Bitcoin
The cryptographic currency
Dave Hulbert
@dave1010
Who's heard of Bitcoin?
What is Bitcoin?
Currency
Bitcoin is a peer-to-peer payment system introduced as open source software in 2009 by developer Satoshi Nakamoto. The digital currency created and used in the system is also called bitcoin and is alternatively referred to as a virtual currency, electronic money, or cryptocurrency. The bitcoin system is not controlled by a single entity, like a central bank, which has led the US Treasury to call bitcoin a decentralized currency. Because bitcoins can be transferred directly from one person to another they are sometimes described as "digital cash". --Wikipedia
Why is it interesting?Why does it matter?
DogecoinNamecoinFreicoinLitecoin
...
Market cap $5,000,000,000.00
Use it today
Future?
What is A Bitcoin?
Market value
1BTC = $4521mBTC = $0.452
Lots of markets
A market is a place you can trade goods
Buyers and sellers agree on a price
NYSE, LSE, MtGox, Behind the bus station
Markets:
●ForEx (USD, GBP, EUR, YEN)●Gold●FCOJ (Trading places)●Virtual currencies in games●Tesco clubcard points?●Facebook likes●Bitcoin!
How is Bitcoin different?
Bitcoin is a peer-to-peer payment system introduced as open source software in 2009 by developer Satoshi Nakamoto. The digital currency created and used in the system is also called bitcoin and is alternatively referred to as a virtual currency, electronic money, or cryptocurrency. The bitcoin system is not controlled by a single entity, like a central bank, which has led the US Treasury to call bitcoin a decentralized currency. Because bitcoins can be transferred directly from one person to another they are sometimes described as "digital cash". --Wikipedia
Centralized control● Banks● Paypal
Decentralized control
● Cash● Gold
“Double spending problem”
AKA copy & paste
3 volunteers
The blockchain
Ledger
6 confirmations
Trusting the blockchain
Proof of work
Mining
What is mining?
● SHA-256 Hash (twice)
hello2cf24dba5fb0a30e26e83b2ac5b9e29e1b161e5c
1fa7425e73043362938b9824
hello3453456300000000000b0a30e26e83b2ac5b9e29e1b161e
5c1fa7425e73043362938b9824
Mining
● Gold rush● Maintaining the blockchain● Rewards built into the Bitcoin protocol
● Fees● Block reward (25BTC)
● CPU / GPU / FPGA / ASIC● Mining pools
Blockchain
● ~10 mintues (adjusted automatically)● Public transaction ledger (17GB!)● Data!● Other uses:
● prooving ownership● Timestamps (patents)● Integrity● ???
Pseudo-anonymity
Wallets
● Public address and private key (like SSH)● Talk to the P2P network (like Bittorrent)
Security
● Wallets● Exchanges● Regulation
Thanks!
Questions?
Exchange?
@dave1010
18S7CKZVhdvU4j23bwRGXXqq3iYP14TYB3