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[preface]
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== Preface
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=== Conventions Used in This Book
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The following typographical conventions are used in this book:
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_Italic_:: Indicates new terms, URLs, email addresses, filenames, and file extensions.
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+Constant width+:: Used for program listings, as well as within paragraphs to refer to program elements such as variable or function names, databases, data types, environment variables, statements, and keywords.
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**`Constant width bold`**:: Shows commands or other text that should be typed literally by the user.
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_++Constant width italic++_:: Shows text that should be replaced with user-supplied values or by values determined by context.
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[TIP]
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====
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This icon signifies a tip, suggestion, or general note.
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====
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[WARNING]
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====
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This icon indicates a warning or caution.
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====
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=== Using Code Examples
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Supplemental material (code examples, exercises, etc.) is available for download at link:$$http://examples.oreilly.com/<ISBN>-files/$$[].
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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.
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We appreciate, but do not require, attribution. An attribution usually includes the title, author, publisher, and ISBN. For example: “_Book Title_ by Some Author (O’Reilly). Copyright 2012 Some Copyright Holder, 978-0-596-xxxx-x.”
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If you feel your use of code examples falls outside fair use or the permission given above, feel free to contact us at pass:[<email>permissions@oreilly.com</email>].
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=== Safari® Books Online
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[role = "safarienabled"]
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[NOTE]
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Technology professionals, software developers, web designers, and business and creative professionals use Safari Books Online as their primary resource for research, problem solving, learning, and certification training.
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=== How to Contact Us
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Please address comments and questions concerning this book to the publisher:
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<remark>Don't forget to update the link above.</remark>
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To comment or ask technical questions about this book, send email to pass:[<email>bookquestions@oreilly.com</email>].
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=== Acknowledgments
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==== Quick Glossary
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This quick glossary contains many of the terms used in relation to bitcoin. These terms are used throughout the book, so bookmark this for a quick reference and clarification.
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address (aka public key)::
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((("bitcoin address")))
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((("address", see="bitcoin address")))
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((("public key", see="bitcoin address")))
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A bitcoin address looks like +1DSrfJdB2AnWaFNgSbv3MZC2m74996JafV+, they always start with a one. You can have as many as you like, share them so people can send you coins.
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bitcoin::
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((("bitcoin")))
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The name of the currency unit (the coin), the network and the software
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block::
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((("block")))
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A grouping of transactions, marked with a timestamp, and a fingerprint of the previous block. The block header is hashed to find a proof-of-work, thereby validating the transactions. Valid blocks are added to the main blockchain by network consensus.
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blockchain::
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((("blockchain")))
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A list of validated blocks, each linking to its predecessor all the way to the genesis block.
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confirmations::
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((("confirmations")))
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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 etc. Six or more confirmations is considered final.
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difficulty::
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((("difficulty")))
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A network-wide setting that controls how much computation is required to find a proof-of-work.
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difficulty target::
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((("target difficulty")))
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A difficulty at which all the computation in the network will find blocks approximately every 10 minutes.
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difficulty re-targetting::
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((("difficulty re-targetting")))
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A network-wide re-calculation of the difficulty which occurs once every 2106 blocks and considers the hashing power of the previous 2106 blocks.
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fees::
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((("fees")))
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An excess amount included in each transaction as a network fee or additional reward to the miner who finds the proof-of-work for the new block. Currently 0.5 mBTC minimum.
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hash::
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((("hash")))
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A digital fingerprint of some binary input.
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genesis block::
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((("genesis block")))
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The first block in the blockchain, used to initialize the crypto-currency
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miner::
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((("miner")))
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A network node that finds valid proof-of-work for new blocks, by repeated hashing
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network::
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((("network")))
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A peer-to-peer network that propagates transactions and blocks to every bitcoin node on the network.
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proof-of-work::
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((("proof-of-work")))
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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.
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reward::
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((("reward")))
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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 25BTC per block.
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secret key (aka private key)::
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((("secret key")))
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((("private key", see="secret key")))
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The secret number that unlocks bitcoins sent to the corresponding address.
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transaction::
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((("transaction")))
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In simple terms, a transfer of bitcoins 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.
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wallet::
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((("wallet")))
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Software that holds all your addresses. Use it to send bitcoin and manage your keys.
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