Welcome to Bitcoin 101, where we will help you understand the fundamentals of Bitcoin, including the Lightning Network, by experimenting with the software and engaging in fun activities. This series of homework assignments aims to familiarize you with the Bitcoin ecosystem and its terminology. Our goal is to ensure that you no longer encounter difficulties in understanding concepts such as `bitcoind` or a [BIP](https://github.com/bitcoin/bips). If you have any question ask me but another good place to put and find answer is https://bitcoin.stackexchange.com/ if you need to create an account do not put your real name :) ## Homework One In this assignment, we will explore how to use Bitcoin Core, its components, and the structure of the Bitcoin blockchain. - What is Bitcoin Core and how does it work? - Reading: [Bitcoin Core Book Chapter 3](https://github.com/bitcoinbook/bitcoinbook/blob/develop/ch03.asciidoc) - Questions: - What is `bitcoind`? How does it differ from `bitcoin-qt`? What purposes do they serve? - Why are `bitcoin-cli` and `bitcoin-qt` considered functionally equivalent to some extent? - How is the Bitcoin blockchain structured? - Reading: - [Bitcoin Core Book Chapter 9](https://github.com/bitcoinbook/bitcoinbook/blob/develop/ch09.asciidoc) - [Bitcoin Core Book Chapter 6](https://github.com/bitcoinbook/bitcoinbook/blob/develop/ch06.asciidoc) - Questions: - What is the `RawTransaction` class in the Bitcoin Core source code? - What significance does the `RawTransaction` hold in the Bitcoin context? - How does a transaction input differ from a transaction output? - What is a UTXO (Unspent Transaction Output)? If you were to construct a transaction using your UTXO, would it be included in the vector of transaction inputs or outputs? ### Hands-on - Run `bitcoind` (not `bitcoin-qt`) on the `signed` and `testnet` and experiment with `bitcoin-cli`. (Refer to the [Bitcoin Core RPC API documentation](https://bitcoincore.org/en/doc/24.0.0/rpc/)). Describe your experience below. - Questions: - What are the differences you observed? - Read the BIPs to understand the definition of the Signet network. ### Conclusion What are the main pain points of the Bitcoin network thus far?