Bitcoin Explained - The Technical Side of Bitcoin

Bitcoin Explained - The Technical Side of Bitcoin@nado

4 followers
Follow

2020 episodes (21)

Why Open Source Matters for Bitcoin - NADO 21
Ep. 21

Why Open Source Matters for Bitcoin - NADO 21

In this episode of The Van Wirdum Sjorsnado, Aaron and Sjors discuss why it matters that Bitcoin software is open source… and why even open source software doesn't necessarily solve all software-specific trust issues. In theory, the fact that most Bitcoin nodes, wallets and applications are open source should ensure that developers can’t include malicious code in the programs: anyone can inspect the source code for malware. In practice, however, the number of people with enough expertise to do this is limited, while the reliance of some Bitcoin projects on external code libraries (“dependencies”) makes it even harder. Furthermore, even if the open source code is sound, this doesn’t guarantee that the binaries (computer code) really correspond with the open source code. Aaron and Sjors explain how this risk is largely mitigated in Bitcoin through a process called Gitian building, where several Bitcoin Core developers sign the binaries if, and only if, they all produced the exact same binaries from the same source code. This requires special compiler software. Finally, Aaron and Sjors discuss Guix, a relatively new project that goes above and beyond the Gitian process, to minimize the level of trust required to turn source code into binaries — including trust in the compiler itself.  

RSK, federated sidechains and Powpeg - NADO 20
Ep. 20

RSK, federated sidechains and Powpeg - NADO 20

In this episode of The Van Wirdum Sjorsnado, hosts Aaron van Wirdum and Sjors Provoost discuss RSK’s shift from a federated sidechain model to the project’s new Powpeg solution. RSK is a merge mined Ethereum-like Bitcoin sidechain developed by IOVlabs. Bitcoin users can effectively move their coins to this blockchain that operates more like Ethereum, and move the coins back to the Bitcoin blockchain when they so choose. Some Bitcoin miners utilize their hashpower to mine bocks on the sidechain, and earn some extra transaction fees by doing so.The tricky part of any sidechain is allowing users to securely move their coins between blockchains. This is technically done by locking coins on the Bitcoin blockchain and issuing corresponding coins on the sidechain, and vice versa: locking coins on the sidechain to unlock the coins on the Bitcoin blockchain.So far, RSK did this by locking the coins into a multi-signature address, for which the private keys were controlled by a group of well-known companies. A majority of them was needed to unlock the coins, which they were to only do if and when the corresponding sidechain coins were locked.RSK is now switching to a Powpeg model where the keys to the multi-signature address are controlled by special tamper-proof hardware modules that are in turn programmed to only unlock coins on the Bitcoin blockchain if and when the corresponding coins on the sidechain are locked, and the transactions to lock these coins up have a significant number of confirmations.Aaron and Sjors explain how this works exactly, and discuss some of Powpeg’s security tradeoffs.

Mempools, Child Pays for Parent, and Package Relay - NADO 19
Ep. 19

Mempools, Child Pays for Parent, and Package Relay - NADO 19

In this episode of The Van Wirdum Sjorsnado, hosts Aaron van Wirdum and Sjors Provoost discussed Bitcoin mempools, Child Pays For Parent (CPFP) and package relay. Package relay is the project that Gloria Zhao will work on as part of her Brink fellowship, which was announced earlier this week, and would make the Lightning Network more robust (among other benefits). Mempools are the collections of unconfirmed transactions stored by nodes, from which they forward transactions to peers. Miners usually select the transactions from their mempools that include the highest fees, to include these in the blocks they mine. Mempools can get full, however, at which point transactions that pay the lowest fees are ejected. This is actually a problem in context of CPFP, a trick that lets users speed up low-fee transactions by spending the coins from that transactions in a new transaction with a high fee to compensate. Tricks like these can be particularly important in the context of time-sensitive protocols like the Lightning Network. In this episode, van Wirdum and Provoost explained how package relay could enable CPFP, even in cases where low-fee transactions are dropped from mempools, by bundling transactions into packets. And they explore why this may be easier said than done.

Erebus Attacks and how to stop them with ASMAP - NADO 18
Ep. 18

Erebus Attacks and how to stop them with ASMAP - NADO 18

In this episode of The Van Wirdum Sjorsnado, Aaron and Sjors discuss the Erebus Attack. The episode is a follow-up from last week’s episode on Eclipse Attacks, a type of attack that isolates a Bitcoin node by occupying all of its connection slots to block the node from receiving any transactions. Erebus Attacks are Eclipse Attacks where an attacker essentially spoofs a whole part of the internet. Support the Show! Follow Bitcoin Magazine on Twitter @BitcoinMagazine Follow Aaron van Wirdum @AaronvanW Follow Sjors Provoost @provoost Music: Song Title: Segwit Sounds By: The NakamoTones Album: Citadel Music Produced by: Bitcoin Audio

Bitcoin Eclipse Attacks And How To Stop Them - NADO 17
Ep. 17

Bitcoin Eclipse Attacks And How To Stop Them - NADO 17

In this episode of The Van Wirdum Sjorsnado, Aaron and Sjors discuss Eclipse attacks. More specifically, they discuss the 2015 paper “Eclipse Attacks on Bitcoin’s Peer-to-Peer Network,” written by Ethan Heilman, Alison Kendler, Aviv Zohar and Sharon Goldberg, from Boston University and Hebrew University/MSR Israel. Support the Show! Follow Bitcoin Magazine on Twitter @BitcoinMagazine Follow Aaron van Wirdum @AaronvanW Follow Sjors Provoost @provoost Music: Song Title: Segwit Sounds By: The NakamoTones Album: Citadel Music Produced by: Bitcoin Audio

Open Timestamps - NADO 16
Ep. 16

Open Timestamps - NADO 16

In this episode of The Van Wirdum Sjorsnado, Aaron and Sjors discuss Open Timestamps, a Bitcoin-based time stamping project by applied cryptography consultant and former Bitcoin Core contributor Peter Todd. Open Timestamps leverages the security of the Bitcoin blockchain to timestamp any type of data, allowing for irrefutable proof that that data existed at a particular point in time. Support the Show! Follow Bitcoin Magazine on Twitter @BitcoinMagazine Follow Aaron van Wirdum @AaronvanW Follow Sjors Provoost @provoost Music: Song Title: Segwit Sounds By: The NakamoTones Album: Citadel Music Produced by: Bitcoin Audio

Utreexo w/ Ruben Somsen - NADO 15
Ep. 15

Utreexo w/ Ruben Somsen - NADO 15

On this episode of The Van Wirdum Sjorsnado, Aaron and Sjors are once again joined by Ruben Somsen. This time, the trio doesn’t discuss one of Somsen’s own proposals, but they dive into a concept by Tadge Dryja called Utreexo.   Helpful links: https://www.youtube.com/watch?v=6Y6n88DmkjU   https://bitcoinmagazine.com/articles/bitcoins-growing-utxo-problem-and-how-utreexo-can-help-solve-it   Support the Show! Follow Bitcoin Magazine on Twitter @BitcoinMagazine Follow Aaron van Wirdum @AaronvanW Follow Sjors Provoost @provoost Follow Ruben Somsen @SomsenRuben   Music: Song Title: Segwit Sounds By: The NakamoTones Album: Citadel Music Produced by: Bitcoin Audio

Headers First, Assume Valid and Assume UTXO - NADO 14
Ep. 14

Headers First, Assume Valid and Assume UTXO - NADO 14

On this episode of The Van Wirdum Sjorsnado, Aaron and Sjors discuss “Assume UTXO”, a proposal and project by Chaincode Labs alumni James O’Beirne.   One of the biggest bottlenecks for scaling Bitcoin — if not the biggest one — is initial block download: the time it takes for a Bitcoin node to synchronize with the Bitcoin network, as it needs to process all historic transactions and blocks in order to construct the latest UTXO-set: the current state of bitcoin-ownership.   Aaron and Sjors explain some of the ways sync-time has been sped up over time. First, sync-time was improved through “Headers First” synchronization, which ensures that new Bitcoin nodes don’t waste time validating (potentially) weaker blockchains. In recent years, sync-time has been improved with “Assume Valid”, an optional shortcut that lets nodes skip signature verification of older transactions, instead trusting that the Bitcoin Core development process in combination with the resource-expensive nature of mining offers a reliable version of transaction history. Finally, they explain how the security assumptions underpinning Assume Valid could be extended to allow for the potential future upgrade Assume UTXO to offer new Bitcoin Core users a speedy solution to get up to speed with the Bitcoin network, sacrificing a minimal amount of security during the initial bootstrapping phase.   Helpful Links:    Chaincode podcast about the same: https://www.youtube.com/watch?v=knBHvzKsIOY   Pull request: https://github.com/bitcoin/bitcoin/issues/15605   Support the Show! Follow Bitcoin Magazine on Twitter @BitcoinMagazine Follow Aaron van Wirdum @AaronvanW Follow Sjors Provoost @provoost Music: Song Title: Segwit Sounds By: The NakamoTones Album: Citadel Music Produced by: Bitcoin Audio

Bitcoin Core 0.21 supports Tor v3 - NADO 13
Ep. 13

Bitcoin Core 0.21 supports Tor v3 - NADO 13

Bitcoin Core 0.21 will support Tor v3 addresses. Aaron and Sjors explain what this means and why it matters, and also discuss how new Bitcoin nodes find existing Bitcoin nodes when they bootstrap to the network. Helpful Links: * Tor V3 (onion) address support in Bitcoin Core: https://github.com/bitcoin/bitcoin/pull/19954 * the ADDRv2 message added in BIP155 that allows nodes to gossip those new Tor addresses: https://github.com/bitcoin/bips/blob/master/bip-0155.mediawiki#Specification * DNS seeds and the bootstrap problem: https://stackoverflow.com/questions/41673073/how-does-the-bitcoin-client-determine-the-first-ip-address-to-connect Timestamps: 00:00 - 00:34 - intro  1:02 - 2:10: how Tor Works 2:25 - 3:03: benefits of running a bitcoin node behind tor.  7:12 - 8:19 Discussing how Bitcoin node gossip addresses.  8:56 - 10:40 Explaining how DNS works  12:30 - 13:30: DNS is storing list of bitcoin nodes.  Support the Show! Follow Bitcoin Magazine on Twitter @BitcoinMagazine Follow Aaron van Wirdum @AaronvanW Follow Sjors Provoost @provoost Follow Ruben Somsen @SomsenRuben Music: Song Title: Segwit Sounds By: The NakamoTones Album: Citadel Music Produced by: Bitcoin Audio

The Perpetual One-Way Peg - NADO 12
Ep. 12

The Perpetual One-Way Peg - NADO 12

In this episode of The Van Wirdum Sjorsnado, Ruben Somsen returns to explain his proposal to combine blind merged mining and perpetual one-way pegs in order to create a new type of sidechain. The bad news: it won't make you rich but it could help scale Bitcoin! Helpful Links: https://medium.com/@RubenSomsen/21-million-bitcoins-to-rule-all-sidechains-the-perpetual-one-way-peg-96cb2f8ac302 Support the Show! Follow Bitcoin Magazine on Twitter @BitcoinMagazine Follow Aaron van Wirdum @AaronvanW Follow Sjors Provoost @provoost Follow Ruben Somsen @SomsenRuben Music: Song Title: Segwit Sounds By: The NakamoTones Album: Citadel Music Produced by: Bitcoin Audio

Accounts for Bitcoin, Easypaysy! - NADO 11
Ep. 11

Accounts for Bitcoin, Easypaysy! - NADO 11

In this episode Sjors and Aaron discuss Jose Femenias' Easypaysy proposal, an account system for Bitcoin, on Bitcoin. They also announce groundbreaking news: The Van Wirdum Sjorsnado now has its own RSS-feed! Aaron's article covering Easypaysy on Bitcoin Magazine https://bitcoinmagazine.com/articles/bitcoin-need-accounts-one-developer-thinks-figured The BIP in Github https://github.com/bitcoin/bips/blob/master/bip-0047.mediawiki Support the Show! Follow Bitcoin Magazine on Twitter @BitcoinMagazine Follow Aaron van Wirdum @AaronvanW Follow Sjors Provoost @provoost   Music! Title: Segwit Sounds By: The NakamoTones Album: Citadel Music Produced by: Bitcoin Audio

Explaining Signet - NADO 10
Ep. 10

Explaining Signet - NADO 10

Sjors and Aaron discuss Signet, a new type of testnet for Bitcoin that was merged into Bitcoin Core last week. They also discuss the original version of testnet and its problems, as well as alternative testing environment regtest. Support the Show! Follow Bitcoin Magazine on Twitter @BitcoinMagazine Follow Aaron van Wirdum @AaronvanW Follow Sjors Provoost @provoost Music: Song Title: Segwit Sounds By: The NakamoTones Album: Citadel Music Produced by: Bitcoin Audio

Schnorr Signatures and Libsec256k1 - NADO 9
Ep. 09

Schnorr Signatures and Libsec256k1 - NADO 9

Schnorr signature support was merged into the libsec256k1 library last week. In the episode of The Van Wirdum Sjorsnado, Aaron and Sjors discuss what the libsecp256k1 library is, why it matters for Bitcoin, and what it means that Schnorr signature support was merged. Sjors also briefly explains what he ultimate send RPC is, his own pull request that was recently merged into Bitcoin Core as well. Helpful Links: The Power of Schnorr: https://bitcoinmagazine.com/articles/the-power-of-schnorr-the-signature-algorithm-to-increase-bitcoin-s-scale-and-privacy-1460642496 Support the Show! Follow Bitcoin Magazine on Twitter @BitcoinMagazine Follow Aaron van Wirdum @AaronvanW Follow Sjors Provoost @provoost

Statechains w/ Ruben Somsen - NADO 8
Ep. 08

Statechains w/ Ruben Somsen - NADO 8

Aaron and Sjors welcome their first guest on to the show, Ruben Somsen, to discuss his proposals for Statechains on Bitcoin! Statechains allow you to send keys not UTXO and it offers quite a few scaling and functionality improvements!  Helpful Links: Ruben's presentation on Bitcoin Magazine about Statechains: https://youtu.be/CKx6eULIC3A Aaron's Bitcoin Magazine article on Statechains: https://bitcoinmagazine.com/articles/statechains-sending-keys-not-coins-to-scale-bitcoin-off-chain Support the Show! Follow Bitcoin Magazine on Twitter @BitcoinMagazine Follow Aaron van Wirdum @AaronvanW Follow Sjors Provoost @provoost

What is an XPub? - NADO 7
Ep. 07

What is an XPub? - NADO 7

In this episode of the Van Wirdum Sjorsnado, Sjors and Aaron explain what an xpub is and how it is used by Bitcoin wallets. Helpful Links: http://rosenbaum.se/book/grokking-bitcoin-4.html#_hierarchical_deterministic_wallets https://walletsrecovery.org Support the Show! Follow Bitcoin Magazine on Twitter @BitcoinMagazine Follow Aaron van Wirdum @AaronvanW Follow Sjors Provoost @provoost Music: Song Title: Segwit Sounds By: The NakamoTones Album: Citadel Music Produced by: Bitcoin Audio

Payment Pools and Taproot - NADO 6
Ep. 06

Payment Pools and Taproot - NADO 6

In this episode of the Van Wirdum Sjorsnado, Sjors and Aaron discuss the future of Bitcoin Scaling. This podcast is all about Taproot and the cool feature it enables called Payment pools.  Topics What are payment pools?   Why they need Taproot.    The UX of sharing UTXOs   How Payment pools work with lightning Helpful Links: https://bitcoinmagazine.com/articles/building-on-taproot-payment-pools-could-be-bitcoins-next-layer-two-protocol Support the Show! Follow Bitcoin Magazine on Twitter @BitcoinMagazine Follow Aaron van Wirdum @AaronvanW Follow Sjors Provoost @provoost Music: Song Title: Segwit Sounds By: The NakamoTones Album: Citadel Music Produced by: Bitcoin Audio

The Time-warp Soft Fork & Bitcoin Cash's Difficulty Adjustment Drama - NADO 5
Ep. 05

The Time-warp Soft Fork & Bitcoin Cash's Difficulty Adjustment Drama - NADO 5

In this episode of the Van Wirdum Sjorsnado, Sjors explains the "time-warp attack" on Bitcon and Aaron explains the unfolding drama with the bcash difficulty adjustment. Helpful Links: https://bitcoinmagazine.com/articles/miners-are-milking-bcashs-difficulty-adjustments-and-why-problem1 https://bitcoinmagazine.com/articles/why-bcash-mining-shouldnt-affect-bitcoin-much-bitcoin-mining-could-ruin-bcash https://read.cash/@jtoomim/dark-secrets-of-the-grasberg-daa-a9239fb6 https://blog.bitcoinabc.org/2020/07/23/announcing-the-grasberg-daa/ https://github.com/TheBlueMatt/bips/blob/cleanup-softfork/bip-XXXX.mediawiki Support the Show! Follow Bitcoin Magazine on Twitter @BitcoinMagazine Follow Aaron van Wirdum @AaronvanW Follow Sjors Provoost @provoost Music: Song Title: Segwit Sounds By: The NakamoTones Album: Citadel Music Produced by: Bitcoin Audio

What is Miniscript - NADO 4
Ep. 04

What is Miniscript - NADO 4

In this episode of the Van Wirdum Sjorsnado, Aaron and Sjors dive into Miniscript and how it makes using Bitcoin Script much easier.  Helpful Links: https://bitcoinmagazine.com/articles/miniscript-how-blockstream-engineers-are-making-bitcoin-programming-easyer Support the Show! Follow Bitcoin Magazine on Twitter @BitcoinMagazine Follow Aaron van Wirdum @AaronvanW Follow Sjors Provoost @provoost Music: Song Title: Segwit Sounds By: The NakamoTones Album: Citadel Music Produced by: Bitcoin Audio

Breaking Down Taproot Activation Options - NADO 3
Ep. 03

Breaking Down Taproot Activation Options - NADO 3

In the third episode of The Van Wirdum Sjorsnado, Aaron and Sjors break down and explain the different opinions and options available for activating Taproot and potentially future softfork upgrades.    Helpful Links:   Explainer article by Aaron discussing the different upgrade options:  https://bitcoinmagazine.com/articles/bip-8-bip-9-or-modern-soft-fork-activation-how-bitcoin-could-upgrade-next   Support the Show!    Follow Bitcoin Magazine on Twitter @BitcoinMagazine    Follow Aaron van Wirdum @AaronvanW   Follow Sjors Provoost @provoost   Music:  Song Title: Segwit Sounds By: The NakamoTones Album: Citadel Music Produced by: Bitcoin Audio

Explaining Taproot - NADO 2
Ep. 02

Explaining Taproot - NADO 2

In the second episode of The Van Wirdum Sjorsnado, Aaron and Sjors break down and explain Taproot, the building blocks that make Taproot possible, and what it enables Bitcoin to do.    Helpful Links:    Taproot Explainer: https://bitcoinmagazine.com/articles/taproot-coming-what-it-and-how-it-will-benefit-bitcoin    Support the Show!    Follow Bitcoin Magazine on Twitter @BitcoinMagazine    Follow Aaron van Wirdum @AaronvanW   Follow Sjors Provoost @provoost   Music:  Song Title: Segwit Sounds By: The NakamoTones Album: Citadel Music Produced by: Bitcoin Audio

Explaining New PSBT and RBF Attacks - NADO 1
Ep. 01

Explaining New PSBT and RBF Attacks - NADO 1

Bitcoin Magazine's Technical editor Aaron van Wirdum teams up with Bitcoin core contributor Sjors Provoost to explain Bitcoin one episode at a time. In the debut episode of The Van Wirdum Sjorsnado, Aaron and Sjors break down and explain Partially Signed Bitcoin Transactions (PSBT) and Replace By Fee (RBF) and some really tricky attacks that where recently discovered in Bitcoin.  Helpful Links:  PSBT Attack Vector: https://blog.trezor.io/latest-firmware-updates-correct-possible-segwit-transaction-vulnerability-266df0d2860 RBF Attack Vector: https://zengo.com/bigspender-double-spend-vulnerability-in-bitcoin-wallets/ Support the Show!  Follow Bitcoin Magazine on Twitter @BitcoinMagazine  Follow Aaron van Wirdum @AaronvanW Follow Sjors Provoost @provoost Music:  Song Title: Segwit Sounds By: The NakamoTones Album: Citadel Music Produced by: Bitcoin Audio