The safety of confidential information is one of the important challenges of the modern world. Moreover, the problem is equally acute both in real life and in virtual reality.

Personal information and a database, as well as passwords and logins of users who own cryptocurrency or EPS wallets , are a desirable target for online scammers. They give access to the savings of gullible customers or the accounts of entire organizations. Hackers have become especially active after the advent of cryptocurrencies . It is not surprising that many are trying to find out from users the access keys to the Bitcoin storage , the cost of which, at the time of this writing (04/07/2017), is almost 1200 US dollars. 

A cryptocurrency wallet, unlike conventional counterparts, is not a tangible medium, like alternative monetary units. They are ordinary software with a rather complex and quite effective protection mechanism.

The first e-wallet the Bitcoin Core was created by a brilliant programmer under the nickname " Satoshi Nakamoto ". Until now, it functions properly and without significant complaints from users. However, the realities of the modern world require cryptocurrency storages to evolve. This is how wallet varieties were created, which are divided into 4 main types:

•                    Heavy (thick).
•                    Light (thin).
•                    Online versions.
•                    Mobile.

Thick Bitcoin wallets are the most ideal digital storage transformation. It should be noted that Bitcoin Core originally bore the name " Bitcoin Qt " given to it by Nakamoto . Renamed later to Bitcoin Core, the wallet is rightfully considered the official client of the network. Bitcoin Foundation is a non-profit company that specializes in its development and promotion. All the creators of the kernel have united under this name. With the help of this organization, the cryptocurrency community can maintain contact with both the government and large corporations.

Bitcoin Core wallet creation process

Before installing a stationary wallet on a personal computer, you will need to free up a sufficient amount of space on your hard disk drive (HDD). The amount of free memory on the hard drive should be about 50-70 GB. Next, you should go to the official bitcoin.org resource and read the instructions on how to create a Bitcoin Core wallet .

To determine the type of client program, the user must go to the "Downloads" section. It is important that the program fully matches the version of the operating system installed on the device. The file is then downloaded and installed on your computer. For a successful installation, it is recommended to download Java software on your PC in advance . It is equally important that the version of the application is up to date.

After completing the above steps, the virtual wallet starts automatically. It is important to take into account that Bitcoin Core storage is synchronized for a long time with the elements of the global global network. The duration of the process can vary from 24 hours to three days. However, it is imperative to wait until synchronization is complete. You can use the created wallet and send money from it to other accounts only after all the basic settings have been made.

As for the security of the wallet located on a personal computer and the safety of funds on it, the responsibility lies entirely with the client. Therefore, in the settings of the Bitcoin Core program, it is necessary to encrypt the data. In addition, it is highly recommended that you regularly back up your software. Also, for greater protection of the storage and money on it, you will need to switch to using removable media.

The user must study the information regarding the address of the virtual wallet, otherwise, he will be deprived of the opportunity to perform various monetary transactions. To understand the principle of the virtual storage and learn how to view its number, you need to answer the question: "How to create a Bitcoin Core wallet ?"

And this can be done quite simply if you adhere exactly to the step-by-step algorithm of actions:

•                    Click on the button that starts the procedure for creating a digital wallet.
•                    In the window that opens, specify the path through which access to the wallet will be provided.
•                    Give it a unique name.
•                    Create and enter a complex password.
•                    Select a file to store the clients personal keys.

Why Bitcoin Core needs sync?

The initial synchronization of a stationary Bitcoin wallet takes a lot of time, since it requires downloading a significant amount of information. Some users believe that when Bitcoin Core is syncing for a long time, you can try to speed up this process somewhat.

The speed of synchronization, that is, the elimination of differences between two copies of data, as it turned out, has a direct dependence on the speed of reading information from a hard disk. After all, data blocks will be stored on the computers hard disk containing information about all transactions that have ever been executed on the network since the creation of Bitcoin and the peer-to-peer payment system of the same name. It should be noted that, in contrast to the amount of information received from outside, the volume of material intended for reading by a hard drive exceeds the first value by almost 100 times. Also, the importance of using a computer with a powerful processor and sufficient hard disk space should not be underestimated so as not to seek an answer to the question of why Bitcoin Core synchronizes for so long .

For example, SSD solid state drives have a maximum read speed of about 500 MB / s . By comparison with the previous models, HDD, SDD at speeds up to 6 times higher. Considering that the procedure for reading data is not long-term, then fears about a quick failure of the SSD are not justified. The recommended volume for purchase is 120 GB and above.

As another solution to this problem, you can do this: copy transaction blocks from the computer that has already passed the synchronization stage. However, finding a reliable computing device is very difficult. To launch the Core Bitcoin wallet , you can try to find the necessary files on the Internet, however, it is worth considering that this option can carry great risks. It is important to wait until the end of synchronization, because interrupting the process by turning off or restarting the computer is fraught with disruption of the synchronization process.

How to set up Bitcoin Core ?

Before making settings for a stationary wallet, you need to log in to the application. Below are the most important options:

1.                 Wallet encryption. After clicking on the corresponding Bitcoin Core settings button , a form opens in which you need to enter and duplicate the password. Next, you need to click on the "Ok" button.
2.                 Change in the amount of the commission. Here you need to move a special slider to the left or right, which helps to set the desired size of the commission paid for executing transactions. If the user intends to send a small amount, he can carry out the transaction for free by checking the box opposite the corresponding inscription.
3.                 Generation of a new address. How to find out the Bitcoin Core wallet number , see below. As for the address, to create it you will need:

•                    Go to the "Receive" tab.
•                    In the "Label" field, specify the purpose of the generated address.
•                    Click on the "Request payment" button.
•                    In the form that opens, see the new address for receiving cryptocurrency .

4.                 Receiving digital currency. After installing an electronic wallet on a computer, the user is immediately provided with an address intended for receiving crypto coins . The generated number is highly recommended to be changed during the Bitcoin Core settings .
5.                 Proof of ownership of the receiving address. You can do it this way:

•                    Enter the number for collecting coins.
•                    Write free text.
•                    Click on the "Sign" button.
•                    Wait until the code is copied.
•                    All of the above information is sent to the addressee.
•                    Prove ownership of the receiving address by affixing your own signature to the message.

6.                 Storage backup. On a PC or removable media, you need to create a folder and give it a unique name. To further configure this function of Bitcoin Core , you should click on the "Save" button from the "File" tab . Having a backup copy significantly increases the ability to securely access the storage in case of loss of passwords. Also, the user can be sure of the safety of Bitcoins .
7.                 Wallet number. To find out the address of the wallet, you need to follow the special link on the main page of the wallet. Going through it will allow you to find out the personal number that is assigned to the subscribers personal account. You can also find out information about the current balance and familiarize yourself with the history of transactions. The reader now knows how to find out the Bitcoin Core wallet number . It should be noted that the client application is compatible with all currently popular operating systems. Among them: Mac OC, Linux and Windows .

Description of the mining process

Web users are interested in the topic of mining using the official wallet created by Nakamoto . Lets talk about this in more detail. In the process of generating crypto coins , the user creates an order certifying the transfer of a certain amount of Bitcoins to the addressees account. Further, the transaction is processed by some miner , after which the generated request is included in the next block. To learn how to mine using Bitcoin Core , you need to understand that in mining mode, data is created and placed in blocks, which must be assigned headers. 

There is an unspoken struggle among miners to create a header code that will guarantee a secure transmission of the password. After that, the addressee receives a generated cipher with a random set of numbers and Latin letters. Payment must be made for sending each hash .

You can try your luck in mining as follows:

1.                 Register Bitcoin Core wallet .
2.                 Generate an updated address. It is meant for making deals.
3.                 How to mine cryptocurrency using Bitcoin Core profitably? You need to purchase expensive equipment or become a member of the pool. After all, this type of mining is highly promising . Before joining a pool, you need to collect as much information as possible about it. Positive reviews are a direct recommendation for the use of this site.

As you know, you can mine cryptocurrency using a processor or powerful video cards. It should be noted that mining using a GPU video card is much more profitable as opposed to mining coins using a CPU processor. And speaking of purity , solo mining ceased to be relevant and cost-effective even 3 years ago.

One of the high-quality programs that solve the problem of how to mine Bitcoin Core is GPU- Miner . It is ideally suited to the operating system of the Windows . It is worth considering that a properly configured Bitcoin wallet, coupled with a single powerful video card, will allow you to earn a minimum amount of funds, which will not be enough to cover the inevitable costs (equipment, electricity).

Therefore, it is worth thinking about creating a special farm and then placing about five powerful video cards from RADEON in it. It should be noted that the Bitcoin farm must operate 24/7/365. If mining using an electronic wallet is implemented as a specially created team, then you can count on a good income. Otherwise, mining Bitcoins is pointless.

 

The descendant pays for the grandparent

The number of transactions carried out on the Bitcoin network is increasing every time. As a result, there is an increase in the number of filled blocks. While many users were wondering how to use Bitcoin Core , miners were forced to raise fees for commissions for including next transactions in hash blocks. In the case when the operation did not have the required amount of commissions, then it was included in the block with some delay.

The problem, caused by the sharp drop in network bandwidth, has reached enormous proportions. Most of all, it manifested itself during a period called "stress tests" of the network. During this period, the presence of a large number of transactions caused significant delays in the course of work. To solve the problem, a very effective decision was made to use the child pays for parents maneuver. The abbreviation CPFP ( Child Pays for Parent ) is used to denote a trick . After the question of what it is Bitcoin Core has been considered in detail , you can begin to review this trick.

The maneuver is presented as a set of specific rules. This method is widely used by miners at the time of selecting transactions that are waiting in the queue to be included in a block. With the help of CPFP, miners can choose the most profitable set of transactions for them. This eliminates the need for the "miners" to loop over the profitability of transactions.

It turns out that cryptogrammers get the opportunity to choose the transaction with the lowest commission. Due to the equilibrium condition, the subsequent transaction will be offered with an increased amount of fees. Further, miners will simultaneously include both transactions in the block. Despite the fact that most users know how to use Bitcoin Core , they do not fully understand the essence of this procedure.

In practice, its execution looks like this:

•                    Anyone who is the recipient of a transaction with a low commission may spend some of the cryptocoins to “attach” a transfer with a high commission.
•                    The result of this process will be significant time savings. So, the addressee does not have to spend a lot of time waiting for the confirmation of the payment.
•                    The miners profit is increasing.

Using compact blocks

The performance of the peer-to-peer cryptocurrency protocol is currently being questioned. How to use Bitcoin Core in this case? Will this not affect the performance of both the network itself and the storage, because the nodes perform double work on the mutual sending of basic information? The work of the nodes is:

1.                 Looking for the transaction that was sent first.
2.                 In the confirmation of payment.

Of course, some of the disadvantages of this process are more than obvious. Sending data twice implies high throughput, and, in fact, the need for this is minimal. This increases the cost of operating the Bitcoin network . It should be noted that this can significantly affect the work of Bitcoin Core regarding sending transactions. It is important to note that at the time of transmission of new blocks by several nodes, a situation of peak reloading of parameters responsible for the network bandwidth may occur.

The main feature is considered to be a slowdown in the distribution of hashes over the network . This is why large pools are the most viable. This has a direct impact on the centralization of Bitcoin mining .

Matt Corallo , author of the Bitcoin Core wallet tutorial , designed compact blocks. They are designed to reduce the redundancy of information transmission. Obviously, this trick is not a panacea, but it can temporarily solve the problem of reducing network bandwidth, the performance of which can be much lower than that of opponents.

Efficiency and protection

Finding the number of the updated Bitcoin Core wallet , more precisely version 0.13.0, is as easy as the previous ones . This release contains a long list of innovative solutions for the safety and effectiveness of the program. Consider the main chips presented in the updated version of the Bitcoin wallet:

•                    Increasing the database hash . This has a positive effect on the increase in network speed by the nodes and the speedy resolution of issues regarding the acceptability of the transaction.
•                    Ability to use C ++ 11 and Python 3. These are fresh variations of programming languages that allow you to use functions with more power.
•                    Availability of source codes for ARM under Linux . So, the need to copy them for personal needs has disappeared. External applications can use up-to-date information regarding a number of transactions in the mempool .
•                    Requesting transfers whose commission has reached a certain threshold. This feature is somewhat of a barrier to DDOS attacks.
•                    Partial solution to issues related to network bandwidth.

Before the user examines the information on how to create a Bitcoin Core wallet , he needs to figure out what features the updated release, presented by the developers some time ago, has.

Features of the latest version

 One of the latest releases has pleasantly surprised the members of the Bitcoin community. He continued to innovate. In particular, the implementation of a special standard called Segregated Witness should be highlighted . The significance of the latter lies in the fact that it allows you to increase the network bandwidth, solving the problem of scalability. SegWit is a chance to end the rift in the Bitcoin community.