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CH05: edits suggested by arufino (thanks!)
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@ -29,14 +29,15 @@ control the keys, you can can spend the associated bitcoins.
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Simple wallet databases contain both the public keys to which bitcoins
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are received and the private keys which allow creating the signatures
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necessary to authorize spending those bitcoins. Other wallets databases
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necessary to authorize spending those bitcoins. Other wallet's databases
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may contain only public keys, or only some of the private keys necessary
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to authorize a spending transaction. Their wallet applications produce
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the necessary signatures by working with external tools, such as
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hardware signing devices or other wallets in a multi-signature scheme.
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It's possible for a wallet application to independently generate each of
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the wallet keys it later plans to use. All early Bitcoin wallet applications did
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the wallet keys it later plans to use, as illustrated in
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<<Type0_wallet>>. All early Bitcoin wallet applications did
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this, but this required users back up the wallet database each time they
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generated and distributed new keys, which could be as often as each time
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they generated a new address to receive a new payment. Failure to back
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@ -201,7 +202,7 @@ We'll provide a detailed exploration of HD wallets in <<hd_wallet_details>>.
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((("wallets", "technology of", "seeds and recovery codes")))((("recovery
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code words")))((("bitcoin improvement proposals", "Recovery Code Words
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(BIP39)")))HD wallets are a very powerful mechanism for managing many
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keys and addresses all derived from a single seed. If your wallet database
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keys all derived from a single seed. If your wallet database
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is ever corrupted or lost, you can regenerate all of the private keys
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for your wallet using your original seed. But, if someone else gets
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your seed, they can also generate all of the private keys, allowing them
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@ -218,6 +219,7 @@ words in <<hex_seed_vs_recovery_words>>.
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[[hex_seed_vs_recovery_words]]
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.A seed encoded in hex and in English words
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====
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----
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Hex-encoded:
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0C1E 24E5 9177 79D2 97E1 4D45 F14E 1A1A
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@ -226,6 +228,7 @@ Word-encoded:
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army van defense carry jealous true
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garbage claim echo media make crunch
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----
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====
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There may be cases where remembering a recovery code is a powerful
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feature, such as when you are unable to transport physical belongings
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@ -409,8 +412,10 @@ also add other useful information to transactions, such as the current
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exchange rate, which can be useful for calculating taxes in some
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jurisdictions. These labels are stored entirely within their own
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wallets--not shared with the network--protecting their privacy
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and keeping unnecessary personal data out of the blockchain.
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and keeping unnecessary personal data out of the blockchain. For
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an example, see <<alice_tx_labels>>.
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[[alice_tx_labels]]
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.Alice's transaction history with each transaction labeled
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[cols="1,1,1"]
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|===
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@ -1360,3 +1365,13 @@ a few more examples.
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| M/44++'++/0++'++/3++'++/1/14 | The fifteenth change-address public key for the fourth bitcoin account
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| m/44++'++/2++'++/0++'++/0/1 | The second private key in the Litecoin main account, for signing transactions
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|=======
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Many people focus on securing their bitcoins against theft and other
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attacks, but one of the leading causes of lost bitcoins--perhaps _the_
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leading cause--is data loss. If the keys and other essential data
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required to spend your bitcoins is lost, those bitcoins will forever be
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unspendable. Nobody can get them back for you. In this chapter, we
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looked at the systems that modern wallet applications use to help you
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prevent losing that data. Remember, however, that it's up to you to
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actually use the systems available to make good backups and regularly
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test them.
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