Your SlideShare is downloading. ×
0
Bitcoin meetup @Santiago de Chile
Bitcoin meetup @Santiago de Chile
Bitcoin meetup @Santiago de Chile
Bitcoin meetup @Santiago de Chile
Bitcoin meetup @Santiago de Chile
Bitcoin meetup @Santiago de Chile
Bitcoin meetup @Santiago de Chile
Bitcoin meetup @Santiago de Chile
Bitcoin meetup @Santiago de Chile
Bitcoin meetup @Santiago de Chile
Bitcoin meetup @Santiago de Chile
Bitcoin meetup @Santiago de Chile
Bitcoin meetup @Santiago de Chile
Bitcoin meetup @Santiago de Chile
Bitcoin meetup @Santiago de Chile
Bitcoin meetup @Santiago de Chile
Bitcoin meetup @Santiago de Chile
Bitcoin meetup @Santiago de Chile
Bitcoin meetup @Santiago de Chile
Bitcoin meetup @Santiago de Chile
Bitcoin meetup @Santiago de Chile
Bitcoin meetup @Santiago de Chile
Bitcoin meetup @Santiago de Chile
Bitcoin meetup @Santiago de Chile
Bitcoin meetup @Santiago de Chile
Bitcoin meetup @Santiago de Chile
Bitcoin meetup @Santiago de Chile
Bitcoin meetup @Santiago de Chile
Bitcoin meetup @Santiago de Chile
Bitcoin meetup @Santiago de Chile
Bitcoin meetup @Santiago de Chile
Bitcoin meetup @Santiago de Chile
Bitcoin meetup @Santiago de Chile
Bitcoin meetup @Santiago de Chile
Bitcoin meetup @Santiago de Chile
Bitcoin meetup @Santiago de Chile
Bitcoin meetup @Santiago de Chile
Bitcoin meetup @Santiago de Chile
Bitcoin meetup @Santiago de Chile
Bitcoin meetup @Santiago de Chile
Bitcoin meetup @Santiago de Chile
Bitcoin meetup @Santiago de Chile
Bitcoin meetup @Santiago de Chile
Bitcoin meetup @Santiago de Chile
Bitcoin meetup @Santiago de Chile
Bitcoin meetup @Santiago de Chile
Bitcoin meetup @Santiago de Chile
Bitcoin meetup @Santiago de Chile
Bitcoin meetup @Santiago de Chile
Bitcoin meetup @Santiago de Chile
Bitcoin meetup @Santiago de Chile
Bitcoin meetup @Santiago de Chile
Bitcoin meetup @Santiago de Chile
Bitcoin meetup @Santiago de Chile
Bitcoin meetup @Santiago de Chile
Bitcoin meetup @Santiago de Chile
Bitcoin meetup @Santiago de Chile
Bitcoin meetup @Santiago de Chile
Bitcoin meetup @Santiago de Chile
Bitcoin meetup @Santiago de Chile
Bitcoin meetup @Santiago de Chile
Bitcoin meetup @Santiago de Chile
Bitcoin meetup @Santiago de Chile
Bitcoin meetup @Santiago de Chile
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Bitcoin meetup @Santiago de Chile

813

Published on

Slides from the bitcoin meetup held in Santiago de Chile on 23rd May 2013.

Slides from the bitcoin meetup held in Santiago de Chile on 23rd May 2013.

Published in: Economy & Finance, Technology
0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
813
On Slideshare
0
From Embeds
0
Number of Embeds
5
Actions
Shares
0
Downloads
15
Comments
0
Likes
1
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Bitcoin Meetup23rd May, Centro Movistar InnovaSkyBulls#SUPbitcoin
  • 2. Agenda 6:00 – 6:05 Introduction Darren Camas 6:05 – 6:10 Intro to the sharing economy Dalma Berkovics 6:10 – 6:20 What is Bitcoin? Adam Stradling 6:20 – 6:30 Technology behind Bitcoin Philippe Camacho 6:30 – 6:40 Bitcoin’s financial implications Uday Bansal 6:40 – 7:00 Q&A Darren CamasBitcoin Meetup#SUPbitcoin
  • 3. By Dalma BerkovicsIntro to the Sharing Economy OuiShare Chile Connector Ex Sustainability consultant @BeCitizen, Paris HEC, Paris 2011 (Master in Management)#SUPbitcoin
  • 4. The Sharing Economya real global trend#SUPbitcoin
  • 5. You don’t want the drill, youjust want that ******* hole!#SUPbitcoin
  • 6. Fueled by the economicdownturn and P2P techWhy is it happening? Economic downturn Environmental concerns Too many stuffs Social benefitsWhat conditions needed? Peer-to-peer technologies Trust between strangers Critical massRachel Botsman- What’s mine is yours#SUPbitcoin
  • 7. OuiShareOpen community to accelerate the shift towards a morecollaborative economy+40 events in Europe since January 2012 |Latin America Tour in July 2013Collaborative onlinemagazine#SUPbitcoin
  • 8. OuiShare looks into a wide range ofconcepts of the Sharing Economy#SUPbitcoin
  • 9. About Adam StradlingWhat is Bitcoin? Co-founder and former COO of www.tradehill.com Co-founder and Advisor of www.work4ce.me – Start UpChile, gen 6.2 Founder of www.4ce.cl – Recruiting and research inbanking, finance, and technology#SUPbitcoin
  • 10. About TradehillWhat is Bitcoin? The first “professional” bitcoin company TH Gained 40k+ users in the first 90 days TH processed tens of millions in transactions in the first 90days TH was featured or mentioned in tens of global tier one newssources (like here: http://bit.ly/YkhKq8 ) TH owned www.bitcoin.com TH just re-launched on March 18th, 2013#SUPbitcoin
  • 11. Money is just data in a databaseWhat is Bitcoin? Your credit card, an encrypted number in the network One big ledger : accounting, audits, IOUs, TRUST! Trust, Trust, Trust – Increases the cost of doing business High barriers to entry in banking, finance, payments What if this “money database” were P2P? Can’t be manipulated, can’t double spend No trust - all accounting is public, open source, P2P#SUPbitcoin
  • 12. Fundamental Usage CasesWhat is Bitcoin? International value transfers: IBAN system – expensive, 3-5 days, multiple banks Other: western union, greendot, paypal – similar issues Highly fragmented global payments network Store of wealth: Volatile to the upside Deflationary currency True supply and demand pricing – i.e. no QE possible#SUPbitcoin
  • 13. Fundamental Usage CasesWhat is Bitcoin? The 2.5 billion “unbanked” (mobile, e-commerce) No TTP – In the network we trust No disputes – Did you send the money? No chargebacks – It’s digital cash Micro transactions – Can you send me a dollar? Gambling - Money in, money out, ten mins Anonymous – Privacy, privacy, privacy#SUPbitcoin
  • 14. Resources for NewcoinersWhat is Bitcoin? http://www.weusecoins.com/en/ Basic: http://www.youtube.com/watch?v=Um63OQz3bjo High level, technical:http://www.youtube.com/watch?v=Y-w7SnQWwVA www.bitcoin.org www.blockexplorer.com#SUPbitcoin
  • 15. Announcing coin4ce.comWhat is Bitcoin? Adam is Founder and CEO, coin4ce.com Philippe is Co-founder and CTO, coin4ce.com Jacob Lundberg, Partner and Biz Dev Searching for: Front and back-end developers Marketing, biz dev, support/CS Investors#SUPbitcoin
  • 16. By Philippe CamachoHow to explain Bitcointo your mother? Software Developer PhD student in Cryptology Agile coach Now Bitcoin enthusiast CTO and co-founder at coin4ce.com#SUPbitcoin
  • 17. Distributed System,Open Source, DigitalSignatures, Collision-Resistant HashFunctions, Broadcasttransactions, Merkletrees,…Very interesting…I can send bitcoin viaemail right?Me My mother#SUPbitcoin
  • 18. Maybe myexplanationwas not veryclear…#SUPbitcoin
  • 19. (Let’s do it again)What isBitcoin?#SUPbitcoin
  • 20. Bitcoin It’s like gold expect that it’s digital No central authority controls the coins Limited number of bitcoins (btc) You can keep it or transfer it You don’t have to reveal your identity#SUPbitcoin
  • 21. Hum… Looks nice,but how does it work?#SUPbitcoin
  • 22. #SUPbitcoin
  • 23. Solution 0Example: Linden Dollars#SUPbitcoin
  • 24. I control everything.#SUPbitcoin
  • 25. Fix #1Bitcoin is a distributed protocol and is open source.#SUPbitcoin
  • 26. Solution 11 BTC2 BTC1 BTC#SUPbitcoin
  • 27. Great!I can spend my bitcoins as many times as I want !(double spending)#SUPbitcoin
  • 28. Fix #2 The network shares a transaction book#SUPbitcoin
  • 29. Solution 2Origin Destination AmountHomer Lisa 1 BTCHomer Bart 2 BTCLisa Bart 1 BTC… … …The network checksthat an account isfunded beforeallowing a newtransfer.#SUPbitcoin
  • 30. As every transaction is public,the identity of user is revealed.Nobody will want to use such a system!#SUPbitcoin
  • 31. Fix #3 Replace user id by some random number.#SUPbitcoin
  • 32. Solution 3Origin Destination AmountHHY67J81 JH89HF8M 1 BTCHHY67J81 LAU4V6UU 2 BTCJH89HF8M LAU4V6UU 1 BTC… … …Note that any usercan create multipleaccounts.#SUPbitcoin
  • 33. Every account id is public, thus I can transfer moneyfrom an account that is not mine.#SUPbitcoin
  • 34. Fix #4: Digital SignaturesPrivate Key Public Key= Bart’s addressSignMessageSignature#SUPbitcoin
  • 35. SignatureFix #4: Digital SignaturesAccept /RejectVerify#SUPbitcoin
  • 36. Fix #4: Digital SignaturesNon-repudiation Unforgeability(You can’t sign in Bart’s name)#SUPbitcoin
  • 37. Solution 4Origin Destination Amount SignatureHHY67J81 JH89HF8M 1 BTC Djsh767HHY67J81 LAU4V6UU 2 BTC 8988ddJH89HF8M LAU4V6UU 1 BTC djDhd7n… … …Every bitcoin addresscorresponds to thepublic key.Message#SUPbitcoin
  • 38. I can still do very bad things…What about publishing a wrong history of transactions…#SUPbitcoin
  • 39. Things get a bit more complicated…Name: Shafi GoldwasserProfession: Computer scientist at MITSpeciality: CryptographyOther: Turing Award (march 2013)Your mother#SUPbitcoin
  • 40. FIX #5: Cryptographic Hash FunctionsH011100011100011101000101010001001000110101010010110011001111000111001000010100010111011011010110100111Huge inputFixed sized output(e.g. 256 bits)#SUPbitcoin
  • 41. FIX #5: Cryptographic Hash Functions Security properties One-way Given the output y it’s hardto compute some input xsuch that H(x) = y Collision-Resistant It’s hard to find two differentvalues x,x’ such thatH(x)=H(x’)#SUPbitcoin
  • 42. Solution 5HH HTx1;Tx2;Tx3…Initial value ofthe chain:coinbaseTx34;Tx35;Tx36…Tx54;Tx55;Tx56…Block oftransactionsBlock chain…#SUPbitcoin
  • 43. Who computes the next block?#SUPbitcoin
  • 44. Proof of work0000000001000100001100100001010011000111010000100101010010110110001101011100111110000100011001010011101001010110110101111100011001110101101111100111011111011111H1001101|| x 000||10Find the nonce x suchthat the output startswith 3 zeros.(*) If you find a better way you may (1) get rich, (2) become famous (Turing award), or (3) both.#SUPbitcoin
  • 45. Solution 5 The first node that manages tosolve the computational puzzle(nonce) wins the block. The network extends the chainfrom the newly computed block. The network always chooses thelargest chain.Damned!I need to control 51%of the network….#SUPbitcoin
  • 46. Nice in theory but why wouldpeople waste their CPU cycles?#SUPbitcoin
  • 47.  The winner of a block is rewarded 25 BTCby the network(BTW, this is how bitcoins are created). This process is called mining.#SUPbitcoin
  • 48. 1 0-#SUPbitcoin
  • 49. By Uday BansalBitcoin’s financial implications Founder and CEO – SkyBulls Certified Derivatives Trader (NSE India) Ex strategy consultant @KPMG Previous clients – Goldman Sachs, JP Morgan, BP,Samsung, Thyssen Krupp, Thomas Cook and others London Business School 2010#SUPbitcoin
  • 50. History of money#SUPbitcoin
  • 51. History of money#SUPbitcoin
  • 52. History of money#SUPbitcoin
  • 53. History of money#SUPbitcoin
  • 54. Fiat money Money creation Fractional Reserve Banking Expansionary monetary policy M0, M1, M2, M3 Government debt Inflation#SUPbitcoin
  • 55. Fiat money#SUPbitcoin
  • 56. Fiat money#SUPbitcoin
  • 57. Bitcoin === Digital gold No central authority Based on mistrust Not a fiat currency Mined --> limited supply#SUPbitcoin
  • 58. Failure of fiat currency No central authority “Let it be” Government debt Failure of a country’s economy Devaluation#SUPbitcoin
  • 59. Failure of fiat currency1 USD equivalentApr 1919: 12 MarksDec 1923: 4.2t Marks#SUPbitcoin
  • 60. Failure of fiat currencyBy late 2008Inflation = 79.6m %$US 1 = $Z 2.6t#SUPbitcoin
  • 61. Failure of fiat currencyMore recent failures Cyprus Freezing bank accounts Argentina Default on debt Inflation of US dollar#SUPbitcoin
  • 62. Is Bitcoin safe?#SUPbitcoin
  • 63. Is Bitcoin better?YES! Non-fiat currency Supply – demand No hyperinflation Low transaction feeNO! Govt. interference. No tax Speculative value Deflation Can’t outsource saving Not traceable#SUPbitcoin
  • 64. Q&A#SUPbitcoin

×