Silk Road forums

Discussion => Security => Topic started by: sterlingMcc on December 10, 2012, 02:20 am

Title: question about bitcoin process
Post by: sterlingMcc on December 10, 2012, 02:20 am
okay so i am very new to this, but apparently to get bitcoin i would use some site like bitinstant and then have the btc deposited to mtgox, but my question is how does the btc go from mtgox to silk road?

i know that there is a bitcoin wallet address u get on silk road, but doesnt that change every time u log in? what if u sent the money via bitinstant and it is in ur mtgox account, and by that time ur bitcoin wallet address changes? or what if u deposit in the one wallet address, but before u have time to use the btc the address changes again do u lose the btc? please explain what im missing here. thanks
Title: Re: question about bitcoin process
Post by: anonman88 on December 10, 2012, 03:44 am
your SR bitcoin address doesn't change every time you log in, you can safely send it to the address currently there. you can also use that address more then once to make deposits, however, most people think it is better to change your sr bitcoin address by clicking the get new address button for every deposit. hope this helps and good luck :)
Title: Re: question about bitcoin process
Post by: Winston420 on December 10, 2012, 03:46 am
I'm sure there's an FAQ that explains better:

Basically, every single bitcoin transaction is stored in a database that is shared by every machine that has a wallet.   When you have a bitcoin wallet on a machine, you have a private key which is used to prove that you own the bitcoins that reside at a particular bitcoin address.  You personally don't have one, unless you use a wallet that runs on your computer (mtGox has the private keys for your account there, silk road starts running your money around in a whole bunch of virtual wallets when it arrives there)

When you initiate a bitcoin transaction, the transaction is recorded in that public database and it shows money from one or more bitcoin addresses moving to another bitcoin address.  Once more and more nodes in the bitcoin network have documented the transaction, it becomes more likely it was a valid transaction, and the rest of the world will believe you actually have money at that address.

In essence, the money exists in the huge public database, but only the private key of the wallet used to generate a bitcoin address can move it from that address.   If you really wanted, you could place the only copy of a wallet's private keys on a thumbdrive and keep it under your mattress as if it were cash.