@ -121,9 +121,9 @@ For the purposes of this book, we will be demonstrating the use of a variety of
==== Quick Start
((("getting started", "quick start example", id="GSquick01")))((("wallets", "quick start example", id="Wquick01")))((("use cases", "buying coffee", id="aliceone")))Alice, who we introduced in <<user-stories>>, is not a technical user and only recently heard about bitcoin from her friend Joe. While at a party, Joe is once again enthusiastically explaining bitcoin to all around him and is offering a demonstration. Intrigued, Alice asks how she can get started with bitcoin. Joe says that a mobile wallet is best for new users and he recommends a few of his favorite wallets. Alice downloads "Bluewallet" for Android and installs it on her phone.
((("getting started", "quick start example", id="GSquick01")))((("wallets", "quick start example", id="Wquick01")))((("use cases", "buying coffee", id="aliceone")))Alice, who we introduced in <<user-stories>>, is not a technical user and only recently heard about bitcoin from her friend Joe. While at a party, Joe is once again enthusiastically explaining bitcoin to all around him and is offering a demonstration. Intrigued, Alice asks how she can get started with bitcoin. Joe says that a mobile wallet is best for new users and he recommends a few of his favorite wallets. Alice downloads "Bluewallet" (available for iOS and Android) and installs it on her phone.
When Alice runs Bluewallet for the first time, she chooses the option to create a new Bitcoin wallet, and takes a moment **away from Joe and all other parties** to write down a secret mnemonic phrase _in order_ on a piece of paper. As explained by the mobile wallet and by Joe earlier, the mnemonic phrase allows Alice to restore her wallet in case she loses her mobile device and grants her access to her funds on another device. After creating her wallet and securing her mnemonic phrase, Alice can tap on her wallet to see her bitcoin amount, transaction history, as well as two buttons that allow her to either _receive_ or _send_ bitcoin, shown in <<bluewallet-welcome>>.
When Alice runs her wallet application for the first time, she chooses the option to create a new Bitcoin wallet, and takes a moment **away from Joe and all other parties** to write down a secret mnemonic phrase _in order_ on a piece of paper. As explained by the mobile wallet and by Joe earlier, the mnemonic phrase allows Alice to restore her wallet in case she loses her mobile device and grants her access to her funds on another device. After creating her wallet and securing her mnemonic phrase, Alice can tap on her wallet to see her bitcoin amount, transaction history, as well as two buttons that allow her to either _receive_ or _send_ bitcoin, shown in <<bluewallet-welcome>>.
==== Mnemonic Words
@ -161,7 +161,6 @@ Alice uses the _Receive_ button, which displays a QR code along with a bitcoin a
((("addresses", "security of")))((("security", "bitcoin addresses")))Bitcoin addresses start with 1, 3, or bc1. Like email addresses, they can be shared with other bitcoin users who can use them to send bitcoin directly to your wallet. There is nothing sensitive, from a security perspective, about the bitcoin address. It can be posted anywhere without risking the security of the account. Unlike email addresses, you can create new addresses as often as you like, all of which will direct funds to your wallet. In fact, many modern wallets automatically create a new address for every transaction to maximize privacy. A wallet is simply a collection of addresses and the keys that unlock the funds within.
====
Alice is now ready to receive funds. Her wallet application randomly generated a private key together with its corresponding bitcoin address. At this point, her bitcoin address is not known to the bitcoin network or "registered" with any part of the bitcoin system. Her bitcoin address is simply a number that corresponds to a key that she can use to control access to the funds. It was generated independently by her wallet without reference or registration with any service. In fact, in most wallets, there is no association between the bitcoin address and any externally identifiable information including the user's identity. Until the moment this address is referenced as the recipient of value in a transaction posted on the bitcoin ledger, the bitcoin address is simply part of the vast number of possible addresses that are valid in bitcoin. Only once it has been associated with a transaction does it become part of the known addresses in the network.
[[getting_first_bitcoin]]
==== Getting Her First Bitcoin
@ -174,7 +173,6 @@ There are several ways Alice can acquire bitcoin:
* She can offer her skills or a product she sells and accepts payment in bitcoin
* She can ask her employer or clients to pay her in bitcoin
All of these methods have varying degrees of difficulty, and many will involve paying a fee. Some will also require Alice to provide identification documents to comply with local banking regulations. However, with all these methods, Alice will be able to receive bitcoin.
[TIP]
@ -212,19 +210,19 @@ Joe then selects Send on his smartphone wallet and is presented with a screen co
In the input field for the bitcoin address, there is a small icon that looks like a QR code. This allows Joe to scan the barcode with his smartphone camera so that he doesn't have to type in Alice's bitcoin address, which is quite long and difficult to type. Joe taps the QR code icon and activates the smartphone camera, scanning the QR code displayed on Alice's smartphone.
Joe now has Alice's bitcoin address set as the recipient. Joe enters the amount as $10 US dollars and his wallet converts it by accessing the most recent exchange rate from an online service. The exchange rate at the time is $100 US dollars per bitcoin, so $10 US dollars is worth 0.10 bitcoin (BTC), or 100 millibitcoin (mBTC) as shown in the screenshot from Joe's wallet (see <<airbitz-mobile-send>>).
Joe now has Alice's bitcoin address set as the recipient. Joe enters the amount as $10 US dollars and his wallet converts it by accessing the most recent exchange rate from an online service. The exchange rate at the time is $100 US dollars per bitcoin, so $10 US dollars is worth 0.10 bitcoin (BTC), or 100 millibitcoin (mBTC) as shown in the screenshot from Joe's wallet (see <<electrum-mobile-send>>).
[TIP]
====
The price of bitcoin has changed a lot over time, and an incredible amount since the first edition of this book was written. As of March 2021, a person would need approximately $54,000 USD to purchase one whole bitcoin. Many examples in this book reference real-life past transactions, when the price of bitcoin was much lower. Think about how generous of a friend Joe would have been if he had made the same agreement with Alice today!
====
[[airbitz-mobile-send]]
[[electrum-mobile-send]]
[role="smallereighty"]
.Airbitz mobile bitcoin wallet send screen
image::images/mbc2_0102.png["airbitz mobile send screen"]
.Electrum mobile bitcoin wallet send screen
image::images/ew_0101.png["electrum mobile send screen"]
Joe then carefully checks to make sure he has entered the correct amount, because he is about to transmit money and mistakes are irreversible. After double-checking the address and amount, he presses Send to transmit the transaction. Joe's mobile bitcoin wallet constructs a transaction that assigns 0.10 BTC to the address provided by Alice, sourcing the funds from Joe's wallet and signing the transaction with Joe's private keys. This tells the bitcoin network that Joe has authorized a transfer of value to Alice's new address. As the transaction is transmitted via the peer-to-peer protocol, it quickly propagates across the bitcoin network. In less than a second, most of the well-connected nodes in the network receive the transaction and see Alice's address for the first time.
Using Electrum Wallet (available on Android), Joe then carefully checks to make sure he has entered the correct amount, because he is about to transmit money and mistakes are irreversible. After double-checking the address and amount, he presses Send to transmit the transaction. Joe's mobile bitcoin wallet constructs a transaction that assigns 0.10 BTC to the address provided by Alice, sourcing the funds from Joe's wallet and signing the transaction with Joe's private keys. This tells the bitcoin network that Joe has authorized a transfer of value to Alice's new address. As the transaction is transmitted via the peer-to-peer protocol, it quickly propagates across the bitcoin network. In less than a second, most of the well-connected nodes in the network receive the transaction and see Alice's address for the first time.
Meanwhile, Alice's wallet is constantly "listening" to published transactions on the bitcoin network, looking for any that match the addresses it contains. A few seconds after Joe's wallet transmits the transaction, Alice's wallet will indicate that it is receiving 0.10 BTC.
krupawan5618
3 years ago
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