Bitcoin Basics - Discussion

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I know that you can make money with staking and farming, but is one better than other or can you make more money with one than the other? I’m assuming it’s more of a preference thing.

Every node in the network verifies blocks and txs by themselves, not just miners. :slight_smile:

It more depends on how much risk are you willing to take, high yield investments are usually riskier no matter which you choose. :slight_smile:

Hello! i am at Mining Introduction right now and Ivan says that BTC is censorship resistant, and i remembered an article about how the german police seised a convicted person’s wallet withouth them having the private key. How is that possible? Here is the article link : https://decrypt.co/56810/german-police-seize-63-million-bitcoin-no-password

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They sized his wallet but don’t have a password for it, so they can’t really access the funds anyway. :smile:

How can they seize the wallet?

They size the HDD the wallet is stored on.

Ok… but if he would have done a copy of private and public key, the police could do nothing to stop him spending his BTC, i’m i right? mabe he has a copy😃

That is right. But there is no way of knowing if he did until someone moves the coins from the address :stuck_out_tongue:

I just watched the video on Orphaned/Stale Blocks, Block Time & Confirmations, and I had a few questions:

  1. If I’m a few blocks deep on a chain that ends up getting dropped, and I had previously sent some BTC, what happens, in real time, when my node queries the blockchain and it snaps to the ā€œtrueā€ version of the blockchain? Would my previously confirmed transactions go back to waiting to be confirmed if it wasn’t already picked up by another miner? Is there any other alerts or signals that this is happening or has happened?

  2. So, I know that the network only recognizes the longest chain as the true chain, and up until now I thought that meant in terms of number of blocks, but Ivan said the longest in terms of PoW or the difficulty. How is this measured exactly? Is it simply done by comparing every single target that each chain has produced or am I missing something?

Yes if the tx is not in both blocks at that moment (on either) chain then the tx will simple be returned to the mempool. Bitcoin core in itself doesn’t really have any events to notify about this happening and its up to the wallet or ui to alert the user.

Yes by comparing the target. Its true that in most cases the target should be the same so the height should also be the same in that case.
The reason why target is used instead of block height is because one could just mine a bunch of blocks with low target and the network would accept them as the valid chain. :slight_smile:

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I’m so new to this and I’m feeling still quite confused, but I’m sure it’ll kick in eventually.

Like for example, I’m starting to (barely) come out of the fog as far as the construction of the system, but I still don’t understand how the value is actually created, or extracted, or transformed, from data… or how a transaction is validated… right now to me, I feel like with the egg and the chicken, what comes first?

And then, I have very basic questions I’d like to ask, like if you can create a UTXO that comes back to you, by having a different wallet, then how can one verify, it seems counterintuitive with what had been said up to now ( in a way I’m happy to hear it can create more privacy, but wouldn’t it make it easier for people who want to hide clues on their transactions?)

And, can you keep UTXOs in your wallet, how can you accumulate them if inputs need to be spent?

If anyone feels enclined to help me out, it would be most appreciated, thanks for your patience with such amateur questions! :blush:

UTXOs

I have a question about UTXOs. Whan a transaction is sent from a wallet does it always use all the UTXOs available for that address at that time with the excess returned to the original wallet or is it a specified amount of what is available at that time?

Hi there.

I’m looking into getting a hardware wallet. I would like to work with it via my iphone, now it seems like that the ledger nano x would be the one to go for. I’ve heard about an information leak at the ledger company wich makes the trezor seem more secure because its open source? Trzors are apparently not connectable to an iphone - so the question is what are you using currently?
Is ledger still a great product despite that hack they went through or should i stay away??
Thanks for your answers.

i would say it only takes the UTXOs it needs to fulfill the transaction.

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It doesn’t go to a different wallet, it goes to a different address in the wallet. :slight_smile:

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Ledger is safe, it was their store database that got hacked, not the wallets itself. :slight_smile:

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thanks dude!! are you using a ledger then?