Harris Brakmić

Bitcoin and Lightning Network on Raspberry Pi

Running Nodes on Pi3, Pi4 and Pi Zero

Harris Brakmić
Troisdorf, Germany
ISBN 978-1-4842-5521-6e-ISBN 978-1-4842-5522-3
https://doi.org/10.1007/978-1-4842-5522-3
Apress standard
© Harris Brakmić 2019
This work is subject to copyright. All rights are reserved by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed.
Trademarked names, logos, and images may appear in this book. Rather than use a trademark symbol with every occurrence of a trademarked name, logo, or image we use the names, logos, and images only in an editorial fashion and to the benefit of the trademark owner, with no intention of infringement of the trademark. The use in this publication of trade names, trademarks, service marks, and similar terms, even if they are not identified as such, is not to be taken as an expression of opinion as to whether or not they are subject to proprietary rights.
While the advice and information in this book are believed to be true and accurate at the date of publication, neither the authors nor the editors nor the publisher can accept any legal responsibility for any errors or omissions that may be made. The publisher makes no warranty, express or implied, with respect to the material contained herein.
Distributed to the book trade worldwide by Springer Science+Business Media New York, 233 Spring Street, 6th Floor, New York, NY 10013. Phone 1-800-SPRINGER, fax (201) 348-4505, e-mail [email protected], or visit www.springeronline.com. Apress Media, LLC is a California LLC and the sole member (owner) is Springer Science + Business Media Finance Inc (SSBM Finance Inc). SSBM Finance Inc is a Delaware corporation.

For my wife and our daughters.

Table of Contents
Part I: Enter Bitcoin
Chapter 1:​ What Is Bitcoin?​ 3
Money 3
Consensus Rules of Bitcoin 7
Changing Our Mental Model of Money 9
Decentralized Network 10
Public Blockchain 11
Proof-of-Work 13
Time 24
Summary 30
Chapter 2:​ Bitcoin Technology 33
Blockchain 33
Peer-to-Peer Networking 38
Node Types 43
Signatures 48
Addresses 51
Transactions 57
Bitcoin Script 70
Wallets 78
Summary 85
Chapter 3:​ Environment Setup 87
Hardware 87
Linux Installation 93
Linux Configuration 102
Remote Desktop with VNC 110
Updating Raspbian 113
Getting Bitcoin Sources with Git 113
Setting Up the Build Environment 116
Compiling Bitcoin 120
Summary 122
Chapter 4:​ Running Bitcoin 123
Configuration 123
First Run—Console 126
First Run—GUI 130
Running in Regtest Mode 134
Summary 138
Part II: Using Bitcoin
Chapter 5:​ Bitcoin Core Wallet 141
Wallet Encryption 141
Sending and Receiving Funds 146
Message Signing and Verification 157
Client Settings 160
Summary 164
Chapter 6:​ bitcoind 165
Configuration 165
Accessing bitcoind 169
Transactions with bitcoin-cli 170
Transaction Structure 174
Creating Raw Transactions 177
Messaging with ZeroMQ 185
Using Bitcoin’s ZMQ Interface with C 195
Summary 199
Chapter 7:​ Bitcoin Script 201
Script, the Programming Language 201
Script Notation 205
OP-Codes 208
Testing Bitcoin Script with JavaScript 215
Flow Control 219
Summary 224
Chapter 8:​ Bitcoin Practice 225
Automating Bitcoin with systemd 225
Using Bitcoin with Python 229
Using Bitcoin with JavaScript 233
Using bitcoin-core to Communicate with Bitcoin Nodes 234
Using bitcoinlib-js with Multisig, SegWit, and P2SH 238
Transaction Malleability Problem 244
The Significance of SegWit 244
Bech32 246
Importing WIF Keys 249
Using Bitcoin with C++ 249
Generating Addresses 250
Generating Multisig Addresses 253
Setting Up a Blockchain Explorer 255
Summary 261
Part III: Using Lightning Network
Chapter 9:​ Introduction 265
What Is the Lightning Network?​ 265
Payment Channels 268
Commitment Transactions 272
Multihop Payments 278
Hash Time-Lock Contracts 279
Pathfinding 285
Fees 287
Summary 288
Chapter 10:​ c-lightning 289
Compilation 289
Configuration 290
Setting Up a Lightning Node 293
Port Forwarding with upnpc 297
Creating Payment Channels 300
Running c-lightning on Regtest 304
Using c-lightning 305
Activating Experimental Features 310
Using Plugins 311
How the Plugin System Works 313
Writing a Plugin 315
Running c-lightning with systemd 320
Summary 321
Chapter 11:​ LND 323
Compilation 323
Configuration 326
Using LND 330
Payments and Invoices with LNCLI 331
Running LND with systemd 332
Signing and Verifying Messages 333
Summary 334
Chapter 12:​ Web Apps 335
Installing Spark Wallet 335
Using Spark Wallet 337
Running Spark Wallet with systemd 340
Installing Joule Browser Extension 341
Summary 347
Appendix A:​ Books and Papers 349
Books 349
Essays and Papers 350
Appendix B:​ Problems and Solutions 351
Bitcoin Core Wallet 351
LND 351
c-lightning 352
Networking Problems 353
Index 355
About the Author and About the Technical Reviewer
About the Author
Harris Brakmić

is a senior software engineer from Germany. He has experience working with C#, Java, JavaScript, Angular, React, and NodeJS. Occasionally he has worked on projects targeting Android and iOS platforms. He discovered Bitcoin a few years ago, but decided to approach it differently. While most people working in the cryptocurrency space were looking for quick gains, Harris ignored the whole monetary component and concentrated on learning Ethereum’s programming language. Ethereum itself is an alternative blockchain implementation that unlike Bitcoin script offers a turing-complete programming language, Solidity. Gaining a solid understanding of the programming behind cryptocurrency in general, he returned to Bitcoin to see what he could do with the world’s most popular cryptocurrency.

 
About the Technical Reviewer
Sai Yamanoor

is an embedded systems engineer working for an industrial gases company in Buffalo, NY. His interests, deeply rooted in DIY and Open Source Hardware, include developing gadgets that aid behavior modification. He has published two books with his brother, and in his spare time, he likes to contribute to build things that improve quality of life. You can find his project portfolio at http://saiyamanoor.com

 
..................Content has been hidden....................

You can't read the all page of ebook, please click here login for view all page.
Reset
18.220.16.184