Bitcoin and our Decentralized Future

James Walpolejameswalpole.com

What is bitcoin? Magic internet money? Nerd money? Fake money? The future of money?

Hint: definitely not this stuff

A payment methodBitcoin functions like peer to peer electronic cash.

It’s a digital cash or a digital gold for the internet.

A payment methodTransactions in Bitcoin are not actually exchanging funds.

They’re signing entries.

A networkBitcoin miners: Specialized computers that do the math required to validate bitcoin transactions.

These processes 1) maintain a ledger and 2) generate new bitcoin.

A ledgerEveryone running a node of the Bitcoin protocol helps to maintain a shared, distributed ledger of transactions called a “blockchain.”

Why does this matter?Bitcoin is money that can work without any central party: no one website, bank, company, government controls bitcoin.

That has its advantages.

Why does this matter?Bitcoin creates the first record of history (and money) that is:

- Trustless- Incorruptible - Permanent

“Decentralization”“The process of redistributing or dispersing

functions, powers, people or things away from a central location or authority.”

How does a payment work?I’ll spare you the details.

Above-ground viewBitcoin users transact using applications called “bitcoin wallets.”

Often this just involves scanning a QR code and clicking “send.”

Under the hoodA bitcoin user’s “public key” and “private key” create and verify a signature.

A signed transaction “message” then broadcasts to the bitcoin network for addition to the ledger.

Why is bitcoin useful?Let’s talk about money.

Bitcoin changes paymentsCredit cards were made in the 1950s. Bitcoin was made for the Internet.

- Universal transactions- Secure transactions- Low-cost payments- Fast settlement times

What does bitcoin mean for tech?

Where we’re going, we won’t need centralized ledgers.

Bitcoin beyond payments

- Authentication (BitAuth)- Marketplaces (OpenBazaar)- DNS Registrars (Namecoin)- Healthcare (Gem)

Bitcoin and distributed ledger technology can disrupt any centralized ledger used today.

What does bitcoin mean for liberty?

“Money is one of the greatest instruments of freedom ever invented by man.” – F.A. Hayek

Free moneyFree as in “liberated,” not free as in “free beer.”

- No inflation- No funding by inflation- Fewer wars, less Marx, more Mises - Money that’s actually worth more

over time

Distributed, bitcoin-based marketplaces like OpenBazaar eliminate middlemen that can censor what people buy and sell.

Free trade

Distributed, bitcoin-based marketplaces like OpenBazaar eliminate middlemen

Free tradeWikileaks turned to bitcoin donations when pressure on mainstream payment processors ended PayPal and credit card donations.

Free speech

Bitcoin is allowing some Venezuelans to weather the economic collapse caused by authoritarian policies.

Free people

What does this mean for me?

The future is decentralized. Here’s how you can start participating.

Step 1: Get a Wallet

- BitPay Wallet- Copay Wallet- Breadwallet- Airbitz Wallet

Step 2: Get some bitcoin

- Buy it- Earn it- Get it from a friend

Step 3: Use bitcoin to buy something

Into gaming? Buy a game on Steam. Buy gift cards with Gyft, food on Takeaway, or travel with Destinia.