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Removing some hard coded xrefs
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@ -786,7 +786,7 @@ On the fourth level "change", an HD wallet has two sub-trees, one for creating r
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===== Experimenting with HD wallets using sx-tools
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Using the command line tool +sx+, introduced in chapter 3, you can experiment with generating and extending BIP0032 deterministic keys, as well as displaying them in different formats:
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Using the command line tool +sx+, introduced in <<ch03_bitcoin_client>>, you can experiment with generating and extending BIP0032 deterministic keys, as well as displaying them in different formats:
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====
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[source, bash]
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@ -856,7 +856,7 @@ P2SH is not necessarily the same as a multi-signature standard transaction. A P2
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===== Multi-signature addresses and P2SH
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Currently, the most common implementation of the P2SH function is the multi-signature address script. As the name implies, the underlying script requires more than one signature to prove ownership and therefore spend funds. The bitcoin multi-signature feature is designed to require M signatures (also known as the “threshold”) from a total of N keys, known as an M-of-N multi-sig, where M is equal to or less than N. For example, Bob the coffee shop owner from chapter 1 could use a multi-signature address requiring 1-of-2 signatures from a key belonging to him and a key belonging to his spouse, ensuring either of them could sign to spend a transaction output locked to this address. This would be similar to a “joint account” as implemented in traditional banking where either spouse can spend with a single signature. Or Gopesh, the web designer paid by Bob to create a website might have a 2-of-3 multi-signature address for his business that ensures that no funds can be spent unless at least two of the business partners sign a transaction.
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Currently, the most common implementation of the P2SH function is the multi-signature address script. As the name implies, the underlying script requires more than one signature to prove ownership and therefore spend funds. The bitcoin multi-signature feature is designed to require M signatures (also known as the “threshold”) from a total of N keys, known as an M-of-N multi-sig, where M is equal to or less than N. For example, Bob the coffee shop owner from <<ch01_intro_what_is_bitcoin>> could use a multi-signature address requiring 1-of-2 signatures from a key belonging to him and a key belonging to his spouse, ensuring either of them could sign to spend a transaction output locked to this address. This would be similar to a “joint account” as implemented in traditional banking where either spouse can spend with a single signature. Or Gopesh, the web designer paid by Bob to create a website might have a 2-of-3 multi-signature address for his business that ensures that no funds can be spent unless at least two of the business partners sign a transaction.
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We will explore how to create transactions that spend funds from P2SH (and multi-signature) addresses in <<transactions>>.
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@ -466,7 +466,7 @@ A standard transaction (one that conforms to the +isStandard()+ checks) can have
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Pay-to-Script-Hash (P2SH) was introduced in the winter of 2012 as a powerful new type of transaction that greatly simplifies the use of complex transaction scripts. To explain the need for P2SH, let's look at a practical example.
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In chapter 1 we introduced Mohammed, an electronics importer based in Dubai. Mohammed's company uses bitcoin's multi-signature feature extensively for its corporate accounts. Multi-signature scripts are one of the most common uses of bitcoin's advanced scripting capabilities and are a very powerful feature. Mohammed's company uses a multi-signature script for all customer payments, known in accounting terms as "accounts receivable" or AR. With the multi-signature scheme, any payments made by customers are locked in such a way that they require at least two signatures to release, from Mohammed and one of his partners or from his attorney who has a backup key. A multi-signature scheme like that offers corporate governance controls and protects against theft, embezzlement or loss.
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In <<ch01_intro_what_is_bitcoin>> we introduced Mohammed, an electronics importer based in Dubai. Mohammed's company uses bitcoin's multi-signature feature extensively for its corporate accounts. Multi-signature scripts are one of the most common uses of bitcoin's advanced scripting capabilities and are a very powerful feature. Mohammed's company uses a multi-signature script for all customer payments, known in accounting terms as "accounts receivable" or AR. With the multi-signature scheme, any payments made by customers are locked in such a way that they require at least two signatures to release, from Mohammed and one of his partners or from his attorney who has a backup key. A multi-signature scheme like that offers corporate governance controls and protects against theft, embezzlement or loss.
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The resulting script is quite long and looks like this:
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@ -117,7 +117,7 @@ By independently verifying each transaction as it is received and before propaga
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=== Mining Nodes
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Some of the nodes on the bitcoin network are specialized nodes called _miners_. In Chapter 1 we introduced Jing, a computer engineering student in Shanghai, China, who is a bitcoin miner. Jing earns bitcoin by running a "mining rig", which is a specialized computer-hardware system designed to mine bitcoins. Jing's specialized mining hardware is connected to a server running a full bitcoin node. Unlike Jing, some miners mine without a full node as we will see in <<mining pools>>. Like every other full node, Jing's node receives and propagates unconfirmed transactions on the bitcoin network. Jing's node, however, also aggregates these transactions into new blocks.
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Some of the nodes on the bitcoin network are specialized nodes called _miners_. In <<ch01_intro_what_is_bitcoin>> we introduced Jing, a computer engineering student in Shanghai, China, who is a bitcoin miner. Jing earns bitcoin by running a "mining rig", which is a specialized computer-hardware system designed to mine bitcoins. Jing's specialized mining hardware is connected to a server running a full bitcoin node. Unlike Jing, some miners mine without a full node as we will see in <<mining pools>>. Like every other full node, Jing's node receives and propagates unconfirmed transactions on the bitcoin network. Jing's node, however, also aggregates these transactions into new blocks.
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Jing's node is listening for new blocks, propagated on the bitcoin network, as do all nodes. However, the arrival of a new block has special significance for a mining node. The competition among miners effectively ends with the propagation of a new block which acts as an announcement of a winner. To a miner, receiving a new block means someone else won the competition and they lost. However, the end of one round of a competition is also the beginning of the next round. The new block is not just a checkered flag, marking the end of the race, it is also the starting pistol starting the race for the next block.
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