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<title>Financial Software and Crypto-Currencies · Learn Lisp The Hard Way</title>
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<li class="header">LEARN LISP THE HARD WAY</li>
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Second Draft (in-progress)
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CHANGELOG
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TODO
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<li class="header">PREFACE</li>
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TANSTAAFL
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The Hard Way is Easier
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Who Is This Book For?
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Lisp: A Future History
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Acknowledgements
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<li class="header">PART ONE</li>
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Grokking Lisp
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Common Lisp Bootcamp
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Syntax Overview in 5 Minutes
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<li class="chapter " data-level="3.1.1.2" data-path="1-01-02-repl.html">
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The REPL
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Expressions, Parentheses, and Return Values
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Lists, Cons-Cells, and Memory
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Symbols and Namespaces
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Prefix Notation
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Common Lisp Style Guide
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Configuring Your Development Environment
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Printing, Streams, and Strings
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Strings
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More Strings
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Unicode and Strings
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Characters
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More Characters
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Character Codes
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<li class="chapter " data-level="3.1.2.7" data-path="1-02-07-strings-from-chars.html">
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Strings from Chars
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<li class="chapter " data-level="3.1.2.8" data-path="1-02-08-printing.html">
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Printing
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<li class="chapter " data-level="3.1.2.9" data-path="1-02-09-more-printing.html">
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More Printing
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<li class="chapter " data-level="3.1.2.10" data-path="1-02-10-prin1.html">
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Printing With prin1
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<li class="chapter " data-level="3.1.2.11" data-path="1-02-11-princ.html">
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Printing With princ
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<li class="chapter " data-level="3.1.2.12" data-path="1-02-12-format.html">
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A Brief Introduction to Format
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<li class="chapter " data-level="3.1.2.13" data-path="1-02-13-more-format.html">
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A Little Bit More on Format
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<li class="chapter " data-level="3.1.2.14" data-path="1-02-14-pathnames.html">
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Pathnames
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<li class="chapter " data-level="3.1.2.15" data-path="1-02-15-streams.html">
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Streams
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<li class="chapter " data-level="3.1.2.16" data-path="1-02-16-file-streams.html">
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File Streams
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<li class="chapter " data-level="3.1.2.17" data-path="1-02-17-binary-streams.html">
<a href="1-02-17-binary-streams.html">
Binary Streams
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<li class="chapter " data-level="3.1.2.18" data-path="1-02-18-prompting-users.html">
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Prompting Users
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<li class="chapter " data-level="3.1.2.19" data-path="1-02-19-pretty-printing.html">
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Pretty-Printing
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<li class="chapter " data-level="3.1.3" data-path="1-03-0-getting-input-from-users.html">
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Extra Credit: Getting Input from Users
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<li class="chapter " data-level="3.1.4" data-path="1-04-0-lists.html">
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Lists and List-Operations
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Extra Credit: Look-up Lists and Trees
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<li class="chapter " data-level="3.1.6" data-path="1-06-0-math.html">
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Numbers and Math
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Integers
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<li class="chapter " data-level="3.1.6.2" data-path="1-06-02-more-integers.html">
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More Integers
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<li class="chapter " data-level="3.1.6.3" data-path="1-06-03-hexadecimal-notation.html">
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Hexadecimal Integer Notation
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<li class="chapter " data-level="3.1.6.4" data-path="1-06-04-octal-notation.html">
<a href="1-06-04-octal-notation.html">
Octal Integer Notation
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<li class="chapter " data-level="3.1.6.5" data-path="1-06-05-binary-notation.html">
<a href="1-06-05-binary-notation.html">
Binary Integer Notation
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<li class="chapter " data-level="3.1.6.6" data-path="1-06-06-ratios.html">
<a href="1-06-06-ratios.html">
Ratios and Rational Numbers
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<li class="chapter " data-level="3.1.6.7" data-path="1-06-07-floating-point.html">
<a href="1-06-07-floating-point.html">
Floating-point Numbers
</a>
</li>
<li class="chapter " data-level="3.1.6.8" data-path="1-06-08-constants.html">
<a href="1-06-08-constants.html">
Numeric Constants
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<li class="chapter " data-level="3.1.6.9" data-path="1-06-09-complex-numbers.html">
<a href="1-06-09-complex-numbers.html">
Complex Numbers
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<li class="chapter " data-level="3.1.6.10" data-path="1-06-10-arithmetic.html">
<a href="1-06-10-arithmetic.html">
Arithmetic
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<li class="chapter " data-level="3.1.6.11" data-path="1-06-11-more-arithmetic.html">
<a href="1-06-11-more-arithmetic.html">
More Arithmetic
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<li class="chapter " data-level="3.1.6.12" data-path="1-06-12-even-more-arithmetic.html">
<a href="1-06-12-even-more-arithmetic.html">
Even More Arithmetic
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<li class="chapter " data-level="3.1.6.13" data-path="1-06-13-exponents.html">
<a href="1-06-13-exponents.html">
Exponents
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<li class="chapter " data-level="3.1.6.14" data-path="1-06-14-logarithms.html">
<a href="1-06-14-logarithms.html">
Logarithms
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<li class="chapter " data-level="3.1.6.15" data-path="1-06-15-trigonometry.html">
<a href="1-06-15-trigonometry.html">
Trigonometry
</a>
</li>
<li class="chapter " data-level="3.1.6.16" data-path="1-06-16-psuedorandom-numbers.html">
<a href="1-06-16-psuedorandom-numbers.html">
Pseudo-Random Numbers
</a>
</li>
</ul>
</li>
<li class="chapter " data-level="3.1.7" data-path="1-07-0-arrays.html">
<a href="1-07-0-arrays.html">
Extra Credit: Arrays and Vectors
</a>
</li>
<li class="chapter " data-level="3.1.8" data-path="1-08-0-variables.html">
<a href="1-08-0-variables.html">
Variables, Parameters, and Constants
</a>
</li>
<li class="chapter " data-level="3.1.9" data-path="1-09-0-closures.html">
<a href="1-09-0-closures.html">
Extra Credit: Closures
</a>
</li>
<li class="chapter " data-level="3.1.10" data-path="1-10-0-functions.html">
<a href="1-10-0-functions.html">
Functions and Macros
</a>
</li>
<li class="chapter " data-level="3.1.11" data-path="1-11-0-text-adventure.html">
<a href="1-11-0-text-adventure.html">
Extra Credit: A Simple Text Adventure
</a>
</li>
<li class="chapter " data-level="3.1.12" data-path="1-12-0-namespaces.html">
<a href="1-12-0-namespaces.html">
Namespaces, Symbols, Packages, and Systems
</a>
</li>
<li class="chapter " data-level="3.1.13" data-path="1-13-0-simple-web-app.html">
<a href="1-13-0-simple-web-app.html">
Extra Credit: A Simple Web Application
</a>
</li>
<li class="chapter " data-level="3.1.14" data-path="1-14-0-conditionals.html">
<a href="1-14-0-conditionals.html">
Conditionals
</a>
</li>
<li class="chapter " data-level="3.1.15" data-path="1-15-0-command-line-utility.html">
<a href="1-15-0-command-line-utility.html">
Extra Credit: Command-Line Utilities
</a>
</li>
<li class="chapter " data-level="3.1.16" data-path="1-16-0-map-loop.html">
<a href="1-16-0-map-loop.html">
Mapping and Looping
</a>
</li>
<li class="chapter " data-level="3.1.17" data-path="1-17-0-iterate.html">
<a href="1-17-0-iterate.html">
Extra Credit: Revisiting Loops with Iterate
</a>
</li>
<li class="chapter " data-level="3.1.18" data-path="1-18-0-format.html">
<a href="1-18-0-format.html">
Format Strings
</a>
</li>
<li class="chapter " data-level="3.1.19" data-path="1-19-0-dsl.html">
<a href="1-19-0-dsl.html">
Extra Credit: Domain Specific Languages
</a>
</li>
<li class="chapter " data-level="3.1.20" data-path="1-20-0-review.html">
<a href="1-20-0-review.html">
Part One in Review
</a>
</li>
</ul>
</li>
<li class="header">PART TWO</li>
<li class="chapter " data-level="4.1" data-path="2-0-0-overview.html">
<a href="2-0-0-overview.html">
The Suffusion of Blue
</a>
<ul class="articles">
<li class="chapter " data-level="4.1.1" data-path="2-01-0-programming-paradigms.html">
<a href="2-01-0-programming-paradigms.html">
Programming Paradigms
</a>
</li>
<li class="chapter " data-level="4.1.2" data-path="2-02-0-regex.html">
<a href="2-02-0-regex.html">
Extra Credit: Regular Expressions
</a>
</li>
<li class="chapter " data-level="4.1.3" data-path="2-03-0-objects-control.html">
<a href="2-03-0-objects-control.html">
Objects and Control Structures
</a>
</li>
<li class="chapter " data-level="4.1.4" data-path="2-04-0-data-persistence.html">
<a href="2-04-0-data-persistence.html">
Extra Credit: Persistence and Databases
</a>
</li>
<li class="chapter " data-level="4.1.5" data-path="2-05-0-extended-types.html">
<a href="2-05-0-extended-types.html">
Extended Types
</a>
</li>
<li class="chapter " data-level="4.1.6" data-path="2-06-0-threads-memos-parallel.html">
<a href="2-06-0-threads-memos-parallel.html">
Extra Credit: Concurrency and Memoization
</a>
</li>
<li class="chapter " data-level="4.1.7" data-path="2-07-0-logic-and-more-math.html">
<a href="2-07-0-logic-and-more-math.html">
Logic and Advanced Math
</a>
</li>
<li class="chapter " data-level="4.1.8" data-path="2-08-0-number-theory.html">
<a href="2-08-0-number-theory.html">
Extra Credit: Number Theory
</a>
</li>
<li class="chapter " data-level="4.1.9" data-path="2-09-0-binary-octets-bits.html">
<a href="2-09-0-binary-octets-bits.html">
Binary Streams, Octet-Vectors, and Bit-Vectors
</a>
</li>
<li class="chapter " data-level="4.1.10" data-path="2-10-0-improved-text-adventure-engine.html">
<a href="2-10-0-improved-text-adventure-engine.html">
Extra Credit: An Improved Text Adventure Engine
</a>
</li>
<li class="chapter " data-level="4.1.11" data-path="2-11-0-conditions.html">
<a href="2-11-0-conditions.html">
Conditions and Error Handling
</a>
</li>
<li class="chapter " data-level="4.1.12" data-path="2-12-0-2d-game.html">
<a href="2-12-0-2d-game.html">
Extra Credit: Write a 2D Game
</a>
</li>
<li class="chapter " data-level="4.1.13" data-path="2-13-0-compiler.html">
<a href="2-13-0-compiler.html">
The Compiler
</a>
</li>
<li class="chapter " data-level="4.1.14" data-path="2-14-0-tree-shaker.html">
<a href="2-14-0-tree-shaker.html">
Extra Credit: Write a Tree-Shaker
</a>
</li>
<li class="chapter " data-level="4.1.15" data-path="2-15-0-docs-and-inspection.html">
<a href="2-15-0-docs-and-inspection.html">
Documentation and Inspection
</a>
</li>
<li class="chapter " data-level="4.1.16" data-path="2-16-0-foreign-libs.html">
<a href="2-16-0-foreign-libs.html">
Extra Credit: Foreign Libraries in Lisp
</a>
</li>
<li class="chapter " data-level="4.1.17" data-path="2-17-0-debugging-testing.html">
<a href="2-17-0-debugging-testing.html">
Debugging and Unit Testing
</a>
</li>
<li class="chapter " data-level="4.1.18" data-path="2-18-0-ffi.html">
<a href="2-18-0-ffi.html">
Extra Credit: Write a Foreign Function Interface
</a>
</li>
<li class="chapter " data-level="4.1.19" data-path="2-19-0-essential-libs.html">
<a href="2-19-0-essential-libs.html">
Essential Lisp Libraries
</a>
</li>
<li class="chapter " data-level="4.1.20" data-path="2-20-0-packaging-libs.html">
<a href="2-20-0-packaging-libs.html">
Extra Credit: Packaging Lisp Libraries
</a>
</li>
<li class="chapter " data-level="4.1.21" data-path="2-21-0-review.html">
<a href="2-21-0-review.html">
Detailed Syntax Review
</a>
</li>
</ul>
</li>
<li class="header">PART THREE</li>
<li class="chapter " data-level="5.1" data-path="3-00-00-overview.html">
<a href="3-00-00-overview.html">
Lisp So(u)rcery
</a>
<ul class="articles">
<li class="chapter " data-level="5.1.1" data-path="3-01-00-web-apps.html">
<a href="3-01-00-web-apps.html">
Real-world Web Apps
</a>
</li>
<li class="chapter " data-level="5.1.2" data-path="3-02-00-typesetting.html">
<a href="3-02-00-typesetting.html">
Typesetting
</a>
</li>
<li class="chapter " data-level="5.1.3" data-path="3-03-00-mobile.html">
<a href="3-03-00-mobile.html">
Native Mobile Applications
</a>
</li>
<li class="chapter " data-level="5.1.4" data-path="3-04-00-gui.html">
<a href="3-04-00-gui.html">
Cross-platform Desktop Applications
</a>
</li>
<li class="chapter " data-level="5.1.5" data-path="3-05-00-system-utils.html">
<a href="3-05-00-system-utils.html">
Drivers, Daemons, and System-Utilities
</a>
</li>
<li class="chapter " data-level="5.1.6" data-path="3-06-00-reverse-engineering.html">
<a href="3-06-00-reverse-engineering.html">
Reverse Engineering
</a>
</li>
<li class="chapter " data-level="5.1.7" data-path="3-07-00-graphics.html">
<a href="3-07-00-graphics.html">
Graphics Rendering
</a>
</li>
<li class="chapter " data-level="5.1.8" data-path="3-08-00-gaming.html">
<a href="3-08-00-gaming.html">
OpenGL, SDL, and 3D Game Development
</a>
</li>
<li class="chapter " data-level="5.1.9" data-path="3-09-00-audio.html">
<a href="3-09-00-audio.html">
Audio Generation and Manipulation
</a>
</li>
<li class="chapter " data-level="5.1.10" data-path="3-10-00-data.html">
<a href="3-10-00-data.html">
Data Aggregation and Analysis
</a>
</li>
<li class="chapter " data-level="5.1.11" data-path="3-11-00-cryptosec.html">
<a href="3-11-00-cryptosec.html">
Cryptography and Security
</a>
</li>
<li class="chapter active" data-level="5.1.12" data-path="3-12-00-fintech.html">
<a href="3-12-00-fintech.html">
Financial Software and Crypto-Currencies
</a>
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<h1 id="chapter-312">Chapter 3.12</h1>
<h2 id="financial-software-and-crypto-currencies">Financial Software and Crypto-Currencies</h2>
<blockquote>
<p>&quot;&apos;Value&apos; has no meaning other than in relationship to living beings... This very personal relationship, &apos;value&apos;, has two factors... first, what he can do with a thing, its use to him... and second, what he must do to get it, its <em>cost</em> to him.&quot;</p>
<footer>Robert A. Heinlein, <em>Starship Troopers</em></footer>
</blockquote>
<p>Out of all the commercial ventures available to a budding entrepreneur, the most dangerous undertaking is handling other people&apos;s money. Not just for the obvious reasons, such as becoming a target for theft, exploitation, and blackmail---but the liability alone, the stifling regulatory systems, and compliance requirements make the financial industry a deeply uncomfortable place for newcomers. With this in mind, you can wonder at the audacity of the Bitcoin and crypto-currency community, that has spearheaded a new digital economy without taking such factors into consideration; and then realize why so many Bitcoin companies are failing. The biggest problem may be self-evident to certain people, but is not often discussed amongst members of commercial crypto-currency start-ups---Bitcoin was specifically designed to sabotage the financial industry through total decentralization, not to be used as a tool to build banks and other money service businesses for cheap. With that point in mind, this chapter will adopt the attitude of personal, decentralized banking, where you take the control and security of <em>your</em> money into your own hands---however, many of the necessary skills needed to design a personal Bitcoin wallet are transferable to the financial industry as a whole. And, as it so happens, Common Lisp is often used in financial industry software, so if this is your area of interest, you&apos;ll have no trouble fitting in.</p>
<p>Naturally, security is of utmost concern; so if you have not already read it, worked through the exercises, and done the extra readings from the Resources section, you should go back and read Chapter 3.10 -- Cryptography and Security first. In any banking system, the only factor more important than compliance with your local financial regulatory body is the security of that system. Other factors that you will have to consider, even for a personal wallet, are accounting ledgers, transaction histories, and encrypting your wallet. Money service businesses also have to maintain strict Know-Your-Customer and Anti-Money-Laundering policies.</p>
<p>So in this chapter, we&apos;ll take an overview of the strongest encryption protocols available in Common Lisp, design a personal wallet that utilizes Bitcoin to store and transfer value, interface with the Bitcoin blockchain from Common Lisp, and review some of the more interesting Bitcoin Improvement Proposals (BIPs) to add valuable features to your personal wallet. We will also point you to some important resources for learning how to do a basic security profile of your application, to harden your wallet against potential loss through theft or other malicious activity.</p>
<h3 id="exercise-3121">Exercise 3.12.1</h3>
<p><strong>Working with Crypto-Currencies in Common Lisp</strong></p>
<pre><code class="lang-lisp">
</code></pre>
<h3 id="exercise-3122">Exercise 3.12.2</h3>
<p><strong>JSON-RPC Interfaces</strong></p>
<pre><code class="lang-lisp">
</code></pre>
<h3 id="exercise-3123">Exercise 3.12.3</h3>
<p><strong>ECDSA, SHA256, and Ripemd160</strong></p>
<pre><code class="lang-lisp">
</code></pre>
<h3 id="exercise-3124">Exercise 3.12.4</h3>
<p><strong>Base-58 and Base-64 Representations</strong></p>
<pre><code class="lang-lisp">
</code></pre>
<h3 id="exercise-3125">Exercise 3.12.5</h3>
<p><strong>Transactions</strong></p>
<pre><code class="lang-lisp">
</code></pre>
<h3 id="exercise-3126">Exercise 3.12.6</h3>
<p><strong>Addresses</strong></p>
<pre><code class="lang-lisp">
</code></pre>
<h3 id="exercise-3127">Exercise 3.12.7</h3>
<p><strong>Op-Codes</strong></p>
<pre><code class="lang-lisp">
</code></pre>
<h3 id="exercise-3128">Exercise 3.12.8</h3>
<p><strong>Scripts</strong></p>
<pre><code class="lang-lisp">
</code></pre>
<h3 id="exercise-3129">Exercise 3.12.9</h3>
<p><strong>Unspent-Outs</strong></p>
<pre><code class="lang-lisp">
</code></pre>
<h3 id="exercise-31210">Exercise 3.12.10</h3>
<p><strong>Wallets</strong></p>
<pre><code class="lang-lisp">
</code></pre>
<h3 id="exercise-31211">Exercise 3.12.11</h3>
<p><strong>Writing an Encrypted Wallet</strong></p>
<p>Two methods:</p>
<ul>
<li>Encrypt database fields individually</li>
<li>Encrypt Wallet Instance Object</li>
</ul>
<pre><code class="lang-lisp">
</code></pre>
<h3 id="exercise-31212">Exercise 3.12.12</h3>
<p><strong>Providing a RESTful API to the Blockchain</strong></p>
<pre><code class="lang-lisp">
</code></pre>
<h3 id="exercise-31213">Exercise 3.12.13</h3>
<p><strong>Hierarchical--Deterministic Keychains</strong></p>
<pre><code class="lang-lisp">
</code></pre>
<h3 id="project-31214">Project 3.12.14</h3>
<p><strong>A Personal Bitcoin Wallet Web-App</strong></p>
<pre><code class="lang-lisp">
</code></pre>
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