Chemaclass - privacy

Bitcoin Fundamentals

2025-11-21T00:00:00+00:00

What would you do if your bank account was frozen tomorrow? No warning, no explanation, no access to your own money.

This isn’t hypothetical. In 2022, Canada froze bank accounts of people who donated to a protest. In 2015, Greeks could only withdraw €60 per day from ATMs. In Argentina, Turkey, and Lebanon, people watched their savings lose half their value in months.

Bitcoin exists because these things happen. Understanding it requires going back to basics: what is money, why does it matter, and how does Bitcoin fit into that picture.

No technical background required. Just curiosity.

A Brief History of Money #

Money is a social agreement. A piece of paper, a gold coin, or a number on a screen has value because we all agree it does. This agreement is what makes trade possible.

Throughout history, money has evolved:

Direct trade: Exchanging goods for goods. “I’ll give you my fish for your bread.”
Things used as money: Shells, salt, cattle. Valuable because they were useful or hard to find.
Precious metals: Gold and silver. Hard to find, long-lasting, easy to divide and carry.
Paper money backed by gold: Receipts representing gold stored in vaults.
Government money: Paper backed by nothing but a government’s promise. Why does it work? Because governments require you to pay taxes in their currency. This forces everyone to use it.

Money is a way to store and transfer value. The better it performs these functions, the better it serves as money.

What makes good money? These properties:

Hard to create: Cannot be easily made or faked
Long-lasting: Doesn’t break down over time
Divisible: Can be broken into smaller pieces
Easy to move: Simple to carry and send
Easy to verify: Simple to check if it’s real

Gold does well on most of these. Paper money is easy to move and divide but fails on being hard to create. Governments can print as much as they want. Bitcoin, as we’ll see, does well on all of them.

What is Bitcoin? #

Bitcoin is digital money that works without banks, governments, or any central authority. It was created in 2009 by someone (or some group) using the pseudonym Satoshi Nakamoto. No one knows who this person really is.

The first Bitcoin block (the Genesis Block) contains a hidden message: “The Times 03/Jan/2009 Chancellor on brink of second bailout for banks.” This headline from The Times newspaper referenced the 2008 financial crisis. It wasn’t random. It was a timestamp and a statement of purpose. Bitcoin was created as a response to bank bailouts and monetary manipulation.

Bitcoin builds on decades of work by cryptographers and privacy activists. If you’re curious about the people and ideas that led to Bitcoin, I wrote about The Cypherpunks and their vision for digital privacy.

At its core, Bitcoin is:

A protocol: A set of rules that computers follow to agree on who owns what
A network: Thousands of computers worldwide running the Bitcoin software
A currency: Units of account called bitcoins (BTC), divisible to 8 decimal places

There’s no company behind Bitcoin. No CEO, no headquarters, no customer support. It’s open-source software that anyone can run, inspect, or contribute to.

Sound Money #

Scarcity #

There will only ever be 21 million bitcoins. This is enforced by the protocol’s code, verified by every node on the network. No government, no committee, no emergency meeting can change this.

Compare this to government money. Central banks can (and do) create money whenever they want. The U.S. dollar has lost over 95% of its buying power since 1913. The Euro, the Pound, the Yen: all follow the same pattern of slowly losing value.

In a world of infinite money printing, a mathematically enforced hard cap is revolutionary.

Bitcoin is often called “digital gold” because it shares gold’s scarcity while being easier to store, divide, and transfer. You can send a billion dollars worth of Bitcoin anywhere in the world in minutes, for a few dollars in fees. Try doing that with gold bars.

Inflation Protection #

When governments print money, the value of existing money decreases. This is inflation. Your savings buy less over time, even while sitting untouched in your bank account.

Inflation is often called a “hidden tax” because it transfers wealth from savers to those who receive the new money first (usually governments and banks). I wrote more about this in Understanding Taxes.

Bitcoin’s supply schedule is fixed and predictable. New bitcoins are created through mining at a rate that halves roughly every four years. By around 2140, all 21 million will have been created. No surprises, no government decisions to print more.

Freedom & Sovereignty #

Self-custody #

With Bitcoin, you can hold your own money. Not a promise from a bank, not a balance on someone else’s books. Actual ownership, secured by cryptographic keys that only you control.

“Not your keys, not your coins.”

This phrase captures a fundamental truth. When you deposit money in a bank, you don’t own that money anymore. You own a claim against the bank. If the bank freezes your account, goes bankrupt, or decides you violated their terms of service, your access disappears.

With Bitcoin, there’s no freeze button. No account to close. No terms of service to violate. You become your own bank.

Permissionless & Borderless #

Bitcoin doesn’t care about borders, banking hours, or your credit score. You can send money to anyone with an internet connection, anywhere in the world, at any time.

Traditional banking:

Hours: Monday-Friday, 9-5 (maybe)
International transfers: 3-5 business days
Fees: Percentage of transfer + fixed fees
Requirements: ID, proof of address, account in good standing

Bitcoin:

Hours: 24/7/365
Global transfers: ~10 minutes to an hour
Fees: Based on data size, not amount sent
Requirements: A Bitcoin address (free, instant, no ID)

Censorship Resistance #

No central authority controls Bitcoin. No single entity can stop a transaction or reverse a payment. Once confirmed, it’s final.

This matters for people living under oppressive governments, facing political pressure, or simply wanting financial privacy. It matters for donations to controversial causes, for journalists protecting sources, for anyone who values financial freedom.

Financial freedom isn’t just about being rich. It’s about having control over your own money, regardless of who you are or where you live.

Real Stories #

These aren’t edge cases:

In December 2010, WikiLeaks published classified U.S. diplomatic cables. Within days, Visa, Mastercard, PayPal, and Bank of America cut off all payment processing.

WikiLeaks lost 95% of its revenue overnight. In 2011, they started accepting Bitcoin. It was one of the first major use cases for the cryptocurrency. The financial blockade meant to silence them instead proved Bitcoin's value as censorship-resistant money.

Read full article →

In March 2013, Cyprus banks took 47.5% of all deposits over €100,000 to bail themselves out. No consent, no warning. Money in the bank was simply confiscated to save the banking system.

Bitcoin's price doubled in the weeks following. The Cyprus bail-in was a wake-up call: your bank balance is an IOU, and when banks fail, you're the one who pays.

Read full article →

In June 2015, Greece closed its banks for three weeks. ATM withdrawals were capped at €60 per day. Citizens couldn't access their own money. The debt crisis showed Europeans that bank deposits aren't as safe as they assumed.

Bitcoin interest spiked in Greece during the crisis. It was an early warning: even in "stable" countries, your access to money can be switched off overnight.

Read full article →

Between 2016 and 2019, inflation reached 53,000,000%. Salaries became worthless within days. People couldn't buy food, medicine, or basic goods. Those who converted savings to Bitcoin before the collapse preserved their wealth.

Those who trusted the banking system lost everything. Bitcoin became a lifeline. Not for speculation, but for survival.

Read full article →

In 2019, Lebanese banks began freezing deposits. By 2020, people couldn't access their own savings. The lira lost 90% of its value. ATM withdrawals were capped at tiny amounts. It wasn't a temporary measure. Banks simply didn't have the money.

Those who had converted to Bitcoin before the collapse could still access their wealth. Those who trusted the banks discovered that "your money" wasn't really yours.

Read full article →

During the 2019-2020 pro-democracy protests, Hong Kong activists faced financial surveillance. Banks could freeze accounts of known protesters. Donations through traditional channels could be traced.

Bitcoin offered a way to fund the movement without leaving a trail for authorities. Protesters used crypto to receive international support while protecting their identities. Financial privacy became a tool of resistance.

Read full article →

After the disputed 2020 election, Belarus erupted in protests. The Lukashenko regime responded with violence and financial repression. Bank accounts of activists, journalists, and NGOs were frozen.

The KGB monitored all transfers. A solidarity fund called BYSOL raised over $2 million in Bitcoin and distributed it directly to protesters who lost jobs or faced persecution. The only payment method authorities couldn't control.

Read full article →

The Central Bank banned crypto exchanges in February 2021 and ordered banks to close accounts of anyone dealing in cryptocurrency. The goal was to stop Bitcoin adoption. It backfired.

Peer-to-peer trading surged 27% in the months following the ban. Nigerians simply moved to decentralized platforms. The naira continued losing value while Bitcoin kept working. You can't ban math.

Read full article →

The Turkish lira has lost over 80% of its value against the dollar since 2018. Every currency crisis triggers a spike in Bitcoin trading. In 2021, Turkey banned crypto payments, but trading volumes only increased.

The government can't stop people from protecting their savings. When the lira crashes, Bitcoin search trends surge. Turks aren't speculating. They're surviving.

Read full article →

In September 2021, El Salvador became the first country to make Bitcoin legal tender. President Bukele's government installed Bitcoin ATMs nationwide, and even started mining BTC using geothermal energy from volcanoes. Critics predicted disaster.

Instead, tourism increased, remittance costs dropped, and the country gained global attention. A small nation became a Bitcoin laboratory.

Read full article →

When the Taliban took control in August 2021, banks froze. International transfers stopped. Women, banned from working, lost access to income. But some Afghan women had learned about Bitcoin before the collapse.

They could receive payments from abroad, store value the regime couldn't seize, and maintain financial independence. In a country where women can't open bank accounts, Bitcoin became a tool of quiet resistance.

Read full article →

When Russia invaded, traditional aid was too slow. Banks were overwhelmed, wire transfers took days. But within hours of posting Bitcoin addresses on Twitter, donations poured in from around the world. By March 2022, Ukraine received over $100 million in crypto.

Funds went directly to bulletproof vests, medical supplies, and communication equipment. No bureaucracy, no intermediaries, no delays.

Read full article →

In February 2022, the government invoked the Emergencies Act to freeze bank accounts of people who donated to trucker protests. No court order needed. Over 200 accounts were frozen overnight. But Bitcoin donations kept flowing.

Organizers distributed 14+ BTC directly to protesters. The government couldn't touch those funds. In 2024, a court ruled the freezes unconstitutional. The lesson: custodial money can be weaponized.

Read full article →

After Russia invaded Ukraine in 2022, Western sanctions cut Russian banks from SWIFT. Suddenly, Russians abroad couldn't access their money. Many turned to crypto, not to evade sanctions, but to survive.

Meanwhile, Ukrainians used Bitcoin to receive donations and preserve savings. The same technology served people on both sides of a conflict, based on their individual needs. Bitcoin doesn't pick sides.

Read full article →

Argentina suffered 211% inflation in 2023 under decades of big-government policies. Then Javier Milei took office. He halved ministries, cut 40,000 government jobs, and ended monetary financing. Result: inflation dropped to 117% in 2024, then 31% by end of 2025, the lowest in seven years. GDP grew 7.6% in Q2 2025, the strongest in two decades.

Poverty fell from 57% to 32%. Smaller government, sound money principles. Bitcoin adoption remains high, Argentines learned not to trust any currency they can't verify themselves.

Read full article →

Migrant workers send $700 billion home every year. Traditional services like Western Union take 6-10% in fees. For a worker sending $200, that's $20 gone. Money their family desperately needs.

Bitcoin and Lightning Network transfer value across borders for cents, settling in minutes instead of days. Companies like Bitso processed $8 billion in crypto remittances in 2023. Cheaper transfers mean more food on the table.

Read full article →

In January 2024, the SEC approved Bitcoin ETFs for the first time. Within months, institutional investment surged 400%. By end of 2024, professional investors held $27.4 billion in Bitcoin ETFs, over 26% of total AUM. BlackRock's IBIT alone reached $50 billion.

Bitcoin was no longer just for early adopters. Wall Street called it "year zero of institutional adoption." The asset that banks once dismissed now sits in pension funds.

Read full article →

When cash imports into Gaza were blocked in 2024, banking infrastructure collapsed. Traditional transfers charged 30%+ fees, if they worked at all. Bitcoin became a lifeline. One volunteer sent $123,000 in BTC that bought food, water, and built shelters for displaced families.

A taxi driver named Yusef received $48k in Bitcoin donations and built 100 tents. When banks fail, Bitcoin still works. No permission needed.

Read full article →

On March 6, 2025, President Trump signed an executive order establishing a Strategic Bitcoin Reserve, a "digital Fort Knox." The reserve holds ~200,000 BTC from seized assets, with a policy never to sell.

The U.S. had lost $17 billion selling seized bitcoin too early. Now it's holding. Pakistan announced its own reserve weeks later. Nations that once dismissed Bitcoin now compete to accumulate it.

Read full article →

María Corina Machado won the 2025 Nobel Peace Prize for fighting Venezuela's dictatorship. Her campaign runs on Bitcoin because "bank wires get blocked, but bitcoin donations cannot be seized." With the bolívar down 98% in a decade and 8,000%+ inflation, Bitcoin became "a vital means of resistance."

She promised a democratic Venezuela would embrace Bitcoin in its national reserves. Freedom money for a freedom fighter.

Read full article →

Common Objections #

“It’s used for crime.” So is cash. The difference: Bitcoin leaves a permanent, traceable record. The blockchain is a forensic tool. Most criminals prefer dollars.
“It’s too volatile.” True in the short term. Zoom out: Bitcoin has been the best-performing asset of the last decade. Volatility decreases as adoption grows. Don’t invest money you need next month.
“It wastes energy.” Bitcoin mining uses electricity to secure a trillion-dollar network. Much of it comes from stranded energy (gas flares, excess hydro) that would otherwise be wasted. The real question: is financial sovereignty worth the energy cost? Air conditioning uses more.
“It’s too late to buy.” People said this at $100, $1,000, $10,000, and $100,000. If Bitcoin achieves even a fraction of gold’s market cap, there’s still room to grow.

Honest Caveats #

Bitcoin isn’t perfect. Things to be aware of:

Self-custody requires responsibility. Lose your seed phrase, lose your funds. No customer support.
Irreversibility. No chargebacks. Send to the wrong address? Gone.
Learning curve. Wallets, keys, fees, P2P trading. The more you learn, the more sovereignty you gain. KYC exchanges are easier but come with regulatory strings attached.
Privacy takes effort. The blockchain is transparent, not anonymous. True privacy requires learning how to use Bitcoin properly.
Scaling tradeoffs. Base layer is slow by design. Lightning adds speed but also complexity.

None of these are dealbreakers. They’re tradeoffs. The more you learn, the fewer limitations you face.

Bitcoin Today #

This isn’t just theory anymore.

Institutional adoption #

US Bitcoin ETFs approved in 2024, bringing billions in institutional money (source)
Strategy holds 660.000+ BTC as corporate treasury, inspiring others (source)
Major banks now offer Bitcoin custody and trading services to clients
Pension funds and asset managers are adding Bitcoin to portfolios

Global adoption #

Central African Republic adopted Bitcoin as legal tender in 2022 (source)
Switzerland allows tax payments in Bitcoin in Canton Zug since 2021 (source)
Emerging markets lead in grassroots adoption: Vietnam, Philippines, Nigeria

Real-world usage #

Square accepts Bitcoin payments since Nov. 2025 for 4M+ merchants (source)
Lightning Network (LN) processes millions of instant payments monthly (source)
Merchants worldwide accept Bitcoin, from small shops to major retailers (source)

You can dismiss it, or you can understand it.

Getting Started #

Bitcoin is money that no one controls and everyone can verify. It’s scarce in a world of infinite money printing. It’s permissionless in a world of financial gatekeepers. It’s programmable in ways we’re only beginning to explore.

Understanding Bitcoin doesn’t require believing it will change the world. It requires understanding what money is, how it evolved, and why these properties matter. From there, you can form your own conclusions.

Want to try? #

The best way to understand Bitcoin is to use it:

Start small: Buy a small amount on a trusted Bitcoin-only platform like:
- 21bitcoin or Relai: Simple apps for automatic Bitcoin savings
- HodlHodl: Peer-to-peer trading, non-custodial
Move it to your own wallet: Download a mobile wallet and transfer your Bitcoin there. Feel what self-custody means. Some wallets like BlueWallet, Nunchuk.
Send a transaction: Send some sats to a friend. Watch it confirm in ~10 minutes. Get curious looking at your transaction in the mempool.
Try Lightning: Send an instant, near-free payment. This is the future of everyday transactions. Some LN wallets like Alby Go, Muun.

You don’t have to go all in. Start small and keep learning, one step at a time.

Further reading

Bitcoin 101 by Cosme - Another beginner-friendly introduction
How to Buy Bitcoin Securely by Cosme - Step-by-step guide

The Road to Serfdom

2025-03-31T00:00:00+00:00

First published in 1944, The Road to Serfdom is still making waves today. Friedrich Hayek, an Austrian economist, wrote it during World War II to warn against something he saw as really dangerous: central economic planning.

His message? Even well-meaning government control over the economy can quietly take away our freedom, and possibly lead us toward dictatorship.

1. The danger of central planning #

Hayek’s main point is simple: when the government tries to control the economy, it ends up controlling people’s lives too. Once the state decides who gets what, it also ends up deciding who can do what.

Even if it starts out with good intentions, it eventually leads to force, because people have different goals, and planners can’t make everyone happy.

“Controlling the economy means controlling everything people want to do. (Chapter 7)”

2. The illusion of “good” socialism #

Some folks believe in democratic socialism, mixing freedom with shared planning. Hayek wasn’t buying it.

He says you can’t really separate socialism from authoritarianism, because planning on behalf of “the group” means ignoring individual choices. Over time, the people running the system need to silence anyone who disagrees. That opens the door to the worst kinds of leaders.

“The worst get on top. (Chapter 10)”

3. Rule of law vs. Rule by discretion #

In a free society, rules should apply to everyone, be known ahead of time, and stay consistent, like traffic laws.

But planning needs flexible rules. Bureaucrats need to make calls on the fly, and that gives them a ton of power. Hayek thinks that’s a problem. The more discretion officials have, the less protection individuals have.

“Nothing distinguishes more clearly conditions in a free country from those in a country under arbitrary government than the observance in the former of the great principles known as the Rule of Law. (Chapter 6)”

4. Markets work because no one’s actually in charge #

Hayek believed that no planner, no matter how smart, can replace what the market does on its own.

Why? Because markets use price signals to share info. Millions of people making choices send signals (through prices) about what’s needed and what’s not. Trying to manage all that from the top? Super inefficient, and it usually fails.

“The more the state ‘plans’ the more difficult planning becomes for the individual. (Chapter 5)”

5. Incremental loss of freedom #

Hayek wasn’t warning about overnight dictatorships. He was more concerned about the slow loss of freedom that comes from small steps: price controls here, nationalized industries there.

Each step might feel harmless, but it adds up. And once people depend too much on the state, it’s hard to say no to the next “solution” from above.

“The danger of tyranny inevitably arises from the methods of collectivism. (Chapter 10)”

Final thoughts: Is Hayek still relevant? #

Totally. While the world has changed, the tension between freedom and control is still very real. Hayek’s ideas remind us that freedom doesn’t usually vanish overnight: it fades when we’re not paying attention.

Sure, some government help is needed. But Hayek’s warning? Too much control, even with good intentions, can lead us somewhere we don’t want to go.

Run Your LN Node on a Raspberry Pi

2025-02-17T00:00:00+00:00

In this guide, I’ll show you how to set up a fully custodial Lightning Network (LN) node using Alby Hub on a Raspberry Pi, giving you complete control over your node. Alby Hub offers a DIY free version for a self-custodial Lightning wallet, ensuring full ownership of your funds while being 100% open-source.

It supports both Lightning and Nostr addresses, enabling seamless connectivity across ecosystems, and integrates effortlessly with dozens of Bitcoin applications. With built-in Lightning Service Provider (LSP) services and the Alby Go mobile app, managing your node on the go has never been easier.

Important: This is NOT a Bitcoin miner or a full node. It’s simply a Raspberry Pi running on an SD card power-efficient and low-cost.

⚠️ Disclaimer ⚠️

I assume you understand Bitcoin’s fundamental concepts.
I assume you know how the Lightning Network (LN) works.

Anyway, I’ve included a brief recap of the Lightning Network basics below.

What is the Lightning Network? #

The LN is a second-layer solution built on top of Bitcoin to enable fast, cheap, and scalable transactions.

Why? Bitcoin’s base layer is secure but slow and expensive for small payments due to block size limits and fees.
How? LN uses off-chain payment channels that allow users to transact instantly without waiting for blockchain confirmations.

Key Concepts #

Payment Channels: Users open a channel by making an on-chain transaction, then send unlimited instant payments within that channel.
Routing: You don’t need a direct channel with everyone, payments can be routed through multiple connected nodes.
Low Fees: Only opening/closing channels require on-chain fees; most transactions cost fractions of a cent.

Goal #

LN makes Bitcoin usable for everyday transactions, like buying coffee, without waiting 10+ minutes for confirmations.

In short: Lightning Network = Instant + Cheap Bitcoin payments, secured by Bitcoin’s blockchain.

Setting up Alby Hub #

Alby Hub is a free, open-source (ideally private) Lightning Network node.

Requirements #

Before we begin, you are going to need the following things:

A windows or mac or linux computer
Raspberry Pi 4 or 5 (For Zero 2W see this tutorial!)
- In this tutorial, I am using a raspi-4b (~60€)
The charger for your raspi (~10€)
SD memory card (32/64gb) (~10€)
Adapter SD card to USB (to flash the OS into the raspi) (~10€)

Installation Steps #

1. Flash a Linux kernel into the SD card #

Suggestion: You can use RPI imager on your computer. Use it to flash the recommended raspi OS for you

On the Storage you will see your SD card after inserting it into your laptop.

Once you click “Next”, you will see different settings. Click to Edit Settings

On Settings > General: set your hostname, the username and password for your admin user. Make sure you enable your WIFI, otherwise you will have to plug it to the router with an RJ-45.

For this tutorial, I am using testhub as hostname, you can use albyhub or whatever you prefer.

On Settings > Services: make sure the access via SSH is enabled. We are going to need it to install Alby Hub.

Click “Save” and click “Yes” to start the installation.

You will see a confirmation. Click “Yes”. It will take ~10 mins…

Now we got the SD with a fresh linux kernel ready to use!

2. Insert the SD into the raspi #

Extract the SD from the laptop and insert it in the raspi first.

Once the SD is inserted, then plug in the power cable. It will turn on automatically as soon as you plug it in.

3. Alby Hub installation #

It will take ~5mins since you turned it on to be able to access to it. How can you make sure it’s alive? Open the terminal and ping the hostname you defined while flashing the SD on Settings > General, remember it ended up with .local:

ping testhub.local

It’s normal if you don’t get any answer at the beginning… until you do get this.

Now you can install Alby Hub in your raspi using the SSH connection that you enabled earlier:

# Source code: https://github.com/getAlby/hub/tree/master/scripts/pi-aarch64
ssh testhub@testhub.local '/bin/bash -c "$(curl -fsSL https://getalby.com/install/hub/pi-aarch64-install.sh)"'

You will be asked to type the word “yes”; type it.

Then, you will be asked to enter your password. Enter the password you chose in Settings > General for the username.

4. Alby Hub Setup #

Wait another 2-3 mins and visit your host: http://testhub.local/

Your Alby hub is now running. Let’s connect it to your GetAlby account!

Creating a GetAlby Account #

🔗 getalby.com

Connecting GetAlby with Alby Hub #

I created an account named testhub.

Left: the GetAlby account. Right: the node in the raspi.

Click “Connect Now”.

Click “Request Authorization Code”.

You get the auth code (left) that you need to insert it into your setup (right).

Create a Password for your Alby Hub installed in your raspi. It can be different from the password that you set up for your root user in the rapi itself.

Now it’s time to Link your Alby Account

Unless you specify otherwise, set the default “Budget renewal: Monthly 1M sats”.

Opening Lightning Channels #

I recommend following the Initial Steps to set up your Alby Hub.

Let’s open the first channel.

You need to pay ~$20 in sats to open a 1M sats incoming liquidity channel.

After the payment, then you will see the channel open. It might take a couple of mins until the funding transaction is mined in the next block.

Receiving Sats #

You can receive sats using your LN Address.

Left: Public page linked to your node. Right: Private page from your Alby Hub.

Optional: You can add ln funds to your wallet using GetAlby’s third-party services: getalby.com/topup - mind the KYC…

Using Your Sats #

After that, you will be able to use it via the Alby Extension or the AlbyGo.

Your node is the ultimate source of truth. Connecting these apps to it will allow you to use your sats seamlessly across different platforms.

Disclaimer: the testhub LN address was created only for testing and tutorial purposes. My real address is chemaclass ;)

Maintenance and Troubleshooting #

Updating Your Node #

Similar to the installation process, there’s a script available to update your node. You can find it in the source repository: GitHub - Alby Hub Update Script

ssh testhub@testhub.local '/bin/bash -c "$(curl -fsSL https://getalby.com/install/hub/pi-aarch64-update.sh)"'

Handling Power Outages #

If the power goes out, the Raspberry Pi will turn off. Once power is restored, it will automatically restart, but Alby Hub will prompt you to enter the password you set earlier.

Related links

Criptoria

2025-02-09T00:00:00+00:00

Cryptoria is a story about the evolutionary process that gave birth to computers, networks, cybersecurity and digital money.

From Greece to Bitcoin, Cryptoria narrates a selection of milestones that occurred before and after Alan Turing. The book showcases a broad collection of people, organizations, concepts and inventions that evidence the deep historical and cultural relationship between mathematics, cryptography, computer science and the struggle for individual sovereignty.

Cryptoria is addressed to all people convinced that, beyond inherited or imposed ways, there are other forms of social and economic organization that can and should be explored.

Content #

Part I: Before Turing #

1. The Beginning of the End #

The Boys Who Loved Puzzles
- Alan Turing
- Irving John Good
The Men Who Loved Their Genes
- Galton’s Chimera
- The Lugenesis Mutation
The Power of Science Fiction
- Hugo Gernsback
- Amaizing Stories
The Descent of Saint Jude

2. In Search of Truth #

As We Know It
Organon
The Mosaic Effect of Science

3. Numbers Shall Set You Free #

Sovereign Mathematics
- Formal Language
- Set Theory
- Modular Arithmetic
- Congruence
- Gauss
- Gauss, Fermat and Euler
- Boolean Algebra
- Truth Tables
Axiomatize or Die
Unsolved Problems
- Principia Mathematica
- Bologna 1928
- The Revelation of Gödel
The Turing Machine
- Computable Numbers
- Computing Machine
- Conclusions 1936

4. The Mathematics of Secrecy #

A Brief History of Numbers
Tool of War
Linked by Signals
The Persuasion Factory
Bletchley Park
Ratio Club
Metallic Intelligence
Eternal Alan

Part II: After Turing #

5. Modern Computing #

Bell Labs
Claude Shannon
- Glad You Came
- Information Theory
The UNIX Era
- New Languages
- New Clock
The First Microprocessor
Horst Feistel
- Lucifer
- DES
ARPANET
First Companies
Computational Complexity

6. The Dawn of Strong Cryptography #

Forbidden Cryptography
- One Law to Ban Them All
Key Cryptography public
Diffie-Hellman-Merkle
- Martin Hellman
- Whitfield Diffie
- Whit meets Martin
- Diffie investigates with Hellman
- Multi-user cryptographic techniques
- Ralph Merkle
- Merkle 1974
- Merkle puzzles
- Ralph meets Whit and Martin
- New directions in cryptography
The RSA team
- Ron, Adi and Len
- The RSA system
Key distribution centers (KDC)
Distributed networks
Merkle tree

7. Making legion #

Internet universe
USENET
CPSR
David Chaum
- Crypto Conferences
- CRYPTO ’82
Zero knowledge proof
Free software
- GNU Project
- Free Software Foundation

8. Road to libertarian #

Digital signatures
- Taher Elgamal
- Claus Schnorr
Curves elliptical
David vs. Big Brother
Cryptoanarchy
Extropians

9. Soldiers of Privacy #

EFF
- John Perry Barlow
- Joohn Gilmore
- Mitch Kapor
- Electronic Frontier
- Cyberspace Independence
EPIC
PGP
- Phil Zimmermann
- Hal Finney
- Dances with Wolves
- OpenPGP
Cypherpunks
- Cyphernomicon
- Cypherpunk Manifesto
Clipper Chip

10. Digital Money #

Tatsuakki Okamoto
Proof of Dwork
Digicash
Hal 1993
Magic Money Digicash
Smart Contracts
The Palace Mint
Hashcash
B-money
Bit Gold
RPOW

11. The Age of Satoshi #

Satoshi Nakamoto
Whitepaper
Binaries
First TX
Bitcoin

Related links

Book website: www.prometeabtc.com/criptoria

Bitcoin with Rigor

2025-01-18T00:00:00+00:00

Bitcoin with Rigor goes beyond a basic explanation of Bitcoin, offering a detailed analysis of how Bitcoin works. It breaks down its components clearly, helping readers understand both the parts and the system as a whole. This deep dive explores Bitcoin’s potential and risks, recognizing it as a decade-old monetary experiment that hasn’t yet stood the test of time like gold or silver. Despite this, its innovative design makes it a promising system for the present and future.

Bitcoin’s novelty makes it challenging to grasp fully. It requires knowledge of computing, economics, and finance while also being a digital asset with no historical precedent to guide understanding. Yet, much like the Internet (also relatively young but undeniably transformative), Bitcoin has the potential to redefine systems and leave a lasting impact.

This book aims to equip readers with the tools to understand how Bitcoin works, empowering them to form their own well-informed opinions about its role in society or, if they choose, to begin a professional journey in this evolving sector. Written with rigor but without excessive technicality, the content is designed to be concise, accessible, and engaging, providing the foundation needed to truly comprehend Bitcoin.

Content #

1. Basic Computer Concepts #

Information and Communication
How Computers Work
Languages and Protocols
The OSI Model: The Onion of Computing
Logic Gates: Fundamental Computing Functions
Client-Server and P2P Networks

2. Basic Cryptographic Concepts #

Asymmetric Complexity
Ciphers, Keys, and Symmetric Cryptography
Asymmetric Cryptography
The Cypherpunk Movement
Cryptographic Hash Functions

3. The Basics of Bitcoin and Cryptocurrencies #

Key Generators and Randomness
Cryptographic Signatures
The Discrete Logarithm Problem
Elliptic Curve Cryptography
Merkle Tree
Traditional Digital Money
Distributed Consensus Algorithms
Proof of Work (PoW)

4. Bitcoin Piece by Piece #

Blockchain or Hashchain?
Block Synchronization
The Headerchain
Keys and Signatures in Bitcoin
Transactions and the UTXO Model
Bitcoin Script and Opcodes
P2PKH (Pay to Public Key Hash) and P2PK
Multi signatures and P2SH (Pay to Script Hash)

5. Nodes and Blockchain in Detail #

Transaction Size and Frequency
Initializing a Full Network Node
Databases and Pruning
How a Wallet Works
Wallets, SPV Nodes, and Others
From Mempool to Blockchain
Forks and Consensus Criticality
Hard Fork vs. Soft Fork

6. Bitcoin Updates and Applications #

Much Work Ahead
Transaction Malleability
Segregated Witness (SegWit)
P2WPKH and P2WSH
Unilateral Payment Channels
Lightning Channels
Multi-channel Payments and HTLCs
Lightning Network
Discreet Log Contracts (DLCs)
MAST, P2SMR, and P2CH
Taproot and Grafroot

Book presentation #

Related links

Book website: www.bitcoinconrigor.com

Understanding Taxes

2025-01-02T00:00:00+00:00

Taxes are unavoidable. Whether it’s your paycheck, morning coffee, or the house you just bought, taxes are everywhere. If you’ve ever wondered where your money goes after payday or why buying property comes with extra fees, this post is for you. I’ll keep it simple without diving into complicated legal stuff.

Tax journey 101
Types of Taxes
How do they work?
Why do we pay taxes?
A new perspective

Tax journey 101 #

When you earn:
- Personal Income Tax: Deducted from your salary.
- Social Security Contributions: For healthcare, pensions, and unemployment.
- Self-Employment Tax: Covers taxes and social security for freelancers.
When you spend:
- Value-Added Tax (VAT): Adds 10%-25% to most goods and services.
- Excise Tax: Extra charges on fuel, alcohol, tobacco, and luxury items.
When you own:
- Property Tax: Paid annually on owned real estate.
- Wealth Tax: Charged on substantial assets in some countries.
- Road Tax: Annual fee for owning or operating a vehicle.
When you transfer or inherit:
- Transfer Tax: Applied to purchases like second-hand properties.
- Inheritance/Gift Tax: Payable on inherited assets or large gifts.
When you sell:
- Capital Gains Tax: On the profit when selling property, stocks, or investments.
- Land Value Increase Tax: On the increase in land value during ownership.
When you use services:
- Local Fees: For waste collection, car registration, or building permits.
- Tourism/Travel Tax: For lodging or certain tourist-related services.
When you win the lottery:
- Lottery Tax: A substantial portion of your winnings goes to the government.

Types of taxes #

Consider taxes as a three-course meal: direct, indirect, and special.

Direct taxes: What you earn and own #

These taxes are based on your income, assets, or gains:

Income Tax: This is the big one. It’s progressive, meaning the more you earn, the higher your pay rate. Income Tax applies to salaries, freelancing income, rental earnings, and investment gains.
Corporate tax: This tax is paid on businesses’ profits. Rates vary by country, but a general rate of 20-30% is common.
Wealth Tax: Some countries tax high-net-worth individuals on their total assets, like properties or savings. Rates and exemptions depend on where you live.
Inheritance and Gift Tax: When you inherit assets or receive a significant gift, you must pay taxes. The rate often depends on your relationship with the giver.

Indirect taxes: What you spend #

These taxes are baked into the price of goods and services:

Value-Added Tax (VAT): A tax on almost everything you buy. Standard rates range from 10-25% in most countries, though essential goods like food and medicine often have reduced rates.
Excise taxes: Special taxes on products like alcohol, tobacco, and fuel. They’re designed to raise revenue while discouraging consumption.

Property and local taxes: Owning stuff costs money #

If you own, rent, or sell property, these taxes come into play:

Property Tax: Paid annually based on the value of your home or land.
Transfer Tax: When buying a 2nd-hand property, you might pay a % of its price.
Capital Gains Tax: When selling a property or other assets for a profit.

Other Taxes and fees: The little extras #

These include fees for registering vehicles, paying for waste collection, and obtaining permits. They might seem minor, but they add up over time.

How do they work? #

Taxes are usually a mix of national, regional, and local responsibilities:

National taxes have standardized rates, like income tax or VAT.
Regional taxes vary depending on where you live, like wealth or inheritance taxes.
Local taxes are specific to your city or town, like property or waste fees.

Taxes are often deducted directly from employees’ paychecks. Freelancers and business owners, on the other hand, need to calculate and pay their taxes regularly.

Why do we pay taxes? #

Taxes are meant to pay for public services like roads, healthcare, schools, and pensions to make life better for everyone. But the system’s complexity and how the money is spent often make it feel unfair.

Are Taxes fair? #

This depends on two big questions: Who should pay? How much is fair?

The case for taxes #

Taxes fund essential services we all use, like hospitals and schools.
Progressive taxes, where higher earners pay more, help reduce inequality and create stronger communities.

The case against taxes #

Some taxes, like wealth or inheritance taxes, feel unfair. They take money that’s already been earned.
Worse, when governments waste tax money on corruption or bad decisions, people feel like they’re paying for nothing.

It feels unfair when governments waste the money. If services don’t improve or funds are mismanaged, it’s frustrating to see your money disappear without benefit.

Taxes would seem much fairer if people trusted their money was being spent wisely. Without trust, paying taxes feels like throwing money into a black hole.

A new perspective #

Taxes are supposed to fund critical public services, but the biggest problem with taxes (and big governments) is that they often lead to inefficiency and corruption. The more power a government has, the more likely it is to misuse it. That’s why governments should be (for me) small, focused, and efficient, providing essential services without overcomplicating things or overreaching into people’s lives.

Here is where Bitcoin offers an interesting alternative. Bitcoin is decentralized, which means no one controls it: not governments, banks, or anyone. This removes the risk of corruption or mismanagement by powerful institutions. Every Bitcoin transaction is recorded on a public ledger that anyone can verify, so it’s transparent and resistant to manipulation.

While most countries want to tax Bitcoin transactions, using Bitcoin gives people more control over their money. Unlike traditional currencies that governments can print endlessly (causing inflation and lowering the value of savings), Bitcoin has a limited supply, so its value can’t be diluted similarly. It’s also borderless, meaning you can send and receive money without relying on banks or other intermediaries that might take a cut or add delays.

Why government money works #

Have you ever wondered why paper money has value when it’s not backed by gold or anything physical? The answer is taxes. Governments require you to pay taxes in their currency. This creates forced demand: everyone needs euros, dollars, or yen to pay the government. It’s a circular system. The government creates the money, then requires you to earn it, then takes a portion back through taxes. This is why government money is sometimes called “fiat” (from Latin, meaning “let it be done”). It works because the government says so, and backs that up with the tax system.

Inflation: The hidden tax #

Inflation is often called a “hidden tax,” and for good reason. When governments print money endlessly to fund their spending, the value of the existing money drops. This means your hard-earned savings can buy less over time.

While politicians benefit in the short term by having more money to spend without directly raising taxes, ordinary people pay the price through higher living costs. Inflation is theft, as it quietly takes value away from everyone’s money to cover the government’s poor financial decisions.

With its fixed supply of 21 million coins, Bitcoin cannot be inflated in this way. Its scarcity ensures that no one, including politicians, manipulates its value. For people frustrated by rising prices and shrinking savings, Bitcoin offers a way to protect their wealth from the damaging effects of inflation. It’s a system designed to reward savers, not punish them.

Final thoughts #

Bitcoin doesn’t eliminate taxes or public services but challenges how we think about money and power. It gives people more control over their wealth and shows how financial systems work without needing large, often corrupt institutions. It’s a step toward a world where individuals have more freedom and governments focus on being small, efficient, and fair.

The Cypherpunks

2024-12-11T00:00:00+00:00

In the early ’90s, with the internet on the rise, a group called the Cypherpunks emerged to defend digital privacy. They pushed for encryption and privacy, shaping our digital world with their vision.

Who were the Cypherpunks? #

The term “Cypherpunk” combines “cipher” (a reference to encryption) with “punk”, reflecting the group’s rebellious and anti-establishment spirit.

Far from being a formal organization, the Cypherpunks were a diverse assembly of visionaries, technologists, and activists bonded by shared principles. The movement started in 1992 when Eric Hughes, Timothy May, and John Gilmore founded the cypherpunks mailing list. Some key figures:

Eric Hughes who wrote “A Cypherpunk’s Manifesto,” laying out the philosophical foundation for the movement.
Timothy C. May authored “The Crypto Anarchist Manifesto,” which imagined a society where cryptography could foster a new anarchistic order.
John Gilmore, a co-founder of the Electronic Frontier Foundation (EFF), was pivotal in early internet privacy advocacy.
Julian Assange, later known for WikiLeaks, participated in these discussions.
Phil Zimmermann revolutionized email privacy with his creation of PGP.
Jude Milhon (St. Jude), a hacker and writer, coined the term “cypherpunk” together with Eric Hughes.
Nick Szabo contributed significantly to digital contracts and currencies, conceptualizing “bit gold” before Bitcoin.
Hal Finney, an early Bitcoin developer, worked on cryptographic software including PGP, influencing the privacy tech landscape.
Adam Back introduced Hashcash, which later inspired Bitcoin’s proof-of-work, while actively engaging in cypherpunk dialogues on privacy.
Wei Dai proposed “b-money,” an early idea for anonymous digital cash systems, which influenced Bitcoin’s development.
Zooko Wilcox-O’Hearn, with his work on Zcash, brought advanced privacy to cryptocurrencies, having roots in cypherpunk discussions.
David Chaum, often called the “godfather of cypherpunks”, pioneered digital cash with DigiCash (1989). His work on electronic privacy predates and inspired the movement.
Bram Cohen developed BitTorrent, showcasing the cypherpunk ethos of decentralization in file sharing.

Their work built on foundational cryptographic research by Whitfield Diffie and Martin Hellman, who invented public-key cryptography in 1976, making secure communication between strangers possible.

They gathered online on the cypherpunks mailing list, which at its peak had around 2000 subscribers exchanging 30+ messages per day. Their motto: “Cypherpunks write code.” They didn’t just talk about privacy. They built it.

Philosophy and goals #

The core philosophy of the Cypherpunks was centered around privacy, freedom of speech, and the potential of cryptography to protect these rights. Their main tenets included:

Privacy as a fundamental right: They believed that privacy was essential for personal freedom and that digital communication should be private.
Decentralization: Suspicious of centralized control over information, they pushed for decentralized systems where individuals could control their own data.
Cryptography as a tool: They saw encryption not just as a means of securing data but as a political tool against surveillance and oppressive regimes.

Their goals were #

To create and promote tools for encryption, anonymity, and digital cash.
To educate the public on the importance of cryptography.
To resist governmental and corporate efforts to control or monitor digital communications.

Impact nowadays #

Development of key technologies #

Cypherpunks built tools, not just theories:

PGP (1991): Email encryption for everyone
Tor (2002): Anonymous browsing through onion routing
BitTorrent (2001): Decentralized file sharing
Bitcoin (2009): Digital money without banks
Signal Protocol: The encryption behind Signal, WhatsApp, and other messengers

When you send an encrypted message today, you’re using cypherpunk technology.

Cultural shift #

They changed how society views privacy. Before them, encryption was mostly for governments or experts. Today, it’s a standard part of tools like messaging apps and web browsers. By promoting encryption and anonymity, they made privacy a priority and encouraged people to take control of their data.

Legal and policy influence: The Crypto Wars #

The 1990s saw a real battle between cypherpunks and governments, known as the “Crypto Wars.” The US classified strong encryption as a weapon and banned its export. When Phil Zimmermann released PGP, he was investigated for “exporting munitions” because the software spread globally via the internet.

The cypherpunks fought back creatively. They printed PGP source code in books, since books were protected speech. They wore t-shirts with encryption code. Eventually, they won. Export restrictions were relaxed in 2000. Today’s encrypted messaging exists because of that fight.

Challenges and Criticisms #

The Cypherpunks face these main criticisms:

Accessibility: Their tools are too complex for many people, so only tech-savvy individuals can use them, leaving others behind.
Misuse Risk: There’s concern that their encryption tech could be used by bad actors. While Cypherpunks believe privacy is a right for all, this view conflicts with security concerns from authorities who fear these tools could hide illegal acts.

This shows the ongoing struggle between promoting privacy and maintaining safety in the digital world.

Precursors to Bitcoin #

Bitcoin is the most well-known outcome of the cypherpunk philosophy, embodying their values of decentralization, privacy, and independence from government control over money. Created by the mysterious Satoshi Nakamoto, Bitcoin was first shared with the world through the cypherpunks’ mailing list in 2008.

However, it is the result of many trials of other technologies also created within this group of people. It uses ideas like proof-of-work from Hashcash, and concepts from b-money and bit gold, all reflecting the cypherpunks’ dream of a currency not controlled by any single entity.

DigiCash (eCash) #

Developed by David Chaum in the late 1980s and implemented in 1990, DigiCash was one of the earliest attempts at an electronic payment system. It used cryptography to ensure privacy in transactions but struggled with adoption and eventually failed due to issues like centralization and the double-spending problem.

B-Money #

Proposed by Wei Dai in 1998, B-Money was a conceptual framework for anonymous, distributed electronic cash. It aimed to solve issues like double-spending without a central authority but was never implemented. Its ideas influenced Bitcoin’s design.

Bit Gold #

Also conceptualized in 1998 by Nick Szabo, Bit Gold proposed a currency with properties similar to gold, using cryptographic proof-of-work. Like B-Money, it was never fully realized but contributed to Bitcoin’s development, particularly its proof-of-work system.

Hashcash #

Introduced by Adam Back in 1997, Hashcash was not a currency but a system to counter email spam using proof-of-work. This concept was later adopted by Bitcoin for mining.

These earlier projects and ideas, while not successful in creating a functional digital currency, were critical in laying the theoretical groundwork for Bitcoin. They tackled issues like double-spending, privacy, and decentralization, which were key problems Bitcoin aimed to solve.

Cypherpunk legacy #

Bitcoin has revolutionized our understanding of money, privacy, and security:

Decentralized Control: Bitcoin isn’t run by any bank or government, which fits perfectly with the cypherpunk’s skepticism of centralized power.
Privacy: While not completely anonymous, Bitcoin transactions use pseudonyms, offering some protection from financial oversight.
Immutable Transactions: Once a transaction is on the blockchain, it’s nearly unchangeable, fostering trust in digital dealings.

Bitcoin has brought cypherpunk ideals to life, sparking global discussions on financial privacy, money’s nature, and cryptography’s transformative power. With developments like the Lightning Network for faster, private transactions and Taproot for enhanced transaction privacy, Bitcoin continues to evolve.

What the cypherpunks left behind #

The cypherpunks proved that a small group of people who write code can change the world. Every encrypted message you send, every Bitcoin transaction, every anonymous browse: their legacy.

Privacy isn’t dead. They made sure of that.

Related links

Learn more: What is PGP encryption? A 3-minute tutorial for beginners
Wikipedia Article: wikipedia.org/Cypherpunk

Bitcoin: A Work in Progress

2024-08-02T00:00:00+00:00

With thousands of “crypto” projects out there, they say Bitcoin is old and boring, but nothing could be further from the truth. This book will guide you through the latest developments in Bitcoin, as seen through the eyes of one of its many developers.

You’ll learn about the latest soft fork known as Taproot, the challenges of keeping open source software free of money-stealing bugs and malware, new ways to protect nodes against evildoers on the internet, how to deal with the ever-growing blockchain, and more!

The book links to more than two hundred articles, videos, podcasts, and even the source code. And thanks to a tiny QR code next to every link, you’ll never have to type long URLs.

Contents #

The basics #

1. Bitcoin Addresses
2. DNS Bootstrap and Tor V3
3. SegWit
4. libsecp256k1

Resource usage #

5. Sync Time and AssumeUTXO
6. Utreexo

Attacking Bitcoin #

7. Eclipse Attacks
8. Fake Nodes
9. Guix

Better Wallets #

10. Script, P2SH, and Miniscript

Taproot #

11. Taproot and Schnorr
12. Activation Options

Appendix #

A. More Episodes
B. A crime on Testnet
C. Bitcoin White Paper

Related links

Book source code: GitHub/Sjors
Book website: www.btcwip.com

Pretty Good Privacy

2024-07-13T00:00:00+00:00

PGP (Pretty Good Privacy) is an encryption program that ensures privacy and authentication for data communication. It is used for signing, encrypting, and decrypting texts, emails, files, directories, and whole disk partitions.

History #

PGP was developed by Phil Zimmermann out of concern for the lack of privacy in digital communications. He aimed to provide individuals with strong encryption tools. In 1991, PGP was released to the public for free, marking the beginning of a new era in digital security.

Legal Challenges #

In the early 1990s, strong encryption was classified as a weapon under U.S. export law. When PGP spread globally via the internet, Zimmermann faced a criminal investigation for “exporting munitions.”

His defense was clever: he published the PGP source code in a book. Books are protected speech. The case was dropped in 1996, and encryption export restrictions were eventually relaxed in 2000.

Key Features #

Encrypts and decrypts data to ensure secure communication
Provides authentication to verify the identity of senders and receivers
Generates public and private keys for secure key exchange
Supports various encryption algorithms and hash functions

Today, PGP lives on as OpenPGP (the standard) and GPG (GNU Privacy Guard, the free implementation). When you verify a software download or sign a git commit, you’re often using GPG.

How it works #

PGP uses a combination of public-key and symmetric-key to ensure secure data transmission. It generates a keypair consisting of a public key and a private key. The public key is shared with others, while the private key is kept secret. When data is encrypted, it is encrypted with the public key, and only the corresponding private key can decrypt it.

Symmetric Key Encryption: PGP generates a unique, one-time-use session key to encrypt the message. This method is fast and efficient but requires the sender and recipient to share the same key securely.
Asymmetric Key Encryption: PGP solves the key exchange problem with asymmetric encryption. Each user has a public key and a private key. The session key is encrypted with the recipient’s public key and can only be decrypted by the recipient’s private key.
Digital Signatures: PGP provides authentication through digital signatures. The sender signs the message with their private key, allowing the recipient to verify the sender’s identity using the sender’s public key, ensuring the message has not been tampered with.

My public key #

Fingerprint #

56D5 D60B 0934 0999 199C 3750 E51B 5BF4 5F85 D160

Import directly #

curl https://chemaclass.com/pgp.asc | gpg --import

Download the .asc file #

Download public PGP key

Mastering Bitcoin

2024-07-05T00:00:00+00:00

This book covers everything from the basics to the most profound technical aspects of Bitcoin. It is an excellent guide through this complex world, providing the knowledge you need to participate in the Internet of money.

The first edition of this book was published in December 2014. Ten years later, a third edition with up-to-date knowledge just came out. It is highly recommended to all people interested in this outstanding topic and the tech behind it.

A broad introduction to Bitcoin and its underlying blockchain, ideal for nontechnical users, investors, and business executives.
An explanation of Bitcoin’s technical foundation and cryptographic currency for developers, engineers, and software and systems architects.
Details of the Bitcoin decentralized network, peer-to-peer architecture, transaction lifecycle, and security principles.
New developments such as Taproot, Tapscript, Schnorr signatures, and the Lightning Network.
A deep dive into Bitcoin applications, including how to combine the building blocks this platform offers into powerful new tools.
User stories, analogies, examples, and code snippets illustrating key technical concepts.

Contents #

Introduction
How Bitcoin Works
Bitcoin Core: The Reference Implementation
Keys and Addresses
Wallet recovery
Transactions
Authorization and Authentication
Digital Signatures
Transaction Fees
The Bitcoin Network
The Blockchain
Mining and Consensus
Bitcoin Security
Second-Layer Applications

Full book also on GitHub.

Key takeaways #

Your wallet doesn’t store any bitcoins, only the keys to access them. The coins are stored in the blockchain.
Understanding UTXOs is crucial to understanding how transactions work.
- These are outputs from previous transactions that have not yet been spent
A transaction needs:
- inputs: UTXOs and an unlocking script (scriptSig) which proves ownership.
- outputs: the recipient’s address and the amount to send.
The unlocking script is written in a custom language called Script.
- Transaction validation is achieved through the execution of a script.
- This allows for a nearly infinite variety of conditions to be expressed.
- Script is a stack-based lang, processed from left to right.
Bitcoin is often referred to as “programmable money” because it allows: Multisignature, timelocking and conditional spending.
- Extends Bitcoin’s functionality beyond simple value transfers.
Common Bitcoin address types:
- P2PKH: Begins with 1. Standard transactions using public key hashes.
- P2SH: Begins with 3. Encapsulates complex scripts like multisig.
- P2WPKH: Begins with bc1. Native SegWit, more efficient transactions.
- P2WSH: Begins with bc1. SegWit for complex scripts.
- P2TR: Begins with bc1p. Taproot, enhanced privacy and efficiency.
- Bech32: Starts with bc1. Human-readable, designed for SegWit and Taproot.
Digital signatures serve three purposes in Bitcoin transactions:
- First, it proves that the controller of a private key has authorized the spending of those funds.
- Secondly, the proof of authorization is undeniable.
- Thirdly, the authorized transaction cannot be changed by unauthenticated third parties.
Schnorr’s signatures aren’t specific to the elliptic curve cryptography (ECC) that Bitcoin uses, although it is most associated with ECC today. They have a number of nice properties:
- Provable security: strong security guarantees based on the hardness of the discrete logarithm problem, with formal proofs ensuring their robustness against attacks.
- Linearity: allows for efficient aggregation of multiple signatures into a single compact signature, simplifying verification processes.
- Batch verification: enabling multiple signatures to be verified simultaneously in a more computationally efficient manner.
The best known secure secret sharing algorithm is Shamir’s Secret Sharing.
Running a full node gives you the pure Bitcoin experience: independent verification of all transactions without trusting any other system.
Merkle tres are used to summarize all transactions in a block, producing an overall commitment to the entire set of transactions and permitting a very efficient process to verify whether a transaction is included in a block.
Mining is one of the inventions that make Bitcoin special, a decentralized consensus mechanism that is the basis for P2P digital cash.
- It secures the Bitcoin system and enables the emergence of network-wide consensus without a central authority.
A soft-fork is a forward-compatible change to the consensus rules that allows unupgraded clients to continue to operate in consensus with the new rules.

The Genesis Book

2024-06-21T00:00:00+00:00

Bitcoin did not appear out of nowhere. For decades prior to Satoshi Nakamoto’s invention, a diverse group of computer scientists, privacy activists, and heterodox economists tried to create a digital form of money that could operate independently of government control. The Genesis Book tells the story of the people and projects that inspired the invention of the world’s first successful peer-to-peer electronic cash system.

Contents #

Part I: Foundations #

Spontaneous Order
Free and Open Source
Neutral Money
Cryptography
Denationalization of Money
eCash (and Trustless Time-stamps)
The Extropians

Part II: Cypherpunks #

The Cypherpunk Movement
Cypherpunk Currency
Hashcash
Bit Gold
B-money (and BitTorrent)
RPOW

Part III: Bitcoin #

Twenty-First Century Fiat
The White Paper
The Release

The central bank declared the insurer “too big to fail,” and, along with the US Treasury, bailed it out with an injection of $68 billion (plus another $112 billion in guarantees).

If Friedrich Hayek’s analysis of monetary economics early in this career was correct, Bitcoin could help fix the economy. As an unbacked currency that operated without a central bank, bitcoin was an entirely homogeneous form of money. Anyone could control their own coins, and there were no reserve ratios to worry about. And, since bitcoin existed on the internet, it was borderless as well. Anyone with an internet connection, anywhere in the world, could download the software and start sending and receiving transactions to anyone else. This combination (a homogeneous, borderless type of money with a fixed supply) is what Hayek once described as neutral money.

Bitcoin would also facilitate international trade in a much more straightforward manner, where only the buyer and seller and (the prices of) their respective products are affected, not the price levels across their entire countries.

In Bitcoin, no one is in charge… and everyone is in charge.

Chemaclass - privacy

Bitcoin Fundamentals

A Brief History of Money #

What is Bitcoin? #

Sound Money #

Scarcity #

Inflation Protection #

Freedom & Sovereignty #

Self-custody #

Permissionless & Borderless #

Censorship Resistance #

Real Stories #

Common Objections #

Honest Caveats #

Bitcoin Today #

Institutional adoption #

Global adoption #

Real-world usage #

Getting Started #

Want to try? #

The Road to Serfdom

1. The danger of central planning #

2. The illusion of “good” socialism #

3. Rule of law vs. Rule by discretion #

4. Markets work because no one’s actually in charge #

5. Incremental loss of freedom #

Final thoughts: Is Hayek still relevant? #

Run Your LN Node on a Raspberry Pi

What is the Lightning Network? #

Key Concepts #

Goal #

Setting up Alby Hub #

Requirements #

Installation Steps #

1. Flash a Linux kernel into the SD card #

2. Insert the SD into the raspi #

3. Alby Hub installation #

4. Alby Hub Setup #

Creating a GetAlby Account #

Connecting GetAlby with Alby Hub #

Opening Lightning Channels #

Receiving Sats #

Using Your Sats #

Maintenance and Troubleshooting #

Updating Your Node #

Handling Power Outages #

Criptoria

Content #

Part I: Before Turing #

1. The Beginning of the End #

2. In Search of Truth #

3. Numbers Shall Set You Free #

4. The Mathematics of Secrecy #

Part II: After Turing #

5. Modern Computing #

6. The Dawn of Strong Cryptography #

7. Making legion #

8. Road to libertarian #

9. Soldiers of Privacy #

10. Digital Money #

11. The Age of Satoshi #

🇪🇸 Related videos #

Bitcoin with Rigor

Content #

1. Basic Computer Concepts #

2. Basic Cryptographic Concepts #

3. The Basics of Bitcoin and Cryptocurrencies #

4. Bitcoin Piece by Piece #

5. Nodes and Blockchain in Detail #

6. Bitcoin Updates and Applications #

Book presentation #

Understanding Taxes

Tax journey 101 #

Types of taxes #

Direct taxes: What you earn and own #

Indirect taxes: What you spend #

Property and local taxes: Owning stuff costs money #

Other Taxes and fees: The little extras #

How do they work? #

Why do we pay taxes? #