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1  Bitcoin / Development & Technical Discussion / Basics of the Lightning Network - explanation and wallets on: August 22, 2018, 07:43:13 PM

This thread contains some more detailed information that has been already mentioned in the set of questions answered by me. Below you will see an explanation of the Lightning Network basics. We had many discussions on bitcointalk whether or not it is a good scaling solutions. Here are the most popular threads: Is the Lightning Network centralized?, Lightning Network Discussion Thread, Lightning Network fraud possible?

Table of contents

      1. What is the Lightning Network?
      2. How does it work?
      3. Wallets and nodes
      4. Known problems
      5. Planned features
      6. Security risks
      7. Other second-layer scaling solutions
      8. Useful sources of information

1. What is the Lightning Network?

The Lightning network is an alternative to the traditional Bitcoin on-chain transactions. It doesn’t replace them completely because on-chain transactions are still needed for closing and opening payment channels. The Lightning Network is a second layer solution and is fully opt-in. Transactions done between Lightning Network participants have no negative impact on the Bitcoin network.

The Lightning Network allows for instant and extremely cheap P2P (micro)payments.

2. How does it work?

Creating a payment channel

What is exactly a payment channel? According to the Bitcoin wiki, payment channel is a class of techniques designed to allow users to make multiple Bitcoin transactions without commiting all of the transactions to the Bitcoin blockchain. A maximum of two transactions will be broadcasted to the blockchain.

To start using the Lightning Network you have to use compatible software. Two people may establish a payment channel by locking up funds in a multi-signature address which needs both signatures to spend from it. This transaction is time locked so that the funds will be automatically dispersed in the event that one of the parties becomes uncooperative. Payment channel can be used as long as both participants remain cooperative.

Sending and routing payments

Both parties transact without broadcasting the current state of their trade to the Blockchain. They both keep the copy of the channel information. Sending payments through the Lightning Network is possible as long as there is at least one connection to the other person and sufficient funds in the channels which route the transaction. Each node is rewarded for routing the payment accordingly to their fee policy.

Secure routing of payments would not be possible without Hashed Timelock Contracts (HTLCs). The example below explains why they are needed.

1. Alice opens a payment channel to Bob, and Bob opens a payment channel to Charlie.
2. Alice wants to buy something from Charlie for 1000 satoshis.
3. Charlie generates a random number and generates its SHA256 hash. Charlie gives that hash to Alice.
4. Alice uses her payment channel to Bob to pay him 1,000 satoshis, but she adds the hash Charlie gave her to the payment along with an extra condition: in order for Bob to claim the payment, he has to provide the data which was used to produce that hash.
5. Bob uses his payment channel to Charlie to pay Charlie 1,000 satoshis, and Bob adds a copy of the same condition that Alice put on the payment she gave Bob.
6. Charlie has the original data that was used to produce the hash (called a pre-image), so Charlie can use it to finalize his payment and fully receive the payment from Bob. By doing so, Charlie necessarily makes the pre-image available to Bob.
7. Bob uses the pre-image to finalize his payment from Alice

Closing the channel

There are two ways of closing payment channels. Cooperative and uncooperative.

The latter method takes more time because the other party is offline. In order to avoid frauds, one have to wait a certain amount of time, which was negotiated while opening the channel, before broadcasting the closing transaction.

3. Wallets and nodes

There are a few Lightning Network implementations and each of them might contain some bugs which may lead to the loss of funds. Most of them require user to run a full Bitcoin node but thanks to neutrino, you can replace it with a light node if you decide to use LND. iOS and Android wallets are easy to use and don’t require much setup but most of them can’t be used for requesting payments.

Each implementation has a different setup process.

Desktop clients

Mobile clients

The above list includes software which is officially available and can be configured for the Bitcoin mainnet usage. Every user running a Lightning Network node takes part in payments routing. The number of routed transactions depends on how well one's node is connected, amount of bitcoins locked up in the channel and the fee policy. There is no point in describing features of these wallets since they are constantly being updated at this state.

4. Known problems

  • offline nodes are considered capable of routing which results in payments not going through in some cases,
  • there is no standard for safe backup. Using an old backup is considered as cheating therefore a penalty transaction is being broadcast,
  • one can’t receive payments and defend from the other party cheat if one’s node is offline,
  • there still might be a problem with full blocks in the future. However, developers are working on solutions which will increase the number of transactions per block e.g. Schnorr signatures.

5. Planned features

  • Watchtowers – it is possible that the second party will attempt to cheat by broadcasting an old state of the payment channel. Normally, this would not be possible since the other node would broadcast a penalty transaction. To prevent frauds, the concept of watchtowers is being developed. Watchtowers will be able to broadcast a penalty transaction if necessary.
  • Atomic swaps - trustless method of exchanging two different cryptocurrencies without the need to use escrow.
  • Multi-path payments - currently, one can send transaction using only one route. In the future, it will be possible to split the transaction among multiple routes in order to decrease the fail rate of transactions which is often caused by the lack of funds across the nodes.
  • Dual-funded channels - two users instead of one will be able to fund a payment channel as originally described in the Lightning Network Paper.
  • Eltoo - eltoo will be an alternative to the current method of settling payments between users. Updating channels is done by building a chain of timelocked transactions. A soft fork is needed to make eltoo available on the Lightning Network (in order to avoid having to broadcast the whole transaction history between users). Here you can find out which opcodes need to be modified.
  • Channel factories - existing Lightning Network channels could be used for creating new channels without broadcasting anything to the rest of the Bitcoin network. Normally, a channel is opened to only one person. In channel factories we have multiple people forming a group. Group members maintain channels between themselves. More interested users = higher savings. If one of the participants is uncooperative, existing channels are not affected - new channels can't be created, though.

6. Security risks

  • Improper timelocks - sufficient time should be given in case of interaction with non-cooperative or malicious channel counterparties.
  • Forced expiration spam - closing many channels at the same time might lead to filling up the whole block completely. If the spam lasts enough time, some timelocked transactions might become valid.
  • Data loss - most of the Lightning Network clients don’t provide reliable method of backup. Using an old copy of the database might be considered as cheating. The other party broadcasts a penalty transaction in that case.
  • Coin theft - most of the Lightning Network nodes work 24/7 and store their coins in hot wallets which makes it easier for an attacker to steal their private keys.
  • Colluding miner attacks - miners have power to decide which transactions they want to include in the block so they can refuse certain transactions selected by an attacker. This attack is very unlikely to happen due to high cost and complexity (all miners would have to cooperate).

7. Other second-layer scaling solutions

8. Useful sources of information (especially “Bitcoin Lightning Network Paper”)
2  Bitcoin / Development & Technical Discussion / Common questions regarding the Lightning Network on: July 31, 2018, 11:02:09 PM
Table of contents

      1. General Information
      2. Running a node
      3. Concerns

General Information

How are bitcoins on the Lightning Network different from on-chain bitcoins?

They are exactly the same coins. There are no Lightning Network tokens. The only difference is that bitcoins are stored in multi-signature addresses and transactions are settled between two parties without broadcasting anything to the blockchain (except when opening and closing the channel).

When will merchants start accepting Lightning Network payments?

It is a tough question. Many merchants were discouraged from accepting Bitcoin because of high transaction fees. Some of them use third party services which are slowly working on the Lightning Network support. Here you can find a list of stores which accept Lightning Network payments.

How many times can we expect to be able to use a payment channel?

Every channel has a minimum amount of coins which has to stay unspent. Channels can be used as long as both parties continue to cooperate with each other.

How fast and reliable are Lightning Network payments?

Depending on the route, Lightning Network payments can be instant. Every wallet tries to find the cheapest and the shortest route once you send your transaction. You can open a channel directly to a person who you are going to often trade with or depend on other channels which might route your payment for a small fee. Lightning Network is still in its early state so payments fail from time to time.

What are the upcoming features?

Dual funded channels - both parties will be able to fund a channel. Watchtowers - they will be responsible for taking care of people attempting to cheat while the other party is offline. Muilti-path payments - currently, the payment can't be divided into smaller ones which sometimes results in failed payments due to not enough funds in the channels.

You can find more here.

Where can I find the latest news regarding the Lightning Network?

Telegram channel - a whole group of knowledgeable people ready to talk about the Lightning Network. Great source of information.

Bitcoin Lightning - a website strictly focused only on the Lightning Network.

Cointelegraph - nothing to add here.

Which wallet is the best one?

There are multiple implementations of the Lightning Network and most wallets have similar features. However, some mobile wallets can't receive payments. Eclair is the most popular wallet for Android but it is also available on Windows. The most popular implementations are: c-lightning, LND and eclair mentioned earlier.

Running a node

How much money can you make on running a Lightning Network node?

Don’t expect to make a lot of money. Everything depends on the number of connections and your fee policy. The less you charge, the higher your chances to route a payment. Don’t set the fee too low. You have to save up money for future channel re-balancing. User Xian01 opened almost 200 channels and earned barely 15 satoshis after 2 weeks (Reference).

Is running a Lightning Network node demanding?

You can run a Lightning Network node on both Linux and Windows. You have to run a Bitcoin full node which uses the biggest part of available resources. In order to start making money on running a node, you have to open a few channels. Keep in mind that built-in autopilot might not guarantee you the best connections. Even Raspberry Pi 3 B+ is capable of running a Lightning Network node. Check out RaspiBlitz for fast setup.

Is there any risk in running a Lightning Network node?

Yes, due to many factors. Lightning Network implementations are still in beta and might contain critical bugs which could be used to steal funds locked up in channels. Keep in mind that if you won't keep your node online 24/7, someone can attempt to cheat you by broadcasting an old state of your channel. An online node would normally broadcast a penalty transaction.

Does opening new channels help to increase the earnings?

No, it doesn't. There are many other things that you should take into account. Your fee policy, channels' capacity, connection to different sized nodes. Here you can find an interesting comparison between Andreas Brekken's and Alex Bosworth's nodes. The node which had lower principal, made higher profit.

Do I have to run a full Bitcoin node?

No. LND supports neutrino which allows user to run a light node instead of a full one. It is a good solution for devices with low processing power and storage (Raspberry Pi).

How do I set up a Lightning Network node?

The setup process varies for each implementation. Fortunately, detailed documentation makes it easy for inexperienced users to start their own Lightning Network node even on Linux. If you don't feel confident with any other operating system than Windows then take a look at this tutorial which will help to set up your own node.


Is Lightning Network centralized? Is it more centralized than Bitcoin? Does it make Bitcoin more centralized?

This topic has been brought up many times. The Lightning Network is a second layer scaling solution which has no impact on the Bitcoin network. It works independently and no one is forced to use it. The problem of large nodes should solve itself once network continues to grow.

Will casual users be able to accept payments and donations without having to run their own full node 24/7?

Currently, it is not possible. It might be possible in the future to ask a third party to watch for the incoming payment.

What are the new limitations of scalability once lightning is fully functional?

Opening and closing a channel requires broadcasting a Bitcoin on-chain transaction. Increasing the blocksize might be necessary in the future; however, solutions like SegWit, Schnorr signatures can help to decrease the size of transactions. Lightning Network is a second layer protocol, it is possible to build more user-friendly layers on top of it.

What would happen if a large node disappeared from the network?

Recently, we were able to observe Andreas Brekken’s experiment ( node). He was in charge of a node whose capacity was around 43 BTC (more than 50% of the whole network’s capacity!). After its closure, some people started to experience routing problems.

Is Lightning Network more anonymous than on-chain transactions?

Lightning Network increases the level of privacy. The next node doesn’t know if the previous one initiated the transaction. Every node which routes the payment doesn’t know the details of the transaction (final destination, sender).

What happens if some nodes go temporarily offline?

The problem of "zombie nodes" hasn't been solved yet. Offline channels are still considered as capable of routing payments which in some cases cause the payment to fail because channels are unavailable. It is a matter of making a few changes to how channels signalize their state. More information can be found here.
3  Bitcoin / Alternative clients / [Guide] Hardware wallets - which one is a good choice? on: July 01, 2018, 03:46:18 PM
Table of contents

      1. General Information
      2. The most popular hardware wallets
      3. Other hardware wallets worth attention
      4. Comparison of wallets

General Information

What are hardware wallets?

Hardware wallets are devices designed to store private keys and sign transactions independently from the computer. Their main advantage is being able to use them even on an infected computer. These days, most hardware wallets have built-in screen on which user can check whether or not the destination address was modified by a malware. However, it is not possible to store every cryptocurrency on a such device. It all depends on the support of the manufacturer.

What if I lose my wallet or destroy it?

At the first boot, every hardware wallet generates either 12 or 24 word seed which you can later extend with a custom passphrase. This seed can be used to recover coins using third party software, for example, Electrum. It is recommended to test the seed before sending any coins to the generated address. Exposure of the seed should be considered as a major security issue and coins should be urgently moved to another address not associated with the same seed. Firmware updates sometimes wipe the device, keep that in mind before updating your device.

Are hardware wallets completely safe?

No, there is no perfect solution. A few vulnerabilities have been found in the most popular hardware wallets but they required a physical access to the device. Here are examples of attacks that were possible to perform on TREZOR One and Ledger Nano S. If you don't trust hardware wallets because of that, you should consider using a cold storage. It's less convenient but it provides higher security.

Choosing a proper wallet

Every hardware wallet is different. It is difficult to recommend only one model but there are only a few companies which sell trustworthy devices. Keep in mind that you are not paying only for the device but also for a long-term support. It would be a shame if your wallet didn't get an update after, for example, SegWit was activated.

The most popular hardware wallets

Ledger Nano S

This device is maintained by a French company. Ledger decided to use Secure Element which checks on every boot if the software on the device was modified. Some people are not keen on this solution since it's not completely open-source. You can either use Electrum or Ledger's Chrome app to access your wallet. It will be soon replaced by a new desktop and mobile client which will have more features. Currently, their Chrome app seems to lack some useful features such as using your custom backend and signing transactions without broadcasting them. To send specific coins you have to install a proper app on your device using Ledger Manager. Because of Secure Element, the available space on this model is quite small. However, you can uninstall apps anytime and your coins won't disappear. Later, you will have to reinstall the app which takes some time.

Ledger Nano S supports a huge variety of altcoins which is why many people choose it. You can find a full list here.

Ledger Blue

Big touchscreen, built-in battery, Bluetooth connectivity (not used by any app) and a larger memory are things which differ this model from Nano S. Due to high manufacturing costs, Ledger decided to stop selling this device. At the time of writing this guide, the last batch of ten thousand devices is available. Its support has been much worse than the other model, but Ledger is trying to make up for it.


TREZOR is one of the most trustworthy hardware wallet manufacturers, located in Czech Republic. TREZOR software is fully open-source so anyone can contribute and help with implementing more coins. TREZOR is constantly upgrading their web wallet interface - you can find many features which are not supported natively by other hardware wallets. The device doesn't have any pre-loaded firmware. Due to security measurements, it's downloaded from TREZOR's servers on the first boot. Some users might find it difficult to input PIN and the seed recovery is done on the computer.


TREZOR T runs on a completely different software written from the scratch. Developers claim that it will make adding more coins easier. This model has a touchscreen which allows user to input PIN and passphrase on the device screen. SD card slot is definitely an unique feature. In the future, it will be possible to store files which will be automatically encrypted with your private key. This model will soon support Monero and Ripple.


KeepKey has been recently bought by ShapeShift. This device has less features than models described above. However, the developers are trying to make up for it. KeepKey does not support native SegWit addresses (it's not possible to receive and spend from them). You can use either Chrome extension or Electrum to manage your coins. Because of the large screen, it might be difficult to hide or transport this wallet.


OpenDime is a small USB stick which you can hand out to any person you want. The device generates private keys and does not expose them (even not to the owner) unless the seal is void. There is no need to broadcast a transaction to the network, it's useful especially if the transaction fees are too expensive. You can simply give it to the other person.

Other hardware wallets worth attention


This device doesn't have any specialized software. It works with some well-known software wallets. The device has a micro SD card slot which can be used for data storage and transporting (un)signed transactions. Currently, it's only available as a pre-order. It's worth to mention that you can use multiple PINs (accessing different wallets or even bricking the device).


A small wallet created in Switzerland. Wallet data is stored on a micro SD card. Instead of built-in screen, this device has a touch button which is used for accepting and rejecting transactions. It is possible to use a smartphone to verify if the recipient's address is correct. It does not support as many altcoins as Ledger and TREZOR.


Credit card sized wallet with e-ink screen which doesn't require much power. Bluetooth can be used to communicate with a mobile device and a micro-usb cable with a computer.

Comparison of wallets

Which one is better? TREZOR or Ledger?

It all depends on your needs. Ledger mostly focus on supporting more and more altcoins while TREZOR developers are adding more advanced features to their wallet. I would recommend TREZOR for anyone who is not interested in altcoins. Their build quality and support is almost equal (TREZOR team responds very fast not only through their ticket system, but also GitHub and Telegram).

What is the difference between TREZOR One and TREZOR T?

TREZOR T is going to support more coins in the future because of new hardware and software. Touchscreen in TREZOR T allows for a secure input of PIN, passphrase and the seed in case you want to recover your coins.

Which device is more future proof?

If you decide to buy either TREZOR or Ledger you won't have to worry about future Bitcoin forks. Don't expect to be able to claim every single one without exposing your keys to a third party software. More advanced features such as touchscreen and additional connectivity are useful, but they might easily break, it will make your device useless.
4  Local / Tablica ogłoszeń / ✦ Usługa mieszania bitcoinów ✦ Szybka i bezpieczna! on: June 07, 2018, 05:47:32 PM to nowa usługa mieszania Bitcoinów zaprojektowana aby chronić twoją prywatność. Projekt został stworzony przez zespół doświadczonych programistów i ekspertów od bezpieczeństwa. Staramy się zapewnić jak najwyższy poziom usług aby pomóc zapewnić naszym użytkownikom pełną anonimowość w sieci Bitcoin. Jesteśmy świadomi, że potrzebujemy Waszego zaufania i dlatego chcemy zebrać jak najlepsze opinie.

Główne funkcje:
  • Strona przyjazna urządzeniom mobilnym, łatwy w obsłudze interfejs;
  • Strona dostępna również w sieci TOR;
  • Dowolna opłata za usługę pomiędzy 0,5 a 3 procent
  • Aż do 10 docelowych adresów;
  • Unikalny czas opóźnienia (do 48 godzin) dla każdego docelowego adresu;
  • Możliwość zmiany opłaty transakcyjnej dla każdego adresu docelowego;
  • Gwarancja usługi (Letter of Guarantee) dołączana do każdego zlecenia;
  • W każdej chwili możesz sprawdzić aktualny stan zlecenia;
  • Możliwość korzystania ze strony bez JavaScript;
  • REST-API dla programistów.
Chcielibyśmy przedstawić naszą usługę w formie FAQ. Pełne odpowiedzi znajdziesz na naszej stronie.

Na czym polega proces mieszania?
Całość jest bardzo prosta. Przesyłasz nam swoje monety, a my wysyłamy monety z naszej rezerwy. Otrzymasz BTC, które nie są powiązane z twoją historią transakcji.

Jak długo trwa proces mieszania?
Wszystko zależy od ustawionego wcześniej opóźnienia, które ustawiłeś podczas składania zlecenia. Pamiętaj, że opóźnienie jest liczone od momentu kiedy transakcja będzie miała 2 potwierdzenia (szczegóły poniżej), a nie od momentu złożenia zlecenia. Kiedy wyznaczony czas minie, nasz system automatycznie wyśle monety.

Czy transakcje z opóźnieniem są wysyłane od razu?
Nie, transakcje z ustawionym długim opóźnieniem wysyłamy z różnicą do 10 minut. Robimy to aby zapobiec śledzeniu transakcji, które mogłyby zostać potwierdzone w tym samym bloku. Z kolei, nagłe płatności są wysyłane natychmiastowo po otrzymaniu wymaganej ilości potwierdzeń.

Ile potwierdzeń jest wymaganych?
Potrzebne są przynajmniej 2 potwierdzenia.

Jak długo wygenerowany przez was adres jest ważny?
Wygenerowany przez nas adres ważny jest przez 24 godziny. Wszystkie transakcje przychodzące po tym czasie będą ignorowane. Wszystkie dane dotyczące zlecenia są usuwane natychmiast po przesłaniu monet do wszystkich adresów.

Jakie informacje są zbierane i przechowywane?
Nie przechowujemy żadnych logów ani informacji, które mogłyby pozwolić na zidentyfikowanie naszych klientów. Wszystkie logi są usuwane natychmiast po wykonaniu przez nas zlecenia w celu zwiększenia anonimowości naszych użytkowników.

Czy mogę zmienić opłatę transakcyjną dla adresów docelowych?
Tak, oferujemy taką możliwość w momencie składania zlecenia. W przypadku gdy transakcja nie zostanie potwierdzona w ciągu 5 bloków, zostanie ona przez nas wysłana ponownie z większą opłatą transakcyjną.

Czy używacie adresów SegWit?
Każdy z naszych adresów wspiera SegWit (nested) dzięki czemu korzystanie z naszych usług jest tańsze. Wspieramy także możliwość wysyłania BTC do adresów typu bech32.

Przez pewien czas prowadziliśmy kampanię mającą na celu zebranie recenzji i otrzymaliśmy wiele pozytywnych opinii. Dziękujemy wszystkim osobom, które pomogły nam w rozwoju. Poniżej znajdują się najbardziej niezapomniane opinie.

Nie zapomniałem o was. Brałem udział w pierwszych testach i napisałem opinię pochwalającą wygląd interfejsu, który świetnie wygląda na urządzeniach mobilnych. Specjalnie spróbowałem przemieszać trochę monet jeszcze raz aby przetestować adresy SegWit. Wysłałem .002 BTC z opóźnieniem i ręcznie ustawioną opłata transakcyjną. Zero problemów, całość łatwa i przejrzysta. Wróżę wam świetlaną przyszłość. Chciałbym zobaczyć większą maksymalną kwotę możliwą do przemieszania, ale jest to zrozumiałe gdyż to są wasze początki. Obojętne jest mi czy dostanę nagrodę za opinię.


Zleciłem przemieszanie bitcoinów z 5 godzinnym opóźnieniem i otrzymałem monety bez żadnych problemów. Wysłałem monety z adresu SegWit (nested) jak i otrzymałem monety na ten sam typ adresu. Sprawdziłem stan mojego zlecenia po otrzymaniu monet i na stronie nie było żadnego śladu. Cieszę się, że informacje są usuwane. Po pierwszym użyciu tej usługi mogę śmiało powiedzieć, że jest bardzo łatwa w użyciu; to jest najłatwiejsza w obsłudze mieszarka z jakiej dotąd korzystałem.

Nie muszę tego mówić, ale powiem: Dodałem tą mieszarkę do listy usług, z których często korzystam.

Nie ma potrzeby aby wysłać mi nagrodę za moją opinię. Mam nadzieję, że ta usługa będzie dalej się rozwijać i generować zyski. Mam nadzieję, że zdobędziecie więcej pozytywnych opinii, ręczę za was! Świetna opcja na polepszenie prywatności!


Obecnie szukamy inwestorów aby powiększyć naszą rezerwę monet. Oferujemy nawet do 70% zysku w zależności od kapitału. Więcej informacji dostępnych jest na tej stronie.

Przydatne linki:
Prosimy o zwracanie uwagi na poprawność adresu strony. Tylko te adresy, które zostały podane powyżej są właściwe. Przed wysłaniem monet zalecamy pobranie gwarancji wykonania usługi (Letter of Guarantee). Nasz oficjalny adres BTC używany do podpisywania wiadomości to 1BWhisku6FmdcWk776vrqb2KHs88r5oicp. W przypadku używania przeglądarki Tor prosimy o używanie specjalnej wersji strony.

Życzymy bezpiecznego korzystania z
5  Economy / Reputation / User providing fake translations on: May 30, 2018, 01:26:02 PM
Today user dsg21 announced that he is translating texts from English to Polish, Russian and Ukrainian. Since I am running a Polish translation service I decided to check his work and... I wasn't surprised. He is doing translations which are poor quality and include a lot of mistakes. His texts in Polish are translated using Google translate, I pointed it out in his "old" thread.

Link to his "old" thread:
Link to his new thread which doesn't include Polish translation service:

Archived thread with my reply:
Archived translation:
6  Other / Serious discussion / GDPR on: May 27, 2018, 07:31:08 PM
I am surprised that nobody has mentioned it here yet. GDPR (General Data Protection Regulation) was implemented on 25th May. If you didn't hear about it then you are probably living under a rock. GDPR is supposed to let European Union citizens control their personal data.

A lot of people have been complaining about GDPR. Some people say that it is a huge hassle for small businesses because it increases the amount of work that needs to be done and preparations which, in some cases, might have been expensive. There were 2 years to prepare for the GDPR so why so many people are complaining? It wasn't a sudden change in the law, but, still, there are many websites which decided to simply block the EU IP address ranges.

I would like to hear opinions of European and other bitcointalk members.
7  Other / New forum software / Log-in with TREZOR on: May 27, 2018, 11:14:43 AM
It's been quite a long time since TREZOR released their Connect API. It could become an alternative way of logging in for people who own a TREZOR device. People are more likely to use a weak password than expose their seed with additional passphrase.

You can find more information about it in the link below.
8  Bitcoin / Electrum / TUTORIAL: How to use Electrum (for advanced users) on: May 13, 2018, 04:54:31 PM

This is the second part of my previous tutorial which was created for less experienced users to help them with the basic functions of Electrum software wallet. This time I would like to describe a few features which might cause some problems to people who haven’t been into Bitcoin for a long time.

Table of contents

      1. Creating a multi-signature wallet
      2. Sending a transaction from a multi-signature wallet
      3. RBF (replace-by-fee)
      4. Cold storage
      5. Coin control
      6. Using a hardware wallet
      7. Signing/Verifying a message
      8. Extra information

1. Creating a multi-signature wallet

This type of wallet requires multiple signatures to spend from it. You can select up to 15 cosigners and any number (<=15) of required signatures. This is a great solution for organisations which don’t want to give control of all of their money to a single person. Investors can use this type of wallet in case one of their private keys was exposed to a third party. Let’s get through the process of creating such wallet.

Keep in mind that the size of transactions sent from multi-signature wallets is bigger which means that they are more expensive!

The first slider represents the number of people who will be able to sign a transaction. One person equals one signature. The second one is the number of signatures needed to spend from the address. If you select 10 cosigners and 5 required signatures then only 5 people will have to sign a transaction in order to broadcast it to the network.

In this step, you will have to create a new seed or use your existing one. Make sure to backup it because you won’t be able to sign transactions if you lose your private key or seed. You can also use a hardware device and that’s what I have selected.

You should see your Master Public Key which you have to send to other co-owners of the wallet.

Now you have to enter Master Public Keys of other people. Using a seed is also possible, but it’s not recommended. Cosigning with a hardware device would require you to be physically next to the other person. Since I selected only 2 cosigners, I have to enter only one public key.

That’s all! You should now see your wallet. Make sure that your address in “Receive” tab starts with “3”

2. Sending a transaction from a multi-signature wallet

This is actually pretty easy. Enter the address you want to send your bitcoins and the amount like you normally would. You should see the following window, click "Sign".

You can now export the transaction to a file (.txn) and send it to the other person.
To load the transaction you have to go to Options -> Load transaction -> From a file and select the file you exported earlier.

The only thing left is to sign a transaction once again and click “Broadcast”. If you have selected more required signatures then you have to export the transaction and send it to another person once again.

3. RBF (replace-by-fee)

If you have the latest Electrum then you should have it enabled by default, but what exactly is it? RBF allows you to replace your unconfirmed transaction with a new one that pays a higher transaction fee so it could be included in the block earlier. It’s really helpful if you accidentally sent a transaction with a small fee. If you want to learn more about RBF check out this thread.

Click right mouse button on the transaction you want to be confirmed faster and click “Increase fee”.

4. Cold storage

Cold storage is a method of storing your bitcoins offline to minimalize the surface of potential attack. To use this method you will have to use two different computers. One which will be connected to the Internet and the second one which should be encrypted and not connected to anything.

Create a standard wallet on the computer which has no Internet access and go to Wallet -> Information

You should see your Master Public Key which will be needed for creating a watch-only wallet on the second computer. Copy and move it to the other computer.

Create a new standard wallet on the second computer, but instead of generating a new seed select “Use public or private keys” and paste the key you have copied.

Now you will be able to prepare transactions on your watch-only wallet. The process is similar to sending transactions from a multi-signature wallet which I described earlier. All you have to do is to export the transaction and load it on the offline computer. After signing it, you will have to load it on the online computer in order to broadcast it to the network.

5. Coin control

Coin control is one of the most important features which will help you to preserve your anonymity. When you send a transaction, your wallet combines all available inputs (coins) into one. This can be easily tracked using block explorers.

Go to “View -> Show Coins” in order to turn on this feature.

Even if the receiving address for the coins was the same, they will be listed separately. If you want to spend coins from a specific address then you can do it in “Addresses” tab which you have to enable in the “View”.

To send specific coins click right mouse button and select “Spend”. You should see another tab where you have to enter a Bitcoin address to which you want to send your bitcoins, transaction fee and the amount of BTC. The fee you will pay is taken from the coins you have selected.

6. Using a hardware wallet

While creating a new wallet select “Use a hardware device”. I have decided to use my old TREZOR One in the process since it doesn’t allow you to type in the PIN and the passphrase on its screen unlike Ledger Nano S and TREZOR T.

Connect your hardware wallet and you should be able to select it.

Enter your PIN and passphrase (in case you enabled this feature)

One of the biggest advantages is that Electrum supports native SegWit even with hardware wallets! If you want to generate a certain account which you have used in a native app of your wallet then all you have to do is selected whether it was legacy or segwit wallet and change the last digit. 0 will generate the first account, 1 the second and so on. Don’t forget about ‘ at the end.

Your private key is not leaked anywhere when you use your hardware wallet with Electrum. Transactions are signed on the device and they will have to be confirmed by you.

7. Signing/Verifying a message

Bitcoin messages are useful because they can be used for proving the ownership of a certain address. There is no standard for signing messages for nested and native SegWit addresses. That is why it is recommended to use legacy type of addresses. To sign or verify a message go to "Tools -> Sign/verify message".

Type in the message you want to sign and the address that is associated with your private key. Otherwise, it won't work. Click "Sign".

You should always include a timestamp and the purpose of the message to avoid reusing it by a scammer.

You should use the format below if you want to send the message you have just signed to someone else.

<insert message here>
<insert address here>
<insert signature here>

To verify a message, paste all the required information and click "Verify".

If you want to learn more about Bitcoin messages then this tutorial will give you plenty of information. You should consider staking your address here if you are an active user on bitcointalk.

8. Extra information

Electrum is one of the most popular Bitcoin software wallets. It is constantly being updated so things described above can be a little bit different. At the time of writing this tutorial, the latest version is 3.1.3. I will do my best to keep this tutorial up-to-date and add more information in the future. I didn’t have enough free time to test two-factor authentication wallet so I will do it soon.

Electrum 3.1 finally brought us mempool based fee estimation. You can enable it in “Preferences” and use it instead of ETA which might be sometimes not accurate and cause inexperienced users to overpay for their transactions.
9  Other / Beginners & Help / TUTORIAL: How to use Electrum (for beginners) on: April 30, 2018, 06:41:16 PM
Table of contents

      1. What is Electrum?
      2. Creating a new wallet
      3. Using Electrum
      4. Enabling a full list of addresses
      5. Notes

1. What is Electrum?

Electrum is a free and open source software wallet which is available on many different platforms (Windows, OSX, Linux and Android). Unlike Bitcoin Core client, Electrum doesn't need to download any additional data because it connects to external servers. Don't worry, Electrum never sends your private key anywhere, it is stored locally which means that you are responsible for the security of your bitcoins.

You can download Electrum from here. You can always verify the signature of the downloaded file to make sure that the file wasn't modified by anyone using for example GnuPG (Linux) or Gpg4win (Windows).

2. Creating a new wallet

Electrum, at first launch, will ask you whether you want to connect to the server you know or do it automatically. If you don't know anyone trustful who runs an Electrum server then you should let Electrum connect automatically.

Next, you can type in the name of a new wallet or select your existing wallet by clicking "Choose". By default, your wallet should be located in "C:\Users\USERNAME\AppData\Roaming\Electrum\wallets" (Windows) or in "~/.electrum" (OSX and Linux). It is important because you will be able to backup the wallet file later.

You should see 4 options:

  • Standard wallet
  • Wallet with two-factor authentication
  • Multi-signature wallet
  • Import Bitcoin addresses or private keys

This time I would like to focus only on the first and on the last option, but what is the difference between these four kinds of wallets?

Standard wallet - it allows you to create a brand new wallet (with either Legacy or SegWit type of addresses). Only one private key is necessary to sign a transaction for this kind of wallet.

Wallet with two-factor authentication - a type of multi-signature wallet. You are given 2 of 3 keys. The third one is managed by TrustedCoin service. Google Authenticator is also needed.

Multi-signature wallet - a wallet with multiple private keys needed to spend from it. You can select up to 15 cosigners and any number of required signatures.

Import Bitcoin addresses or private keys - useful for creating watch-only wallets (in case you want to use air-gapped solution which needs one device for preparing transactions and another for signing them).

Select "Create a new seed" to create a new wallet. Electrum supports many different hardware wallets such as TREZOR, Ledger and Keepkey, but they are not free obviously.

Standard option generates a legacy type of addresses (starting with 1). This type is currently the most common one since it was available from the beginning of Bitcoin's existence.

SegWit addresses can start either from 3 (nested SegWit) or bc1 (native SegWit). Electrum generates native SegWit addresses which still might be not compatible with every service. Unfortunately, Electrum does not allow you to generate nested SegWit addresses which are backwards compatible. However, it is possible to import a nested SegWit address private key if you created your wallet on a website which supports this type of address. Transactions made to SegWit addresses are cheaper and take less space in a block. This helps Bitcoin a bit when the whole network is under huge load.

Since SegWit adoption is growing, I have decided to select "SegWit". Here you can find more information about SegWit.

This is a very important step. These 12 words are needed to recover your wallet in case you lost access to the backup of you wallet. Don't save your seed on your computer. You should write it down on a paper and store it in a secure place. Some people advise to use things like cryptosteel to make sure that your seed won't be destroyed by water or fire. Consider using a passphrase. It will act as 13th word of you seed which will be known only by you. You can enable it in "Options".

After you hit next, you will have to type in the seed you have just written down and enter a password which will encrypt your wallet file.

3. Using Electrum

Congratulations! You have just created your new wallet. Now, you are ready to receive and send Bitcoin. The window which is currently opened, shows your balance and previous transactions. It is obviously empty because nobody has sent you any bitcoins.

To see your Bitcoin address, select "Receive" tab. If someone wants to send you some bitcoin then the only thing you have to do is to copy "Receiving address". It might change after someone sends money to that address but don't worry. You can reuse your previous addresses.

Sending Bitcoin is fairly easy. Paste the address to which you would like to send BTC in "Pay to" field and enter the amount below. "Description" isn't broadcasted anywhere, you can use it to label transactions. The slider at the bottom indicates the fee for sending a transaction. Electrum automatically selects a proper fee to get your transaction confirmed in the next few blocks.

4. Enabling a full list of addresses

This feature is useful if you want to use several addresses at the same time without funding them. Normally, address changes in the "Receive" tab after one use.

To see a full list go to "View -> Show Addresses".

You should now see "Addresses" tab where there are all of your addresses. You can also spend bitcoins from a specific address by clicking a right mouse button and selecting "Spend".

5. Notes

Electrum gives you a full control of your private keys. You are responsible for their security. That's one of the biggest advantages of software wallets. It is not a perfect solution since malware can affect you, but that's why it is important to consider using air-gapped storage for larger amount of money in crypto.

I have created this tutorial in order to help people who use web wallets because they don't know how to use Bitcoin Core or Electrum. I didn't include any information about more advanced features such as coin control and creating a multi-signature address because I doubt that a complete newbie would be interested in using them. I have created a separate tutorial covering many advanced features of Electrum, you can find it here. Feel free to propose changes to this tutorial.
10  Economy / Services / Polish translation service on: April 22, 2018, 06:52:38 PM

As of today, I would like to offer translating texts from English to Polish and vice-versa. I am a native speaker of Polish which makes it easy for me to make texts sound natural. I am capable of translating long texts such as whitepapers and ANN/bounty threads as well as websites related to cryptocurrencies.

If you are interested in this kind of service, you can contact me by sending a private message on bitcointalk, telegram (@BitCryptex) or e-mail (

So far, I have done a few translations. Here are the examples. translation - Google Drive link translation - Google Drive link #1 and link #2

TREZOR translation project - partially available on the wallet

CoinsHOST announcement - thread on

MVPS announcement - thread on

All prices are negotiable, everything depends on the length and complexity of the provided text. Usually, my rate is between $0.06 and $0.10 per one word.

As a payment, I accept the following cryptocurrencies; Bitcoin, Litecoin and Ethereum.

I am open to any suggestions and questions.
11  Bitcoin / Bitcoin Wallet for Android / Eclair wallet for mainnet on: April 04, 2018, 10:36:23 PM
ACINQ has just released an Android application which finally allows us to use Lightning Network on the mainnet! I still haven't tested it since I am waiting for on-chain transaction confirmation. Well it looks like my transaction got confirmed. Time to choose proper node.

Google play link:

What a pity that you can't backup your channels, yet. ZAP Android app should also become available soon. In my opinion, it looks better than Eclair's app. Does anyone know if it has different functionality?
12  Bitcoin / Alternative clients / TREZOR T on: March 09, 2018, 09:54:26 PM
Does anyone here pre-ordered the latest TREZOR T? My device was sent yesterday and it took less than 24 hours for DHL to deliver it to me.
Everything works quite well, I didn't have any problems with setting up the device. I didn't have any chance to send a transaction, yet.

If you have any questions regarding TREZOR T, feel free to ask me! I will try to respond to every question.

13  Other / Meta / Newbie copying others' posts on: February 22, 2018, 10:32:05 AM
I have just noticed that user huynhnhatlinh recently joined a bounty campaign and started to copy other people's posts.

LoyceV post:
Copy-pasted post:

I guess that negative trust won't hurt him much because he will probably create a new account. Despite that, I wanted to report him because it was surprising for me to see someone copying a post in a section where people usually read all the posts in the thread. There wasn't even a huge gap between these two posts.

@Down Thanks, I'll bookmark that thread.
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