A brief introduction to the world of bitcoin and it's underlying technology - blockchain. How do you come from the concept of digital currency to bitcoin to blockchain to a custom investment exchange platform - marketics? How to create your own cryptocurrency?

1. onwhy
BITCOINandFRIENDS
likeBlockchain
Grzegorz Gawron
Arini Labs
marketics at arini.biz

2. agenda
motivation - work on marketics
digital cash short history
bitcoin overview
blockchain technology - the basis
build your own cryptocurrency
* Marketics

3. MOTIVATION
investor
MARKETICS
investment
exchange
platform
investment
provider
transaction
PROOF

4. DigitalCash
ShortHistory

5. transactions
cash
anonymity
offline transactions
credit
ledger
credit-risk
barter

6. digitalcashrepresentingfiatcurrency
● double-spending, so cash-spent ledgers, then
● anonymity lost, so ‘blind signatures’, then
○ Chaum 1983 (voter and ballot example)
● online only, so don’t prevent double-spending, detect it
■ Chaum et al. 1988: detect double spending, not prevent it
● 1989: Chaum’s DigiCash
○ failure, merchants weren’t keen,
■ additional communication for the receiver, so b2c only

7. digitalcashonitsown
● bitcoin
○ no double spending + anonymity/ownership + security/value
...

8. Bitcoin-overview

9. Bitcoin...
first decentralised crypto-currency
no trusted intermediaries required (eg banks)

10. bitcointimeline
● 2007 - coding started
● 2008 - bitcoin.org registered
● 2010 - Satoshi still anonymous goes offline
○ cyberpunk anonymity
○ AML/patent legal issues
○ personal security
● 2010 may - pizza bought for 10000 BTC
● 2013 apr - Mt Gox handles 70% of BTC world trade
● 2013 may - Mt Gox goes down
● 2013 oct - Silk Road taken down
● 2014 jan - 1 BTC = 1000 USD

11. ...andfriends
litecoin - few changes to bitcoin (scrypt vs SHA-256, speed)
dogecoin - for fun
ripple - any asset, no POW
ethereum - smart contract focus

12. marketcapchart
name market cap mln USD
bitcoin 6831
ripple 202
litecoin 156
ethereum 72
dash 20
dogecoin 14
* 7/1/2015 (coinmarketcap.com); < 10 mln USD ignored

13. bitcoinpricehistorychart
May 2010
pizza
10k BTC
* 7/1/2015 (coinmarketcap.com)

14. Howitrolls
miner exchange
buyer seller

15. BlockChaintechnology-
theBasis

16. Thecommonunderlyingtech
A block chain or blockchain is a permissionless distributed
database based on the bitcoin protocol that maintains a
continuously growing list of transactional data records
hardened against tampering and revision, even by operators
of the data store's nodes.
* 7/1/2015 wikipedia

17. digitalcashonitsown(cont)
● bitcoin
○ no double spending + anonymity/ownership + security/value
● hash timestamped ledger
○ prove relative ordering
○ prevent double-spending
● digital signatures
○ ‘anonymously prove’ ownership
● POW
○ enables limited resource thus giving value
○ ensures security
■ eg fighting spam

18. blockchaindiagram
* 7/1/2015 https://21.co/learn/bitcoin-mining/#the-merkle-root

19. transactions
* Bitcoin: A Peer-to-Peer Electronic Cash System, Satoshi Nakamoto

20. transaction:combine/split
* Bitcoin: A Peer-to-Peer Electronic Cash System, Satoshi Nakamoto

21. buildyourowncrypto-currency?

22. cryptoNote-yourowncryptocurrency‘in10minutes’
steps
● clone sources
● add your configuration
● ‘mine’ genesis block
● create client
● distribute
...and mine like there’s no tomorrow till
everyone joins

23. References
- Bitcoin: A Peer-to-Peer Electronic Cash System, Satoshi
Nakamoto
https://bitcoin.org/bitcoin.pdf
- Princeton University:
‘Bitcoin and cryptocurrency technologies’
https://www.coursera.org/course/bitcointech
- http://coinmarketcap.com
- https://21.co/learn/#reference-21-bitcoin-org
- https://cryptonotestarter.org/
- last but not least: wiki*edia

24. ThankYou
Grzegorz Gawron
Arini Labs
marketics at arini.biz