Installing Litecoin cryptocoin data and deploying its blockchain server in CentOS7

Installation
https://download.litecoin.org/litecoin-0.16.0/linux/litecoin-0.16.0-x86_64-linux-gnu.tar.gz

Download the above tar file and extract it using following commands
tar xvf litecoin-0.16.0-x86_64-linux-gnu.tar.gz

Starting a litecoin server
Here, first time you need to reindex the whole chain using -reindex command
First time command: ./litecoind –txindex -daemon -reindex

litecoind -server -txindex -daemon -rpc -rpcbind=0.0.0.0 -rpcuser=theone -rpcpassword=pass123 -rpcport=9332

The above command lets you to download the blocks continously and you can access the server private data using RPC API calls.

Stopping a litecoin server
litecoind stop
if the above command doesnt work
killall -9 litecoind

Litecoin reference (params)
https://litecoin.info/index.php/Litecoin.conf

It should automatically download the blocks in the root
/root/.litecoin/..

Will keep you updated with more commands.

 

Wallet Software

Wallet Software :

A cryptocurrency wallet is a software program that stores your private and public keys using which it interacts with various blockchain to enable users to send and receive their cryptocurrency and monitor their balance. If you want to use Bitcoin or any other cryptocurrency, you will need to have a digital wallet.

When a person sends you any digital currency, they are essentially transferring ownership of the coins to your wallet’s address. In order to transfer those coins, the private key stored in your wallet must match the public address the currency is assigned to. If public and private keys match, the balance in your digital wallet will increase, and the senders wallet will decrease accordingly. There is no actual exchange of real coins. The transaction is signified merely by a transaction record on the blockchain and a change in balance in your cryptocurrency wallet.

Desktop: wallets are downloaded and installed on a PC or laptop. They are only accessible from the single computer in which they are downloaded.

Online: wallets run on the cloud and are accessible from any computing device in any location. While they are more convenient to access, online wallets store your private keys online and are controlled by a third party which makes them more vulnerable to hacking attacks and theft.

Mobile: wallets run on an app on your phone and are useful because they can be used anywhere including retail stores.

Examples : Apple pay, Google wallet and Samsung pay.

Here is how a bitcoin transaction is processed:

1) Payers initiate a bitcoin payment using “wallet” software.

2) This and other pending transactions are broadcast on the global bitcoin network.

3) Once every ten minutes or so, “miners”, specialised computers (or groups of computers) on this network, collect a few hundred transactions and combine them in a “block”.

4) In order to mine a block and validate the transaction, miners compete to solve a difficult mathematical equation (a “hash function”). The miner that solves the equation first further processes the block and broadcasts this “proof-of-work” to the bitcoin network.

5) The other miners check the proof-of-work and the validity of the transactions. If they approve, the winning miner gets a reward of 25 newly minted bitcoin (about $6,900 at current prices), which is the incentive for miners to provide computing power. Adjusting the difficulty of the puzzle ensures that the supply of new bitcoins remains steady.

6) The mined block is added to the “blockchain”, a big, unbreakable ledger that lives on the bitcoin network and serves as a record of all transactions.

7) The payee can use his wallet software to see whether the bitcoin have arrived.

External links
Walletgenerator.net – Offers various methods to create private key to store and do transaction for the Ethereum wallet.

https://www.myetherwallet.com/ – GUI based system to manage Cryptocurrency like Bitcoin, Ether – Able to transfer/receive funds and much more.

What is bitcoin?

Bitcoin is a worldwide cryptocurrency and digital payment system called the first decentralized digital currency, as the system works without a central repository or single administrator. The system is peer-to-peer, and transactions take place between users directly, without an intermediary. These transactions are verified by network nodes and recorded in a public distributed ledger called a blockchain. Bitcoins are created as a reward for a process known as mining. They can be exchanged for other currencies, products, and services.

In simple bitcoin can be explained as below,

Bitcoin is a type of cryptocurrency in which balances are kept using public and private “keys,” which are long strings of numbers and letters linked through the mathematical encryption algorithm that was used to create them. The public key (comparable to a bank account number) serves as the address which is published to the world and to which others may send bitcoins. The private key (comparable to an ATM PIN) is meant to be a guarded secret, and only used to authorize Bitcoin transmissions.

Here is how a bitcoin transaction is processed:

1) Payers initiate a bitcoin payment using “wallet” software.

2) This and other pending transactions are broadcast on the global bitcoin network.

3) Once every ten minutes or so, “miners”, specialised computers (or groups of computers) on this network, collect a few hundred transactions and combine them in a “block”.

4) In order to mine a block and validate the transaction, miners compete to solve a difficult mathematical equation (a “hash function”). The miner that solves the equation first further processes the block and broadcasts this “proof-of-work” to the bitcoin network.

5) The other miners check the proof-of-work and the validity of the transactions. If they approve, the winning miner gets a reward of 25 newly minted bitcoin (about $9,800/bitcoin at current prices), which is the incentive for miners to provide computing power. Adjusting the difficulty of the puzzle ensures that the supply of new bitcoins remains steady.

6) The mined block is added to the “blockchain”, a big, unbreakable ledger that lives on the bitcoin network and serves as a record of all transactions.

7) The payee can use his wallet software to see whether the bitcoin have arrived.

Basics of Cryptography for Beginners

As we all know, a block-chain is a decentralized and distributed digital ledger that is used to record transactions across many computers so that the record cannot be altered retroactively without the alteration of all subsequent blocks and the collusion of the network. This allows the participants to verify and audit transactions inexpensively.

The working process involves 3 components:

1) Cryptography

2) A distributed network with a shared ledger

3) Record-keeping and security.

Now, lets see about the first component ‘ Cryptography’ in detail.

Cryptography:

Cryptography is the science concerned with the study of secret communication. Cryptography is the study and practice of encrypting and decrypting. It allows people to better understand the encryption practices of others.

Cryptography is basically a method of storing and transmitting data in a particular form so that only those for whom it is intended can read and process it. A plain-text [data to be transmitted] is converted into cipher text [data that is transmitted] through encryption process and received again as plain-text through decryption process. People practicing cryptography are known as cryptographers.

So, the two main process involved in Cryptography are ‘Encryption’ and ‘Decryption’. From the above block diagram, you can clearly understand that the process of converting plain-text to cipher-text is Encryption and vice versa is Decryption.

Before understanding about Encryption and Decryption, you should be aware of these keywords.

1. Cipher

2. Encoding

3. Decoding

Cipher:

During Encryption,an algorithm is performed on plain text to convert it to cipher text. This algorithm is known as cipher. A cryptographic key is mandatory to run cipher. The combination of cryptographic key and cipher is Encryption.

Encoding and Decoding:

Encoding should not be confused with Encryption. In Encryption ,our main aim is to hide/conceal the data. But its not so in encoding.

Encoding is basically a process of converting data into a format that can be understood and used by the external sources for storage/processing/compilation/execution so on. Encoding converts body of information from one form to another form with the help of codes. Code is the system of symbol, sign or letters used to represent the secret meaning. The type of code used for converting characters is known as American Standard Code for Information Interchange (ASCII), the most commonly used encoding scheme for files that contain text.

Decoding is a process of interpretation of the encoded data. Decoding converts the encoded data to readable form to be used at the receiver end.

For example,at radio station audio analog signals are encoded to digital signals for easy transmission and less storage. At home, the radio decodes the signals back to wonderful audio.

Encryption/Decryption:

Now as we are clear about cipher and encoding, let’s check out about encryption.

If we want transfer a large amount of cash money from one place to another, then what we will do? In order to protect it from robbers on the way, we put the cash in a suitcase and lock it with key. When we reach the desired place, we unlock the suitcase with the same key and give the cash.

This process is known as Encryption. To hide the data from unconcerned persons/systems, the data is encoded with a key and transmitted. At the receiver end, the cipher is decrypted with the key to receive the data.

There are two types of Encryption.

 1. Symmetric/Private Key Encryption

2. Asymmetric/Public Key Encryption.

Symmetric/Private Key Encryption:

It is conventional method. The above said example is symmetric encryption. In symmetric encryption, a secret key is shared by both communicating parties. It needs less computation power. But the secret key shared between the two parties should be done in a secured way. Hence,the algorithm or cipher should be very strong.

There are two major threats to this type. Brute force or cryptanalysis.

Brute force is a method (computer) to find all possible combinations and eventually determine the plaintext message. It is hacking the key.

Cryptanalysis is a form of attack that attacks the characteristics of the algorithm to deduce a specific plaintext or the key used. One would then be able to figure out the plaintext for all past and future messages that continue to use this compromised setup. It is hacking the cipher.

Asymmetric/Public Key Encryption:

In public key  encryption, two keys are used. One is public key and other is private key. Both are asymmetric but are mathematically-related. One to encrypt the message and the other to decrypt it. These two keys combine to form a key pair. Encryption strength is directly tied to key size and doubling key length delivers an exponential increase in strength, although it does impair performance. But it needs more computation power.

The hash function is used to index the original value or key and then used later each time the data associated with the value or key is to be retrieved. Thus, hashing is always a one-way operation.

The best-known use of public key cryptography is Digital Signatures.