This includes being able to record any passphrases you enter for unlocking your encrypted wallets or changing settings so that your Bitcoin Core program tells you that certain transactions have multiple confirmations even when they aren't part of the best block chain. For this reason, you should not use Bitcoin Core for security sensitive operations on systems you do not exclusively control, such as shared computers or virtual private servers. Securing local network access: By default, the RPC interface can only be accessed by a client running on the same computer and only after the client provides a valid authentication credential username and passphrase.
Any program on your computer with access to the file system and local network can obtain this level of access. Additionally, other programs on your computer can attempt to provide an RPC interface on the same port as used by Bitcoin Core in order to trick you into revealing your authentication credentials. For this reason, it is important to only use Bitcoin Core for security-sensitive operations on a computer whose other programs you trust.
Securing remote network access: You may optionally allow other computers to remotely control Bitcoin Core by setting the rpcallowip and rpcbind configuration parameters. These settings are only meant for enabling connections over secure private networks or connections that have been otherwise secured e. Do not enable RPC connections over the public Internet. Although Bitcoin Core's RPC interface does use authentication, it does not use encryption, so your login credentials are sent as clear text that can be read by anyone on your network path.
Additionally, the RPC interface has not been hardened to withstand arbitrary Internet traffic, so changing the above settings to expose it to the Internet even using something like a Tor onion service could expose you to unconsidered vulnerabilities.
See bitcoind -help for more information about these settings and other settings described in this document. The default way to do this in Docker also exposes the port to the public Internet. Instead, expose it only on the host system's localhost, for example: -p The file is. As a final fallback, you can directly use manually-chosen rpcuser and rpcpassword configuration parametersbut you must ensure that you choose a strong and unique passphrase and still don't use insecure networks, as mentioned above.
Secure string handling: The RPC interface does not guarantee any escaping of data beyond what's necessary to encode it as JSON, although it does usually provide serialized data using a hex representation of the bytes. If you use RPC data in your programs or provide its data to other programs, you must ensure any problem strings are properly escaped.
For this reason, and other non-security reasons, it is recommended to display all serialized data in hex form only. RPC consistency guarantees State that can be queried via RPCs is guaranteed to be at least up-to-date with the chain state immediately prior to the call's execution.
However, the state returned by RPCs that reflect the mempool may not be up-to-date with the current mempool state. You can take advantage of this by creating a new unnamed wallet. A Bitcoin wallet is the digital equivalent of a physical wallet on the Bitcoin network. It stores information on the amount of bitcoins you have and where it's located addresses , as well as the ways you can use to spend it. Spending physical money is intuitive, but to spend bitcoins users need to provide the correct private key.
We will explain this in more detail throughout the course, but what you should know for now is that this public-private key dynamic is part of what makes Bitcoin secure and trustless. Your key pair information is saved in the wallet. For the most part, you won't have to worry about that private key: bitcoind will use it when it's needed. However, this makes the wallet. Sweet, now you have a Bitcoin wallet. But a wallet will be of little use for receiving bitcoins if you don't create an address first.
That's great, because descriptor wallets are very powerful, except they don't currently work with multisigs! Create an Address The next thing you need to do is create an address for receiving payments. This is done with the bitcoin-cli getnewaddress command. Remember that if you want more information on this command, you should type bitcoin-cli help getnewaddress. Currently, there are three types of addresses: legacy and the two types of SegWit address, p2sh-segwit and bech If you do not otherwise specify, you'll get the default, which is currently bech However, for the next few sections we're instead going to be using legacy addresses, both because bitcoin-cli had some teething problems with its early versions of SegWit addresses, and because other people might not be able to send to bech32 addresses.
This is all unlikely to be a problem for you now, but for the moment we want to get your started with transaction examples that are mostly guaranteed to work. First, restart bitcoind so your new unnamed wallet is set as default and automatically loaded.
You can require legacy address either with the second argument to getnewaddress or with the named addresstype argument. It would be a "2" for a P2SH address or a "tb1" for a Bech32 address. Take careful note of the address. You'll need to give it to whomever will be sending you funds. A Bitcoin address is literally where you receive money. It's like an email address, but for funds. Technically, it's a public key, though different address schemes adjust that in different ways.
However unlike an email address, a Bitcoin address should be considered single use: use it to receive funds just once. When you want to receive funds from someone else or at some other time, generate a new address. This is suggested in large part to improve your privacy. The whole blockchain is immutable, which means that explorers can look at long chains of transactions over time, making it possible to statistically determine who you and your contacts are, no matter how careful you are.
However, if you keep reusing the same address, then this becomes even easier. By creating your first Bitcoin address, you've also begun to fill in your Bitcoin wallet. More precisely, you've begun to fill the wallet. With a single address in hand, you could jump straight to the next section and begin receiving funds.
However, before we get there, we're going to briefly discuss the other sorts of addresses that you'll meet in the future and talk about a few other wallet commands that you might want to use in the future. As noted above, the foundation of a Bitcoin address is a public key: someone sends funds to your public key, and then you use your private key to redeem it.
Except putting your public key out there isn't entirely secure. At the moment, if someone has your public key, then they can't retrieve your private key and thus your funds ; that's the basis of cryptography, which uses a trap-door function to ensure that you can only go from private to public key, and not vice-versa. But the problem is that we don't know what the future might bring. Except we do know that cryptography systems eventually get broken by the relentless advance of technology, so it's better not to put raw public keys on the 'net, to future-proof your transactions.
Classic Bitcoin transactions created P2PKH addresses that added an additional cryptographic step to protect public keys. This is a Legacy address of the sort used by the early Bitcoin network. We'll be using it in examples for the next few sections.
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