[JOURNAL] (Kamal) GB : 01-04

[kamal3951]

Name: Kamal

Book/ article to discuss - Grokking Bitcoin: 01-04

Questions:

1. What do we mean by digital currency burn? How does it affect the ecosystem?

2. How does base58 encoding reduce the chances of typing errors? Knowing that pkh is 20 bytes and bitcoin address which is obtained after base58 encoding is 17 bytes which is not much significant change.
   Answer - After base58 encoding, the letters which might lead to ambiguity are eliminated such as 0O and Il etc.

3. What is versioned pkh and how does checksum verifies that the pkh is not changed during the transmission and hence increases the safety?

4. What is the concept of entropy? How does 2^x lead to x bits of entropy per hex char?

5. Having a number of private keys(the concept of seed, master xprv and child xprv) for a person doesn't it make the blockchain more heavy and cumbersome to handle?

6. As we know we can create the child xpub from the master/parent xpub. If we keep on creating child xpub (let's see two cases)-
   a) xprv is also created along the way, then xprv is not in the network and is vulnerable to the system.
   b) xprv is not created along the way, then what is xprv of that xpub is not created earlier, and what will happen if we create a
   transaction using that xpub.