Blockchain is a chain of blocks that contain information, a unique hash and the hash of the previous block. Blockchain is used by cryptocurrencies as a ledger to store information and transactions in a distributed ledger.
The Hash function converts the input information into a bit string of a certain size. This string is called a hash or simply a hash sum. Hash functions are commonly used to check the integrity of files or store passwords. Password hashing is used to securely store user data.
A good and reliable cryptographic hash function should have a few basic properties:
- Collision resistance
- Unidirectional
- Fast hash function calculation
- Unique HASH for different sets of information
- The presence of an avalanche effect
Hash functions are also used in cryptocurrencies. For example, in bitcoin, each block contains the hash of the previous block. This forms an associated chain of blocks. Also, the hash function is used to determine transactions and mining.
Which bitcoin wallet to choose and what to look for when choosing a bitcoin wallet. 4 main parameters of a reliable bitcoin wallet:
- Private keys are stored on the device by the owner
- Open source
- Recovery via SEED phrase
- Support for various types of addresses.
Online Bitcoin Pro Course from CryptoInside.
Module 1: Bitcoin blockchain and decentralized systems [10 lessons]
The module is dedicated to the mechanics of the blockchain, decentralized systems, mining and the basic principle of bitcoin. The module contains everything you need to understand how bitcoin works at the system level.
Module 2: Organizing bitcoin storage [16 lessons]
One of the main modules in the course, which covers the most important topic when working with bitcoin - its safe storage and competent management. Everything has been covered, from private keys and cryptography to recommendations for choosing bitcoin wallets and advanced tools for working with a mnemonic phrase.
Module 3: Privacy and Anonymity [13 lessons]
The most important module in the course, which focuses on privacy and anonymity when using bitcoin. I would say that privacy and anonymity when using bitcoin is no less important than its safe storage. Proper use of CoinJoin to launder "dirty" bitcoins, Bitcoin Core + TOR, control of UTXO, a full review of Wasabi Wallet are some of the main lessons in this module.
Module 4: Additional Materials [10 Lessons]
This module consists of lessons that, for certain reasons, I did not include in the previous ones. Here is a mix of lessons on various topics. Withdrawing bitcoin to cash, the security model of hardware wallets, installing a full node, etc.
