Learning Bitcoin from the Command Line 2.0.1

by Christopher Allen and Shannon Appelcline

Learning Bitcoin from the Command Line is a tutorial for working with Bitcoin (and Lightning) that teaches direct interaction with the servers themselves, as the most robust and secure way to begin cryptocurrency work.

NOTE: This is a draft in progress, so that I can get some feedback from early reviewers. It is not yet ready for use.

This tutorial assumes that you have some minimal background of how to use the command line interface. If not, there are many tutorials available, and I have one for Mac users at https://github.com/ChristopherA/intro-mac-command-line.

Translations

• Portuguese — in process
• Spanish - in process

If you'd like to make your own translation, please see Contributing, below.

Table of Contents

PART ONE: PREPARING FOR BITCOIN

Status: Finished. Updated for 0.20.

• 1.0: Introduction to Programming with Bitcoin Core and Lightning
  • Interlude: Introducing Bitcoin
• 2.0: Setting Up a Bitcoin-Core VPS
  • 2.1: Setting Up a Bitcoin-Core VPS with Bitcoin Standup
  • 2.2: Setting Up a Bitcoin-Core Machine via Other Means

PART TWO: USING BITCOIN-CLI

Status: Finished. Updated for 0.20.

• 3.0: Understanding Your Bitcoin Setup
  • 3.1: Verifying Your Bitcoin Setup
  • 3.2: Knowing Your Bitcoin Setup
  • 3.3: Setting Up Your Wallet
    • Interlude: Using Command-Line Variables
  • 3.4: Receiving a Transaction
  • 3.5: Understanding the Descriptor
• 4.0: Sending Bitcoin Transactions
  • 4.1: Sending Coins the Easy Way
  • 4.2: Creating a Raw Transaction
    • Interlude: Using JQ
  • 4.3: Creating a Raw Transaction with Named Arguments
  • 4.4: Sending Coins with Raw Transactions
    • Interlude: Using Curl
  • 4.5: Sending Coins with Automated Raw Transactions
  • 4.6: Creating a Segwit Transaction
• 5.0: Controlling Bitcoin Transactions
  • 5.1 Watching for Stuck Transactions
  • 5.2: Resending a Transaction with RBF
  • 5.3: Funding a Transaction with CPFP
• 6.0: Expanding Bitcoin Transactions with Multisigs
  • 6.1: Sending a Transaction with a Multisig
  • 6.2: Spending a Transaction with a Multisig
  • 6.3: Sending & Spending an Automated Multisig
• 7.0: Expanding Bitcoin Transactions with PSBTs
  • 7.1: Creating a Partially Signed Bitcoin Transaction
  • 7.2: Using a Partially Signed Bitcoin Transaction
  • 7.3: Integrating with Hardware Wallets
• 8.0: Expanding Bitcoin Transactions in Other Ways
  • 8.1: Sending a Transaction with a Locktime
  • 8.2: Sending a Transaction with Data

PART THREE: BITCOIN SCRIPTING

Status: Finished. Updated for 0.20 and btcdeb.

• 9.0: Introducing Bitcoin Scripts
  • 9.1: Understanding the Foundation of Transactions
  • 9.2: Running a Bitcoin Script
  • 9.3: Testing a Bitcoin Script
  • 9.4: Scripting a P2PKH
  • 9.5: Scripting a P2WPKH
• 10.0: Embedding Bitcoin Scripts in P2SH Transactions
  • 10.1: Understanding the Foundation of P2SH
  • 10.2: Building the Structure of P2SH
  • 10.3: Running a Bitcoin Script with P2SH
  • 10.4: Scripting a Multisig
  • 10.5: Scripting a Segwit Script
  • 10.6: Spending a P2SH Transaction
• 11.0: Empowering Timelock with Bitcoin Scripts
  • 11.1: Understanding Timelock Options
  • 11.2: Using CLTV in Scripts
  • 11.3: Using CSV in Scripts
• 12.0: Expanding Bitcoin Scripts
  • 12.1: Using Script Conditionals
  • 12.2: Using Other Script Commands
• 13.0: Designing Real Bitcoin Scripts
  • 13.1: Writing Puzzles Scripts
  • 13.2: Writing Complex Multisig Scripts
  • 13.3: Empowering Bitcoin with Scripts

PART FOUR: PRIVACY

Status: Finished.

• 14.0: Using Tor

  • 14.1: Verifying Your Tor Setup
  • 14.2: Changing Your Bitcoin Hidden Services
  • 14.3: Adding SSH Hidden Services

• 15.0: Using i2p

  • 15.1: Bitcoin Core as an I2P (Invisible Internet Project) service

PART FIVE: PROGRAMMING WITH RPC

Status: Finished.

• 16.0: Talking to Bitcoind with C
  • 16.1: Accessing Bitcoind in C with RPC Libraries
  • 16.2: Programming Bitcoind in C with RPC Libraries
  • 16.3: Receiving Notifications in C with ZMQ Libraries
• 17.0: Programming Bitcoin with Libwally
  • 17.1: Setting Up Libwally
  • 17.2: Using BIP39 in Libwally
  • 17.3: Using BIP32 in Libwally
  • 17.4: Using PSBTs in Libwally
  • 17.5: Using Scripts in Libwally
  • 17.6: Using Other Functions in Libwally
  • 17.7: Integrating Libwally and Bitcoin-CLI
• 18.0: Talking to Bitcoind with Other Languages
  • 18.1: Accessing Bitcoind with Go
  • 18.2: Accessing Bitcoind with Java
  • 18.3: Accessing Bitcoind with Node JS
  • 18.4: Accessing Bitcoind with Python
  • 18.5: Accessing Bitcoind with Rust
  • 18.6: Accessing Bitcoind with Swift

PART SIX: USING LIGHTNING-CLI

Status: Finished.

• 19.0: Understanding Your Lightning Setup
  • 19.1: Verifying Your c-lightning Setup
  • 19.2: Knowing Your c-lightning Setup
    • Interlude: Accessing a Second Lightning Node
  • 19.3: Creating a Lightning Channel
• 20.0: Using Lightning
  • 20.1: Generating a Payment Request
  • 20.2: Paying an Invoice
  • 20.3: Closing a Lighnting Channel
  • 20.4: Expanding the Lightning Network

APPENDICES

Status: Finished.

• Appendices
  • Appendix I: Understanding Bitcoin Standup
  • Appendix II: Compiling Bitcoin from Source
  • Appendix III: Using Bitcoin Regtest

Status - Beta

v2.1.0 of Learning Bitcoin from the Command Line is feature complete and has undergone full editing and integration. It is ready for learning

We are also tentatively considering what we could include in a v3.0 of the course. If you'd like to support work of that sort, become a GitHub Sponsor or support us at our BTCPay Server, and let us know that Learning Bitcoin was the reason why.

Version History

2.1.0 (pending)

• New chapter 15 (i2p).
• Added fixes to wallet usage from 0.21
• Updated install to new Bitcoin Scripts for 22.0
• Incorporated numerous fixes revealed by first translation projects

2.0.1 (June 15, 2021)

• Numerous small patches following 2.0
• Intended as baseline for translations (2.2.0), but 2.1.0 material on i2p slipped in

2.0.0 (November 3, 2020)

• Second major release of Learning Bitcoin
• Added material on Segwit, Tor, hardware wallets, lightning, regtest
• Completely previous unfinished work on programming using a variety of languages

1.0.0 (pre-2020)

• Original, extensive but incomplete version
• Contained comprehensive sections on setup, bitcoin-cli, and scripting

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Unless otherwise noted (either in this /README.md or in the file's header comments) the contents of this repository are Copyright © 2020 by Blockchain Commons, LLC, and are licensed under CC-BY.

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if you would like to provide a translation of Learning Bitcoin into another language, please additionally see TRANSLATING.md.

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