The BitcoiNews Online Updates!: ScriptsAndCodes

Showing posts with label ScriptsAndCodes. Show all posts

Friday, 19 June 2020

How to get started with litecoin?

How to get started with litecoin?

If you're new to the cryptocurrency world, you'd be forgiven for not having heard of litecoin. The currency, which was created by Charles Lee in 2011, is the second largest digital currency next to bitcoin.

Here is our guide to what you need to know about litecoin.

SO LET'S TALK ABOUT LITECOIN.

Tuesday, 16 February 2016

Bitcoin Transactions – Pay-to-Script-Hash?

Bitcoin Transactions – Pay-to-Script-Hash?

Pay-to-Script-hash, or P2SH, are extension of the multisignature idea but reducing the burden on the Bitcoin infrastructure in terms of storage required.

A common 2-of-3 multisignature transaction can take up to five times as much space as a simple pay to address or pay to public key transaction.

They also reduce the complexity of the encoding, and shift the burden in terms of fees from the sender to the recipient – after all it’s their request to have the complexity in the conditions for the release of the funds.

This is done by transferring the script used to spend the transactions to the and making the hold a hash of the script. This means that a new address has been created – a script address.

Script addresses are not made through the usual process of elliptic curve cryptography but are instead the hash of the of a multi signature transaction. A script address is appended with a value of five before being hashed, resulting in hashed script addresses starting with the number 3 – remember that standard Bitcoin addresses start with a 1 – with other variances for the testnet.

Structuring P2SH transactions should be done with care as an error can make the transaction unspendable. Another important point is that the details of the transaction script are not stored in the blockchain, only the hash, and therefore the creator of the transaction must keep a copy of the script or remember the route to generate the specific hash.

RELATED ARTICLES:

What is the Bitcoin Transactions?
source: http://theriseofthebitcoins.blogspot.com/2016/02/what-is-bitcoin-transaction.html

How does the bitcoin network actually work?
source: http://theriseofthebitcoins.blogspot.com/2016/02/how-does-bitcoin-network-actually-work.html

Bitcoin Transactions – The Scriptsig and Scriptpubkey

source: http://theriseofthebitcoins.blogspot.com/2016/02/bitcoin-transactions-scriptsig-and.html

What are the Bitcoin Transaction types? source: http://theriseofthebitcoins.blogspot.com/2016/02/what-is-bitcoins.html

Bitcoin Transactions – The Scriptsig and Scriptpubkey

The Scriptsig and Scriptpubkey – locking and unlocking a transaction?

The Scriptpubkey is the puzzle set to a transaction in order for it to be solved and the script sig is the solution to the puzzle that allows it to be spent.

Historically the Scriptpubkey was named so as it contained the public key or address to be spent from – i.e. the address the transaction was locked to. The scriptsig was called so due to its need to contain the signature – i.e. the private key of the address that wants to spend and to which the address in the scriptpubkey was locked to.

The Bitcoin transaction script language is a stack based execution language – to layman this is a very basic form of language that doesn’t contain loops and is Turing incomplete (i.e. can’t with an unlimited amount of memory, processing power and time solve everything) – it is designed for one purpose. The stack based execution language has a few important benefits such as its simplicity and minimal processing.

The script language processes from left to right. Numbers are pushed onto the stack and then operated acted on by the next function. There are conditional operators which give the result true or false which in the case of validating a transaction are true if the signature is valid.

The above example is the process of a simple pay to public key hash transaction.

The above transaction shows the stack based operating procedure for resolving the transaction

– i.e. unlocking it and spending it. To see the process in more detail see our different types of bitcoin transactions and the P2PKH – pay to public key hash transaction type.

RELATED ARTICLES:

What is the Bitcoin Transactions?
source: http://theriseofthebitcoins.blogspot.com/2016/02/what-is-bitcoin-transaction.html

How does the bitcoin network actually work?
source: http://theriseofthebitcoins.blogspot.com/2016/02/how-does-bitcoin-network-actually-work.html

What is Bitcoin Transaction malleability – MT GOX?

What is Bitcoin Transaction malleability – MT GOX?

Transaction malleability is a loophole in the bitcoin protocol that was most famously used in February 2014 to allegedly withdraw funds from Mt Gox.

The idea behind transaction malleability is that a user who is tracking transactions via their hash would not be able to trace the transaction if the hash was changed.

The risk could have been easily mitigated through simplistic internal checks and balances.

A transaction is in the blockchain is referred to by its hash, and their value is included in the merkle tree for that block. A transaction is also signed by the private key associated with the transaction input. So if the transaction can be altered before being hashed and signed with the signature and then propagated to the network – the sender would not be able to track the transaction as its hash has been altered.

The attackers using transaction malleability against Mt Gox would request a withdrawal. When they received a hash of the transaction from the Company they would alter it by changing the whilst using the and re-flooding the network with this new transaction. Mt Gox would then look for their transaction and assume there was an issue and resubmit the funds to the user.

The user could then repeat this attack. Their flaw was that if they didn’t manage to propagate their updated transaction quick enough then they would still receive the Bitcoin but wouldn’t receive the extra funds. In this case they just tried again – they hadn’t lost much – just a bit of time.

This meant that Mt Gox’s funds were gradually leached away. However basic accounting checks and reports would have been able to detect this breach or loophole. In fact when summing up the process this was due to a lack of oversight by the management.

HOW does the bitcoin network actually work ?

The Bitcoin network is a peer to peer network (P2P) or a decentralised network with no central point of failure or command. All the nodes, or computers, that participate in the network are equal – there is no hierarchy – or no topology as the network is flat. read more here.

thanks for reading ! hope you like it !

Wednesday, 10 February 2016

What is Litecoin?

Litecoin is a peer-to-peer Internet currency that enables instant, near-zero cost payments to anyone in the world. Litecoin is an open source, global payment network that is fully decentralized without any central authorities. Mathematics secures the network and empowers individuals to control their own finances. Litecoin features faster transaction confirmation times and improved storage efficiency than the leading math-based currency. With substantial industry support, trade volume and liquidity, Litecoin is a proven medium of commerce complementary to Bitcoin.

Open Source Software

Litecoin is an open source software project released under the MIT/X11 license which gives you the power to run, modify, and copy the software and to distribute, at your option, modified copies of the software. The software is released in a transparent process that allows for independent verification of binaries and their corresponding source code.

Related Articles: How to get started with Litecoin?

Download the list of software here.