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Getting started guide #20

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---
layout: guide
title: Wallet features
parent: Resources
nav_order: 3
---

# Software overview

Security
- Multi signature wallets support
- Hardware wallet support
- Cloud backup
- Read-only wallets

Privacy
- Payjoin
- CoinJoin

Accounting
- Accounting features

Interoperability
- Interoperability with other applications

Transactions
- Contacts
- Batch transactions
- Transaction bumping
- Lightning wallets support or integration

Globalization
- Exchange to and from fiat currencies
- Multi-currency support
- Localization

Convenience
- Notifications
- Device support (desktop, mobile, other)

Bitcoin specific
- An integrated node
- Mining
21 changes: 13 additions & 8 deletions guide.md
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main_nav: true
secondary_nav: false
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image: /assets/images/guide/bitcoin-island-preview.jpg
---

<!--

Introduction to the guide

Why it exists
What's in it
How to use it
How to contribute
- Why it exists
- What's in it
- How to use it
- How to contribute

Illustration sources

- https://www.figma.com/file/qzvCvqhSRx3Jq8aywaSjlr/Bitcoin-Design-Guide-Illustrations-CO?node-id=238%3A3

-->

Expand All @@ -24,7 +29,7 @@ How to contribute
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Expand All @@ -40,7 +45,7 @@ This guide was built on that very idea. Like a travel guide, it provides an intr

With bitcoin being so new and different, a big focus of the guide lies on providing overviews, explanations and best practices for the most common questions and problems. These are the main chapters:

- [Getting started]({{ '/getting-started/introduction/' | relative_url }}) is for top-level overviews, whether it's bitcoin technology, visual language, software, or design collaboration in an open-source world
- [Getting started]({{ '/guide/getting-started/introduction/' | relative_url }}) is for top-level overviews, whether it's bitcoin technology, visual language, software, or design collaboration in an open-source world
- _Onboarding_ (Coming soon) goes in-depth on the delicate process of introducing new users to bitcoin and how to use specific products and features
- [Private key management]({{ '/private-key-management/introduction/' | relative_url }}) provides extensive details and guidance on the many techniques for storing private keys
- _Transactions_ (Coming soon) deals with the complexities of sending and receiving bitcoin across various use cases
Expand All @@ -49,7 +54,7 @@ With bitcoin being so new and different, a big focus of the guide lies on provid

## How to use the guide

If you are new to bitcoin, continue to the "[Getting started]({{ '/getting-started/introduction/' | relative_url }})" section for an introduction on why bitcoin is so unique and what makes it so interesting and worthwhile to be involved. As a more experienced reader, you are more than welcome to skip straight to the sections that interest you most. And if you don’t find what you are looking for, try the search function, [ask in the community](http://bitcoindesigners.org) or [file an issue]({{site.github_repository_url}}issues) and help us improve this guide.
If you are new to bitcoin, continue to the "[Getting started]({{ '/guide/getting-started/introduction/' | relative_url }})" section for an introduction on why bitcoin is so unique and what makes it so interesting and worthwhile to be involved. As a more experienced reader, you are more than welcome to skip straight to the sections that interest you most. And if you don’t find what you are looking for, try the search function, [ask in the community](https://www.bitcoindesigners.org) or [file an issue]({{site.github_repository_url}}issues) and help us improve this guide.

## A community effort

Expand All @@ -59,4 +64,4 @@ This guide is an example of this. It was created and is maintained by a communit

---

Now, let's [get started]({{ '/getting-started/introduction/' | relative_url }}).
Now, let's [get started]({{ '/guide/getting-started/introduction/' | relative_url }}).
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<!--

Editor's notes

A brief introduction and summary of all pages in this section. The idea is that readers
scan this page to get an overview of the section and then decide which topics to dive into.

Illustration sources

- https://www.figma.com/file/qzvCvqhSRx3Jq8aywaSjlr/Bitcoin-Design-Guide-Illustrations-CO?node-id=236%3A467

-->

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# Getting started

This chapter is in development at [PR #20](https://github.com/BitcoinDesign/Guide/pull/20){:target="_blank"}. Check the [preview](https://gbks.github.io/Guide/getting-started/introduction/){:target="_blank"}.
Welcome to bitcoin design, you're in for an adventure. This chapter is all about the big concepts that are helpful to be familar with when creating bitcoin products. You'll find a brief summary of each concept onn this page, click through if you would like to dig deeper into a specific topic. Note that this is not meant as a comprehensive overview of all topics bitcoin, but only the ones we think are important to know as a designer working in this space.
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---

**[Why bitcoin is unique]({{ '/guide/getting-started/why-bitcoin-is-unique/' | relative_url }})**

The internet has opened an infinite design space for information and communication. Bitcoin adds the new dimension of transfering value that could bring similar change as previous waves of innovation.
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---

**[Why design for bitcoin]({{ '/guide/getting-started/why-design-for-bitcoin/' | relative_url }})**

Bitcoin is fundamentally open and participatory and allows designers and creators to explore and shape experiences for users around the globe.

---

**[Open design]({{ '/guide/getting-started/open-design/' | relative_url }})**

Open design is about global collaboration that balances the free exchange of design information, the independence of individual designers and the collective power of collaboration.

---

**[The visual language of bitcoin]({{ '/guide/getting-started/visual-language/' | relative_url }})**

As an open and public protocol, bitcoin does not have a strictly defined brand. Yet there is a recognizable symbol that has evolved over time and remixed endlessly.

---

**[User research]({{ '/guide/getting-started/user-research/' | relative_url }})**

All products begin with user needs and end in those same users hands. User research is a fundamental activity that helps shift our focus from the act of building towards building the things that people care about.

---

**[Personal finance]({{ '/guide/getting-started/personal-finance/' | relative_url }})**

If we consider bitcoin money, we need to consider how bitcoin users think about their finances. This page provides a simple framework that can serve as a starting point, deriving bitcoin software and hardware setups from common budgeting categories.

---

**[Usage life cycle]({{ '/guide/getting-started/usage-life-cycle/' | relative_url }})**

All users start without any knowledge of bitcoin or your particular product. As we learn more, our understanding and needs change. As designers, it is important to guide users through this experience.

---

**[Common user flows]({{ '/guide/getting-started/common-user-flows/' | relative_url }})**

Most bitcoin applications share certain user activities, from initial setup to making a transaction. It is important to follow expected patterns and behaviors users to reduce the risk of mistakes and allow users to seamlessly move between products.

---

**[Technology primer]({{ '/guide/getting-started/technology-primer/' | relative_url }})**

Learn some of the basic concepts behind the technologies that make bitcoin work, from what a bitcoin actually is to how transactions are confirmed.

---

**[Software overview]({{ '/guide/getting-started/software/' | relative_url }})**

Bitcoin applications roughly fall into a defined set of categories, from consumer-friendly wallets, to merchant tools, and more.

---

**[Hardware overview]({{ '/guide/getting-started/hardware/' | relative_url }})**

Whether it's for security or participating in the bitcoin network, bitcoin hardware is an essential part of the ecosystem and user experience.
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---
layout: guide
title: Hardware overview
nav_order: 12
parent: Getting started
permalink: /guide/getting-started/hardware/
main_classes: -no-top-padding
image: /assets/images/guide/getting-started/hardware/hardware-preview.jpg
---

<!--

Editor's notes

This page provides an overview of the different types of hardware that interact with the bitcoin network. It is only a top-level summary. An idea for future expansion would be create sub-pages
to more thoroughly discuss each hardware type.

Illustration sources

- https://www.figma.com/file/qzvCvqhSRx3Jq8aywaSjlr/Bitcoin-Design-Guide-Illustrations-CO?node-id=291%3A2675
- https://www.figma.com/file/qzvCvqhSRx3Jq8aywaSjlr/Bitcoin-Design-Guide-Illustrations-CO?node-id=53%3A3663

-->

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# Hardware overview

Generally, any hardware with an internet connection can interact with the bitcoin network. While our personal computers and smartphones work great for general wallet management and transactions, a few types of dedicated hardware have been created that are optimized for the more unique aspects of how bitcoin works.

## Recovery phrase storage

Simple, cheap and robust storage solutions for recovery phrases come in modest forms. [Seedplate](https://bitcoinseedbackup.com/){:target="_blank"}, for example, is a metal plate in which users can etch the words of their recovery phrase for long-term offline storage. [CardWallet](https://www.cardwallet.com){:target="_blank"}, in comparison, is the size of a credit card and comes pre-loaded with a recovery phrase (hidden behind a security seal) and a matching bitcoin address. And if you like an even simpler solution, a piece of paper will do. Although paper is not as durable and may be easy to loose, it is one of the strengths of Bitcoin that such simple solutions are possible.

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## Hardware wallets

You may already be familar with key fobs from your bank or work. They are small devices with specific built-in authentication that is used to control and secure access to a computer system. Key fobs are not connected to the internet or any other network, so they cannot easily be hacked without physical access.

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mobileRetina = "/assets/images/guide/getting-started/hardware/hardware-wallets-mobile@2x.jpg"
alt-text = "Examples of hardware wallets"
caption = '<a href="https://coldcardwallet.com" target="_blank">Coldcard</a>, <a href="https://www.ledger.com/" target="_blank">Ledger</a>, <a href="https://trezor.io" target="_blank">Trezor</a>, and <a href="https://foundationdevices.com" target="_blank">Foundation</a>'
width = 800
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%}

Hardware wallets for bitcoin play a similar role but with several differences. Similar to key fobs, they securely store an authentication mechanism and isolate it from other devices and networks. In the case of bitcoin, these are the seed, associated keys and all functions that require direct interaction with them.

Because hardware wallets are so optimized for this specific use case, they have very small screens and limited input options. Most interactions with them happen via desktop software that is also provided by the manufacturer. So users perform most wallet interactions on their desktops, and the application sends only specific requests to the hardware wallet to verify or sign data. This provides a great balance of security and convenience, and keeps hardware wallets generally affordable for most use cases.

## Nodes

Thousands of computers participate in the Bitcoin network. They are called nodes and continuously exchange, verify and compare transaction and block data. Running your own node, instead of relying on a third-party node, has the benefit that transactions are getting validated by your own personal device. Nodes also improve privacy and help secure the network. Several DIY and consumer hardware products have been created to make it easy to run your own node on a dedicated device.

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Dedicated node hardware is particularly relevant for heavy users of the Lightning network. While a bitcoin node can be turned off and on and can easily catch up with network activity, Lightning nodes need to be online at all times in order to maintain payment channels with other nodes. Smartphones are typically also online 24/7 but are not suited well for this task due to large amounts of data transfer and storage capacity requirements.

While plug-and-play hardware nodes can solve various problems for bitcoin users, they have not seen wide-spread adoption as commercial products.

## Miners

Bitcoin mining has turned into a professional undertaking years ago. Today, dedicated hardware (so-called ASICS, or application-specific integrated circuits) is being developed that is optimized to continuously execute the Bitcoin hashing algorithm (called [SHA-256](https://en.wikipedia.org/wiki/SHA-2){:target="_blank"}) over and over until an acceptable hash is found. A modern miner (in 2020) can generate around 14,000,000,000,000 hashes per second. The more hashes generated, the higher the chance of "finding" a new block and receiving freshly minted bitcoin as a reward.

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Outside of purchasing hardware, the main cost of mining is electricity. That's why mining facilities can be found all over the world wherever electricity is abundant and cheap, whether it is in Iceland for geothermal energy or in China using exceess hydroelectricity.


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