Title Text
Digital Currency & Blockchain
Lecture 8
- User Security & Key management
Content
- Bitcoin ATM - cash, anonymous, fast and expensive
- Localbitcoins - similar but face to face
- Online Broker - fast, no registration, higher fee
- Bitcoin Exchange - cheap, big volumes, verified
How to get crypto
- 12-24 words
- Recovery and Backup
- Out of 2048 words (BIP39)
- Multiple languages (EN, FR, CZ, IT, ES, JAP..)
- "Brainwallet"
- Bitcoin Wiki on Seeds
-
Everything about Address Generation
- Example:
witch collapse practice feed shame open despair creek road again ice least
Seed
Base58
- Base58 is a set of characters you can use to represent big numbers in a shorter and more user-friendly format.
- The more characters you have in your base, the less of them you will need to use to represent big numbers. So the bigger your base, the shorter your “number” can be.
- Because 58 is the number of characters you are left with when you use all the characters in the alphanumeric alphabet (62), but remove all the easily mistakable characters like 0, O, l and I.
Types of Wallets
Paper wallets:
Paper Wallet
HW Wallets - Trezor
- www.trezor.io
- 1st in the world
- Open source HW aj SW
- Blind keyboard generated randomly
- Passphrase protected
- PIN code
- almost impossible remote attacks
HW Wallets - Trezor Model T
- Colourful display
- Open source HW aj SW
- Random generated keyboard
- Passphrase protected
- PIN code
- Password Manager
- Shamir scheme (SSSS)
Ledger Nano S
https://www.ledgerwallet.com/
- Open source SW but no HW
- Harder to use
- Small Memory for a limited amount of apps
- Closer-sourced Secure Chip
SW wallets
Web wallets
Contest I.
Whoever sends me ETH address first -- gets a reward
Contest II.
Whoever shows/sends me BTC address QR code gets a reward!
Crypto Steel
BTC via SMS
Bitcoin ATMs
www.coinatmradar.com
Bitcoin ATMs
www.coinatmradar.com
- quite anonymous in some countries
- no ID required usually
- KYC-less purchase up to 5k
- 2way ATMs as well
Exchanges:
- www.xmr.to --> BTC to XMR anonymously
- Shapeshift
- Binance
- Uniswap
Exchanges:
Pros
- easy
- cheap
- No tech background required
- Possible to gamble and trade
Cons
- No Control of private keys
- If FIAT exchange, verfification required
- phishing a hackers attacks
Exchanges II.
- Trading against others
- Orderbook - supply and demand
- Low fees
- Many coins, higher liquidity
- Registration, Verificaiton AML, KYC
- Margin, Funding, Futures, CFD
- Bitstamp, Coinmate, Bittrex, Bitfinex, Kraken
Exchanges III.
- Sophisticated tools:
- Limit order, market price, stoploss, trailing stop, hidden
- Graphs & analytical tools, indicators
- Market depth, liquidity
Readings
- How to Create BTC adress: https://en.bitcoin.it/wiki/Technical_background_of_version_1_Bitcoin_addresses
- Base58 encoding: https://en.bitcoin.it/wiki/Base58Check_encoding
- Seed: https://en.bitcoin.it/wiki/Seed_phrase
- Deterministic Wallet: https://en.bitcoin.it/wiki/Deterministic_wallet
Optional
- BIP 0032: https://en.bitcoin.it/wiki/BIP_0032
UNI - L8
By David Stancel
