How to Store Bitcoin?

How to Store Bitcoin?

How to Store Bitcoin?

Saving Bitcoin . In this section, we will discuss how to store Bitcoin. Then save the Bitcoin on a device you use.

At the time Bitcoin users will make a transaction, then what you need to know is some thing about the existence of a public information and confidential information. Furthermore, we will know both things as public key , and secret key .

In Bitcoin, that public information is everything that happens in a chain of blocks. That serves as the identity of the coin. One of them, mention how many coins are owned, and so forth. While the information is confidential, is a secret key owned by the owner of Bitcoin.

On the public key , even though the information is public, there is nothing to worry about.Because users will always be able to get back to it if one day it’s needed again.

Unlike the case with the secret key . Because this secret key should be stored and not to be known by others. From the above explanation, then we can know, that to store Bitcoin, basically about how to manage both your key is.

There are three goals in key storage and management functions in Bitcoin.
1. Availability
You must also have a balance of Bitcoin, so with that balance you can use it at any time if desired.
2. Security
Ensure that your Bitcoin balance can not be used by others.
3. Convenience
Provides convenience to be used by Bitcoin users.

Management of the key , can use on a device that we have. Like on a computer device, laptop, cell phone, or other gadgets that we have. So we alone can control it later, and use the key .

These conveniences, of course will be able to provide users their own comfort. That any user can manage it through any device owned. However there is a risk in terms of security.If at any time device like gadgets, mobile phone, or smartphone is lost, or may be damaged, then you also have to delete or do flashing again which means delete the entire file contained in it.

If that happens, then the key and even some Bitcoin owned will be lost as well. Meanwhile, if there is someone who managed to break through your device, either with malware or others, it is possible to copy your key , and take all your Bitcoin.

So it can be likened to storing the secret key on local devices such as mobile phones, as well as carrying money in a wallet or purse. If you lose a bag, or someone stole it, your money will be lost.

Which is usually done, is we certainly will bring enough money in the wallet, and save the other elsewhere is not it? Likewise in Bitcoin. This can also be done. By storing a bit of information needed in the key, then put most of the others in another place as well. To do so, we will need a wallet , or a Bitcoin wallet.

Wallet (Bitcoin Wallet)

As an opening step on this Bitcoin wallet, you can read Bitcoin wallet articles, wallet types and forms , start Bitcoin , and also how to secure your wallet . If you’ve read it, let’s move on.

If we store Bitcoin locally or a device that we have, then we usually use a wallet software.This wallet software is a software that works to keep track of the amount of Bitcoin, and manage our key details. With an attractive interface, and provide many user ease.

Suppose we want to send some money in the form of Bitcoin to someone, this wallet software will provide convenience to be able to perform this delivery transaction. Using the wallet software is also quite useful. Because we can also send it by using a different address, with different key. So keep in mind that, make a pair of public key and private key can be done easily.

Because of this too, there is an anonymity function, which increases the privacy of its users in Bitcoin. In addition to providing information on how much Bitcoin is owned, at the time of the transaction, wallet also handles the details of the key being used, how to generate new address (address), and others.

Key Encoding (Encoding keys)

To transact Bitcoin we have. It takes a way that we can exchange our Bitcoin address with others. Address (address) is then encoded, so that can be communicated between sender and receiver as text string or in the form of QR Code .

Base58

In the address encoding as a text string, we take the bit of the key, convert it to a binary number, into a base58 series. Next, use the 58 characters to encode each digit of the character. And this process is called base58 notation.

Why 58 here? The amount is taken from a number of uppercase, lowercase letters, and a number of numbers. But there are some characters that are not used to avoid similar resemblance to other characters. As in the capital letter “O” and the number “0” is almost similar.

Because the similarity that could lead to the error has been modified and not used in Base58 , it will allow users to copy the address. Either manually, copy paste, or print on a piece of paper.

Here is an example of a Bitcoin address that uses base58 encoding.

1 D 3 z S 1 e P 5 QG efi 2 DMPK f TL 5 SO mv 7 f 2 n 3 N a

  QR Code

The second step to encode the Bitcoin address is with QR Code . What is meant by QR Code is a barcode in the form of two dimensions. The benefits of this QR Code , can take a picture of the barcode through a smartphone, then the wallet software will read the barcode terseebut into a sequence of bits that represent the address Bitcoin.

QR Code is often encountered in a number of merchants who receive payments with Bitcoin. So users who want to pay something, can scan the barcode, then send payment to the address.

Vanity Address

Once we know the encoding of the Bitcoin address, we now try to see one unique thing in a Bitcoin address. We may have heard of the term Vanity Address . Address with this typical, contains a unique word, which is usually contained in the Bitcoin address array, for example in the 2-6 digits in the address.

For example there is the word ” bento ” in an address like the example below.

1 bento 8 e T cc 3 P j 2 z A b 1 V k F gy SY 6 R qu 3 s G

Sometimes, a person or merchant wants to be able to have a Bitcoin address containing unique words as in the example. The number 1 in the first digit of the address generally shows pay-to-pubkey-hash. But, of course, the above example is just a mere example. Using the word “bento” above also be remembered one of the songs by Iwan Fals.

Back to the discussion. Is it possible that a unique Bitcoin address can be obtained? To remember, that address, is also the result or output of a hash function. Why is that?Because the address is generated from the process of generating data randomly. Still remember, the discussion on the public key as an identity ?

In the discussion, it explains how Bitcoin can achieve a way to generate randomly generated keys. And the randomness is pretty good. Why is that? Since it is quite small the likelihood of generating a key will result in an identical address. Since this address is a result of the generated generate process, that is why it is called that the address is the output of the hash function. Because the hash process in the generate key also uses the hashing process.The randomness of the generating key process becomes crucial and crucial.

Let’s go back to the vanity address . Since the address is done by hashing through the generate key, then to be able to generate a word like “bento” in the example, it will need millions of generated address process that generates millions of addresses as well instead?That’s why using the term vanity address (arrogant address) .

So it would be lucky if anyone could generate and find this unique address. Whereas in each character alone there will be 58 possibilities. So to be able to form the possibility of the emergence of the word “bento” will also require a generate key as many as millions of times.

In Bitcoin, there are also developers who try to make this happen as a special tool. One of them is called Vanitygen . This tool is a Bitcoin address generating device, which is said to generate a personal and unique address. Even on Vanitygen, the process of generating the address can also be used even in the offline condition.

Cloud Faucet Net

Cloud Faucet Net

Cloud Faucet Net is an online medium for sharing knowledge and information about Bitcoin and cryptocurrency. It was first established in March 2017. Hopefully, it can be used as a source of information as well as a reference to the addition of useful knowledge, related to Bitcoin and the technology that surrounds it.

2 thoughts on “How to Store Bitcoin?

Leave a Reply

Your email address will not be published. Required fields are marked *