require that the receiver of a payment either acknowledge receiving the payment prior to a deadline by generating cryptographic proof of payment or forfeit the ability to claim the payment, returning it to the payer. @@ -104,7 +104,7 @@ KYC:: LevelDB:: LevelDB is an open source on-disk key-value store. LevelDB is a light-weight, single-purpose library for persistence with bindings to many platforms. -Lightning networks:: +Lightning Networks:: Lightning Network is a proposed implementation of Hashed Timelock Contracts (HTLCs) with bi-directional payment channels which allows payments to be securely routed across multiple peer-to-peer payment channels. This allows the formation of a network where any peer on the network can pay any other peer even if they don't directly have a channel open between each other. Locktime:: @@ -113,32 +113,32 @@ Locktime:: mempool:: The bitcoin Mempool (memory pool) is a collection of all transaction data in a block that have been verified by bitcoin nodes, but are not yet confirmed. -Merkle Root:: +merkle root:: The root node of a merkle tree, a descendant of all the hashed pairs in the tree. Block headers must include a valid merkle root descended from all transactions in that block. -Merkle Tree:: +merkle tree:: A tree constructed by hashing paired data (the leaves), then pairing and hashing the results until a single hash remains, the merkle root. In Bitcoin, the leaves are almost always transactions from a single block. miner:: A network node that finds valid proof of work for new blocks, by repeated hashing. -Multisignature:: - Multisignature (multisig) refers to requiring more than one key to authorize a Bitcoin transaction. +multisignature:: + Multisignature (multisig) refers to requiring more than one key to authorize a bitcoin transaction. network:: A peer-to-peer network that propagates transactions and blocks to every bitcoin node on the network. -Nonce:: - The "nonce" in a Bitcoin block is a 32-bit (4-byte) field whose value is set so that the hash of the block will contain a run of leading zeros. The rest of the fields may not be changed, as they have a defined meaning. +nonce:: + The "nonce" in a bitcoin block is a 32-bit (4-byte) field whose value is set so that the hash of the block will contain a run of leading zeros. The rest of the fields may not be changed, as they have a defined meaning. -Off-Chain Transactions:: - An off-chain transaction is the movement of value outside of the block chain. While an on-chain transaction - usually referred to as simply 'a transaction' - modifies the blockchain and depends on the blockchain to determine its validity an off-chain transaction relies on other methods to record and validate the transaction. +off-chain transactions:: + An off-chain transaction is the movement of value outside of the block chain. While an on-chain transaction—usually referred to as simply __a transaction__—modifies the blockchain and depends on the blockchain to determine its validity an off-chain transaction relies on other methods to record and validate the transaction. -Opcode:: +opcode:: Operation codes from the Bitcoin Script language which push data or perform functions within a pubkey script or signature script. -Open Assets Protocol:: - The Open Assets Protocol is a simple and powerful protocol built on top of the Bitcoin Blockchain. It allows issuance and transfer of user-created assets. The Open Assets Protocol is an evolution of the concept of colored coins. +Open Assets protocol:: + The Open Assets Protocol is a simple and powerful protocol built on top of the bitcoin blockchain. It allows issuance and transfer of user-created assets. The Open Assets protocol is an evolution of the concept of colored coins. OP_RETURN:: An opcode used in one of the outputs in an OP_RETURN transaction. Not to be confused with OP_RETURN transaction. @@ -149,44 +149,44 @@ OP_RETURN transaction:: Orphan Block:: Blocks whose parent block has not been processed by the local node, so they can’t be fully validated yet. Not to be confused with stale block. -Orphan Transactions:: +orphan transactions:: Transactions that can't go into the pool due to one or more missing input transactions. -Output:: - Output, Transaction Output or TxOut is an output in a transaction which contains two fields: a value field for transferring zero or more satoshis and a pubkey script for indicating what conditions must be fulfilled for those satoshis to be further spent. +output:: + Output, transaction output, or TxOut is an output in a transaction which contains two fields: a value field for transferring zero or more satoshis and a pubkey script for indicating what conditions must be fulfilled for those satoshis to be further spent. P2PKH:: Transactions that pay a bitcoin address contain P2PKH or Pay To PubKey Hash scripts. An output locked by a P2PKH script can be unlocked (spent) by presenting a public key and a digital signature created by the corresponding private key. P2SH:: - P2SH or Pay To Script Hash is a powerful new type of transaction that greatly simplifies the use of complex transaction scripts. With P2SH the complex script that details the conditions for spending the output (redeem script) is not presented in the locking script. Instead, only a hash of it is in the locking script. + P2SH or Pay-to-Script-Hash is a powerful new type of transaction that greatly simplifies the use of complex transaction scripts. With P2SH the complex script that details the conditions for spending the output (redeem script) is not presented in the locking script. Instead, only a hash of it is in the locking script. P2SH address:: P2SH addresses are Base58Check encodings of the 20-byte hash of a script, P2SH addresses use the version prefix "5", which results in Base58Check-encoded addresses that start with a "3". P2SH addresses hide all of the complexity, so that the person making a payment does not see the script. P2WPKH:: - The signature of a P2WPKH (Pay to Witness Public Key Hash) contains the same information as a P2PKH spending, but is located in the witness field instead of the scriptSig field. The scriptPubKey is also modified. + The signature of a P2WPKH (Pay-to-Witness-Public-Key-Hash) contains the same information as a P2PKH spending, but is located in the witness field instead of the scriptSig field. The scriptPubKey is also modified. P2WSH:: - The difference between P2SH and P2WSH (Pay to Witness Script Hash) is about the cryptographic proof location change from the scriptSig field to the witness field and the scriptPubKey that is also modified. + The difference between P2SH and P2WSH (Pay-to-Witness-Script-Hash) is about the cryptographic proof location change from the scriptSig field to the witness field and the scriptPubKey that is also modified. -Paper wallet:: +paper wallet:: In the most specific sense, a paper wallet is a document containing all of the data necessary to generate any number of Bitcoin private keys, forming a wallet of keys. However, people often use the term to mean any way of storing bitcoin offline as a physical document. This second definition also includes paper keys and redeemable codes. -Payment channels:: - A Micropayment Channel or Payment Channel is a class of techniques designed to allow users to make multiple Bitcoin transactions without committing all of the transactions to the Bitcoin block chain. In a typical payment channel, only two transactions are added to the block chain but an unlimited or nearly unlimited number of payments can be made between the participants. +payment channels:: + A micropayment channel or payment channel is class of techniques designed to allow users to make multiple bitcoin transactions without committing all of the transactions to the bitcoin blockchain. In a typical payment channel, only two transactions are added to the block chain but an unlimited or nearly unlimited number of payments can be made between the participants. -Pooled mining:: +pooled mining:: Pooled mining is a mining approach where multiple generating clients contribute to the generation of a block, and then split the block reward according the contributed processing power. -Proof-of-stake:: - Proof-of-stake (PoS) is a method by which a cryptocurrency blockchain network aims to achieve distributed consensus. Proof of stake asks users to prove ownership of a certain amount of currency (their "stake" in the currency). +Proof-of-Stake:: + Proof-of-Stake (PoS) is a method by which a cryptocurrency blockchain network aims to achieve distributed consensus. Proof-of-Stake asks users to prove ownership of a certain amount of currency (their "stake" in the currency). -Proof-Of-Work:: +Proof-of-Work:: A piece of data that requires significant computation to find. In bitcoin, miners must find a numeric solution to the SHA256 algorithm that meets a network-wide target, the difficulty target. reward:: - An amount included in each new block as a reward by the network to the miner who found the Proof-Of-Work solution. It is currently 12.5BTC per block. + An amount included in each new block as a reward by the network to the miner who found the Proof-of-Work solution. It is currently 12.5 BTC per block. RIPEMD-160:: RIPEMD-160 is a 160-bit cryptographic hash function. RIPEMD-160 is a strengthened version of RIPEMD with a 160-bit hash result, and is expected to be secure for the next ten years or more. @@ -200,24 +200,31 @@ Satoshi Nakamoto:: Script:: Bitcoin uses a scripting system for transactions. Forth-like, Script is simple, stack-based, and processed from left to right. It is purposefully not Turing-complete, with no loops. -ScriptPubKey (aka Pubkey Script):: - ScriptPubKey or Pubkey Script, is a script included in outputs which sets the conditions that must be fulfilled for those satoshis to be spent. Data for fulfilling the conditions can be provided in a signature script. +ScriptPubKey (aka pubkey script):: + ScriptPubKey or pubkey script, is a script included in outputs which sets the conditions that must be fulfilled for those satoshis to be spent. Data for fulfilling the conditions can be provided in a signature script. -ScriptSig (aka Signature Script):: - ScriptSig or Signature Script, is the data generated by a spender which is almost always used as variables to satisfy a pubkey script. +ScriptSig (aka signature script):: + ScriptSig or signature script, is the data generated by a spender which is almost always used as variables to satisfy a pubkey script. secret key (aka private key):: - The secret number that unlocks bitcoin sent to the corresponding address. A secret key looks like +5J76sF8L5jTtzE96r66Sf8cka9y44wdpJjMwCxR3tzLh3ibVPxh+. + The secret number that unlocks bitcoin sent to the corresponding address. pass:[A secret] key looks like the following: ++ +---- +5J76sF8L5jTtzE96r66Sf8cka9y44wdpJjMwCxR3tzLh3ibVPxh +---- Segregated Witness:: - Segregated Witness is a proposed upgrade to the Bitcoin protocol which technological innovation separates signature data from Bitcoin transactions. Segregated Witness is a proposed soft fork; a change that technically makes Bitcoin’s protocol rules more restrictive. + Segregated Witness is a proposed upgrade to the Bitcoin protocol which technological innovation separates signature data from bitcoin transactions. Segregated Witness is a proposed soft fork; a change that technically makes Bitcoin’s protocol rules more restrictive. SHA:: The Secure Hash Algorithm or SHA is a family of cryptographic hash functions published by the National Institute of Standards and Technology (NIST). + +simplified payment verification (SPV):: + SPV or simplified payment verification is a method for verifying particular transactions were included in a block without downloading the entire block. The method is used by some lightweight Bitcoin clients. -Soft Fork:: - Soft Fork or Soft-Forking Change is a temporary fork in the Blockchain which commonly occurs when miners using non-upgraded nodes don't follow a new consensus rule their nodes don’t know about. - Not to be confused with Fork, Hard fork, Software fork or Git fork. +soft fork:: + soft fork or Soft-Forking Change is a temporary fork in the blockchain which commonly occurs when miners using non-upgraded nodes don't follow a new consensus rule their nodes don’t know about. + Not to be confused with fork, hard fork, software fork or Git fork. SPV (aka Simplified Payment Verification):: SPV or Simplified Payment Verification is a method for verifying particular transactions were included in a block without downloading the entire block. The method is used by some lightweight Bitcoin clients. @@ -226,24 +233,24 @@ Stale Block:: Block which were successfully mined but which isn’t included on the current best block chain, likely because some other block at the same height had its chain extended first. Not to be confused with orphan block. timelocks:: - A Timelock is a type of encumbrance that restricts the spending of some bitcoin until a specified future time or block height. Timelocks feature prominently in many Bitcoin contracts, including payment channels and hashed timelock contracts. + A timelock is a type of encumbrance that restricts the spending of some bitcoin until a specified future time or block height. Timelocks feature prominently in many Bitcoin contracts, including payment channels and hashed timelock contracts. transaction:: In simple terms, a transfer of bitcoin from one address to another. More precisely, a transaction is a signed data structure expressing a transfer of value. Transactions are transmitted over the bitcoin network, collected by miners, and included into blocks, made permanent on the blockchain. -Transaction Pool:: +transaction pool:: An unordered collection of transactions that are not in blocks in the main chain, but for which we have input transactions. Turing completeness:: A program language is called "Turing complete" if it can run any program that a Turing machine can run, given enough time and memory. -UTXO (aka Unspent Transaction Output):: - UTXO is an Unspent Transaction Output that can be spent as an input in a new transaction. +unspent transaction output (UTXO):: + UTXO is an unspent transaction output that can be spent as an input in a new transaction. wallet:: Software that holds all your bitcoin addresses and secret keys. Use it to send, receive, and store your bitcoin. -WIF (aka Wallet Import Format):: +Wallet Import Format (WIF):: WIF or Wallet Import Format is a data interchange format designed to allow exporting and importing a single private key with a flag indicating whether or not it uses a compressed public key. -Some contributed definitions have been sourced under a CC-BY license from the bitcoin Wiki (https://en.bitcoin.it/wiki/Main_Page[https://en.bitcoin.it/wiki/Main_Page]), or from other open-source documentation sources. +Some contributed definitions have been sourced under a CC-BY license from the https://en.bitcoin.it/wiki/Main_Page[bitcoin Wiki] or from other open source documentation sources. diff --git a/images/mbc2_0204.png b/images/mbc2_0204.png index 2ac274e5..075627d0 100644 Binary files a/images/mbc2_0204.png and b/images/mbc2_0204.png differ diff --git a/images/mbc2_0510.png b/images/mbc2_0510.png index d25567df..5c9eb2e1 100755 Binary files a/images/mbc2_0510.png and b/images/mbc2_0510.png differ diff --git a/images/mbc2_0511.png b/images/mbc2_0511.png index 7466659d..bfdd82c3 100644 Binary files a/images/mbc2_0511.png and b/images/mbc2_0511.png differ diff --git a/theme/pdf/pdf.css b/theme/pdf/pdf.css index 366785c6..6a00f850 100644 --- a/theme/pdf/pdf.css +++ b/theme/pdf/pdf.css @@ -47,6 +47,17 @@ figure.smallerthirtyfive img { width: 35%; } figure.smallerthirty img { width: 30%; } +/*class to adjust the space of code listings to fix page break*/ +pre.c_less_space { + margin: 0 0 4pt 17pt; + line-height: 110%; +} + +pre.c_less_space2 { + margin: 0 0 4pt 17pt; + line-height: 105%; +} + /*----Uncomment to temporarily turn on code-eyballer highlighting (make sure to recomment after you build) pre {