Post on 09-Jan-2017
transcript
BitcoinNikhil Bhatia 2k13/SE/53Sarthak Khandelwal 2k13/SE/72Sakshi Kumar 2k13/SE/70
What is Bitcoin?
• Open Source Software
• Crypto-currency/Digital Currency
• Peer to Peer transaction system
Who invented Bitcoin?
• Satoshi Nakamoto (Unknown)- 2009
• Believed to be developed by Samsung(Sa), Toshiba(toshi), Nakamichi(naka), Motorola(moto).
Features of Bitcoin
• No central ruling authority
• All transactions are public
• All transactions are verified by users (miners)
How does it work?
Design of the Bitcoin System
Transaction
BlockChain
Mining
BlockChain
• Public ledger/Distributed database
• Verify Bitcoin transactions
Fig: Total Bitcoins in circulation
Transaction
• Transactions can be made using QR Codes
• Made in BTC denominations: mBTC, µBTC, bit, satoshi.
• Public-key cryptography is used.
Mining • Record keeping service.
• It is a cryptographic hash of the previous block (SHA-256)
• Hash of the new block smaller than the ‘difficulty target’ serves as a ‘proof-of-work’
Miners
• Nodes in the Bitcoin network(users) who perform mining operation.
• 25 BTC awarded for hashing a new block Rs. 3,50,000
Crytographic Hashing• A hash function which is considered practically impossible to invert.
a) easy to compute the hash value for any given messageb) infeasible to generate a message from its hashc) infeasible to modify a message without changing the hashd) infeasible to find two different messages with the same hash.
• Eg. SHA1 , SHA2, MD5
SHA 2 Algorithm
• A family of two similar hash functions, known as SHA-256 and SHA-512. They differ in the word size; SHA-256 uses 32-bit words where SHA-512 uses 64-bit words.• Designed by the NSA.• Used in security applications and protocols
- TLS and SSL.
Thank You.