Introduction to Bitcoin

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Introduction to Bitcoin

  1. 1. BitCoin An overview
  2. 2. Why ?
  3. 3. First crypto-currency
  4. 4. Basics – Public key cryptography
  5. 5. How BitCoin ecosystem works ?
  6. 6. A wallet to start off
  7. 7. BitCoin transaction
  8. 8. The new Gold Rush
  9. 9. Genesis Block
  10. 10. Mining Details • Hash strings beginning with 0’s • Mining program is open source! • Generate a new block by taking an existing block, set of transactions and a nonce • Current target hash – less or equal is accepted • Difficulty – set by the network • Transaction fees to incentivize new block gen. • Become part of a pool
  11. 11. THE Network • • • • • • BitCoin network – one and only Decentralized and open to all Low transaction fees Constant bitcoin generation (10 min / block) 100 petaFLOPs Irrevocable transactions
  12. 12. Advantages • • • • • • • Almost 0 processing fee – across the world No need of a bank account ! Equal chance of mining Anyone can create an exchange Anonymity Businesses accept bitcoins (wordpress, baidu, reddit, etc..) Financial Control – no one can question
  13. 13. Wait.. But..
  14. 14. Concerns • BitCoin is anti-inflationary • No central authority – double edged sword • Hacker prone – tough to be exceed 30 trillion calculations per second and 100 petaFLOPs – but possible • Regulatory uncertainty • Secure your wallets – digitally! • Volatile exchange prices
  15. 15. Predictions.. • Present day disruptions thanks to P2P systems – Telephone ---> VOIP (skype / hangout) – SMS – almost obsolete – File transfers / music players – Mail (post boxes as antiques ? ) • Banks – do we really need them ? • Decentralized and global financial system – Money over Internet !
  16. 16. Opportunities • A new way to transact – Irrevocable transactions (adv : E-Comm sites) • Innovative applications – money reaches where banks can’t reach • World-wide system – Forex (what’s that ?) • Optimizing face-to-face transactions – cannot replace credit cards. Minimum 10 mins to confirm
  17. 17. Thank You

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