Bitcoin Protocol - Meetup #2 - 2022-07-14

Transcript

1. Meetup # 2 – July 14, 2022
2. 2 Agenda Introductions My background Purpose: Share knowledge while discussing tools, resources, and benefits of the Bitcoin network for advancing humankind. Peer to peer networking with other bitcoiners in order to grow adoption by small local businesses within our community, in a decentralized "grass roots" fashion. Location: Lamppost Cofee (Mention Oshi App) Library $179 / hour Baca Center ½ that price Bars / Restaurants Rules: No shitcoining No pictures/video unless we agree ahead of time Be respectful to the establishment / families Points of order: Peer to Peer transactions Onboard local businesses Have fun! Questions: Who has made an on-chain bitcoin transaction? Who has made a lightning transaction? Who here is running a bitcoin full node? Who here has used a peer to peer service to buy non-kyc bitcoin? Who here is living on a bitcoin standard (or at least trying to)?
3. 3 What is bitcoin? Open Source Software Protocol • Released in 2009 • Anonymous creator(s) Satoshi Nakamoto • “A Peer-to-Peer Electronic Cash System” • Solves the “Double spend” problem
4. 4 What are the main pieces of the bitcoin protocol? Software (code) Bitcoin Core (reference implementation) Libbitcoin Bitcoin-S Nodes Mining Nodes (Proof of work) Economic Nodes (Transaction verification) Wallets (private keys, signatures, xpubs) Transactions Decentralized Ledger (a.k.a. The Blockchain) UTXOS – Unspent Transaction Outputs Smallest unit is a satoshi Consensus Mechanism Hard cap 21m bitcoin (~18m already mined) Nakamoto consensus (e.g. longest valid chain)
5. 5 What are the most common types of bitcoin scripts & address types? Scripts Locking and Unlocking Each UTXO contains a locking and unlocking script P2PK (Pay to Pub Key) Simplest bitcoin transaction script (used in early coinbase transactions) P2PKH (Pay to Pubkey Hash) Contains a hashed public key Checksum Short conversion to base58 (less data) Addresses start with a 1 P2SH(Pay to Script Hash) Allows you to lock bitcoins to a hash of a script Used in multisig Easier to share complex locking scripts A little more compact and private Addresses start with a 3 Segwit (P2SH-P2WPKH, P2SH-P2WSH, Bech32) Segregates the witness data Used in lightning (transaction malleability) Bech32 Addresses start with ‘bc”