Bitcoin in numbersRules of the Bitcoin protocol, the same at every level. Not prices or market data.
Max supply21,000,000The most bitcoin that will ever exist.
Smallest unit100,000,000Satoshis (sats) in one bitcoin.
Block time~10 minAverage time between new blocks.
Block subsidy3.125 BTCNew bitcoin per block since the April 2024 halving.
Level 1 · Beginner

Bitcoin from zero.

Never had Bitcoin explained clearly? Start here. Six short lessons with pictures and things to tap. No jargon until you need it.

Your progress0 of 6 lessonsTick “Mark as done” as you go. Saved on this device only.
Lesson 1 · 5 min

What problem does Bitcoin solve?

Money is a tool for trading your time and effort with other people. Over thousands of years it has changed form many times. Each step made money easier to use, but some steps also made it easier for someone else to create more of it, block it or take it.

Tap through the eras to see how we got here.

Takeaway: Bitcoin is digital like a bank balance, scarce like gold, and controlled by no one.

A short history of moneyTap an era

Barter

Trade grain for tools, directly. It only works when both people want exactly what the other has, at the same time.

The problem: finding a match is hard.

Lesson 2 · 6 min

A notebook everyone shares.

A bank keeps one private record of who owns what, and you have to trust it. Bitcoin works differently: thousands of computers around the world, called nodes, each keep a full copy of the same record.

Every new payment is checked by every node. If someone edits their copy to cheat, it no longer matches the rules, and everyone else simply ignores it.

Takeaway: nobody has to be trusted, because everybody can check.

Try it: five nodes, one recordIllustration

Every node starts with the same three payments.

Lesson 3 · 6 min

Only 21 million. Ever.

New bitcoin is created only as a reward for miners, the computers that add new pages to the shared notebook. Every 210,000 blocks, roughly every four years, that reward is cut in half. This is called the halving.

Because of this schedule, the total can never pass 21 million. Drag the slider to travel through time.

Takeaway: no government, company or developer can decide to print more bitcoin.

Bitcoin issued over timeProtocol rules, not prices
5M10M15M21M20092040207021002140dashed lines: halvings, about every 4 years
Year2026
Already issued≈ 20M
New per block3.125 BTC
Lesson 4 · 7 min

Keys, wallets and sats.

Your bitcoin isn't stored inside an app. It lives on the network. A wallet holds the keys that let you move it.

Picture a glass mailbox on the street. Anyone can see it and drop coins through the slot: that's your address. Only your private key opens it. Lose the key, and nobody can open it for you.

And you never need a whole bitcoin. Each one splits into 100 million sats.

Takeaway: share your address freely. Never share your private key or seed phrase.

The glass mailboxTap a card
=
Lesson 5 · 6 min

How a payment travels.

When you press “send”, your payment goes on a short journey from your phone to the shared record. It usually takes minutes, and nobody in the middle can change it.

Step through the journey, or press play.

Takeaway: once a payment is buried under a few blocks, it's practically final. There's no chargeback.

From your wallet to the blockchainStep 1 of 5

1. You sign

Your wallet builds the payment and signs it with your private key. The signature proves it's yours without revealing the key.

Lesson 6 · 8 min

Stay safe: spot the scam.

Most people who lose bitcoin aren't hacked. They're tricked into sending it away or typing their seed phrase somewhere they shouldn't. Scams almost always rush you or promise something too good to be true.

  • Write your 12 or 24 seed words on paper, offline.
  • Never type them into a website, chat or form.
  • Nobody doubles your bitcoin. Nobody guarantees returns.
  • Send a small test before any big payment.

Takeaway: anyone who asks for your seed phrase is trying to steal your bitcoin.

Quiz: safe or scam?Score 0
Question 1 of 7

Loading…

Been scammed? Stop sending money, save every message and transaction ID, and report it. In India, use the National Cyber Crime Reporting Portal or call 1930. Elsewhere, contact local police. If it happened through Singularity, report the account in the app and email contact@singularety.com.

Pocket glossary

12 words that unlock Bitcoin.

Tap a card to flip it.

Free books & courses · Beginner

Keep reading, for free.

Hand-picked, beginner-friendly and free from their official sources.

We link only to official free editions. Some of these are also sold in print; buy a copy if you want to support the authors.

Ready to go deeper?

Level 2 covers UTXOs, fees, wallets, multisig and Lightning.

Go to Intermediate
Level 2 · Intermediate

Into the rabbit hole.

You know the basics. Now see how bitcoin actually moves, how wallets are built and how Lightning works. Open any topic; each one stands on its own.

Your progress0 of 11 topicsSaved on this device only.
01Coins, not balances (UTXOs)Your wallet holds separate “coins”, and spending works like paying with cash.8 min · Try it

Bitcoin doesn't keep account balances. Your wallet holds a set of unspent transaction outputs (UTXOs): separate chunks of bitcoin you received at different times. Your “balance” is just their sum.

To pay, your wallet picks whole coins as inputs, sends the payment as one output, and returns the rest to you as change, exactly like paying ₹500 for a ₹320 bill. The difference between inputs and outputs is the fee the miner keeps.

  • More inputs make a bigger transaction, so a higher fee.
  • Many tiny coins can cost more to spend than they're worth when fees are high.
  • Good wallets offer coin control so you can choose which coins to spend.
Coin picker: pay 0.15 BTCFee rate 10 sat/vB
Inputs
Outputs

Pick coins until they cover 0.15 BTC plus the fee.

02Fees and the mempoolFees depend on size in bytes and demand for block space, not on the amount.8 min · Calculator

Each block has limited space, so payments compete for it in the mempool, a waiting room of unconfirmed transactions. Miners usually pick the ones paying the most per unit of space.

Fees are priced in sats per virtual byte (sat/vB). Fee = size × fee rate. Sending ₹100 or ₹1 crore can cost exactly the same.

  • Replace-by-fee (RBF): stuck? Re-send the same payment with a higher fee and it replaces the old one.
  • Child-pays-for-parent (CPFP): the receiver spends the unconfirmed coin with a high fee, pulling both into a block.
  • Newer address types make transactions smaller, so cheaper.
Fee calculatorApproximate sizes
Size141 vB
Fee1,410 sats
In BTC0.0000141
03Confirmations and finalityEvery block on top makes your payment harder to undo.5 min

When your transaction lands in a block it has 1 confirmation. Each later block adds one more. To reverse it, an attacker would have to redo the work of every block on top, and then out-pace the rest of the network.

  • 0 confirmations: still in the mempool. Fine for a coffee if you trust the payer; not for big amounts.
  • 1–2 confirmations: reasonable for everyday amounts.
  • 6 confirmations (about an hour): the traditional rule of thumb for large payments.
Depth = security~10 min per block
04The difficulty adjustmentHow Bitcoin keeps blocks at about 10 minutes, no matter how many miners join.6 min

Miners compete to find a block hash below a target number. More mining power means blocks get found faster. So every 2,016 blocks (about two weeks), every node recalculates the difficulty from how long those blocks actually took.

  • Blocks came too fast? Difficulty goes up.
  • Too slow? Difficulty goes down.
  • Each change is capped at a factor of 4 either way.

This feedback loop is why issuance follows its schedule whatever happens to mining: new machines, miners leaving a country, or a sudden price change.

Average time between blocksIllustration
05Address types, decodedWhy some addresses start with 1, 3, bc1q or bc1p.5 min

The first characters tell you which locking rules the address uses. All four still work today, and wallets can send between all of them.

Newer types are smaller on-chain, so cheaper to spend, and they catch typos better. Bech32 addresses (bc1…) are also case-insensitive and easier to read aloud.

Tip: use a fresh address for every payment you receive. Reusing one links your payments together for anyone watching the blockchain.

1…Legacy · P2PKHThe original format from 2009. Largest and most expensive to spend.
3…Script hash · P2SHAdded in 2012 (BIP 16). Often used for older multisig and wrapped SegWit.
bc1q…Native SegWitSince 2017 (BIP 141, 173). Cheaper and the most widely used today.
bc1p…TaprootSince 2021 (BIP 341, 350). Schnorr signatures and more private complex spends.
06Seeds, HD wallets and passphrasesHow 12 words can create unlimited addresses.8 min

Your seed phrase comes from a list of 2,048 words (BIP 39). Twelve words encode 128 bits of randomness plus a short checksum; twenty-four words encode 256 bits.

From that seed, a hierarchical deterministic (HD) wallet derives a tree of keys along a path such as m/84'/0'/0'/0/0: purpose, coin, account, receive or change, index. Restore the seed in another wallet and the same tree, with the same addresses, appears.

  • An xpub shows every address in an account. It can't spend, but it reveals your history, so keep it private.
  • An optional passphrase (sometimes called the 25th word) creates a completely different wallet from the same words. Forget it and those funds are gone.
One seed, a tree of keysBIP 32 / 39 / 84
07Multisig and inheritanceRemove the single point of failure: require 2 keys out of 3.6 min

A multisig wallet needs several keys to spend. In a common 2-of-3 setup, any two of three keys can move funds.

  • Lose one key? The other two still work, and you can move funds to a new setup.
  • A thief who finds one key gets nothing.
  • Keys can live in different places, or with a trusted person for inheritance planning.

The trade-off is complexity: you must back up each seed and the wallet's configuration (the “descriptor” or list of xpubs). Practise a recovery before trusting it with real savings.

2-of-3 multisigAny two can spend
08The Lightning NetworkFast, cheap payments that settle on Bitcoin.8 min

Lightning is a network of payment channels built on top of Bitcoin. Two people lock bitcoin into a shared on-chain output, then pay each other back and forth instantly by updating who owns how much, without touching the blockchain each time.

  • Payments can hop across channels: Asha pays Chen through Ben, even with no direct channel.
  • Fees are tiny and payments usually settle in seconds.
  • You receive with an invoice (starts with lnbc…) or a reusable offer.
  • Closing a channel settles the final balances back on-chain.

Trade-offs: channels need liquidity, and self-custodial Lightning wallets need to be online or use a service to receive. Many merchants that accept bitcoin take Lightning.

A payment hops across two channelsIllustration
09Run your own nodeDon't trust, verify: check every rule yourself.6 min

A wallet without your own node asks someone else's server about your balance and history. That server learns which addresses are yours, and you trust its answers. Running a node fixes both.

  1. Verify: your node checks every block and transaction since 2009 against the rules, including the 21 million cap.
  2. Privacy: connect your wallet to your own node so nobody else sees your addresses.
  3. Strength: every extra node makes the network harder to fool or censor.

What you need: Bitcoin Core or a node package on a small, always-on computer, and enough disk for a blockchain of several hundred gigabytes. A pruned node keeps only recent blocks and fits in a few gigabytes, while still verifying everything. The first sync can take from hours to days.

10Privacy basicsThe blockchain is public. A few habits keep your life private.6 min

Bitcoin is pseudonymous, not anonymous. Every transaction is visible forever. Once someone links one address to you, they can often follow the money from there.

  • Don't reuse addresses. Your wallet generates a new one for each payment; use it.
  • Label your coins and use coin control, so you know which coins came from where before you combine them.
  • Exchanges that verify your ID link your identity to the coins you withdraw. Treat those coins as known to that company.
  • Use your own node so your wallet doesn't reveal your addresses to a third-party server.
  • Keep quiet about amounts, online and offline. Privacy is also physical safety.
11Why Bitcoin, and not “crypto”?The case Bitcoiners make for focusing on one network.5 min

There are thousands of other coins and tokens. Bitcoiners usually point to a few properties they believe only Bitcoin combines:

  • No founder in charge: its creator disappeared, and no company or foundation controls the rules.
  • Fair launch: no pre-mined coins for insiders; every bitcoin was mined under the same public rules.
  • Proof of work: security comes from real-world energy and computing, not from holding the coin.
  • Conservative change: rules change rarely and only with broad agreement, so you can rely on them.
  • Track record: running since January 2009, with the largest network of nodes and miners.

That's the Bitcoiner view. Read widely, test claims yourself, and be most careful with anything sold as “the next Bitcoin”.

Free books · Intermediate

Go further down the hole.

The original paper and the books people read when they want to really understand Bitcoin.

Satoshi Nakamoto · 2008Bitcoin: A Peer-to-Peer Electronic Cash System
The one everyone should read

The Bitcoin white paper

Nine pages that started it all. Read it once now, and again after Level 3; you'll notice more every time. Available in Hindi too.

GitHub editions open as chapters you can read in the browser. All links go to the authors' or publishers' official free versions.

Feeling nerdy?

Level 3 has hands-on lab tools and protocol deep dives.

Enter nerd mode
Level 3 · Advanced

nerd_mode = true

Hashes, bytes, scripts and consensus. Play with the same building blocks Bitcoin uses, right in your browser, then read how they fit together.

Your progress0 of 14 itemsEverything runs locally in your browser.
The lab · 5 tools

Learn by breaking things.

Real SHA-256, a toy miner, the actual genesis block header, a Script stack machine and a Merkle proof. Nothing is sent anywhere.

sha256 playground

A hash turns any input into a fixed 256-bit fingerprint. Change one character and roughly half the bits flip: the avalanche effect.

SHA-256(A)…
SHA-256(B)…
Bits different: – / 256
toy miner

Proof of work: try nonces until SHA256(SHA256(data + nonce)) starts with enough zeros. Each extra hex zero means about 16× more work.

Best hashPress mine.
Nonce –Hashes 0Speed –
block header · genesis block #0

Every block header is exactly 80 bytes, six fields. Click a field. Then hash the real genesis header twice and see the famous block hash appear.

version · 4 bytes1
Header bytes: 80 · double SHA-256 · shown byte-reversed
Block hashPress the button.
script · P2PKH spend

Script is a small stack language. A legacy payment is unlocked by running the spender's scriptSig, then the coin's scriptPubKey. If true is left on top, the spend is valid.

Step 0 of 7Press step to run the script.
merkle tree · inclusion proof

The header commits to every transaction through one 32-byte Merkle root. Click a transaction: to prove it's in the block you need only the dashed sibling hashes, log₂(n) of them.

ProofClick tx A, B, C or D.
Protocol deep dives · 9 topics

How the machine really works.

Dense on purpose. Follow the BIP numbers into the specifications when you want the full detail.

01Nakamoto consensus and its limitsMost cumulative work, not longest chain. What a 51% attacker can and can't do.8 min

Nodes follow the valid chain with the most cumulative proof of work, not the one with the most blocks. Validity is checked first; work only breaks ties between valid histories.

  • A majority-hashrate attacker can reorder or censor recent transactions and double-spend their own coins.
  • They cannot create coins beyond the schedule, spend coins without the keys, or change rules that nodes enforce. Invalid blocks are rejected however much work they carry.
  • The chance an attacker with less than half the hashrate catches up from z blocks behind falls exponentially with z (section 11 of the white paper).
  • Known strategies and attacks to study: selfish mining (Eyal & Sirer, 2013), fee sniping, and eclipse attacks at the network layer.
02Difficulty, targets and timestampsnBits, retargeting math, median time past and the off-by-one.8 min

A block is valid only if its double-SHA-256 header hash, read as a 256-bit number, is at or below the target. The header stores the target compactly in nBits: one exponent byte and a three-byte mantissa. The genesis block's 0x1d00ffff defines difficulty 1; difficulty = max target ÷ current target.

  • Every 2,016 blocks: new_target = old_target × actual_time ÷ 1,209,600 s, with the time span clamped to between ¼ and 4× two weeks.
  • Timestamps must exceed the median time past (median of the previous 11 blocks) and be no more than two hours ahead of a node's clock.
  • Quirk: the retarget measures 2,015 intervals, not 2,016, an off-by-one from the original code. Together with loose timestamp rules this enables the “time warp” attack that the Great Consensus Cleanup proposal aims to close.
03Transaction anatomy and weightFields, byte layout, witness data, txid vs wtxid, timelocks.10 min

Values are 8-byte integers in sats; most integers are little-endian. SegWit transactions add a marker and flag after the version, and a witness stack per input before the locktime.

  • Weight = 4 × non-witness bytes + witness bytes. Blocks are capped at 4,000,000 weight units. vbytes = weight ÷ 4.
  • The txid excludes witness data, which fixed third-party malleability; the wtxid includes it.
  • Coinbase outputs can't be spent for 100 blocks.
  • Timelocks: nLockTime and OP_CHECKLOCKTIMEVERIFY (BIP 65) for absolute; nSequence and OP_CHECKSEQUENCEVERIFY (BIP 68, 112) for relative. Lightning depends on both.
version          4 bytes
marker, flag     2 bytes   segwit only
input count      varint
  prev txid      32 bytes  ┐ outpoint
  prev vout      4 bytes   ┘
  scriptSig      varint + script
  sequence       4 bytes
output count     varint
  value          8 bytes   sats
  scriptPubKey   varint + script
witness          per input   segwit only
locktime         4 bytes
04Script: from P2PKH to TaprootP2SH, SegWit, Taproot, MAST and Tapscript.9 min

Script is stack-based and deliberately not Turing-complete: no loops, bounded execution, predictable cost. Each upgrade moved complexity off-chain or made it cheaper and more private.

  1. P2PKH (2009): pay to the HASH160 of a public key. The lab above runs this one.
  2. P2SH (BIP 16, 2012): pay to the hash of a script; the spender reveals and satisfies it. Made multisig practical.
  3. SegWit v0 (BIP 141, 143, 144; block 481,824, August 2017): moves signatures into the witness, fixes malleability, adds a new signature hash that commits to input amounts, and paved the way for Lightning.
  4. Taproot (BIP 340, 341, 342; block 709,632, November 2021): Schnorr signatures, a key-path spend that looks like any single-sig, and a tree of alternative scripts (MAST) where only the branch used is revealed. Tapscript adds OP_CHECKSIGADD for efficient threshold signatures.
05The cryptographysecp256k1, ECDSA vs Schnorr, HASH160, Base58Check, Bech32m.9 min

Bitcoin uses the elliptic curve secp256k1: y² = x³ + 7 over the prime field p = 2²⁵⁶ − 2³² − 977.

  • Private key: a random integer k with 1 ≤ k < n (the group order). Public key: K = k·G. Easy one way, infeasible to reverse.
  • Signatures: ECDSA for legacy and SegWit v0; Schnorr (BIP 340) for Taproot, which is linear and enables key aggregation such as MuSig2.
  • Hashes: SHA-256 for proof of work and txids; HASH160 = RIPEMD-160(SHA-256(x)) for legacy and v0 addresses. Taproot outputs commit directly to a tweaked 32-byte x-only key.
  • Encodings: Base58Check for 1… and 3…; Bech32 (BIP 173) for bc1q…; Bech32m (BIP 350) for bc1p….
  • Security rests on good randomness. Never generate keys with home-made methods.
06The peer-to-peer networkGossip, compact blocks, encrypted transport and eclipse resistance.7 min
  • Nodes announce new data with inv messages and fetch it with getdata. Transactions are relayed with randomised delays to make tracing the origin harder.
  • Compact block relay (BIP 152) sends short transaction IDs, since peers usually already have the transactions in their mempools, so blocks propagate quickly.
  • BIP 324 adds encrypted peer-to-peer transport. Bitcoin Core can also run over Tor and I2P.
  • Eclipse attacks try to surround a node with attacker peers. Defences include many outbound connections, diverse peer selection and anchor connections kept across restarts.
  • A new node syncs headers first, then downloads and validates blocks: the initial block download.
07Policy vs consensusWhat makes a block valid vs what a node chooses to relay.6 min

Consensus rules decide which blocks are valid; every node must agree, or the network splits. Policy (standardness) decides which unconfirmed transactions a node relays and keeps in its mempool. Policy can differ between nodes and versions without a fork.

  • Examples of policy: dust limits, which script types count as standard, minimum relay fee and mempool size.
  • Fee bumping: replace-by-fee (BIP 125) and child-pays-for-parent. Newer policy work such as package relay and TRUC (v3) transactions (BIP 431) makes bumping more reliable, which matters for Lightning.
  • Miners can include non-standard but valid transactions submitted to them directly.
08Lightning internalsCommitments, revocation, HTLCs, onion routing and BOLTs.10 min
  • A channel is a 2-of-2 multisig funding output. Each side holds a signed commitment transaction paying out the current balances.
  • Updating the channel revokes the old state by revealing a secret. Broadcast a revoked state and your peer can claim the whole channel with a penalty transaction. Watchtowers can watch for this on your behalf.
  • Multi-hop payments use HTLCs: outputs locked to a hash H = SHA256(preimage), with timelocks that shrink at each hop so every node can settle safely.
  • Onion routing (Sphinx) means each hop learns only its previous and next hop.
  • The protocol is specified in the BOLTs. Newer work includes splicing, BOLT 12 offers, and PTLCs that use Schnorr adaptor signatures instead of shared hashes.
09Soft forks and governanceWho decides? BIPs, activation, and why change is slow.8 min
  • Changes start as Bitcoin Improvement Proposals (BIPs), are debated in public, reviewed and implemented in node software.
  • A soft fork tightens the rules, so old nodes still accept new blocks. A hard fork loosens them and splits off nodes that don't upgrade.
  • Activation methods have included miner signalling with version bits (BIP 9) and Speedy Trial, used for Taproot. In the end, nodes enforce rules; the 2017 block-size dispute showed that miners alone can't change them.
  • Proposals such as OP_CHECKTEMPLATEVERIFY (BIP 119) and OP_CAT (BIP 347) have been debated for years. Slow, careful change is a feature for a money people rely on.
Block-height history

Moments every nerd should know.

  1. Block 03 Jan 2009The genesis block

    Its coinbase quotes a newspaper headline: “The Times 03/Jan/2009 Chancellor on brink of second bailout for banks.” Its 50 BTC reward can never be spent.

  2. Block 17012 Jan 2009The first person-to-person payment

    Satoshi sent 10 BTC to Hal Finney.

  3. 22 May 2010Pizza Day10,000 BTC for two pizzas

    Laszlo Hanyecz's purchase is the first widely known trade of bitcoin for real goods.

  4. Block 74,63815 Aug 2010The value overflow bug

    A transaction created over 184 billion BTC. It was patched within hours, and the corrected chain overtook the bad one.

  5. Block 210,000Nov 2012The first halving

    The subsidy fell from 50 to 25 BTC. The fourth halving, at block 840,000 in April 2024, cut it to 3.125.

  6. March 2013v0.8 vs v0.7An accidental chain split

    A database limit made old and new node versions disagree on a block. Developers and miners coordinated to roll back to the old rules within hours.

  7. Block 481,824Aug 2017SegWit activates

    The end of a long scaling debate, and the soft fork that made Lightning practical.

  8. Block 709,632Nov 2021Taproot activates

    Schnorr signatures and script trees, the biggest upgrade since SegWit.

  9. 20,999,999.9769BTCThe real max supply

    Rounding down in the halving schedule means the total ends slightly under 21 million.

Free books & references · Advanced

The nerd's bookshelf.

Open-source books and references used by developers.

Also useful: the BIPs repository · Bitcoin Core · Learn Me A Bitcoin (technical guides and tools) · mempool.space (live block explorer).

For education and awareness only. Nothing on this page is financial, legal or tax advice, and Singularity doesn't recommend buying or selling anything. Rules on Bitcoin differ by country, so check what applies where you live. Singularity is not a wallet, exchange or custodian.

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