Bitcoin for the Befuddled by Conrad Barski, Chris Wilmer PDF

By Conrad Barski, Chris Wilmer

ISBN-10: 1593276532

ISBN-13: 9781593276539

Bitcoin for the Befuddled demystifies the most well-liked net foreign money with transparent reasons and comics.

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Extra resources for Bitcoin for the Befuddled

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Two-factor authentication requires the use of a phone, or another secondary device, in addition to a username and password. 2 For this reason, at this time we recommend that you do not trust any third parties with large amounts of bitcoins. Also, note that hosted wallets offer the least amount of privacy when you use bitcoins, because the provider knows who you are, the number of bitcoins you have, and all of your incoming and outgoing transactions. 2. Some services now offer insured deposits, which may reassure some users in countries with robust legal systems.

The most recently added block has a depth of 1, the block behind it has a depth of 2, and so on. The number of confirmations a transaction has is equal to the depth of its block. So a transaction that has not been added to the blockchain (yet) has zero confirmations; it has one confirmation when it is added in a new block; it has two confirmations when a block is added ahead of it; and so on. The concept is simple enough, but why do merchants require transaction confirmations? For low-value transactions, such as buying a cup of coffee, merchants normally forgo the transaction confirmation.

Because we don’t normally think about how digital payment systems work, it is not unusual that the Bitcoin system is befuddling and complicated to most. After reading this chapter, you should have a fairly good idea of how the entire system works. In later chapters, we’ll delve further into certain details, such as the specific hardware and programs that Bitcoin miners use; however, the overall explanation of the Bitcoin system will not change from how it is described in this chapter. ­ Bitcoin Basics 27 3 S t o r i n g Y o u r B i t c o i n s S a f e ly, S e c u r e ly, a n d C o n v e n i e n t ly Unfortunately, nothing can be protected against loss with 100 percent certainty, but when done correctly, bitcoins can be stored extremely safely and securely, perhaps more so than any other financial asset.

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Bitcoin for the Befuddled by Conrad Barski, Chris Wilmer


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