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Add mentions and definitions for bits
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@ -135,14 +135,14 @@ him thousands of satoshis in transaction fees, so Alice suggests they use a
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[micropayment channel][]{:#term-micropayment-channel}{:.term}.
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Bob asks Alice for her public key and then creates two transactions.
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The first transaction pays 100 millibits to a P2SH output whose
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The first transaction pays 100 millibitcoins to a P2SH output whose
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2-of-2 multisig redeem script requires signatures from both Alice and Bob.
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This is the bond transaction.
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Broadcasting this transaction would let Alice hold the millibits
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Broadcasting this transaction would let Alice hold the millibitcoins
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hostage, so Bob keeps this transaction private for now and creates a
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second transaction.
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The second transaction spends all of the first transaction's millibits
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The second transaction spends all of the first transaction's millibitcoins
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(minus a transaction fee) back to Bob after a 24 hour delay enforced
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by locktime. This is the refund transaction. Bob can't sign the refund transaction by himself, so he gives
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it to Alice to sign, as shown in the
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@ -155,14 +155,14 @@ future, signs it, and gives a copy of it back to Bob. She then asks Bob
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for the bond transaction and checks that the refund transaction spends
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the output of the bond transaction. She can now broadcast the bond
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transaction to the network to ensure Bob has to wait for the time lock
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to expire before further spending his millibits. Bob hasn't actually
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to expire before further spending his millibitcoins. Bob hasn't actually
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spent anything so far, except possibly a small transaction fee, and
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he'll be able to broadcast the refund transaction in 24 hours for a
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full refund.
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Now, when Alice does some work worth 1 millibit, she asks Bob to create
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Now, when Alice does some work worth 1 millibitcoin, she asks Bob to create
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and sign a new version of the refund transaction. Version two of the
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transaction spends 1 millibit to Alice and the other 99 back to Bob; it does
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transaction spends 1 millibitcoin to Alice and the other 99 back to Bob; it does
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not have a locktime, so Alice can sign it and spend it whenever she
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wants. (But she doesn't do that immediately.)
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@ -181,7 +181,7 @@ near the time lock expiry, she could be cheated out of her payment.
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Transaction malleability, discussed above in the Transactions section,
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is another reason to limit the value of micropayment channels.
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If someone uses transaction malleability to break the link between the
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two transactions, Alice could hold Bob's 100 millibits hostage even if she
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two transactions, Alice could hold Bob's 100 millibitcoins hostage even if she
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hadn't done any work.
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For larger payments, Bitcoin transaction fees are very low as a
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@ -223,7 +223,7 @@ of them can steal the others' satoshis.
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Each contributor looks through their collection of Unspent Transaction
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Outputs (UTXOs) for 100 millibits they can spend. They then each generate
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Outputs (UTXOs) for 100 millibitcoins they can spend. They then each generate
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a brand new public key and give UTXO details and pubkey hashes to the
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facilitator. In this case, the facilitator is AnonGirl; she creates
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a transaction spending each of the UTXOs to three equally-sized outputs.
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@ -233,7 +233,7 @@ AnonGirl then signs her inputs using `SIGHASH_ALL` to ensure nobody can
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change the input or output details. She gives the partially-signed
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transaction to Nemo who signs his inputs the same way and passes it
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to Neminem, who also signs it the same way. Neminem then broadcasts
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the transaction to the peer-to-peer network, mixing all of the millibits in
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the transaction to the peer-to-peer network, mixing all of the millibitcoins in
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a single transaction.
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As you can see in the illustration, there's no way for anyone besides
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