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Chapter 2

1) Early crypto digital currencies… all failed

a. Digicash (David chaum) 1989
b. Mondex (National Westminster Bank) 1993
c. Cybercash (lynch, Melton, Crocker & Wilson) 1994
d. E-Gold (gold & silver reserve) 1996
e. Hashcash (adam Back) 1997
f. B Money (wei Dai) 1998
g. Lucre (Ben Laurie 1999
2) Reason fail
a. Central authority
b. Not enough adoption by merchants
c. Didn’t solve double spending
d. Consensus

Chapter 3

1. Cryptographic primitive
a. Hash function
b. Digital signature – asymmetric cryptography
2. Bitcoin technical features
a. Cryptography hash functions
i. Digital fingerprints for data
ii.
b. Timestamped append-only logs (blocks)
c. Block headers & merkle trees
d. Asymmetric crypto (private/public key) & digital signature
i. Digital signature algorithms
1. Generate key pairs - (private (PK)/public keys (sk)) from random
number
2. Signature – creates digital signature (Sig) from message (m) and private
key (sk)
3. Verification - verifies if a signature (sig) is valid for a message (m) and a
public key (PK)
ii. Properties
1. Infeasible to find private key from public key
2. All valid signatures verifies
3. Signatures infeasible to forge
iii. Bitcoin Digital signature function
1. Elliptic curve digital signature algorithm
e. Proof of work (consensus)
f. Network of nodes
g. Native currency (part of economic incentive system)
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h. Transaction inputs & outputs
i. Unspent tx output (UTXO)
j. Scripting language