Understanding Bitcoin’s Core: The Elliptic Curve and Generator Setting
Understanding Bitcoin’s Core: The Elliptic Curve and Generator Setting
Bitcoin, the pioneer of the cryptocurrency world, relies heavily on elliptic curve cryptography for its security and functionality. This article delves into the specifics of how Bitcoin utilizes elliptic curves, particularly in generating wallet public and private keys, and verifying transaction legitimacy.
Bitcoin employs a specific elliptic curve defined by the equation y^2 = x^3 + ax + b. In the case of Bitcoin, a is set to 0 and b is set to 7, resulting in the curve y = x^3 + 7. The finite field is specified by a large prime number p, which is 2^256 – 2^32 – 977 in Bitcoin’s case.
Bitcoin selects a point on the curve as the generator point G, with an x-coordinate of 0x79be667ef9dcbbac55a06295ce870b07029bfcdb2dce28d959f2815b16f81798 and a y-coordinate of 0x483ada7726a3c4655da4fbfc0e1108a8fd17b448a68554199c47d08ffb10d4b8. By repeatedly multiplying G by integers, Bitcoin generates a group until it becomes the unit point. The value of n, which makes nG the unit point, is 0xfffffffffffffffffffffffffffffffebaaedce6af48a03bbfd25e8cd0364141.
Since p is very close to 2, the x and y coordinates of G can be represented by 256-bit integers, which is far more than the 64-bit integers that were sufficient for Bitcoin’s calculations at the time. Therefore, Bitcoin uses big.Int to handle these calculations. A number k can be chosen from the range (1, n) as the private key, and kG is calculated as the public key. In the following sections, we will see how public keys are used to generate wallet addresses.
Bitcoin ETF Options: A Milestone for the Market
The launch of Bitcoin ETF options marks a significant milestone in the cryptocurrency market. With BlackRock’s iShares Bitcoin Trust (IBIT) ETF options set to debut on the NASDAQ, the market is witnessing a major development in the financialization of Bitcoin.
After months of regulatory progress and negotiations, the Options Clearing Corporation (OCC) recently updated its files to approve the inclusion of this $43 billion financial product in its trading range. This signifies the acceleration of Bitcoin’s financialization process. Notably, BlackRock had previously withdrawn its ETF application, but the option trading has now been successfully approved in September.
In addition to BlackRock, other significant products in the Bitcoin space, such as Grayscale Bitcoin Trust (GBTC) and Bitwise Bitcoin ETF (BITB), have also gained support from the options market. Market giants like Cboe and Fidelity have joined the race, providing more opportunities for market participation.
However, the question arises: What does the launch of these ETF options mean? Will it completely change the price trend of Bitcoin and trigger a revolution in the global financial system? At this critical juncture, let’s look back at history and explore the profound impact of this financial tool innovation, considering the unique characteristics of the Bitcoin market.
Tether’s Wallet Development Kit: Seamless Integration of USDT and Bitcoin
Tether has announced the launch of its Wallet Development Kit (WDK), an open-source, modular, non-custodial wallet development toolkit designed to help businesses and developers seamlessly integrate USDT and Bitcoin into applications, websites, and devices.
The WDK supports full self-custody, is flexible, and adaptable, and can meet the needs of both human users and emerging digital entities such as AI and robots. Tether CEO Paolo Ardoino said that the WDK will drive the development of a more resilient financial system and help build an open, programmable monetary system that connects users and technology worldwide.
Japan’s DMM Bitcoin Exchange to be Liquidated
Japan’s cryptocurrency exchange DMM Bitcoin is set to be liquidated due to a $3.21 billion fraud incident in May, which has left the exchange unable to provide adequate trading services to its customers. DMM Bitcoin plans to transfer its customer assets to SBI Group’s exchange SBI VC Trade, with the transaction expected to be completed around March.
Bitcoin’s Restrictions in Hong Kong’s Mortgage and Salary Sectors
Bitcoin still faces multiple restrictions in Hong Kong’s mortgage and salary sectors, particularly in relation to the Employment Ordinance.