introduction to bitcoin
TRANSCRIPT
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BitCoin
An overview
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Why ?
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First crypto-currency
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Basics – Public key cryptography
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How BitCoin ecosystem works ?
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A wallet to start off
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BitCoin transaction
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The new Gold Rush
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Genesis Block
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Mining Details
• Hash strings beginning with 0’s
• Mining program is open source!
• Generate a new block by taking an existing block, set of transactions and a nonce
• Current target hash – less or equal is accepted
• Difficulty – set by the network
• Transaction fees to incentivize new block gen.
• Become part of a pool
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THE Network
• BitCoin network – one and only
• Decentralized and open to all
• Low transaction fees
• Constant bitcoin generation (10 min / block)
• 100 petaFLOPs
• Irrevocable transactions
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Advantages
• Almost 0 processing fee – across the world
• No need of a bank account !
• Equal chance of mining
• Anyone can create an exchange
• Anonymity
• Businesses accept bitcoins (wordpress, baidu, reddit, etc..)
• Financial Control – no one can question
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Wait.. But..
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Concerns
• BitCoin is anti-inflationary
• No central authority – double edged sword
• Hacker prone – tough to be exceed 30 trillion calculations per second and 100 petaFLOPs –but possible
• Regulatory uncertainty
• Secure your wallets – digitally!
• Volatile exchange prices
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Predictions..
• Present day disruptions thanks to P2P systems
– Telephone ---> VOIP (skype / hangout)
– SMS – almost obsolete
– File transfers / music players
– Mail (post boxes as antiques ? )
• Banks – do we really need them ?
• Decentralized and global financial system
– Money over Internet !
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Opportunities
• A new way to transact
– Irrevocable transactions (adv : E-Comm sites)
• Innovative applications – money reaches where banks can’t reach
• World-wide system – Forex (what’s that ?)
• Optimizing face-to-face transactions – cannot replace credit cards. Minimum 10 mins to confirm
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Thank You