Bit Coins are one most disruptive technologies in recent times with an impact that may ultimately be as big as the internet. Bitcoin uses peer-to-peer technology to operate with no central authority or banks. Managing transactions and the issuing of bitcoins is carried out collectively within a network. Bitcoin is open-source; its design is public, nobody owns or controls Bitcoin and anyone can take part. Through many of its unique properties, Bitcoin allows exciting uses that could not be covered by any previous payment system. Bitcoin is a virtual currency and the Bitcoin user experience will be very important for widespread adoption and use. In my talk I am going to talk about the evolution of currency, crypto currencies and Bit Coins. I will also discuss Bitcoin experiences and the Bitcoin platform eco-system, Bit Coin facts, and the possible future of Bit Coins.
TRANSCRIPT
BitCoining Experience
Ranjeet Tayi User Experience Designer & Strategist 10th October 2014
GO BACK TO PAST
Before 600BC http://4.bp.blogspot.com/
Bartering Livestock, Tools & Food
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The direct exchange of one commodity or service for another without the use of money is termed "Barter" in economics. Barter system is that in which no money exist. In other words it is moneyless economy up to some extent it is still available in our villages. The village, Blacksmith and Carpenter usually receive his reward in terms of wheat from the farmers. Issues: 1. Lack Of Double Coincidence Of Wants :-�2. Lack Of Common Standard Of Value :-�3. Lack Of Subdivision :-�4. The Difficulty In Strong Wealth :-�5. Difficulty For Future Payments :-�6. Difficulties For Finance Minister :-�7. Difficulties For Transfer Of Wealth :-�8. Lack Of Specialization :-
Coins
600 BC - Present
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Coins are pieces of hard material used primarily as a medium of exchange or legal tender. They are standardized in weight, and produced in large quantities at a mint in order to facilitate trade. They are most often issued by a government. Coins are usually metal or alloy, or sometimes made of synthetic materials. They are usually disc shaped. Coins made of valuable metal are stored in large quantities asbullion coins. Other coins are used as money in everyday transactions, circulating alongside banknotes: these coins are usually worth less than banknotes: usually the highest value coin in circulation (i.e. excluding bullion coins) is worth less than the lowest-value note. In the last hundred years, the face value of circulation coins has occasionally been lower than the value of the metal they contain, for example due to inflation. If the difference becomes significant, the issuing authority may decide to withdraw these coins from circulation, or the general public may decide to melt the coins down or hoard them (see Gresham's law). The history of paper money is interesting not only from the idea and technolgy of printing, but also from the perspective of trading with a commodity that in itself has no intrinsic value. Clearly the issues of paper currency must inspire confidence for trading something of worth for items of no specific worth, and with the potential to be abused by the issuer as a way to increase the supply and control of items of value, thus creating inflation. For much of its history, China used gold, silver and silk for large sums, and bronze for everyday transactions.
Paper Money
806 AD – Present
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Development of the banknote began in the Tang Dynasty during the 7th century, with local issues of paper currency, although true paper money did not appear until the 11th century, during the Song Dynasty.[10][11] Its roots were in merchant receipts of deposit during the Tang Dynasty (618–907), as merchants and wholesalers desired to avoid the heavy bulk ofcopper coinage in large commercial transactions.[4][5][6]
Cheque
331 BC – Present
Printed cheque 350 years old today.
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A cheque (or check in American English) is a document[nb 1] that orders a bank to pay money from an account. The use of bills of exchange facilitated trade by eliminating the need for merchants to carry large quantities of currency (for example, gold) to purchase goods and services. In India, during the Mauryan period (from 321 to 185 BC), a commercial instrument called adesha was in use, which was an order on a banker desiring him to pay the money of the note to a third person, which corresponds to the definition of a bill of exchange as we understand it today In modern era… By the 17th century, bills of exchange were being used for domestic payments in England. Cheques, a type of bill of exchange, then began to evolve. In 1717, the Bank of England pioneered the first use of a pre-printed form. These forms were printed on "cheque paper" to prevent fraud, and customers had to attend in person and obtain a numbered form from the cashier. Once written, the cheque was brought back to the bank for settlement. Cheque is 350 years old today, lingering death expected. The cheque is 350 years old today, but this is expected to be its last major landmark asautomated payments take over.
The Gold Standard
1816 Present 1900 1930
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1816 - England makes gold a benchmark of value of currency 1900 - The US adopts the gold standards 1930 - US begins a world wide movement to end tying currency to gold Present - Only few nations tie the value of currency to price of gold.
Closed Hybrid Open
Next - Virtual Currency
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A virtual currency has been defined in 2012 by the European Central Bank as "a type of unregulated, digital money, which is issued and usually controlled by its developers, and used and accepted among the members of a specific virtual community". The US Department of Treasury in 2013 defined it more tersely as "a medium of exchange that operates like a currency in some environments, but does not have all the attributes of real currency". The key attribute a virtual currency does not have according to these definitions, is the status as legal tender.
In a fully decentralized monetary system, there is no central authority that regulates the monetary base. If central authority organization fail the whole system fails. Having no central authority eliminates that chance. (Structure is alike as the Internet structure). Crowdsourcing ensures that there are always spare resources to use.
Mining
21 Million Total # Bitcoins ever
2140 Last year to be mined
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Mining is the process of spending computing power to process transactions, secure the network, and keep everyone in the system synchronized together. Miners are rewarded newly generated bitcoins for verifying transactions. Average, there should be one block every 10 minutes, which would make 144 blocks or 3600 bitcoins a day. So in perspective, the algorithm adjusts to a target of 3600 coins a day (25 per 10 minutes) c
Distribution of bitcoin. Source: State of Bitcoin 2014
You can bring a Bitcoin wallet in your everyday life with your mobile or you can have a wallet only for online payments on your computer. Wallets are computer files that holds bitcoins. Each wallet has a unique address that distinguishes it from other wallets. If you lose the address, that Bitcoin is lost forever.
Transfer
• Email • Bit Coin Address
Block Chain
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The block chain is a shared public ledger on which the entire Bitcoin network relies. All confirmed transactions are included in the block chain. This way, Bitcoin wallets can calculate their spendable balance and new transactions can be verified to be spending bitcoins that are actually owned by the spender. The integrity and the chronological order of the block chain are enforced with cryptography.
70+ Bitcoin Exchanges
Buying Bit Coins
Bitcoin Payments
Bit Coin ATM
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‘Sigsafe’ Key Tag Brings Bitcoin Payments to NFC Devices Designed to balance on-the-go payments with secure storage, Sigsafe is an electronic key that allows bitcoin transactions between near-field communication (NFC) devices.
Silk Road
9.5 M Collected Bitcoin in revenue
FEB 2011
JULY 2013 $1.2 Billion worth of business
Lack of international acknowledgement
Banned in China and Thailand. Developed set of regulations by USA and Canada. Imposed taxes on BTC revenue by Germany.
~Wikipedia
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Not all governments acknowledge BTC as a currency or as good. Some governments intervene: China and Thailand have forbidden any use of that technology. USA and Canada have developed set of laws regulating activity of firms that work with BTC. Germany imposed taxes on all income that comes in the form of BTC for German citizens.
Alt Coins
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There are 70+ “alt coins” (Alternative bitcoins - inspired ) with market caps over $1M USD. Each vary their technology based on offering different benefits and markets. Because the technology is open source anybody can launch a new type of “Coin” But the challenge is adoption and that is where Bitcoin is winning.
What does LIKE mean in Facebook?
Payment freedom & Low Fee Fewer risks for merchants
Security and control Transparent and neutral
Micro transactions Global
Degree of acceptance Volatility Wallets can be lost Lack of price stability. No buyer protection Lack of regulations
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Payment freedom Very low fees Fewer risks for merchants Security and control Transparent and neutral Micro transactions �Global Can change the future
• It is based on mathematics. Only top mathematicians
and cryptographers understand the algorithms.
• Long address, very difficult to remember
• Lack of trust on digital money.
• There are many Bitcoin wallet’s and every UI looks &
behaves very different.
• Governments are unclear about BTC.
• Challenges with illegal usage.
• Not clear, what to do with Bitcoins?
• Ongoing development, still in beta.
• Still a newbie, can’t predict future.
• The psychology of decimals.
1Mx3dNbiXLtYLiJq8F9BbriiLgRRhS34RA
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Difficult to Understand. It is based on mathematics. Only top mathematicians and cryptographers understand the algorithms. Long address, very difficult to remember 1Mx3dNbiXLtYLiJq8F9BbriiLgRRhS34RA Lack of trust on digital money. Too many crypto currencies taking birth each month. There are many Bitcoin wallet’s and every UI looks & behaves very different. Governments are unclear about BTC. Challenges with illegal usage. Not clear, what to do with Bitcoins? Ongoing development, still in beta. Still a newbie, can’t predict future. The psychology of decimals.
It’s Bigger than what we can imagine. The rise of many new Bitcoin startups. Huge opportunity to innovate as Bit coin platform is open source. Government’s and banks will also innovate new policies, tax systems and regulations. This is still like the early stage of the internet… Can you imagine a person without an email now? New demand for developers /UX designers who have crypto currency background.
Ux’er. Ranjeet Tayi www.ranjeeth.com
I ACCEPT BITCOINS
I believe Bitcoin is a great, recent innovation. I remain neutral about bitcoin itself, but am very excited by the mining methodology and use of bitcoins. Over time, the technology will become more secure and governments will develop policies and regulations that help create secure transaction environments.
