Bitcoins Jasur Hasanov

transcript

Bitcoins24 March 2014

Prepared by: Jasur Hasanov

Prepared for:

Dr. Noor Mohamed

Who designed the concept of Bitcoin?

As an idea described by Wei Dai in 1998

The first Bitcoin specification and proof of concept was

published in 2009 by Satoshi Nakamoto

What is Bitcoin?

Currency without notes and coins, a digital currency

Decentralized digital Crypto-Currency

P2P currency system

No Central authority

Decentralized and centralized architectures

Peer-to-peer currency system (P2P)

A peer-to-peer (P2P) network in which interconnected

nodes ("peers") share resources amongst each other without

the use of a centralized administrative system.

The only requirements for a computer to join a P2P network are an

Internet connection and P2P software such as Kazaa, Limewire,

BearShare, Morpheus.

A network based on the client-server model, where

individual clients request services and resources from

centralized servers.

No central authority

Bitcoins transaction

Rely on proof instead of trust

Current online transactions rely on a trusted party (e.g, VISA)

However, bitcoins technology is proved itself in term of security

Conventional method

No central authority cont’

Number of Bitcoins in circulation 12 million (March 2014)

https://blockchain.info/charts/total-bitcoins

Total number of BitCoins generated cannot exceed 21 million

Average price of a Bitcoin :

1 BTC = 570.28 USD (23 March 2014)

Price is very unstable

30 Transactions per min. (Visa transaction 200,000 per minute.)

Size of the Bitcoin Economy

Bitcoin world map

https://blockchain.info/nodes-globe

How to create bitcoins?

Anybody can become a Bitcoin miner by running software with specialized hardware.

Miner performs appropriate tasks to process and confirm transactions in the network.

Earn transaction fees paid by users for faster transaction processing

Bitcoin Miners

Special Supercomputers or workstations (Miners)

Solving mathematical equation of bitcoin transaction GPU: Radeon HD 6990 about 700 MH/s

Bitcoin wallet

Lets test with android bitcoin app

Here is my private key:

1AVULL3v9jXc65mCaqPuiKJdi6tw5qw8q6

Bitcoin ATM

Not many but number of ATMs increases

Where to spend?

Sellers tend to accept bitcoins because of no central

authority in transaction enables them to have better

control over their product prices

Where to spend in Malaysia?

In KL around 5 shops accept bitcoins

Can be printed on paper and used

QR code scanning system is high-speed

https://www.bctip.org/

Thank you

Bitcoins Jasur Hasanov

Documents