Merge branch 'second_edition'

.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

README.md

@@ -8,6 +8,16 @@ This repository contains the complete [first edition](https://github.com/bitcoin
 
 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/
 
+# Reading this book (Where is the PDF?)
+
+To read this book, see 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:

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 <<satoshi_whitepaper>>). 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:

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 (<<view_alice_transaction>>):
@@ -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 <<getting_first_bitcoin>>). 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 <<getting_first_bitcoin>>). 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. <<example_2-2>> 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")))

ch03.asciidoc

@@ -774,6 +774,9 @@ https://github.com/bitcoinjs/bitcoinjs-lib[BitcoinJS] :: A pure JavaScript Bitco
 https://bitcoinj.github.io[bitcoinj]:: A Java full-node client library
 https://bitsofproof.com[Bits of Proof (BOP)]:: A Java enterprise-class implementation of bitcoin
 
+==== PHP
+https://github.com/bit-wasp/bitcoin-php[bitwasp/bitcoin]:: A PHP bitcoin library, and related projects
+
 ==== Python
 https://github.com/petertodd/python-bitcoinlib[python-bitcoinlib]::  A Python bitcoin library, consensus library, and node by Peter Todd
 https://github.com/richardkiss/pycoin[pycoin]:: A Python bitcoin library by Richard Kiss

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 <<elliptic_curve>>). 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 <<elliptic_curve>>). 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]
 ====

ch05.asciidoc

@@ -453,10 +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 grandchild private key from the first child (m/0)
-| m/0'/0 | The first normal grandchild of the first _hardened_ 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 of the second child (m/1)
+| 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 of the first great-grandchild of the 18th grandchild of the 24th child
+| 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

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 <<transactions_behind_the_scenes>>. The transaction inputs are an array (list) called +vin+:
 
@@ -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
+| ALL\|ANYONECANPAY | 0x81 | Signature applies to one input and all outputs
-| NONE\|ANYONECANPAY | 0x82 | Signature applies to one inputs, none of the 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
 |=======================
 

ch07.asciidoc

@@ -172,7 +172,7 @@ P2SH addresses hide all of the complexity, so that the person making a payment d
 * Complex scripts are replaced by shorter fingerprints in the transaction output, making the transaction smaller.
 * Scripts can be coded as an address, so the sender and the sender's wallet don't need complex engineering to implement P2SH.
 * P2SH shifts the burden of constructing the script to the recipient, not the sender.
-* P2SH shifts the burden in data storage for the long script from the output (which is in the UTXO set) to the input (stored on the blockchain).
+* P2SH shifts the burden in data storage for the long script from the output (which additionally to being stored on the blockchain is in the UTXO set) to the input (only stored on the blockchain).
 * P2SH shifts the burden in data storage for the long script from the present time (payment) to a future time (when it is spent).
 * P2SH shifts the transaction fee cost of a long script from the sender to the recipient, who has to include the long redeem script to spend it.
 
@@ -251,7 +251,7 @@ It is important to understand the limitations of transaction +nLocktime+. The on
 
 ==== Check Lock Time Verify (CLTV)
 
-((("Check Lock Time Verify (CLTV)", id="cltv07")))((("timelocks", "Check Lock Time Verify (CLTV)")))((("scripting", "timelocks", "Check Lock Time Verify (CLTV)")))((("bitcoin improvement proposals", "CHECKLOCKTIMEVERIFY (BIP-65)")))In December 2015, a new form of timelock was introduced to bitcoin as a soft fork upgrade. Based on a specifications in BIP-65, a new script operator called _CHECKLOCKTIMEVERIFY_ (_CLTV_) was added to the scripting language. +CLTV+ is a per-output timelock, rather than a per-transaction timelock as is the case with +nLocktime+. This allows for much greater flexibility in the way timelocks are applied.
+((("Check Lock Time Verify (CLTV)", id="cltv07")))((("timelocks", "Check Lock Time Verify (CLTV)")))((("scripting", "timelocks", "Check Lock Time Verify (CLTV)")))((("bitcoin improvement proposals", "CHECKLOCKTIMEVERIFY (BIP-65)")))In December 2015, a new form of timelock was introduced to bitcoin as a soft fork upgrade. Based on a specification in BIP-65, a new script operator called _CHECKLOCKTIMEVERIFY_ (_CLTV_) was added to the scripting language. +CLTV+ is a per-output timelock, rather than a per-transaction timelock as is the case with +nLocktime+. This allows for much greater flexibility in the way timelocks are applied.
 
 In simple terms, by adding the +CLTV+ opcode in the redeem script of an output it restricts the output, so that it can only be spent after the specified time has elapsed.
 

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. <<block_structure1>> 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. <<block_structure1>> 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:[<span role="keep-together"><em>block height</em>. The first block ever created is at block height 0 (zero) and is the</span>] pass:[<span role="keep-together">same block that was previously referenced by the following block hash</span>] +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:[<span role="keep-together"><em>block height</em>. The first block ever created is at block height 0 (zero) and is the</span>] pass:[<span role="keep-together">same block that was previously referenced by the following block hash</span>] +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 <<forks>>. 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 <<segwit>>), 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 <<segwit>>). Therefore, testnet3 can also be used to test Segregated Witness features.((("", startref="testnet09")))
 
 ==== Segnet&#x2014;The Segregated Witness Testnet
 

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.
 
@@ -426,13 +426,13 @@ IF
 ELSE
     # Refund after timeout.
     <locktime> CHECKLOCKTIMEVERIFY DROP
-    <Payee Pubic Key> CHECKSIG
+    <Payee Public Key> CHECKSIG
 ENDIF
 ----
 
 Anyone who knows the secret +R+, which when hashed equals to +H+, can redeem this output by exercising the first clause of the +IF+ flow.
 
-If the secret is not revealed and the HTLC claimed, after a certain number of blocks the payee can claim a refund using the second clause in the +IF+ flow.
+If the secret is not revealed and the HTLC claimed, after a certain number of blocks the payer can claim a refund using the second clause in the +IF+ flow.
 
 This is a basic implementation of an HTLC. This type of HTLC can be redeemed by _anyone_ who has the secret +R+. An HTLC can take many different forms with slight variations to the script. For example, adding a +CHECKSIG+ operator and a public key in the first clause restricts redemption of the hash to a named recipient, who must also know the secret +R+.((("", startref="BCApayment12")))
 

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')
 
 

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 

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

preface.asciidoc

@@ -63,7 +63,7 @@ All the code snippets use real values and calculations where possible, so that y
 
 This book is here to help you get your job done. In general, if example code is offered with this book, you may use it in your programs and documentation. You do not need to contact us for permission unless you’re reproducing a significant portion of the code. For example, writing a program that uses several chunks of code from this book does not require permission. Selling or distributing a CD-ROM of examples from O’Reilly books does require permission. Answering a question by citing this book and quoting example code does not require permission. Incorporating a significant amount of example code from this book into your product’s documentation does require permission.
 
-((("attribution")))We appreciate, but do not require, attribution. An attribution usually includes the title, author, publisher, and ISBN. For example: “_Mastering Bitcoin_ by Andreas M. Antonopoulos (O’Reilly). Copyright 2017 Andreas M. Antonopoulos, 978-1-491-95438-6.”
+((("attribution")))We appreciate, but do not require, attribution. An attribution usually includes the title, author, publisher, and ISBN. For example: “_Mastering Bitcoin_ by Andreas M. Antonopoulos (O’Reilly). Copyright 2018 Andreas M. Antonopoulos, 978-1-491-95438-6.”
 
 ((("open source licenses")))Some editions of this book are offered under an open source license, such as https://creativecommons.org/licenses/by-nc/4.0/[CC-BY-NC], in which case the terms of that license apply.
 
@@ -183,6 +183,7 @@ Following is a list of notable GitHub contributors, including their GitHub ID in
 * Cragin Godley (cgodley)
 * Craig Dodd (cdodd)
 * dallyshalla
+* Darius Kramer (dkrmr)
 * Diego Viola (diegoviola)
 * Dirk Jäckel (biafra23)
 * Dimitris Tsapakidis (dimitris-t)
@@ -206,6 +207,7 @@ Following is a list of notable GitHub contributors, including their GitHub ID in
 * Holger Schinzel (schinzelh)
 * Ioannis Cherouvim (cherouvim)
 * Ish Ot Jr. (ishotjr)
+* ivangreene
 * James Addison (jayaddison)
 * Jameson Lopp (jlopp)
 * Jason Bisterfeldt (jbisterfeldt)
@@ -218,6 +220,7 @@ Following is a list of notable GitHub contributors, including their GitHub ID in
 * Jonathan Cross (jonathancross)
 * Jorgeminator
 * Kai Bakker (kaibakker)
+* Magomed Aliev (30mb1)
 * Mai-Hsuan Chia (mhchia)
 * marcofalke
 * Marzig (marzig76)
@@ -229,6 +232,7 @@ Following is a list of notable GitHub contributors, including their GitHub ID in
 * Minh T. Nguyen (enderminh)
 * Nagaraj Hubli (nagarajhubli)
 * Nekomata (nekomata-3)
+* Philipp Gille (philippgille)
 * Robert Furse (Rfurse)
 * Richard Kiss (richardkiss)
 * Ruben Alexander (hizzvizz)
@@ -239,6 +243,7 @@ Following is a list of notable GitHub contributors, including their GitHub ID in
 * Stephan Oeste (Emzy)
 * takaya-imai
 * Thiago Arrais (thiagoarrais)
+* Thomas Kerin (afk11)
 * venzen
 * Will Binns (wbnns)
 * wintercooled