From 42c4fa0423930d17a8412a4e9817122b7986c7da Mon Sep 17 00:00:00 2001 From: _imadia Date: Fri, 15 Nov 2024 15:48:28 +0600 Subject: [PATCH] Update topics --- .../bitcoin-as-a-cryptocurrency.md | 7 ++----- .../en/bitcoin/bitcoin-economics/bitcoin-mining.md | 11 +++-------- .../economic-principles-of-bitcoin.md | 2 -- .../decentralization-and-security.md | 7 ++----- .../bitcoin-network/is-bitcoin-stoppable.md | 9 +++------ .../the-bitcoin-network-structure.md | 4 +--- .../bitcoin-ownership/choosing-the-right-wallet.md | 7 ------- .../securing-your-bitcoin-wallet.md | 14 ++++---------- .../bitcoin-ownership/what-is-self-custody.md | 4 +--- .../sending-and-receiving-bitcoin.md | 2 -- .../transaction-confirmations-and-states.md | 6 ------ .../bitcoin-transactions/transaction-fee.md | 3 +-- src/edu/en/bitcoin/intro/bitcoin-origins.md | 5 +---- src/edu/en/bitcoin/intro/the-rise-of-bitcoin.md | 3 --- src/edu/en/bitcoin/intro/why-bitcoin.md | 5 ----- .../privacy-features-in-bitcoin-wallets.md | 9 +++------ .../spv-wallets-a-simple-users-guide.md | 1 - .../transactions/canceling-transaction.md | 4 ---- .../fundamentals/transactions/sending-receiving.md | 4 ---- .../fundamentals/transactions/transaction-fees.md | 2 +- .../transactions/transaction-states.md | 4 ++-- .../wallets/crypto-wallet-explained.md | 3 --- .../en/fundamentals/wallets/hardware-wallets.md | 11 +---------- .../wallets/must-haves-for-non-custodial-wallet.md | 9 --------- .../wallets/wallet-backup-is-critical.md | 7 ------- 25 files changed, 25 insertions(+), 118 deletions(-) diff --git a/src/edu/en/bitcoin/bitcoin-economics/bitcoin-as-a-cryptocurrency.md b/src/edu/en/bitcoin/bitcoin-economics/bitcoin-as-a-cryptocurrency.md index ed2c748..0f5c950 100644 --- a/src/edu/en/bitcoin/bitcoin-economics/bitcoin-as-a-cryptocurrency.md +++ b/src/edu/en/bitcoin/bitcoin-economics/bitcoin-as-a-cryptocurrency.md @@ -1,15 +1,12 @@ # Bitcoin as a Cryptocurrency ๐Ÿ’ฐ -## BTC as the Native Unit - +## BTC as the Native Unit Bitcoin (BTC) is the main currency used on the Bitcoin network. It is the **first decentralized digital currency** and is recognized globally as a new form of money. All transactions within the network are settled in BTC, making it the primary unit of value. ๐ŸŒ -**๐Ÿ“Š Scarcity and Practical Supply** - +**๐Ÿ“Š Scarcity and Practical Supply** Bitcoin's fixed supply is capped at **21 million coins**, making it scarce by design. However, the actual number of Bitcoins available is even smaller. Many Bitcoins have been lost due to forgotten passwords or misplaced wallets, reducing the number of coins that can ever be used. It's estimated that about 4 million Bitcoins are gone forever, and a large number of Bitcoins are held by long-term investors who rarely sell. ๐Ÿ”’ In practical terms, the number of Bitcoins actively traded on exchanges or distributed through mining rewards and ETFs (Exchange-Traded Funds) is much smaller than the theoretical supply. This real-world scarcity makes Bitcoin even more valuable over time. ๐Ÿ“ˆ **๐Ÿ”ข Divisibility and Satoshis** - Even though Bitcoin is scarce, it's highly divisible. Each Bitcoin can be broken down into 100 million units, known as **Satoshis**. This means you don't need to buy a whole Bitcoin to use itโ€”small fractions can be used for everyday transactions, making Bitcoin accessible to anyone. ๐Ÿ”ฌ diff --git a/src/edu/en/bitcoin/bitcoin-economics/bitcoin-mining.md b/src/edu/en/bitcoin/bitcoin-economics/bitcoin-mining.md index 185a6e0..75d6b3e 100644 --- a/src/edu/en/bitcoin/bitcoin-economics/bitcoin-mining.md +++ b/src/edu/en/bitcoin/bitcoin-economics/bitcoin-mining.md @@ -1,21 +1,16 @@ # Bitcoin Mining โ›๏ธ -## ๐Ÿ”„ Creation and Circulation - +## ๐Ÿ”„ Creation and Circulation Bitcoin mining is the process through which new Bitcoins enter circulation. This involves specialized computers, known as miners, solving puzzles to validate transactions on the Bitcoin network. Successful miners are rewarded with newly created Bitcoin. Every 10 minutes, a new block is added to the blockchain, and the reward is given to the miner who solved the puzzle. โฑ๏ธ - Initially, the reward was 50 BTC per block, but it halves every four years in an event called the **halving**. Currently, the reward is 6.25 BTC per block, and it will continue to decrease until Bitcoin's total supply reaches 21 million. ๐Ÿ“‰ -## ๐Ÿงฎ Proof of Work (PoW) and Mining Difficulty - +## ๐Ÿงฎ Proof of Work (PoW) and Mining Difficulty Bitcoin operates on a system called **Proof of Work (PoW)**, where miners compete to solve puzzles that require immense computational power. The more miners compete, the harder the puzzles become. The difficulty adjusts every two weeks to maintain a steady flow of new blocks, regardless of how much computing power is added. ๐Ÿ’ป To give an idea of the scale: Bitcoin's network now processes such an enormous amount of computing power that it surpasses even the world's most powerful supercomputers. The computing power behind Bitcoin is greater than anything humanity has built, illustrating the sheer size and security of the network. ๐ŸŒ ### ๐ŸŒ Global Mining Efforts - As Bitcoin grew in value, large-scale operations entered the mining space, from energy companies to governments. Mining is no longer limited to individuals but has evolved into an industrial-scale operation. In some countries, like the U.S. and Kazakhstan, Bitcoin mining is now seen as a strategic asset, with renewable energy sources and excess power being used to mine Bitcoin. The involvement of governments and corporations highlights Bitcoin's global importance and shows how it has become intertwined with the energy industry. โšก -## โœ‚๏ธ Halving Events - +## โœ‚๏ธ Halving Events Approximately every four years, the reward miners receive for creating new Bitcoin is halved, a process known as a **halving event**. This limits the supply of new Bitcoin and is crucial to Bitcoin's deflationary nature. The first halving occurred in 2012, and the reward has since decreased from 50 BTC per block to the current 6.25 BTC. Halving events ensure that Bitcoin's supply remains scarce over time, increasing its potential value as new Bitcoin becomes harder to earn. ๐Ÿ“… diff --git a/src/edu/en/bitcoin/bitcoin-economics/economic-principles-of-bitcoin.md b/src/edu/en/bitcoin/bitcoin-economics/economic-principles-of-bitcoin.md index aba76c4..7cc0155 100644 --- a/src/edu/en/bitcoin/bitcoin-economics/economic-principles-of-bitcoin.md +++ b/src/edu/en/bitcoin/bitcoin-economics/economic-principles-of-bitcoin.md @@ -1,9 +1,7 @@ # Economic Principles of Bitcoin ๐Ÿ“Š ## ๐Ÿ“ˆ Supply and Demand Dynamics - Bitcoin operates under basic economic principles: as demand increases and supply remains fixed, the price rises. Unlike traditional assets like **gold**, where higher prices encourage more production, Bitcoin's supply cannot be increased no matter how high the price goes. This unique feature, where **supply is fixed (and actually decreasing with every halving)**, gives Bitcoin the potential for rapid price increases (often referred to as **parabolic price growth**) when demand surges. As fewer new Bitcoins enter circulation after each halving, the scarcity grows, further driving demand. This scarcity, combined with rising interest, has the potential to drive Bitcoin's price significantly higher over time. ๐Ÿš€ ## ๐Ÿ†š Bitcoin vs. Traditional Assets - Bitcoin is often compared to traditional assets like gold or fiat currencies. Like gold, Bitcoin is considered a store of value because of its scarcity. However, unlike gold, Bitcoin can be easily transferred and traded across borders, making it more flexible. In contrast to fiat currencies, which can be printed by governments and are vulnerable to inflation, Bitcoin has a fixed supply, making it resistant to inflation. Its decentralized nature also ensures it operates outside of government control, giving it unique advantages in the modern financial world. ๐Ÿ’ผ \ No newline at end of file diff --git a/src/edu/en/bitcoin/bitcoin-network/decentralization-and-security.md b/src/edu/en/bitcoin/bitcoin-network/decentralization-and-security.md index f00fc18..0f805c6 100644 --- a/src/edu/en/bitcoin/bitcoin-network/decentralization-and-security.md +++ b/src/edu/en/bitcoin/bitcoin-network/decentralization-and-security.md @@ -1,13 +1,10 @@ # Decentralization and Security ## Open Participation - One of the key features of the Bitcoin network is that it is **open to anyone** who wants to participate. Unlike traditional financial systems, which often require permission or special access, anyone with an internet connection and a computer can join the Bitcoin network. You can choose to run a full node, validating transactions and maintaining a copy of the blockchain, or you can simply use a wallet to send and receive Bitcoin. This openness ensures that Bitcoin remains decentralized. No government, corporation, or central bank controls the network. The rules of Bitcoin are enforced equally for all participants, whether they are running nodes, mining, or using the network to transfer value. ๐ŸŒ๐Ÿ‘ฅ -## Public Development Process - +## Public Development Process The development of Bitcoin is also decentralized and fully transparent. There is no central authority deciding how Bitcoin evolves. Instead, improvements and updates are proposed by the community through a process known as **Bitcoin Improvement Proposals (BIPs)**. These proposals are reviewed, discussed, and debated by developers all over the world. Once a proposal is agreed upon by a majority of the network's participants, it is implemented in the Bitcoin code. This ensures that Bitcoin remains secure and up-to-date, without being controlled by a single organization. The fact that anyone can contribute to Bitcoin's development process is a key part of its decentralization and longevity. ๐Ÿ”ง๐ŸŒŸ -## Absence of Central Authority - +## Absence of Central Authority Unlike traditional currencies or financial systems that are controlled by central banks or governments, Bitcoin operates **without any central authority**. This is one of its most defining characteristics. The Bitcoin network is maintained by a decentralized group of participants (nodes and miners) who collectively enforce the network's rules. This decentralization ensures that no single entity can manipulate or shut down the Bitcoin network. Even if one government or organization tries to block Bitcoin, the network will continue to operate elsewhere, as long as there are nodes and miners keeping the system running. This absence of a central authority makes Bitcoin resilient to censorship and government control. ๐ŸŒ๐Ÿ›ก๏ธ diff --git a/src/edu/en/bitcoin/bitcoin-network/is-bitcoin-stoppable.md b/src/edu/en/bitcoin/bitcoin-network/is-bitcoin-stoppable.md index 9fab57b..741c7e5 100644 --- a/src/edu/en/bitcoin/bitcoin-network/is-bitcoin-stoppable.md +++ b/src/edu/en/bitcoin/bitcoin-network/is-bitcoin-stoppable.md @@ -1,13 +1,10 @@ # Is Bitcoin Stoppable? -## Government Influence - +## Government Influence There has been much debate about whether governments can stop Bitcoin. While governments can impose regulations and make it difficult for users to participate in the network, they **cannot stop Bitcoin from operating**. Bitcoin is decentralized, meaning that even if one country tries to ban it, the network will continue to run in other parts of the world. Governments can make it difficult for people to convert Bitcoin to their local currencies or regulate exchanges, but they cannot prevent people from using Bitcoin entirely. As long as people have access to the internet and the Bitcoin network, Bitcoin will continue to operate. ๐ŸŒ๐Ÿ”’ -## Technical Resilience - +## Technical Resilience Bitcoin's resilience comes from its **decentralized structure**. The network is distributed across thousands of nodes worldwide, making it nearly impossible to shut down. For Bitcoin to stop functioning, all nodes and miners would have to go offline simultaneously, which is highly unlikely. Even if some nodes or miners go offline, the network can still function with the remaining participants. This level of resilience makes Bitcoin one of the most secure and reliable networks in existence. As long as people have access to electricity and the internet, the Bitcoin network will continue to run. Its decentralized nature also makes it resistant to attacks, as no single point of failure can bring down the entire network. ๐Ÿ”Œ๐ŸŒ -## User Adoption and Value - +## User Adoption and Value The value of the Bitcoin network is directly tied to its users. The more people who use Bitcoin, the more valuable and secure the network becomes. As adoption grows, so does the demand for Bitcoin, which in turn drives its price higher. For Bitcoin to lose its value, people would have to stop using it altogether, which is highly unlikely given its global appeal and use cases. The network's value is not controlled by any government or organization but is instead driven by the collective actions of its users. As long as people continue to use Bitcoin, the network will remain valuable and secure. ๐Ÿ‘ฅ๐Ÿ’น diff --git a/src/edu/en/bitcoin/bitcoin-network/the-bitcoin-network-structure.md b/src/edu/en/bitcoin/bitcoin-network/the-bitcoin-network-structure.md index 8d85900..7116999 100644 --- a/src/edu/en/bitcoin/bitcoin-network/the-bitcoin-network-structure.md +++ b/src/edu/en/bitcoin/bitcoin-network/the-bitcoin-network-structure.md @@ -1,9 +1,7 @@ # The Bitcoin Network Structure ๐Ÿ—๏ธ -## Network Nodes - +## Network Nodes At the heart of the Bitcoin network are **nodes**. A node is any computer running the Bitcoin software, and its job is to help maintain the integrity of the network. Every node stores a complete copy of the Bitcoin blockchain, meaning it holds a record of every transaction ever made. Nodes communicate with each other to verify transactions and ensure that the network runs smoothly. When a transaction is made, it is broadcast to all nodes. These nodes validate the transaction by checking the user's balance and ensuring the rules of the network are followed. Once verified, the transaction is added to a pool of unconfirmed transactions, awaiting confirmation by miners. The fact that anyone can run a node ensures that Bitcoin remains decentralizedโ€”no single entity controls the network. ๐Ÿ”—๐Ÿ“ก ## Miners and Mining Nodes - **Mining nodes**, or miners, play a special role in the Bitcoin network. In addition to storing a copy of the blockchain and validating transactions like regular nodes, miners are responsible for grouping transactions into **blocks** and adding them to the blockchain. To do this, they must solve complex mathematical puzzles, which requires significant computational power. This process is known as **Proof of Work (PoW)**. When a miner successfully solves the puzzle, they create a new block and are rewarded with freshly minted Bitcoin, along with the transaction fees from the transactions included in that block. This process ensures that new Bitcoins are created in a decentralized manner and that transactions are permanently recorded on the blockchain. Mining not only adds new blocks to the chain but also keeps the network secure by making it difficult for any single entity to take control. ๐Ÿงฎ๐Ÿ’ป \ No newline at end of file diff --git a/src/edu/en/bitcoin/bitcoin-ownership/choosing-the-right-wallet.md b/src/edu/en/bitcoin/bitcoin-ownership/choosing-the-right-wallet.md index 162f18b..88b772e 100644 --- a/src/edu/en/bitcoin/bitcoin-ownership/choosing-the-right-wallet.md +++ b/src/edu/en/bitcoin/bitcoin-ownership/choosing-the-right-wallet.md @@ -5,16 +5,9 @@ When it comes to choosing a non-custodial wallet, you need to balance **security However, there are a few factors to consider with hardware wallets: - **Setup Complexity**: Hardware wallets can be complicated to set up and may not be beginner-friendly. ๐Ÿงฉ - - - **Security Breaches**: Some hardware wallet vendors have had data breaches, revealing users' personal information, making them vulnerable to targeted attacks. ๐Ÿšจ - - - **Inconvenience for Daily Use**: Hardware wallets are not ideal for frequent transactions because they need to be plugged in and verified for every action. ๐Ÿ”Œ - - - **Storage Risks**: You must keep your hardware wallet secure and store the private key backup separately(which kind of negates its advantages). ๐Ÿฆ For frequent transactions, non-custodial mobile wallet apps, such as **Unstoppable Wallet**, offer a more user-friendly experience. Mobile wallets often include additional security features like biometric authentication, built-in exchanges, and even **duress modes**โ€”a feature where you can unlock a decoy wallet under threat. ๐Ÿ“ฑ๐Ÿ‘† - Moreover, unlike hardware wallet devices mobile based wallet apps are easy to hide, both iOS and Android operating systems provide such capabilities. This combination of security and convenience makes mobile wallets more practical for everyday use. ๐Ÿ”๐Ÿ“ฒ diff --git a/src/edu/en/bitcoin/bitcoin-ownership/securing-your-bitcoin-wallet.md b/src/edu/en/bitcoin/bitcoin-ownership/securing-your-bitcoin-wallet.md index 132abe4..239b715 100644 --- a/src/edu/en/bitcoin/bitcoin-ownership/securing-your-bitcoin-wallet.md +++ b/src/edu/en/bitcoin/bitcoin-ownership/securing-your-bitcoin-wallet.md @@ -5,29 +5,24 @@ To ensure the safety of your Bitcoin, it's essential to understand how to proper --- ## Educating Yourself on Bitcoin Security - The first step to securing your Bitcoin is learning how Bitcoin wallets, private keys, and transactions function. With knowledge, you can make informed decisions to avoid pitfalls such as phishing attacks or poor wallet management. ๐Ÿง  -## Understanding Wallet Backups - +## Understanding Wallet Backups Backups are critical to Bitcoin security. If you lose access to your wallet (due to device loss or failure), having a backup ensures you can still access your funds. Regularly back up your wallet, and always store your seed phrase securely. A common practice is writing the seed phrase down and storing it in a fireproof safe or using metal plates designed to withstand damage. ๐Ÿ”ฅ๐Ÿฆ If your seed phrase is compromised, someone can gain full access to your Bitcoin, so never share it with anyone. ๐Ÿค ## Being Discreet - Owning Bitcoin comes with its risks, especially if people know you have it. To reduce the chance of being targeted by thieves or fraudsters, keep your Bitcoin ownership private. If you use a hardware wallet, avoid carrying it around openly, and consider using wallets with duress modes to create decoy wallets in case of emergency. ๐Ÿคซ -## Avoiding Custodial Platforms - +## Avoiding Custodial Platforms As convenient as they may seem, custodial platforms like exchanges come with significant risks. When you store your Bitcoin on a platform like Binance or Coinbase, you don't control the private keysโ€”meaning you don't truly own your Bitcoin. Exchange collapses, like the infamous **FTX crash**, highlight the dangers of trusting third parties with your assets. Once an exchange fails or gets hacked, retrieving your Bitcoin can be nearly impossible. ๐Ÿ’ฅ -## Using Multiple Wallets - +## Using Multiple Wallets A good strategy for securing your Bitcoin is to use multiple wallets. Keep the majority of your Bitcoin in a highly secure wallet for long-term storage and a separate wallet for everyday transactions. This way, if something happens to your regular-use wallet, your main stash remains secure. For example, use a hardware wallet for long-term holdings and a mobile wallet for daily spending. ๐Ÿ“ฑ๐Ÿ’ผ @@ -35,8 +30,7 @@ A good strategy for securing your Bitcoin is to use multiple wallets. Keep the m Using wallets with **duress mode** can protect you in emergencies. In threatening situations where someone forces you to open your wallet, duress mode allows you to unlock a decoy wallet with minimal funds, protecting your primary stash. ๐ŸŽญ -## Security Best Practices - +## Security Best Practices To protect your Bitcoin, follow these basic security tips: - Never click on suspicious links in emails or messaging apps to avoid phishing attacks. ๐ŸŽฃ diff --git a/src/edu/en/bitcoin/bitcoin-ownership/what-is-self-custody.md b/src/edu/en/bitcoin/bitcoin-ownership/what-is-self-custody.md index dc2011f..a07bc4e 100644 --- a/src/edu/en/bitcoin/bitcoin-ownership/what-is-self-custody.md +++ b/src/edu/en/bitcoin/bitcoin-ownership/what-is-self-custody.md @@ -5,7 +5,6 @@ Once you have acquired Bitcoin, transferring it to a non-custodial wallet is the **Self-custody** refers to holding your own private keys, meaning no intermediary controls your Bitcoin. This form of ownership offers unmatched sovereignty over your assets. Unlike traditional financial systems, where your funds can be frozen or seized, Bitcoin in a non-custodial wallet is censorship-resistant. No government or third party can freeze, confiscate, or debase your Bitcoin, giving you complete control over your wealth. ๐Ÿ›ก๏ธ ## Custodial vs. Non-Custodial Wallets - The key difference between **custodial** and **non-custodial wallets** lies in who controls the private keys. With custodial wallets, such as those on centralized exchanges, the platform holds your private keys, which means you don't have full control over your Bitcoin. It's similar to how a bank manages your moneyโ€”your access can be restricted or frozen at any time. ๐Ÿฆ For example, even though it's legal to own Bitcoin in most countries, many banks may block transfers to cryptocurrency exchanges. So, while your funds are technically yours, you're still at the mercy of intermediaries. ๐Ÿšซ @@ -13,8 +12,7 @@ For example, even though it's legal to own Bitcoin in most countries, many banks By contrast, non-custodial wallets place the private keys in your hands, offering you true ownership and full control of your Bitcoin. Non-custodial wallets have become essential for users who want to avoid the risks associated with relying on exchanges or intermediaries. A clear lesson from past exchange hacks, like the Mt. Gox incident, is that trusting third parties with your Bitcoin can result in losses. Self-custody removes that risk. ๐Ÿ” -## Private Keys and Mnemonic Phrases (Seed Phrases) - +## Private Keys and Mnemonic Phrases (Seed Phrases) Understanding private keys and seed phrases (mnemonic phrases) are critical to securing your Bitcoin. When you set up a new non-custodial wallet, you're presented with a private key. To make storing and managing this key easier, the wallet generates a **mnemonic phrase**โ€”a human-readable, 12-word phrase that acts as a backup to your private key. ๐Ÿ“ Think of your private key as the password to access and spend your Bitcoin, while the mnemonic phrase is a backup that lets you recover your wallet if something happens to your device. If you lose access to your private key or mnemonic phrase, you lose access to your Bitcoin forever. For example, there are many cases of early Bitcoin adopters losing their wallets because they didn't store their private keys properly, resulting in millions of dollars in lost assets. ๐Ÿ’ธ diff --git a/src/edu/en/bitcoin/bitcoin-transactions/sending-and-receiving-bitcoin.md b/src/edu/en/bitcoin/bitcoin-transactions/sending-and-receiving-bitcoin.md index 4ae68b0..61504b8 100644 --- a/src/edu/en/bitcoin/bitcoin-transactions/sending-and-receiving-bitcoin.md +++ b/src/edu/en/bitcoin/bitcoin-transactions/sending-and-receiving-bitcoin.md @@ -3,10 +3,8 @@ Non-custodial wallets provide the user with complete control over their private keys, enabling true ownership of their Bitcoin. Unlike custodial wallets, where a third party manages the private keys, non-custodial wallets allow users to transact on Bitcoin network directly. For example, after purchasing Bitcoin on a cryptocurrency exchange like Binance, users will often transfer it to a non-custodial wallet like Unstoppable Wallet to ensure full control and security. ๐Ÿ” ## Deposit/Receive Addresses and QR Codes: ๐Ÿ“‡ - Every Bitcoin wallet has a unique deposit/receive address, which is a string of alphanumeric characters representing a Bitcoin address. To make transactions easier, most wallets allow users to share their address as a QR code, which can be scanned by others to initiate a transaction. For instance, if you're splitting a bill with a friend who wants to pay you in Bitcoin, they can scan the QR code of your wallet address and transfer funds easily. This is especially useful for merchants accepting Bitcoin payments. ๐Ÿ“ธ๐Ÿ’ณ ## Depositing/Withdrawing Bitcoin to/from an Exchange: ๐Ÿฆ - Depositing Bitcoin from a non-custodial wallet to a cryptocurrency exchange is simple. You need to obtain the deposit address from the exchange, input it into your non-custodial wallet, and send the transaction. Similarly, withdrawing Bitcoin from a cryptocurrency exchange to a non-custodial wallet requires copying the Bitcoin address from the non-custodial wallet and pasting it into the exchange's withdrawal field. ๐Ÿ” diff --git a/src/edu/en/bitcoin/bitcoin-transactions/transaction-confirmations-and-states.md b/src/edu/en/bitcoin/bitcoin-transactions/transaction-confirmations-and-states.md index 861689a..fc165a7 100644 --- a/src/edu/en/bitcoin/bitcoin-transactions/transaction-confirmations-and-states.md +++ b/src/edu/en/bitcoin/bitcoin-transactions/transaction-confirmations-and-states.md @@ -3,18 +3,12 @@ When a user sends a Bitcoin transaction from their wallet, the transaction is broadcast to the network. Within a few seconds, all miners on the network receive the transaction and attempt to include it in the blockchain along with other pending transactions. The first to solve the Proof-of-Work puzzle gets to include the transaction in the blockchain and collect the rewards, which include both the Bitcoin emission rate and all transaction fees from the current block of transactions. โ›๏ธ ## Transaction States: - - **Pending:** Waiting for a miner to include it in a block. โณ - - - **Confirmed:** Once included in a block, the transaction is confirmed. โœ… - - - **Failed:** Transactions can fail if the fee is too low or if there are network issues. โŒ Finality means that once confirmed, a Bitcoin transaction cannot be reversed. For smaller payments, it's safe to consider the transaction complete once it's included in a block. For high-value transactions, typically six confirmations are recommended to ensure security against double-spending. ๐Ÿ”’ ## Tracking Transaction Status: - Users can track their transactions using publicly available blockchain explorers like Blockchair.com. By entering the transaction ID (TXID), users can monitor the status of their Bitcoin transactions and see how many confirmations it has received. Most non-custodial wallets also provide transaction status updates, although there might be a slight delay compared to block explorers. ๐Ÿ” diff --git a/src/edu/en/bitcoin/bitcoin-transactions/transaction-fee.md b/src/edu/en/bitcoin/bitcoin-transactions/transaction-fee.md index 909b2dc..632d596 100644 --- a/src/edu/en/bitcoin/bitcoin-transactions/transaction-fee.md +++ b/src/edu/en/bitcoin/bitcoin-transactions/transaction-fee.md @@ -2,8 +2,7 @@ Whenever you send Bitcoin, a fee is required. The fee is not paid to the wallet provider but paid to the Bitcoin miner that includes your transaction in the next blockchain block. Fees are dynamic and vary based on network congestion and the size of your transaction. The size of the transaction is not the amount/Bitcoin transacted but the amount of space transaction data will occupy in the block. During times of high demand, when many users are transacting, fees may spike significantly, so users may have to wait for lower fees or pay a premium for a faster transaction. ๐Ÿ“Š -## Fee Calculation: - +## Fee Calculation: Transaction fees are calculated based on the size of the transaction (measured in bytes) and the current fee rate, which is determined by network congestion. For example, a transaction of a single Bitcoin will have a smaller fee if it uses just 1-2 large inputs compared to a transaction that uses many small inputs, even if the value transferred is the same. An input is basically a value from a previous transaction. For instance, if someone sends you 1 BTC transaction today, then you will have an input of 1 BTC. If you need to send someone 0.5 BTC, that single input will be sufficient. However, should you need to send over 1 BTC, multiple inputs will be required, leading to larger transaction size and higher fees. ๐Ÿ“๐Ÿ’ฐ Well-engineered non-custodial wallets should allow users to customize their transaction fees, offering options to choose between fast, medium, or slow confirmation times based on urgency and cost. For example, if someone is purchasing coffee using Bitcoin, they can opt for a lower fee if they're not in a rush, while a trader might need a faster transaction and choose a higher fee. โšกโ˜•๏ธ \ No newline at end of file diff --git a/src/edu/en/bitcoin/intro/bitcoin-origins.md b/src/edu/en/bitcoin/intro/bitcoin-origins.md index 2676553..b199318 100644 --- a/src/edu/en/bitcoin/intro/bitcoin-origins.md +++ b/src/edu/en/bitcoin/intro/bitcoin-origins.md @@ -1,13 +1,10 @@ # Bitcoin Origins ๐ŸŒฑ -## The Creation of Bitcoin - +## The Creation of Bitcoin Bitcoin was created in 2008 by an anonymous person (or group) using the pseudonym **Satoshi Nakamoto**. ๐Ÿ•ต๏ธโ€โ™‚๏ธ Satoshi's goal was to solve a key problem: creating a system where value could be transferred peer-to-peer without relying on centralized intermediaries like banks. This system would allow users to exchange value (Bitcoin) directly, with no need for a middleman. ๐Ÿ” - Satoshi outlined this idea in a **whitepaper** titled "Bitcoin: A Peer-to-Peer Electronic Cash System," which was shared with a group of cryptographers and developers, known as **cypherpunks**. ๐Ÿ“„ Shortly after, Satoshi released the software that powered the **Bitcoin blockchain**, launching the world's first decentralized cryptocurrency. The blockchain started processing transactions and continues to run to this day without any central authority controlling it. ๐Ÿ”— ## Launch of the Bitcoin Network - The Bitcoin network officially launched on **January 3, 2009**, when the **Genesis Block** (the first block in the blockchain) was mined. ๐Ÿ† This block contained a message, "The Times 03/Jan/2009 Chancellor on brink of second bailout for banks," which highlighted the financial instability that inspired Bitcoin's creation. ๐Ÿ’ฌ Bitcoin's blockchain started operating as an open, decentralized network, allowing people to join as participants. Each participant could either run a **node** (which helps validate transactions) or use a **wallet** (to send and receive Bitcoin). Since its launch, Bitcoin has been accessible to anyone with an internet connection, operating 24/7, and enforcing the same rules for every participant. ๐ŸŒ diff --git a/src/edu/en/bitcoin/intro/the-rise-of-bitcoin.md b/src/edu/en/bitcoin/intro/the-rise-of-bitcoin.md index 0562245..e7492e0 100644 --- a/src/edu/en/bitcoin/intro/the-rise-of-bitcoin.md +++ b/src/edu/en/bitcoin/intro/the-rise-of-bitcoin.md @@ -1,13 +1,10 @@ # The Rise of Bitcoin ## Early Perceptions - In its early days, Bitcoin was largely dismissed by mainstream society. It was seen as a noveltyโ€”a toy for computer geeks and cypherpunks. Very few people believed that it could become a widely-used form of money, let alone challenge the existing financial system. As a result, Bitcoin had little to no market value in its infancy. Early adopters traded it for fun, often giving away large sums for things like pizza or internet services. ๐Ÿ• ## Growth Factors - Bitcoin's rise in value and popularity was driven by several key factors: **economic instability** in regions suffering from currency debasement and inflation, the growth of **cryptocurrency exchanges** like Mt. Gox, which made Bitcoin easier to trade, and the increasing **awareness** driven by early adopters and investors. As more people joined the network, Bitcoin's price began to rise, drawing even more attention from a broader audience. ๐Ÿ“Š ## Media Influence - In the beginning, Bitcoin was often portrayed negatively in the media. It was dismissed as a scam or a passing fad. However, as Bitcoin's value and usage grew, so did public interest. Stories of early adopters who became millionaires caught the attention of mainstream audiences. This organic, word-of-mouth growth, coupled with media coverage, contributed to Bitcoin's rapid rise as a global phenomenon. ๐ŸŒ๐Ÿ’ฐ \ No newline at end of file diff --git a/src/edu/en/bitcoin/intro/why-bitcoin.md b/src/edu/en/bitcoin/intro/why-bitcoin.md index b1759cb..065426b 100644 --- a/src/edu/en/bitcoin/intro/why-bitcoin.md +++ b/src/edu/en/bitcoin/intro/why-bitcoin.md @@ -1,21 +1,16 @@ # Why Bitcoin? ## Means to Exercise Control - Bitcoin provides a solution to a longstanding problem with the traditional financial system: the reliance on intermediaries like banks. With Bitcoin, individuals can exercise **true ownership** over their wealth, without having to depend on a third party. This decentralized system allows users to control their assets directly through **private keys**. As long as you control your keys, no government or institution can seize or freeze your funds. Bitcoin provides users with **unconfiscatable wealth**. ๐Ÿ”‘๐Ÿ’ผ ## Means for Independence - Bitcoin is **independent of any central authority**. There is no government or institution that controls it. This decentralization makes Bitcoin immune to censorship and interference. It operates globally, without the need for permission, and is accessible to anyone with an internet connection. Unlike traditional financial systems, Bitcoin is driven by its global community of users and developers, making it a resilient and borderless network. ๐ŸŒ๐Ÿšซ ## Inflation Hedge - Bitcoin is capped at a total supply of 21 million coins, making it a **deflationary asset**. Unlike fiat currencies, which can be inflated by printing more money, Bitcoin cannot be devalued through increasing its supply. As a result, Bitcoin is often seen as a hedge against inflation, particularly in countries with unstable economies or high levels of inflation. Its fixed supply ensures that its value is preserved over time, in contrast to the depreciation seen in many national currencies. ๐Ÿ“Š๐Ÿ’ฐ ## Means to Resist - Bitcoin allows individuals to **resist financial oppression**. In regions with authoritarian governments or harsh financial restrictions, Bitcoin offers a way for people to bypass censorship and maintain their financial independence. It has become a popular tool for individuals facing sanctions, over-regulation, and financial gatekeeping, offering an alternative way to store and transfer wealth without relying on traditional financial institutions. ๐Ÿšซ๐Ÿฆ ## Borderless Transactions - One of Bitcoin's most powerful features is its **borderless nature**. It allows users to send and receive funds anywhere in the world, without the need for banks or intermediaries. Bitcoin can be transferred easily and quickly, regardless of geographic location, making it ideal for cross-border payments. Its rising liquidity and ease of transfer have made it a strong alternative to traditional assets like gold, which are more difficult to move and store. ๐Ÿš€๐Ÿ’ธ diff --git a/src/edu/en/bitcoin/privacy-in-bitcoin/privacy-features-in-bitcoin-wallets.md b/src/edu/en/bitcoin/privacy-in-bitcoin/privacy-features-in-bitcoin-wallets.md index f5d295f..1a6a244 100644 --- a/src/edu/en/bitcoin/privacy-in-bitcoin/privacy-features-in-bitcoin-wallets.md +++ b/src/edu/en/bitcoin/privacy-in-bitcoin/privacy-features-in-bitcoin-wallets.md @@ -2,14 +2,12 @@ When it comes to privacy, choosing the right non-custodial wallet app is essential. Non-custodial Bitcoin wallet apps often offer built-in features designed to enhance user privacy. If privacy is a priority, you should familiarize yourself with these features. ๐Ÿง -## Address Generation - +## Address Generation One of the most effective privacy practices when using Bitcoin is to generate a **new address for every transaction**. This makes it more difficult to link multiple transactions back to a single user. By creating a new address for each transaction, users can effectively compartmentalize their Bitcoin holdings, making it harder for blockchain analysts to track the entire flow of funds. Most modern non-custodial wallets automatically generate new addresses for each incoming payment. ๐Ÿ”„๐Ÿ†• For example, if a freelancer is paid by several clients in Bitcoin, using a different address for each client ensures that none of the clients can see the freelancer's full Bitcoin balance on the blockchain. ๐Ÿ’ผ๐Ÿ’ฐ -## Synchronization Mode - +## Synchronization Mode To calculate and keep a user's balance up-to-date, a Bitcoin wallet needs to synchronize itself with the blockchain each time it is opened. The way a wallet synchronizes with the blockchain can significantly impact user privacy. ๐Ÿ“Š Many popular non-custodial wallets, especially hardware wallets, are not always online and need to synchronize with the blockchain when opened. To speed up this process, wallet providers often track users' receiving addresses on their servers and allow the wallets to retrieve balances via their infrastructure rather than directly from the blockchain. While this results in faster synchronization times, it exposes the user's entire balance and transaction history to the wallet provider. If pressured by a government agency, the wallet provider could reveal your data, including your IP address. ๐Ÿƒโ€โ™‚๏ธ๐Ÿšซ @@ -21,8 +19,7 @@ Some wallets also offer fast synchronization via independent third-party provide In conclusion, privacy-conscious users should weigh the trade-offs between convenience and privacy when choosing a wallet. For maximum privacy, consider using a full-node wallet or an SPV wallet that doesn't track your IP addresses or deposit addresses. ๐ŸŽญ -## Input/Output Ordering - +## Input/Output Ordering The way a wallet constructs a transaction can also impact user privacy. The order of inputs and outputs in a Bitcoin transaction can reveal information about the transaction and potentially compromise privacy. ๐Ÿงฉ The default ordering of inputs and outputs can sometimes hint at which output is the payment and which is the change. This information can be used by blockchain analysis tools to track fund flows and potentially deanonymize users. ๐Ÿ•ต๏ธโ€โ™‚๏ธ diff --git a/src/edu/en/bitcoin/privacy-in-bitcoin/spv-wallets-a-simple-users-guide.md b/src/edu/en/bitcoin/privacy-in-bitcoin/spv-wallets-a-simple-users-guide.md index 93f0b8d..e8f1646 100644 --- a/src/edu/en/bitcoin/privacy-in-bitcoin/spv-wallets-a-simple-users-guide.md +++ b/src/edu/en/bitcoin/privacy-in-bitcoin/spv-wallets-a-simple-users-guide.md @@ -7,7 +7,6 @@ Among non-custodial wallets, only two wallet types can connect and interact with Think of an SPV wallet as a lightweight version of a full Bitcoin node. It connects directly to the Bitcoin blockchain without intermediaries but allows you to send and receive Bitcoin without downloading and storing the entire Bitcoin transaction history (which is vast and constantly growing). SPV-enabled mobile wallets strike a good balance between convenience and decentralization. โš–๏ธ ## What to Know About SPV Wallets: - - They are **slower** when it comes to synchronizing your balance with the Bitcoin network compared to non-custodial wallets without SPV capabilities. However, SPV wallets often provide different synchronization modes, allowing users to switch between decentralized (direct blockchain access) and centralized (via a third-party server) synchronization. ๐Ÿข๐Ÿƒโ€โ™‚๏ธ - SPV-enabled wallets are **significantly better at preserving privacy**. Non-custodial wallets that provide instant synchronization times typically track user addresses to facilitate this speed. ๐Ÿ•ต๏ธโ€โ™€๏ธ๐Ÿ”’ \ No newline at end of file diff --git a/src/edu/en/fundamentals/transactions/canceling-transaction.md b/src/edu/en/fundamentals/transactions/canceling-transaction.md index 3ab1e60..ae376d4 100644 --- a/src/edu/en/fundamentals/transactions/canceling-transaction.md +++ b/src/edu/en/fundamentals/transactions/canceling-transaction.md @@ -11,16 +11,12 @@ Cancelling a pending transaction is possible, but only if your wallet app suppor In non-custodial wallets, the process of canceling a transaction involves sending a separate "cancellation" transaction that invalidates the original one. This cancellation transaction must be sent with a **substantially higher transaction fee** than the original transaction to ensure it is prioritized and processed first. ๐Ÿ“ˆ Hereโ€™s what you need to keep in mind: - - โœ… **1. Success Is Not Guaranteed** Sending a cancellation transaction does not guarantee success. If the original transaction is confirmed and added to the blockchain before the cancellation transaction is processed, the cancellation will fail and be considered invalid. - - โฑ๏ธ **2. Timing Is Crucial** The cancellation transaction must reach the network and be processed before the original transaction is confirmed. Therefore, setting a high transaction fee is essential. If it succeeds, the original transaction will be deemed invalid. - - ๐Ÿ”— **3. Mutual Exclusivity** Due to the way non-custodial wallets construct these transactions, only one of the twoโ€”the original or the cancellationโ€”can be valid. If the cancellation transaction is successful, it invalidates the original. Conversely, if the original transaction is confirmed first, the cancellation is rendered moot. - ## In Summary While it is possible to cancel a pending cryptocurrency transaction on some blockchains, the success of this action depends on several factors, including the speed of the network, the fees involved, and the capabilities of your wallet. Therefore, it is always wise to double-check transaction details before sending to avoid the need for cancellation. โœ”๏ธ diff --git a/src/edu/en/fundamentals/transactions/sending-receiving.md b/src/edu/en/fundamentals/transactions/sending-receiving.md index 928ec9a..ca0138b 100644 --- a/src/edu/en/fundamentals/transactions/sending-receiving.md +++ b/src/edu/en/fundamentals/transactions/sending-receiving.md @@ -17,14 +17,10 @@ To receive cryptocurrency, open your wallet app and select the "Receive" or "Dep Simply share this address with the sender, and your cryptocurrency will appear in your wallet once the transaction is confirmed. โœ… It's important to note that some wallets, particularly those for Bitcoin, may generate a new receiving address after each transaction to enhance privacy๐Ÿ•ต๏ธโ€โ™€๏ธ. ## ๐Ÿ” How Transactions Actually Happen - For those interested in the technical side of how non-custodial transactions work, here's a breakdown of the process: - - ๐Ÿ› ๏ธ **Transaction Preparation** After you enter the recipient's details, the amount to be sent, and the transaction fee, the wallet app constructs the transaction. This preparation can occur locally on your device or through the wallet provider's server. - - ๐Ÿ” **Cryptographic Signing** Once the transaction is ready, it is **cryptographically signed** by the wallet app using your private key. This signature is what makes the transaction non-custodial; only the private key holder can authorize a transaction that the blockchain will accept. - - ๐Ÿ“ก **Broadcasting** The signed transaction is then broadcasted to the blockchain network, where it awaits processing and confirmation. โณ \ No newline at end of file diff --git a/src/edu/en/fundamentals/transactions/transaction-fees.md b/src/edu/en/fundamentals/transactions/transaction-fees.md index 530389b..a471bf4 100644 --- a/src/edu/en/fundamentals/transactions/transaction-fees.md +++ b/src/edu/en/fundamentals/transactions/transaction-fees.md @@ -3,7 +3,7 @@ While blockchain technology itself is free to use, every transaction made on a blockchain network requires a small fee. In both the Ethereum and Bitcoin networks, these transaction fees are paid by the sender directly to the blockchain. This applies to **every transaction** conducted using a non-custodial wallet. ๐Ÿ”— ## ๐Ÿ’ฐ Paying Transaction Fees -Transaction fees must be paid in the **native cryptocurrency** of the blockchain being used. For example, on the Ethereum blockchain, fees are paid in ETH, while on the Bitcoin blockchain, fees are paid in BTC. ๐Ÿ”„ +Transaction fees must be paid in the **native cryptocurrency** of the blockchain being used. For example, on the Ethereum blockchain, fees are paid in ETH, while on the Bitcoin blockchain, fees are paid in BTC. If you are sending USDT (Tether) on the Ethereum network, you'll need ETH to cover the transaction fee. On the other hand, if you're sending USDT on the Tron blockchain, the fee would be paid in TRX (Tron). ๐Ÿ’ฑ diff --git a/src/edu/en/fundamentals/transactions/transaction-states.md b/src/edu/en/fundamentals/transactions/transaction-states.md index f6b13a1..3e6a24d 100644 --- a/src/edu/en/fundamentals/transactions/transaction-states.md +++ b/src/edu/en/fundamentals/transactions/transaction-states.md @@ -1,6 +1,6 @@ # TRANSACTION STATES ๐Ÿ“Š -Cryptocurrency transactions are **not instantaneous**. Depending on the specific cryptocurrency or token, a transaction might take anywhere from a few seconds to several minutes or even hours to complete. โณ +Cryptocurrency transactions are **not instantaneous**. Depending on the specific cryptocurrency or token, a transaction might take anywhere from a few seconds to several minutes or even hours to complete. When using a non-custodial wallet, transactions are processed directly through the blockchain, following these stages: @@ -12,7 +12,7 @@ At this stage, both the sender and recipient can monitor the transaction's statu The time a transaction remains pending varies depending on the blockchain and is largely influenced by the **transaction fee** set by the user. If the fee is well above the average of other transactions in the queue, it will be processed quickly. Conversely, if the fee is significantly lower, the transaction will have to wait until its fee becomes competitive enough to be processed. ๐Ÿ’ธ ## 2) โœ… Transaction Gets Confirmed -A transaction is considered successful when it is included in the blockchain. This inclusion occurs in batches called "**blocks**." ๐Ÿงฑ +A transaction is considered successful when it is included in the blockchain. This inclusion occurs in batches called "**blocks**." Each block typically holds a few thousand transactions. New blocks are constructed from a pool of pending transactions in the queue. Priority is given to transactions that pay higher fees. ๐Ÿฅ‡ diff --git a/src/edu/en/fundamentals/wallets/crypto-wallet-explained.md b/src/edu/en/fundamentals/wallets/crypto-wallet-explained.md index 01e7583..fac0d33 100644 --- a/src/edu/en/fundamentals/wallets/crypto-wallet-explained.md +++ b/src/edu/en/fundamentals/wallets/crypto-wallet-explained.md @@ -26,12 +26,9 @@ Non-custodial wallets come in various types. While all non-custodial wallets are - **Hardware Wallets:** ๐Ÿ’พ While these are secure, they can be complex to use and are not suitable for daily transactions. They also have limited features, can be difficult to use, and are unfortunately easily identifiable as crypto storage devices. - - **Mobile Wallets:** ๐Ÿ“ฑ These offer a good balance between convenience, privacy, and security. While they may be less secure than hardware wallets, they are generally much easier to use and easier to conceal. - - **Desktop Wallets:** ๐Ÿ’ป These are less secure compared to hardware or mobile wallets. Typically, it's not recommended to keep large sums on a wallet that resides on your all-purpose desktop computer or laptop. - - **Browser Wallets:** ๐ŸŒ These are considered the **least secure** due to a wide array of potential security breaches. \ No newline at end of file diff --git a/src/edu/en/fundamentals/wallets/hardware-wallets.md b/src/edu/en/fundamentals/wallets/hardware-wallets.md index 883c51a..1efe9a1 100644 --- a/src/edu/en/fundamentals/wallets/hardware-wallets.md +++ b/src/edu/en/fundamentals/wallets/hardware-wallets.md @@ -4,36 +4,27 @@ Newcomers to cryptocurrency are often advised to use hardware wallets like Trezo There are several important considerations and risks associated with hardware wallets that are often overlooked. Let's explore why hardware non-custodial wallets may not be as perfect as they seem. ๐Ÿ•ต๏ธโ€โ™€๏ธ ## ๐Ÿ“š Hardware Wallets in Theory -All non-custodial walletsโ€”whether desktop apps, mobile apps, or hardware devicesโ€”share one crucial feature: they generate and store **private keys**, which are essential for owning and managing cryptocurrency. ๐Ÿ”‘ +All non-custodial walletsโ€”whether desktop apps, mobile apps, or hardware devicesโ€”share one crucial feature: they generate and store **private keys**, which are essential for owning and managing cryptocurrency. In theory, hardware wallets are considered superior for key safety because it's generally more challenging to find vulnerabilities in a device built for a specific purpose by a small, focused team than in a general-purpose operating system like Windows, Android, or iOS. ๐Ÿ›ก๏ธ ## ๐Ÿ› ๏ธ Hardware Wallets in Practice In reality, there are several practical issues that diminish the advantages of hardware wallets: - 1) ๐Ÿ›’ Purchase and Setup The process of buying and setting up a hardware wallet is still **complicated and not very user-friendly**, especially for those new to crypto. Security and privacy considerationsโ€”such as where to buy, which delivery address to use, and how to set up and back up the walletโ€”can be daunting. Many people mistakenly buy devices from unauthorized resellers or receive tampered devices, resulting in the loss of funds once they deposit their cryptocurrency. ๐Ÿ˜ฐ - 2) ๐Ÿ’ฆ Vendor Data Leaks There have been several cases where hardware wallet vendors had their client databases breached, exposing user names, emails, and physical addresses. This poses serious risks, particularly for high-net-worth individuals or those living in high-crime areas. ๐Ÿšจ - 3) ๐ŸŽฃ Phishing Attacks Once user data is exposed, those users become prime targets for phishing attacks. Hackers may send emails posing as the wallet vendor, often announcing updates or other notifications. Users should be **extremely cautious** with such emails and avoid updating unless absolutely necessary. ๐Ÿšซ - 4) ๐Ÿ”„Ongoing Usage Hardware wallets are not well-suited for frequent use. If you store large amounts of cryptocurrency on a hardware wallet, carrying the device with you can pose a greater security risk than using a non-custodial mobile wallet, which is more convenient for regular transactions. ๐Ÿ“ฑ - 5) ๐ŸฆSafe Storage of the Device Users must keep the hardware wallet hidden and safe from damage, while also securely storing backups of the private keys separately. This can be more challenging than it seems and may even defeat the purpose of using a hardware wallet. ๐Ÿคฆโ€โ™‚๏ธ - 6) ๐Ÿ‘ฅTeam Behind the Wallet The qualifications of the team behind the hardware wallet are crucial. Established vendors like Trezor and Ledger have experienced teams, but newer or lesser-known brands may not offer the same level of security or reliability. ๐Ÿข - 7) ๐Ÿ› ๏ธLack of Features Hardware wallets often lack the additional features that are available in mobile wallets. The versatility of mobile operating systems allows for the integration of enhanced security features and tools that make ongoing usage and safe storage more manageable. For example, mobile wallets can offer biometric security, built-in exchanges, or multi-asset management, which aren't available on most hardware devices. ๐Ÿ“ฒ - 8) ๐Ÿ‘€Visibility and Discreetness Hardware wallets are easily recognizable as cryptocurrency storage devices, which can attract unwanted attention and pose security risks, especially if carried around. ๐Ÿ•ต๏ธโ€โ™‚๏ธ - #### ๐ŸŽ“Conclusion While hardware wallets are often recommended for their security, they are **not without significant drawbacks**. For many users, especially those who are less technically experienced, the complexities and risks associated with hardware wallets may outweigh their theoretical benefits. โš–๏ธ \ No newline at end of file diff --git a/src/edu/en/fundamentals/wallets/must-haves-for-non-custodial-wallet.md b/src/edu/en/fundamentals/wallets/must-haves-for-non-custodial-wallet.md index 75de85a..9bc5ecc 100644 --- a/src/edu/en/fundamentals/wallets/must-haves-for-non-custodial-wallet.md +++ b/src/edu/en/fundamentals/wallets/must-haves-for-non-custodial-wallet.md @@ -8,30 +8,21 @@ A well-engineered wallet is expected to strike a balance between security and ea 1) **๐Ÿ” Secure Enclave** A secure enclave is a protected area in the wallet's hardware or software that provides an extra layer of security for handling private keys. Hardware wallets excel at this, but mobile wallet apps must leverage special-purpose mechanisms provided by Apple's iOS and Google's Android OS. This feature ensures that private keys are secure and inaccessible to malicious programs or apps that may infect a smartphone hosting the wallet app. - 2) **๐Ÿ”‘ Wallet Unlock Code** A well-engineered wallet app should have a properly implemented app unlock code mechanism for accessing the wallet app. This unlock code is designed to keep crypto assets secure even if someone gains physical access to the smartphone but doesn't know the wallet app's unlock code. - 3) **๐Ÿ‘๏ธ Open Source** Ideally, the wallet's source code should be open for public scrutiny, allowing the community to verify its security and trustworthiness. Open-source code ensures that the app works as advertised and adheres to all essential security protocols for private key generation and management. Without this transparency, there's no way to truly verify that the wallet app functions as claimed. Reputable websites such as two below list open-source crypto wallets: - - https://bitcoin.org - https://walletscrutiny.com - 4) **๐Ÿ”„ Cross-Wallet Interoperability** The wallet should follow industry standards, ensuring compatibility and ease of use across different wallets. This ensures that it's possible to migrate wallets created in one app to another wallet app and vice versa. - 5) **๐ŸŒ Multi-Coin Support** The wallet app should support multiple cryptocurrencies within a single wallet, rather than requiring separate wallets for each cryptocurrency. - 6) **๐Ÿ“š Multi-Wallet Capability** The ability to create and manage an unlimited number of multi-coin wallets within a single wallet app. - 7) **๐Ÿ’พ Fail-Safe Backup Procedure** A good wallet must ensure that users properly back up private keys (mnemonic phrases). Most wallets recommend offline backups and encourage users to write down the mnemonic phrase for each wallet on paper. However, this method may not be convenient or safe for the majority of mainstream users. A more user-friendly and fail-safe approach is to provide an additional option for encrypted backup to the cloud (e.g., Apple's iCloud or Google Drive). - 8) **๐Ÿšจ Duress Mode** As cryptocurrency becomes more mainstream and more people carry it around, it's increasingly important to consider scenarios where users are forced to open their wallet apps by malicious actors. A good wallet app should account for this and implement features that allow users to hide certain wallets when under duress. - 9) **๐Ÿคณ Ease of Use** Many wallet apps are complicated to use and not accessible to the mainstream audience. Therefore, when choosing a wallet app, opt for one that you find intuitive. The more complex the wallet is to use, the higher the chance of making a mistake. \ No newline at end of file diff --git a/src/edu/en/fundamentals/wallets/wallet-backup-is-critical.md b/src/edu/en/fundamentals/wallets/wallet-backup-is-critical.md index 1d8ed21..45b5aab 100644 --- a/src/edu/en/fundamentals/wallets/wallet-backup-is-critical.md +++ b/src/edu/en/fundamentals/wallets/wallet-backup-is-critical.md @@ -20,19 +20,12 @@ Generally, storing wallet backups online (e.g., in iCloud or Google Drive) or on 1) ๐Ÿ” **Use Encryption** When backing up online, it is crucial to use encryption. This involves setting an encryption password that will protect the backup file. Encryption ensures that your mnemonic remains secure, even if the digital backup location is compromised. - - 2) ๐Ÿ”‘ **Keep the Encryption Password Safe** It's essential not to lose the encryption password, as it will be required to decrypt the backup file. It can be stored offline. If your wallet uses a mnemonic phrase plus a passphrase, you might consider using the passphrase as your encryption password. This simplifies the process by reducing the number of passwords you need to remember. - - 3) ๐Ÿ›ก๏ธ **Secure Your Accounts** If you back up to services like Google Drive or Apple's iCloud, make sure your Apple or Google account is protected by a strong password. - - 4) โš ๏ธ **Do Not Rely On Provider** It might also be wise to store digital backups in multiple locations to avoid losing access to a particular service. Remember that companies like Apple or Google can potentially lock you out of your account according to their terms of service. - #### ๐Ÿ’ก General Backup Tips For wallets created using a combination of a mnemonic phrase and a passphrase, it is advisable to store the passphrase **separately from the mnemonic**. This way, even if someone finds the mnemonic, they won't be able to access your wallet without the passphrase. For example, you could store the mnemonic in the cloud or offline and keep the passphrase in a different secure location. ๐Ÿ—๏ธ