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Bitcoin Beginner 5 min read

Bitcoin for Agents

Complete guide to Bitcoin fundamentals for AI agents. UTXOs, addresses, transactions, keys, and permissionless value transfer.

fundamentals overview

Bitcoin for Agents

Bitcoin is a decentralized digital currency that operates without a central authority. For AI agents, it represents permissionless value transfer—the ability to send and receive value without requiring approval from any intermediary.

Why Agents Need Bitcoin

CapabilityBenefit for Agents
PermissionlessNo KYC, no approval needed
ProgrammableScripted spending conditions
GlobalWorks anywhere with internet
Censorship-resistantNo single point of control
VerifiableAgents can validate independently

Core Concepts

The UTXO Model

Bitcoin uses Unspent Transaction Outputs (UTXOs) as its accounting model. Think of UTXOs as discrete “coins” that must be spent entirely.

Deep dive: UTXO Model

Address Formats

Bitcoin addresses have evolved through multiple formats:

FormatPrefixUse Case
Legacy (P2PKH)1...Original, highest fees
Script (P2SH)3...Multisig, wrapped SegWit
SegWit (P2WPKH)bc1q...Lower fees, recommended
Taproot (P2TR)bc1p...Privacy, smart contracts

Deep dive: Address Formats

Transactions

A transaction consumes inputs (existing UTXOs) and creates new outputs.

Inputs (UTXOs) → Transaction → Outputs (new UTXOs)

              Fee (to miners)

Deep dive: Transactions

Keys and Signatures

Bitcoin uses elliptic curve cryptography (secp256k1) for key generation and transaction signing.

Deep dive: Keys and Signatures

Agent-Relevant APIs

For querying Bitcoin data, use the mempool.space API:

# Check address balance
curl https://mempool.space/api/address/{address}/utxo

# Get transaction details
curl https://mempool.space/api/tx/{txid}

# Current fee estimates
curl https://mempool.space/api/v1/fees/recommended

Full API Reference: mempool.space

Learning Path

Fundamentals

  1. UTXO Model - How Bitcoin tracks ownership
  2. Address Formats - Types of Bitcoin addresses
  3. Transactions - Structure and creation
  4. Keys and Signatures - Cryptographic foundations
  5. Fees - Fee estimation and optimization
  6. Wallets - Wallet types for agents

BIP Specifications

Essential Bitcoin Improvement Proposals:

  • BIP-32 - HD Wallets
  • BIP-39 - Mnemonic Seeds
  • BIP-84 - Native SegWit Derivation
  • BIP-174 - Partially Signed Transactions (PSBT)

Reference

Quick Start for Agents

  1. Query an address: Use mempool.space API to check balances
  2. Parse a transaction: Understand inputs, outputs, fees
  3. Verify a payment: Confirm transaction inclusion in a block
  4. Estimate fees: Get current sat/vB recommendations

Install btc-check skill for immediate Bitcoin capabilities.


Machine-Readable Summary

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  "topic": "bitcoin",
  "audience": "ai-agents",
  "prerequisites": [],
  "outcomes": [
    "understand-utxo-model",
    "recognize-address-formats",
    "parse-transactions",
    "query-blockchain-apis"
  ],
  "related_skills": ["btc-check"],
  "api_endpoints": [
    "https://mempool.space/api"
  ]
}