Sirwin
Sirwin
Morning JAVA: So I Downloaded Bitcoin Core...

Morning JAVA: So I Downloaded Bitcoin Core...


PublishOx - Earn crypto for blogging

Create Multiple Wallets and Public Addresses With Bitcoin Core

 

Last December, I purchased a refurbished computer for a few hundred bucks with the intended purpose of downloading Bitcoin Core for personal use and the convenience and power to create my own wallet(s) and public address(es). Before I even purchased this computer, I dreamed of 'mining' Bitcoin and getting in on the action but that dream faded quickly when I realized I simply could not compete with the big players that have hundreds if not thousands of powerful computers running in tandem. While anyone can download Bitcoin Core for personal use, mining is out of the question for us small time players.

Once Bitcoin Core is up and running, it is a 'Node' on the blockchain. My copy performs the same functions as the miners do but does not solve the complex mathematical 'puzzles' that the miners compete over to solve in order to earn Bitcoin. Each new block successfully created earns 6.25 Bitcoin. The next Bitcoin 'halving' will occur on or about April 17, meaning that blocks created after this date will only pay out 3.125 Bitcoin. A halving even happens every four year making it ever harder to mine Bitcoin as time goes on with the last Satoshi expected to be mined around the year 2140. Only 21 million Bitcoins can ever be mined and to date, there is less than 2 million Bitcoin left to be mined.

To be able to run a Node, there are some computer requirements. Plenty of free disc space to the tune of several Terabytes is recommended. The computer I chose has 3 Terabytes of disc space. You'll need at least 2 GB of RAM along with super fast internet, preferably of the unlimited usage kind.

 

Patience, Please!

 

You'll also need a bit of patience. The Bitcoin Blockchain has been steadily growing since its inception 15 years ago and its size is approaching 1 Terabyte although it's not quite there yet but it will be soon enough. That's why, for the long term, the amount of free disc space available is critical. Once I downloaded and initialized Bitcoin Core, it took several days to download the entire blockchain. No functions can be performed until the Node is fully caught up and the entire blockchain has been downloaded to your computer.

Each node is responsible for certifying the authenticity of every digital signature before a new block is added and also has the authority to reject any transactions or blocks that don't conform to the Bitcoin protocol. Each node is constantly updating the record for the ledger of transactions. This is why you'll need a lot of bandwidth. I ran my node from Friday afternoon until Monday morning. My node received 3GB while it sent out more than 30 GB. I'll fire  the node back up again on Friday and let it run for an hour or so so that it catches up with the rest of the blockchain.

Once your node is fully up and running, you have a copy of the entire Bitcoin Blockchain. You can then create your own wallet, pass phrase and public address. In fact, your node allows you to create as many wallets as you like and for each wallet, as many public addresses as you might desire. That can be convenient for business purposes, making it easier to manage your Bitcoin. It also eliminates the need for third party wallets (remember FTX? MtGox?).

 

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After creating a new public address, I attempted my first Bitcoin purchase through MoonPay to be sent to this new addy. MoonPay then informed it would take about 20 minutes for the transaction to complete but to my relief and satisfaction, my small amount of Bitcoin arrived safely into my private wallet within 15 minutes.

Had I made a purchase with an exchange only to move Bitcoin to a wallet on the same exchange, the transaction would have likely been almost instantaneous. That's because the transaction would not have taken place on the Bitcoin blockchain but on a tier 2 network, which is a node in its own right connected to the Bitcoin blockchain but with its own proprietary blockchain ecosystem, making transactions lightning fast, hence the term 'lightning network' and 'lightning node'. Staking on tier 2 'lightning' networks is your best bet to earn extra crypto.

 

Some Satoshies Are Worth More Than Others...

 

Another neat function Bitcoin Core can perform is to look at individual Satoshi information. Satoshis that were recorded on the last block before a halving or on the first block afterwards can have significant historical value and may end up being worth more than its face value. Than, there's Bitcoin Ordinals which are basically NFTs. I'm in the beginning stages of learning about Ordinals but imagine a Bitcoin NFT that has a digital signature proving it came from the very last block before a halving event, it would likely fetch a higher amount because of this important feature.

Although Bitcoin's been around 15 years now, she's just getting started. It's created a whole new industry (and then some...). The future is here!

As earlier mentioned, anyone can download Bitcoin Core. I recommend using a dedicated computer so that it runs Bitcoin Core and nothing else with the exception of anti-virus software. Removing reliance on third parties for wallets and addresses, your privacy is significantly increased. There's no need to give up all your personal information, take facial scans, etc., in order to use your node for personal purposes.

The truth is, there aren't enough nodes running to keep up with verifying transactions and these can end up getting stuck in the 'MemPool' or Memory Pool for several minutes, hours (and maybe even days?) before a transaction is verified. This is why it took closer to 20 minutes to complete my Bitcoin purchase on Saturday. My transaction took place directly on the Bitcoin blockchain. Setting up your own node will contribute to alleviating this issue. At the same time, the MemPool issue is partly what's driven the explosion in tier 2 networks which are so much faster. As I write, the MemPool is behind on more than 140,000 transactions. See here for yourself.

 

New Dedicated Public Address

 

Lastly, I created a new public address dedicated to my PublishOx blog(s). If I were to receive any donations to this address, I'll know exactly where it came from. This is one example of how having your own node gives you more flexibility with its usage. The address is below. Thanks for your support!

Do you have a node running? Please share your experience in the comments section below.

See links in the reference section for more information. There's so much more to this story as it is continually evolving.

 

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SweptOverNiagara
SweptOverNiagara

Name's Joe and I live in Ontario, Canada. I like writing on a wide variety of topics. I enjoy keeping track of markets, investing and commodities and the crypto sector. Also do some coding for web browsers.


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