Review of Armory Bitcoin Wallet & Tutorial to Use ...

In early 2013, it became a common belief that new Bitcoin users should not be recommended Bitcoin-QT, the full node client. Bitcoin.org was changed to no longer exclusively recommend it. Two years later, the block size conservatives are saying the drop in full node count was due to block size

I distinctly remember that the recommending of Bitcoin-QT to new Bitcoin users became a faux pas in early 2013. It was claimed that regular people should download and install an SPV client like Multibit.
Predictably, there was a large drop in the full node count, as the wallet market became dominated by a large number of new, light clients, and the most trafficked Bitcoin website, bitcoin.org, stopped exclusively recommending people to install Bitcoin-QT.
Now, we have important developers like Luke-Jr claiming that this 95% drop in full node count can be mainly attributed to the growing size of the block chain, despite the fact that the drop began right when light clients began being recommended..
EDIT to add some data:
This is the image that GMaxwell and Peter Todd, two individuals who are conservative about the block size (in particular Peter Todd, who's been warning about increasing the 1 MB size limit since 2013), have linked to to make their point about the full node count:
http://i.imgur.com/EL0zHRe.jpg
Up until at least March 18, 2013, the only client recommended to visitors of bitcoin.org was Bitcoin-QT, and an installation link for it was provided right on the landing page:
https://web.archive.org/web/20130318211940/http://bitcoin.org/
The WayBack Machine shows that by March 25th, 2013, this had changed, and a 'Choose Your Wallet' button appeared on Bitcoin.org/:
https://web.archive.org/web/20130513214959/http://bitcoin.org/en/
From March 25th 2013 onward, the number of non-full-node wallets recommended by bitcoin.org increased, in response to a general increase in the number of high quality and/or well marketed light and mobile wallets on the market.
Now a days, Bitcoin-QT is one of twelve clients displayed on bitcoin.org's Choose Your Wallet page:
https://bitcoin.org/en/choose-your-wallet
Other than Bitcoin-QT and Bitcoin Armory, all of them are non-full-node clients.
This shift, from a wallet market where only Bitcoin-QT was available and recommended to one that is increasingly diverse and dominated by light clients, coincides with the point (Spring 2013) where we start seeing a rapid decline in the full node count.
submitted by aminok to Bitcoin [link] [comments]

PSA: Clearing up some misconceptions about full nodes

It's time to clear up some misconceptions floating around about full nodes.
Myth: There are only about 5500 full nodes worldwide
This number comes from this site and it measured by trying to probe every nodes on their open ports.
Problem is, not all nodes actually have open ports that can be probed. Either because they are behind firewalls or because their users have configured them to not listen for connections.
Nobody knows how many full nodes there are, since many people don't know how to forward ports behind a firewall, and bandwidth can be costly, its quite likely that the number of nodes with closed ports is at least another several thousand.
Nodes with open ports are able to upload blocks to new full nodes. In all other ways they are the same as nodes with closed ports. But because open-port-nodes can be measured and closed-port-nodes cannot, some members of the bitcoin community have been mistaken into believing that open-port-nodes are that matters.
Myth: This number of nodes matters and/or is too low.
Nodes with open ports are useful to the bitcoin network because they help bootstrap new nodes by uploading historical blocks, they are a measure of bandwidth capacity. Right now there is no shortage of bandwidth capacity, and if there was it could be easily added by renting cloud servers.
The problem is not bandwidth or connections, but trust, security and privacy. Let me explain.
Full nodes are able to check that all of bitcoin's rules are being followed. Rules like following the inflation schedule, no double spending, no spending of coins that don't belong to the holder of the private key and all the other rules required to make bitcoin work (e.g. difficulty)
Full nodes are what make bitcoin trustless. No longer do you have to trust a financial institution like a bank or paypal, you can simply run software on your own computer. To put simply, the only node that matters is the one you use
Myth: There is no incentive to run nodes, the network relies on altruism
It is very much in the individual bitcoin's users rational self interest to run a full node and use it as their wallet.
Using a full node as your wallet is the only way to know for sure that none of bitcoin's rules have been broken. Rules like no coins were spent not belonging to the owner, that no coins were spent twice, that no inflation happens outside of the schedule and that all the rules needed to make the system work are followed (e.g. difficulty.) All other kinds of wallet involve trusting a third party server.
All these checks done by full nodes also increase the security. There are many attacks possible against lightweight wallets that do not affect full node wallets.
This is not just mindless paranoia, there have been real world examples where full node users were unaffected by turmoil in the rest of the bitcoin ecosystem. The 4th July 2015 accidental chain fork effected many kinds of wallets. Here is the wiki page on this event https://en.bitcoin.it/wiki/July_2015_chain_forks#Wallet_Advice
Notice how updated node software was completely unaffected by the fork. All other wallets required either extra confirmations or checking that the third-party institution was running the correct version.
Full nodes wallets are also currently the most private way to use Bitcoin, with nobody else learning which bitcoin addresses belong to you. All other lightweight wallets leak information about which addresses are yours because they must query third-party servers. The Electrum servers will know which addresses belong to you and can link them together. Despite bloom filtering, lightweight wallets based on BitcoinJ do not provide much privacy against nodes who connected directly to the wallet or wiretappers.
For many use cases, such privacy may not be required. But an important reason to run a full node and use it as a wallet is to get the full privacy benefits.
Myth: I can just set up a node on a cloud server instance and leave it
To get the benefits of running a full node, you must use it as your wallet, preferably on hardware you control.
Most people who do this do not use a full node as their wallet. Unfortunately because Bitcoin has a similar name to Bittorrent, some people believe that upload capacity is the most important thing for a healthy network. As I've explained above: bandwidth and connections are not a problem today, trust, security and privacy are.
Myth: Running a full node is not recommended, most people should use a lightweight client
This was common advice in 2012, but since then the full node software has vastly improved in terms of user experience.
If you cannot spare the disk space to store the blockchain, you can enable pruning. In Bitcoin Core 0.12, pruning being enabled will leave the wallet enabled. Altogether this should require less than 900MB of hard disk space.
If you cannot spare the bandwidth to upload blocks to other nodes, there are number of options to reduce or eliminate the bandwidth requirement. These include limiting connections, bandwidth targetting and disabling listening. Bitcoin Core 0.12 has the new option -blocksonly, where the node will not download unconfirmed transaction and only download new blocks. This more than halves the bandwidth usage at the expense of not seeing unconfirmed transactions.
Synchronizing the blockchain for a new node has improved since 2012 too. Features like headers-first and libsecp256k1 have greatly improved the initial synchronization time.
It can be further improved by setting -dbcache=3000 which keeps more of the UTXO set in memory. It reduces the amount of time reading from disk and therefore speeds up synchronization. Tests showed that the entire blockchain can now be synchronized in less than 3 and a half hours (Note that you'll need Bitcoin Core 0.12 or later to get all these efficiency improvements) Another example with 2h 25m
How to run a full node as your wallet.
I think every moderate user of bitcoin would benefit by running a full node and using it as their wallet. There are several ways to do this.
So what are you waiting for? The benefits are many, the downsides are not that bad. The more people do this, the more robust and healthy the bitcoin ecosystem is.
Further reading: http://www.truthcoin.info/blog/measuring-decentralization/
submitted by belcher_ to Bitcoin [link] [comments]

Let's Decentralise the World and Make World Crypto Network a Distributed Autonomous Organisation

Decentralise the World

EDIT 2014-08-01 See also pierebel0 Seed the Chain
Please read this carefully and be forthcoming with your views. It’s important to the future of World Crypto Network.
As many of you may know pierebel0 (Nick) and I have been working on an idea and since then we have been putting together diagrams and a plan.
Basically we want to get open source software to regions of the world that have poor internet connectivity and are in need of most financial innovation. This would be like an airdrop of items including:
Nick's initial idea was to produce a list of villages and towns ranked by bandwidth and we would then give each place a Bitcoin donation address.
We could use a map of the world using the open source CoinMap. A page on the World Crypto Net website called Join the Revolution. Members of the audience, hosts of the show and any willing participants in the global campaign can sign up and put themselves on the map.
We could then setup a Bitcoin Wallet in Armory and assign a Bitcoin address for every viable village and town in the world.
Our audience will be invited to vote on which town or village they wanted as to do an Open Source Airdrop on by sending bitcoins to that address. Each donation would be like a vote. We would set targets on each location based on the most cost effective way of delivering it and then let the market decide what order we should go in. We would probably want to weight it to regions that had the most potential to benefit from the project.

World Crypto Network as a DAO (Distributed Autonomous Organisation)

Now the next question that came up is how to handle the funds responsibly?
Up until now people have just trusted Thom and I and sent us money. But if we are going to practice what we preach in this brave new community then what better opportunity to try out a DAO. Recently I reinstalled Bitcoin Armory to try out the new Multisig and multipart paper backup features and I suggest the following process for discussion:
  1. Live Town Hall meeting on Youtube with plenty of advance warning with members of our audience who have followed us up until now to discuss the election process of 7 people who will be custodians of Bitcoin Armory Wallet.
Key decisions will be things like: * How the election should take place? * Using the block chain as a clock on which Bitcoin Block should it commence? e.g. the election takes place at block height #312,020
Once elected each person is given a number at random.
  1. A custodian of the funds is selected at random using the first number in the Bitcoin nonce at block #312,017 between 1 and 7. This way none of the elected 7 will know if they are going to be in charge. This should filter out any power hungry psychopaths as mostly they want control right now and not leave it to chance. We want any would be dictator to self-deselect themselves from this process.
  2. That custodian then produces an Armory wallet consisting of a 5 of 7 paper backup. Each elected member is given one each and the custodian keeps the master copy. In order for the wallet to be restored and funds to be spendable you would need 5 people out of the seven to collude or join together in protest against the custodian.
Everyone, the audience and elected 7 included are encouraged to publish their raw public keys (in hex, not the normal address) so that we can create ad hoc multi-sig wallets with one another on a project by project basis.
I would also like to include the ability for the audience to become hosts and participants and even allow them to seize the funds by co-operating with members of the elected 7. This would mean dividing up 1 of the 7 root keys in to smaller junks like with a multiple encrypted zip file or something.

Thoughts and things to consider:

What I particularly like about splitting up the keys is that we could even engineer it to make sure that no more than 2 members of staff are elected per country. That way no single authority could shut down the World Crypto Network.
It’s also important to note that the elected staff and random custodian are just admin staff. Everyone’s a leader at WCN and the role of the people at the top is to give the people at the bottom everything they need to get their job done. All the custodian is doing it making sure the web hosting is paid for and that the donations get sent to the right people.
Individuals within the organisation are still responsible for their own projects and fundraising. None of the elected 7 can stop you from soliciting money for your hard work. But they might come in handy if you want to set up a project for a 3rd party like Let’s get Nepal on a Meshnet and you would like to setup a 2 of 3 multisig wallet of which one of them could be the custodian. This would lend you credibility when you market your project and make people more likely to donate.
We could also not bother with the initial election and just self appoint the first 7 people and just rotate the duties every 15,000 blocks.
Also Thornbreaker (Jamie Nelson) mentioned that we should come up with a manifesto. I think this is a good idea and we could do it on Github or a Wiki.
Thank-you for your time, I look forward to your reading thoughts.
submitted by MrChrisJ to worldcryptonetwork [link] [comments]

Hopefully I can help clarify the relationship between bitcoins, addresses, and wallets before you lose your coins.

I've seen a few posts here from people who accidentally lose their bitcoins. With the recent ~100$/BTC there will probably be more people getting interested in bitcoins, and hopefully this can help you keep any bitcoins you receive:
There aren't specific bitcoins floating around. All bitcoins belong to an address somewhere. Any "lost" bitcoins are just any public addresses that the owner lost the private key for, and thus cannot spend these bitcoins.
Lets say I got 1 BTC from someone for whatever reason, and I want to send you 0.5 BTC. The blockchain is just a big sequence of transactions, so I basically add a new transaction that:
A) Proves I was the recipient of that transaction for 1 BTC, and therefore have enough to cover my 0.5 BTC transaction I'm about to make.
B) Says where I should send the BTC.
Since I can only reference the 1 BTC transaction, I need to spend all or none of it at the same time (and, actually, any that is not sent to a specific address is actually the fee and the miner can claim). I can send 0.5 BTC to you, and if I want to keep the other 0.5 BTC, I need to send it back to myself.
This is where people can lose bitcoins if they aren't careful
Different clients handle the process of sending this "change" back to yourself in different ways. Some clients, like the official Bitcoin-Qt client, make new random addresses and send the change to them. You still control those addresses, but you need to make periodic backups because these new addresses have new private keys too.
Other clients will send the change back to the address that sent it, or give you the choice to choose where to send the change. I think the blockchain.info wallets are like this.
The first strategy increases the anonymity of bitcoin transactions, but makes you keep track of new private keys. The second strategy does the opposite.
The reason some people have lost bitcoins with brain wallets is because they try sending a small portion of their BTC to someone from the brain wallet address, and don't realize the change might get sent somewhere other than their brain wallet. "Brain address" might be a better term, actually.
One last note: Some clients, like Armory or Electrum (I haven't used Electrum but I believe it is similar), will show you yet a different key that generates ALL the addresses in your wallet. You only need a backup once of this key, since you can import the wallet into the same client on another computer, and it will generate the exact same sequence of addresses that change is sent to, rather than random addresses. These are called deterministic wallets, since the pattern of addresses created looks random but can be reproduced multiple times as long as you have the original key.
I realize it can get confusing. I'm not sure if I am explaining it correctly, or even if I completely understand it myself. If you have questions though, I can try to answer them.
submitted by maccam912 to Bitcoin [link] [comments]

Clearing up some misconceptions about full nodes | Chris Belcher | Feb 10 2016

Chris Belcher on Feb 10 2016:
I've been asked to post this to this mailing list too. It's time to
clear up some misconceptions floating around about full nodes.
=== Myth: There are only about 5500 full nodes worldwide ===
This number comes from this and similar sites: https://bitnodes.21.co/
and it measured by trying to probe every nodes on their open ports.
Problem is, not all nodes actually have open ports that can be probed.
Either because they are behind firewalls or because their users have
configured them to not listen for connections.
Nobody knows how many full nodes there are, since many people don't know
how to forward ports behind a firewall, and bandwidth can be costly, its
quite likely that the number of nodes with closed ports is at least
another several thousand.
Nodes with open ports are able to upload blocks to new full nodes. In
all other ways they are the same as nodes with closed ports. But because
open-port-nodes can be measured and closed-port-nodes cannot, some
members of the bitcoin community have been mistaken into believing that
open-port-nodes are that matters.
=== Myth: This number of nodes matters and/or is too low. ===
Nodes with open ports are useful to the bitcoin network because they
help bootstrap new nodes by uploading historical blocks, they are a
measure of bandwidth capacity. Right now there is no shortage of
bandwidth capacity, and if there was it could be easily added by renting
cloud servers.
The problem is not bandwidth or connections, but trust, security and
privacy. Let me explain.
Full nodes are able to check that all of bitcoin's rules are being
followed. Rules like following the inflation schedule, no double
spending, no spending of coins that don't belong to the holder of the
private key and all the other rules required to make bitcoin work (e.g.
difficulty)
Full nodes are what make bitcoin trustless. No longer do you have to
trust a financial institution like a bank or paypal, you can simply run
software on your own computer. To put simply, the only node that matters
is the one you use.
=== Myth: There is no incentive to run nodes, the network relies on
altruism ===
It is very much in the individual bitcoin's users rational self interest
to run a full node and use it as their wallet.
Using a full node as your wallet is the only way to know for sure that
none of bitcoin's rules have been broken. Rules like no coins were spent
not belonging to the owner, that no coins were spent twice, that no
inflation happens outside of the schedule and that all the rules needed
to make the system work are followed (e.g. difficulty.) All other kinds
of wallet involve trusting a third party server.
All these checks done by full nodes also increase the security. There
are many attacks possible against lightweight wallets that do not affect
full node wallets.
This is not just mindless paranoia, there have been real world examples
where full node users were unaffected by turmoil in the rest of the
bitcoin ecosystem. The 4th July 2015 accidental chain fork effected many
kinds of wallets. Here is the wiki page on this event
https://en.bitcoin.it/wiki/July_2015_chain_forks#Wallet_Advice
Notice how updated node software was completely unaffected by the fork.
All other wallets required either extra confirmations or checking that
the third-party institution was running the correct version.
Full nodes wallets are also currently the most private way to use
Bitcoin, with nobody else learning which bitcoin addresses belong to
you. All other lightweight wallets leak information about which
addresses are yours because they must query third-party servers. The
Electrum servers will know which addresses belong to you and can link
them together. Despite bloom filtering, lightweight wallets based on
BitcoinJ do not provide much privacy against nodes who connected
directly to the wallet or wiretappers.
For many use cases, such privacy may not be required. But an important
reason to run a full node and use it as a wallet is to get the full
privacy benefits.
=== Myth: I can just set up a node on a cloud server instance and leave
it ===
To get the benefits of running a full node, you must use it as your
wallet, preferably on hardware you control.
Most people who do this do not use a full node as their wallet.
Unfortunately because Bitcoin has a similar name to Bittorrent, some
people believe that upload capacity is the most important thing for a
healthy network. As I've explained above: bandwidth and connections are
not a problem today, trust, security and privacy are.
=== Myth: Running a full node is not recommended, most people should use
a lightweight client ===
This was common advice in 2012, but since then the full node software
has vastly improved in terms of user experience.
If you cannot spare the disk space to store the blockchain, you can
enable pruning as in:
https://bitcoin.org/en/release/v0.11.0#block-file-pruning. In Bitcoin
Core 0.12, pruning being enabled will leave the wallet enabled.
Altogether this should require less than 1.5GB of hard disk space.
If you cannot spare the bandwidth to upload blocks to other nodes, there
are number of options to reduce or eliminate the bandwidth requirement
found in https://bitcoin.org/en/full-node#reduce-traffic . These include
limiting connections, bandwidth targetting and disabling listening.
Bitcoin Core 0.12 has the new option -blocksonly, where the node will
not download unconfirmed transaction and only download new blocks. This
more than halves the bandwidth usage at the expense of not seeing
unconfirmed transactions.
Synchronizing the blockchain for a new node has improved since 2012 too.
Features like headers-first
(https://bitcoin.org/en/release/v0.10.0#faster-synchronization) and
libsecp256k1 have greatly improved the initial synchronization time.
It can be further improved by setting -dbcache=6000 which keeps more of
the UTXO set in memory. It reduces the amount of time reading from disk
and therefore speeds up synchronization. Tests showed that the entire
blockchain can now be synchronized in less than 3 and a half hours
(See
https://github.com/bitcoin/bitcoin/pull/6954#issuecomment-154993958)
Note that you'll need Bitcoin Core 0.12 or later to get all these
efficiency improvements.
=== How to run a full node as your wallet ===
I think every moderate user of bitcoin would benefit by running a full
node and using it as their wallet. There are several ways to do this.
(https://bitcoinarmory.com/) or JoinMarket
(https://github.com/AdamISZ/JMBinary/#jmbinary)
Multibit connecting only to your node running at home, Electrum
connecting only to your own Electrum server)
So what are you waiting for? The benefits are many, the downsides are
not that bad. The more people do this, the more robust and healthy the
bitcoin ecosystem is.
original: http://lists.linuxfoundation.org/pipermail/bitcoin-dev/2016-February/012435.html
submitted by dev_list_bot to bitcoin_devlist [link] [comments]

How to recover funds from a currupted bitcoin wallet Installing Bitcoin-QT How to import and export private keys with the Dinero QT Wallet How to redeem bitcoin from a physical coin by Casascius - Swedish Bitcoin: How to get Bitcoins off Paper Wallet (import private keys)

Bitcoin-Qt is the so – called" official " client of the network, which is developed and promoted by Bitcoin Foundation, a non-profit organization uniting core developers and responsible for the community's contacts with corporations and governments.Bitcoin Foundation branches are opened in several dozens of countries around the world. The biggest pain point of using Bitcoin-Qt (Bitcoin Core) prior to v 0.10 as your wallet is it takes forever to sync to get the complete block chain. A fully functioning node must have the Bitcoin-Qt (Bitcoin Core) client on a machine instance with the complete block chain.Note that this speed-up tip will no longer be necessary for Bitcoin Core version 0.10 (click here for Bitcoin Core version ... Import bitcoin-qt wallet to armory Trading Fee How to build your own portable plug-in Lightning node! ... Go to the Addresses tab (if not visible, go to View → Show Addresses first) Used Go back to the CSV file and locate the addresses from the Used list in armory wallet bitcoin gold Electrum, and copy their matching private keys to another text file.Bitcoin Gold (also integriertes ... Armory. Import Wallet Bitcoin Qt Check Cryptocurrencies Roadmaps Aside from new merchant announcements, those interested in advertising to our audience should consider Reddit's self-serve advertising system.Cannot transfer out BTCyou have to enter a passphrase before you can send) unlock it by typing walletpassphrase "your walletpassphrase here" 600 dumpprivkey [your Bitcoin address here] This ... intentionally deleted!</b> All Armory: wallet files, and the wallet.dat file used by Bitcoin-Qt /bitcoind: wallet files, and the wallet.dat file used by Bitcoin-Core /bitcoind: should remain untouched in their current locations. All Armory: wallets will automatically be detected and loaded after the reset. <br><br>

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How to recover funds from a currupted bitcoin wallet

This video shows how to import mini private key step-by-step In this video I use method 2 described below. I used Armory wallet to import my mini private keys but the process should be similar ... Here is a tutorial how to import your old bitcoin wallet into a new wallet in easy steps. I was able to import 1.7 old forgotten bitcoin from 2013. Dash is built from Bitcoin's core code, meaning that it remains compatible with systems that are already designed to work with Bitcoin. The creator of Dash, Evan Duffield, works with a "core team ... This guide will show you how to import and export your #Dinero Private Key for individual wallet addresses. It is important to note that each Dinero wallet is comprised of thousands of Public ... Bitcoin-QT is a Bitcoin wallet and does some other functions. Running this software is the backbone to the entire Bitcoin system. You may need to open port 8333 in your firewall. For more info see

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