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Learning Bitcoin

Learning Bitcoin

By : Caetano
3 (3)
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Learning Bitcoin

Learning Bitcoin

3 (3)
By: Caetano

Overview of this book

The financial crisis of 2008 raised attention to the need for transparency and accountability in the financial world. As banks and governments were scrambling to stay solvent while seeking a sustainable plan, a powerfully new and resilient technology emerged. Bitcoin, built on a fundamentally new technology called “The Blockchain,” offered the promise of a new financial system where transactions are sent directly between two parties without the need for central control. Bitcoin exists as an open and transparent financial system without banks, governments, or corporate support. Simply put, Bitcoin is “programmable money” that has the potential to change the world on the same scale as the Internet itself. This book arms you with immense knowledge of Bitcoin and helps you implement the technology in your money matters, enabling secure transactions. We first walk through the fundamentals of Bitcoin, illustrate how the technology works, and exemplify how to interact with this powerful and new financial technology. You will learn how to set up your online Bitcoin wallet, indulge in buying and selling of bitcoins, and manage their storage. We then get to grips with the most powerful algorithm of all times: the Blockchain, and learn how crypto-currencies can reduce the risk of fraud for e-commerce merchants and consumers. With a solid base of Blockchain, you will write and execute your own custom transactions. Most importantly, you will be able to protect and secure your Bitcoin with the help of effective solutions provided in the book. Packed with plenty of screenshots, Learning Bitcoin is a simple and painless guide to working with Bitcoin.
Table of Contents (10 chapters)
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9
Index

Sending transactions


In Chapter 5, Installing a Bitcoin Node, we used the Bitcoin node to build, sign, and broadcast a Bitcoin transaction using the createrawtransaction, signrawtransaction, and sendrawtransaction commands.

In this example, we'll perform the same operations but using Javascript and the BitcoinJS library. The process involves the same three steps:

  1. Build a transaction with a list of inputs and outputs.

  2. Sign the transaction with the required private keys.

  3. Broadcast the transaction to the network.

Simple transactions

Using the bitcoinjs library, we will work with the TransactionBuilder object to construct a new transaction. We simply provide the object with one or more private keys as the source of our funds and with one or more addresses for the output, each with the amount we want to send.

Note

For the following examples, real bitcoin can be at stake. Make sure to have backups of your keys before experimenting with them.

In the following example, our script will prompt for the private...

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Learning Bitcoin
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