

How Bitcoin Actually Works: A First Principles Guide
From entropy and SHA-256 to proof of work and the 21 million cap: a first principles guide to how Bitcoin works, and what you can verify yourself.
In this article
Swan Vault is a Bitcoin storage solution engineered to provide advanced self-custody, enabling everyone to secure their Bitcoin confidently. We’re excited to announce that Swan Vault is now available to all current and future Swan Bitcoin clients in the United States (we will enable access for International and New York clients as soon as possible).
Swan Vault empowers you with complete control over your Bitcoin. This autonomy is fundamental to Bitcoin’s promise—ensuring that your funds remain yours without restrictions or oversight. You can enjoy the independence of controlling your own Bitcoin without relying on banks or other institutions.
If you lose a key, you can recover your funds. All Swan Vaults can be recovered using widely available open-source Bitcoin wallet software, such as Specter Desktop or Bitcoin Core. When you set up your Vault, you’ll download an easy-to-follow recovery kit with clear instructions. We adopted industry standards to maximize the portability and recoverability of your Vault.
We carefully designed Swan Vault to remove the technical barriers and complexity that often deter people from embracing self-custody. Swan Vault empowers anyone to confidently take custody of their Bitcoin with guided on-screen setup to streamlined deposits and withdrawals. Blockstream Jade signing devices are straightforward and secure, making them the perfect companion to Swan Vault’s human-centered design. This ease of use does not come at the expense of security; instead, it is a harmonious blend of both, ensuring users enjoy peace of mind without navigating a complex technological maze.
Swan Vault empowers you with complete control over your Bitcoin. This autonomy is fundamental to Bitcoin’s promise—ensuring that your funds remain yours without restrictions or oversight. You can enjoy the independence of controlling your own Bitcoin without relying on banks or other institutions.
If you lose a key, you can recover your funds. All Swan Vaults can be recovered using widely available open-source Bitcoin wallet software, such as Specter Desktop or Bitcoin Core. When you set up your Vault, you’ll download an easy-to-follow recovery kit with clear instructions. We adopted industry standards to maximize the portability and recoverability of your Vault.
Although you have total control, you don’t have to manage everything alone. Whether you have questions about setting up your Vault, performing transactions, or recovering your funds, Swan’s team of experts stands ready to provide personalized assistance. By combining independent control with a robust safety net and expert guidance if needed, Swan Vault delivers peace of mind to Bitcoiners at all levels.
Ready to take control? Log into your Swan account and open your Swan Vault today.
Discover more at swan.com/vault and embark on your journey towards true financial autonomy with peace of mind.
Brady is a Swan cofounder focused on Product Marketing and Education. He launched Citizen Bitcoin and Swan Signal Live, two popular Bitcoin podcasts.
Thoughts on Bitcoin from the Swan team and friends.
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