Mastering Bitcoin, 3E (for True Epub)

Preface
   Writing the Bitcoin Book
   Intended Audience
   Why Are There Bugs on the Cover?
   Conventions Used in This Book
   Code Examples
   Using Code Examples
   Changes Since the Previous Edition
   Bitcoin Addresses and Transactions in This Book
   O’Reilly Online Learning
   How to Contact Us
   Contacting the Authors
   Acknowledgments for the First and Second Editions
   Acknowledgments for the Third Edition
   Early Release Draft (GitHub Contributions)
1. Introduction
   History of Bitcoin
   Getting Started
      Choosing a Bitcoin Wallet
         Types of Bitcoin wallets
         Full node versus Lightweight
         Who controls the keys
      Quick Start
      Recovery Codes
      Bitcoin Addresses
      Receiving Bitcoin
      Getting Your First Bitcoin
      Finding the Current Price of Bitcoin
      Sending and Receiving Bitcoin
2. How Bitcoin Works
   Bitcoin Overview
   Buying from an Online Store
   Bitcoin Transactions
      Transaction Inputs and Outputs
      Transaction Chains
      Making Change
      Coin Selection
      Common Transaction Forms
   Constructing a Transaction
      Getting the Right Inputs
      Creating the Outputs
      Adding the Transaction to the Blockchain
         Transmitting the transaction
         How it propagates
         Bob’s view
   Bitcoin Mining
   Spending the Transaction
3. Bitcoin Core: The Reference Implementation
   From Bitcoin to Bitcoin Core
   Bitcoin Development Environment
   Compiling Bitcoin Core from the Source Code
      Selecting a Bitcoin Core Release
      Configuring the Bitcoin Core Build
      Building the Bitcoin Core Executables
   Running a Bitcoin Core Node
   Configuring the Bitcoin Core Node
   Bitcoin Core API
      Getting Information on Bitcoin Core’s Status
      Exploring and Decoding Transactions
      Exploring Blocks
      Using Bitcoin Core’s Programmatic Interface
   Alternative Clients, Libraries, and Toolkits
      C/C++
      JavaScript
      Java
      Python
      Go
      Rust
      Scala
      C#
4. Keys and Addresses
   Public Key Cryptography
      Private Keys
      Elliptic Curve Cryptography Explained
      Public Keys
   Output and Input Scripts
   IP Addresses: The Original Address for Bitcoin (P2PK)
   Legacy Addresses for P2PKH
   Base58check Encoding
   Compressed Public Keys
   Legacy Pay to Script Hash (P2SH)
   Bech32 Addresses
      Problems with Bech32 Addresses
      Bech32m
      Private Key Formats
      Compressed Private Keys
   Advanced Keys and Addresses
      Vanity Addresses
         Generating vanity addresses
         Vanity address security and privacy
      Paper Wallets
5. Wallet Recovery
   Independent Key Generation
      Deterministic Key Generation
      Public Child Key Derivation
      Hierarchical Deterministic (HD) Key Generation (BIP32)
      Seeds and Recovery Codes
      Backing Up Nonkey Data
      Backing Up Key Derivation Paths
   A Wallet Technology Stack in Detail
      BIP39 Recovery Codes
         Generating a recovery code
         From recovery code to seed
         Optional passphrase in BIP39
      Creating an HD Wallet from the Seed
         Private child key derivation
         Using derived child keys
         Extended keys
         Public child key derivation
      Using an Extended Public Key on a Web Store
         Hardened child key derivation
         Index numbers for normal and hardened derivation
         HD wallet key identifier (path)
         Navigating the HD wallet tree structure
6. Transactions
   A Serialized Bitcoin Transaction
   Version
   Extended Marker and Flag
   Inputs
      Length of Transaction Input List
      Outpoint
      Input Script
      Sequence
         Original sequence-based transaction replacement
         Opt-in transaction replacement signaling
         Sequence as a consensus-enforced relative timelock
   Outputs
      Outputs Count
      Amount
         Uneconomical outputs and disallowed dust
      Output Scripts
   Witness Structure
      Circular Dependencies
      Third-Party Transaction Malleability
      Second-Party Transaction Malleability
      Segregated Witness
      Witness Structure Serialization
   Lock Time
   Coinbase Transactions
   Weight and Vbytes
   Legacy Serialization
7. Authorization and Authentication
   Transaction Scripts and Script Language
      Turing Incompleteness
      Stateless Verification
      Script Construction
         The script execution stack
         A simple script
         Separate execution of output and input scripts
      Pay to Public Key Hash
   Scripted Multisignatures
      An Oddity in CHECKMULTISIG Execution
   Pay to Script Hash
      P2SH Addresses
      Benefits of P2SH
      Redeem Script and Validation
   Data Recording Output (OP_RETURN)
      Transaction Lock Time Limitations
      Check Lock Time Verify (OP_CLTV)
      Relative Timelocks
      Relative Timelocks with OP_CSV
   Scripts with Flow Control (Conditional Clauses)
      Conditional Clauses with VERIFY Opcodes
      Using Flow Control in Scripts
   Complex Script Example
      Segregated Witness Output and Transaction Examples
         Pay to witness public key hash (P2WPKH)
         Wallet construction of P2WPKH
         Pay to witness script hash (P2WSH)
         Differentiating between P2WPKH and P2WSH
      Upgrading to Segregated Witness
         Embedding segregated witness inside P2SH
         Nested pay to witness public key hash
         Nested pay to witness script hash
   Merklized Alternative Script Trees (MAST)
   Pay to Contract (P2C)
   Scriptless Multisignatures and Threshold Signatures
   Taproot
   Tapscript
8. Digital Signatures
   How Digital Signatures Work
      Creating a Digital Signature
      Verifying the Signature
      Signature Hash Types (SIGHASH)
   Schnorr Signatures
      Serialization of Schnorr Signatures
      Schnorr-based Scriptless Multisignatures
      Schnorr-based Scriptless Threshold Signatures
   ECDSA Signatures
      ECDSA Algorithm
      Serialization of ECDSA Signatures (DER)
   The Importance of Randomness in Signatures
   Segregated Witness’s New Signing Algorithm
9. Transaction Fees
   Who Pays the Transaction Fee?
   Fees and Fee Rates
   Estimating Appropriate Fee Rates
   Replace By Fee (RBF) Fee Bumping
   Child Pays for Parent (CPFP) Fee Bumping
   Package Relay
   Transaction Pinning
   CPFP Carve Out and Anchor Outputs
   Adding Fees to Transactions
   Timelock Defense Against Fee Sniping
10. The Bitcoin Network
   Node Types and Roles
   The Network
   Compact Block Relay
   Private Block Relay Networks
   Network Discovery
   Full Nodes
   Exchanging “Inventory”
   Lightweight Clients
   Bloom Filters
      How Bloom Filters Work
      How Lightweight Clients Use Bloom Filters
   Compact Block Filters
      Golomb-Rice Coded Sets (GCS)
      What Data to Include in a Block Filter
      Downloading Block Filters from Multiple Peers
      Reducing Bandwidth with Lossy Encoding
      Using Compact Block Filters
   Lightweight Clients and Privacy
   Encrypted and Authenticated Connections
   Mempools and Orphan Pools
11. The Blockchain
   Structure of a Block
   Block Header
   Block Identifiers: Block Header Hash and Block Height
   The Genesis Block
   Linking Blocks in the Blockchain
   Merkle Trees
   Merkle Trees and Lightweight Clients
   Bitcoin’s Test Blockchains
      Testnet: Bitcoin’s Testing Playground
         Using testnet
         Problems with testnet
      Signet: The Proof of Authority Testnet
         The default signet and custom signets
      Regtest: The Local Blockchain
   Using Test Blockchains for Development
12. Mining and Consensus
   Bitcoin Economics and Currency Creation
   Decentralized Consensus
   Independent Verification of Transactions
   Mining Nodes
      The Coinbase Transaction
      Coinbase Reward and Fees
      Structure of the Coinbase Transaction
      Coinbase Data
   Constructing the Block Header
   Mining the Block
      Proof-of-Work Algorithm
      Target Representation
      Retargeting to Adjust Difficulty
   Median Time Past (MTP)
   Successfully Mining the Block
   Validating a New Block
   Assembling and Selecting Chains of Blocks
   Mining and the Hash Lottery
      The Extra Nonce Solution
      Mining Pools
         Managed pools
         Peer-to-peer mining pool (P2Pool)
   Hashrate Attacks
   Changing the Consensus Rules
      Hard Forks
         Hard forks: Software, network, mining, and chain
         Diverging miners and difficulty
         Contentious hard forks
      Soft Forks
         Criticisms of soft forks
         Soft fork signaling with block version
         BIP34: Signaling and activation
         BIP9: Signaling and activation
         BIP8: Mandatory lock-in with early activation
         Speedy trial: Fail fast or succeed eventually
      Consensus Software Development
13. Bitcoin Security
   Security Principles
      Developing Bitcoin Systems Securely
      The Root of Trust
   User Security Best Practices
      Physical Bitcoin Storage
      Hardware Signing Devices
      Ensuring Your Access
      Diversifying Risk
      Multisig and Governance
      Survivability
14. Second-Layer Applications
   Building Blocks (Primitives)
   Applications from Building Blocks
   Colored Coins
      Single-Use Seals
      Pay to Contract (P2C)
      Client-Side Validation
      RGB
      Taproot Assets
   Payment Channels and State Channels
      State Channels—Basic Concepts and Terminology
      Simple Payment Channel Example
      Making Trustless Channels
      Asymmetric Revocable Commitments
      Hash Time Lock Contracts (HTLC)
   Routed Payment Channels (Lightning Network)
      Basic Lightning Network Example
      Lightning Network Transport and Pathfinding
      Lightning Network Benefits
A. The Bitcoin Whitepaper by Satoshi Nakamoto
   Bitcoin - A Peer-to-Peer Electronic Cash System
      Introduction
      Transactions
      Timestamp Server
      Proof-of-Work
      Network
      Incentive
      Reclaiming Disk Space
      Simplified Payment Verification
      Combining and Splitting Value
      Privacy
      Calculations
      Conclusion
      References
   License
B. Errata to the Bitcoin Whitepaper
   Abstract
   Transactions
   Proof of Work
   Reclaiming Disk Space
   Simplified Payment Verification
   Privacy
   Calculations
C. Bitcoin Improvement Proposals
Index