2. Bitcoin
Double spending problem
Transactions
Conclusion
Index
1 Bitcoin
What is Bitcoin?
Why is it Important?
Why does it have value?
2 Double spending problem
Double spending problem
How bitcoin solves this problem
3 Transactions
How does it work?
How to buy Bitcoins?
Earning profit using Bitcoins
4 Conclusion
Tejas Shembalkar Bitcoin
3. Bitcoin
Double spending problem
Transactions
Conclusion
What is Bitcoin?
Why is it Important?
Why does it have value?
Outline
1 Bitcoin
What is Bitcoin?
Why is it Important?
Why does it have value?
2 Double spending problem
Double spending problem
How bitcoin solves this problem
3 Transactions
How does it work?
How to buy Bitcoins?
Earning profit using Bitcoins
4 Conclusion
Tejas Shembalkar Bitcoin
4. Bitcoin
Double spending problem
Transactions
Conclusion
What is Bitcoin?
Why is it Important?
Why does it have value?
What is Bitcoin?
A decentralized digital currency like virtual cash or gold
No bank or government prerequisites or control
Notations: BTC, XBT, ฿
Tejas Shembalkar Bitcoin
5. Bitcoin
Double spending problem
Transactions
Conclusion
What is Bitcoin?
Why is it Important?
Why does it have value?
What is Bitcoin?
A decentralized digital currency like virtual cash or gold
No bank or government prerequisites or control
Notations: BTC, XBT, ฿
Tejas Shembalkar Bitcoin
6. Bitcoin
Double spending problem
Transactions
Conclusion
What is Bitcoin?
Why is it Important?
Why does it have value?
What is Bitcoin?
A decentralized digital currency like virtual cash or gold
No bank or government prerequisites or control
Notations: BTC, XBT, ฿
Tejas Shembalkar Bitcoin
7. Bitcoin
Double spending problem
Transactions
Conclusion
What is Bitcoin?
Why is it Important?
Why does it have value?
What is Bitcoin?
Peer to peer network
First Bitcoin issued in 2009 -Satoshi Nakamoto
No requirement of third party intermediary
Tejas Shembalkar Bitcoin
8. Bitcoin
Double spending problem
Transactions
Conclusion
What is Bitcoin?
Why is it Important?
Why does it have value?
What is Bitcoin?
Peer to peer network
First Bitcoin issued in 2009 -Satoshi Nakamoto
No requirement of third party intermediary
Tejas Shembalkar Bitcoin
9. Bitcoin
Double spending problem
Transactions
Conclusion
What is Bitcoin?
Why is it Important?
Why does it have value?
What is Bitcoin?
Peer to peer network
First Bitcoin issued in 2009 -Satoshi Nakamoto
No requirement of third party intermediary
Tejas Shembalkar Bitcoin
10. Bitcoin
Double spending problem
Transactions
Conclusion
What is Bitcoin?
Why is it Important?
Why does it have value?
What is Bitcoin?
Limited to 21 million Bitcoins -X amount released every 10
minutes -until 2140
Divisible to .00000001
Very difficult and expensive to hack
Controlled by consensus of market participants
Tejas Shembalkar Bitcoin
11. Bitcoin
Double spending problem
Transactions
Conclusion
What is Bitcoin?
Why is it Important?
Why does it have value?
What is Bitcoin?
Limited to 21 million Bitcoins -X amount released every 10
minutes -until 2140
Divisible to .00000001
Very difficult and expensive to hack
Controlled by consensus of market participants
Tejas Shembalkar Bitcoin
12. Bitcoin
Double spending problem
Transactions
Conclusion
What is Bitcoin?
Why is it Important?
Why does it have value?
What is Bitcoin?
Limited to 21 million Bitcoins -X amount released every 10
minutes -until 2140
Divisible to .00000001
Very difficult and expensive to hack
Controlled by consensus of market participants
Tejas Shembalkar Bitcoin
13. Bitcoin
Double spending problem
Transactions
Conclusion
What is Bitcoin?
Why is it Important?
Why does it have value?
What is Bitcoin?
Limited to 21 million Bitcoins -X amount released every 10
minutes -until 2140
Divisible to .00000001
Very difficult and expensive to hack
Controlled by consensus of market participants
Tejas Shembalkar Bitcoin
14. Bitcoin
Double spending problem
Transactions
Conclusion
What is Bitcoin?
Why is it Important?
Why does it have value?
What is Bitcoin?
Limited to 21 million Bitcoins -X amount released every 10
minutes -until 2140
Divisible to .00000001
Very difficult and expensive to hack
Controlled by consensus of market participants
Tejas Shembalkar Bitcoin
15. Bitcoin
Double spending problem
Transactions
Conclusion
What is Bitcoin?
Why is it Important?
Why does it have value?
Outline
1 Bitcoin
What is Bitcoin?
Why is it Important?
Why does it have value?
2 Double spending problem
Double spending problem
How bitcoin solves this problem
3 Transactions
How does it work?
How to buy Bitcoins?
Earning profit using Bitcoins
4 Conclusion
Tejas Shembalkar Bitcoin
16. Bitcoin
Double spending problem
Transactions
Conclusion
What is Bitcoin?
Why is it Important?
Why does it have value?
Why is it important?
People don’t have access to banking services
Flat currencies getting inflated by printing money
Cross currency transfers are expensive
Tejas Shembalkar Bitcoin
17. Bitcoin
Double spending problem
Transactions
Conclusion
What is Bitcoin?
Why is it Important?
Why does it have value?
Why is it important?
People don’t have access to banking services
Flat currencies getting inflated by printing money
Cross currency transfers are expensive
Tejas Shembalkar Bitcoin
18. Bitcoin
Double spending problem
Transactions
Conclusion
What is Bitcoin?
Why is it Important?
Why does it have value?
Why is it important?
People don’t have access to banking services
Flat currencies getting inflated by printing money
Cross currency transfers are expensive
Tejas Shembalkar Bitcoin
19. Bitcoin
Double spending problem
Transactions
Conclusion
What is Bitcoin?
Why is it Important?
Why does it have value?
Outline
1 Bitcoin
What is Bitcoin?
Why is it Important?
Why does it have value?
2 Double spending problem
Double spending problem
How bitcoin solves this problem
3 Transactions
How does it work?
How to buy Bitcoins?
Earning profit using Bitcoins
4 Conclusion
Tejas Shembalkar Bitcoin
20. Bitcoin
Double spending problem
Transactions
Conclusion
What is Bitcoin?
Why is it Important?
Why does it have value?
Why does it have value?
Limited/Scarce
Decentralized
Peer-to-peer
Can be anonymous
Transparent
Easy to buy and sell
Very low transaction fees
Tejas Shembalkar Bitcoin
21. Bitcoin
Double spending problem
Transactions
Conclusion
What is Bitcoin?
Why is it Important?
Why does it have value?
Why does it have value?
Limited/Scarce
Decentralized
Peer-to-peer
Can be anonymous
Transparent
Easy to buy and sell
Very low transaction fees
Tejas Shembalkar Bitcoin
22. Bitcoin
Double spending problem
Transactions
Conclusion
What is Bitcoin?
Why is it Important?
Why does it have value?
Why does it have value?
Limited/Scarce
Decentralized
Peer-to-peer
Can be anonymous
Transparent
Easy to buy and sell
Very low transaction fees
Tejas Shembalkar Bitcoin
23. Bitcoin
Double spending problem
Transactions
Conclusion
What is Bitcoin?
Why is it Important?
Why does it have value?
Why does it have value?
Limited/Scarce
Decentralized
Peer-to-peer
Can be anonymous
Transparent
Easy to buy and sell
Very low transaction fees
Tejas Shembalkar Bitcoin
24. Bitcoin
Double spending problem
Transactions
Conclusion
What is Bitcoin?
Why is it Important?
Why does it have value?
Why does it have value?
Limited/Scarce
Decentralized
Peer-to-peer
Can be anonymous
Transparent
Easy to buy and sell
Very low transaction fees
Tejas Shembalkar Bitcoin
25. Bitcoin
Double spending problem
Transactions
Conclusion
What is Bitcoin?
Why is it Important?
Why does it have value?
Why does it have value?
Limited/Scarce
Decentralized
Peer-to-peer
Can be anonymous
Transparent
Easy to buy and sell
Very low transaction fees
Tejas Shembalkar Bitcoin
26. Bitcoin
Double spending problem
Transactions
Conclusion
What is Bitcoin?
Why is it Important?
Why does it have value?
Why does it have value?
Limited/Scarce
Decentralized
Peer-to-peer
Can be anonymous
Transparent
Easy to buy and sell
Very low transaction fees
Tejas Shembalkar Bitcoin
27. Bitcoin
Double spending problem
Transactions
Conclusion
Double spending problem
How bitcoin solves this problem
Outline
1 Bitcoin
What is Bitcoin?
Why is it Important?
Why does it have value?
2 Double spending problem
Double spending problem
How bitcoin solves this problem
3 Transactions
How does it work?
How to buy Bitcoins?
Earning profit using Bitcoins
4 Conclusion
Tejas Shembalkar Bitcoin
28. Bitcoin
Double spending problem
Transactions
Conclusion
Double spending problem
How bitcoin solves this problem
Double spending problem
Without a third party, digital money could be spent twice
Digital cash-simply a computer file
Same file can be sent to Charlie
Tejas Shembalkar Bitcoin
29. Bitcoin
Double spending problem
Transactions
Conclusion
Double spending problem
How bitcoin solves this problem
Outline
1 Bitcoin
What is Bitcoin?
Why is it Important?
Why does it have value?
2 Double spending problem
Double spending problem
How bitcoin solves this problem
3 Transactions
How does it work?
How to buy Bitcoins?
Earning profit using Bitcoins
4 Conclusion
Tejas Shembalkar Bitcoin
30. Bitcoin
Double spending problem
Transactions
Conclusion
Double spending problem
How bitcoin solves this problem
How does it solve this problem
Distribute the necessary ledger among all the users of the
system.
Every transaction is registered in a public, distributed ledger,
which is called the block chain.
New transactions checked against the block chain.
Ensure that the same bitcoins haven’t been previously spent
Tejas Shembalkar Bitcoin
31. Bitcoin
Double spending problem
Transactions
Conclusion
Double spending problem
How bitcoin solves this problem
How does it solve this problem
Distribute the necessary ledger among all the users of the
system.
Every transaction is registered in a public, distributed ledger,
which is called the block chain.
New transactions checked against the block chain.
Ensure that the same bitcoins haven’t been previously spent
Tejas Shembalkar Bitcoin
32. Bitcoin
Double spending problem
Transactions
Conclusion
Double spending problem
How bitcoin solves this problem
How does it solve this problem
Distribute the necessary ledger among all the users of the
system.
Every transaction is registered in a public, distributed ledger,
which is called the block chain.
New transactions checked against the block chain.
Ensure that the same bitcoins haven’t been previously spent
Tejas Shembalkar Bitcoin
33. Bitcoin
Double spending problem
Transactions
Conclusion
Double spending problem
How bitcoin solves this problem
How does it solve this problem
Distribute the necessary ledger among all the users of the
system.
Every transaction is registered in a public, distributed ledger,
which is called the block chain.
New transactions checked against the block chain.
Ensure that the same bitcoins haven’t been previously spent
Tejas Shembalkar Bitcoin
34. Bitcoin
Double spending problem
Transactions
Conclusion
How does it work?
How to buy Bitcoins?
Earning profit using Bitcoins
Outline
1 Bitcoin
What is Bitcoin?
Why is it Important?
Why does it have value?
2 Double spending problem
Double spending problem
How bitcoin solves this problem
3 Transactions
How does it work?
How to buy Bitcoins?
Earning profit using Bitcoins
4 Conclusion
Tejas Shembalkar Bitcoin
35. Bitcoin
Double spending problem
Transactions
Conclusion
How does it work?
How to buy Bitcoins?
Earning profit using Bitcoins
How does it work?
Money-deposited into a bank account
Bitcoin-stored in public ledger
Sending/receiving BTC as easy as sending an email
Coins stored in wallets
Tejas Shembalkar Bitcoin
36. Bitcoin
Double spending problem
Transactions
Conclusion
How does it work?
How to buy Bitcoins?
Earning profit using Bitcoins
How does it work?
Money-deposited into a bank account
Bitcoin-stored in public ledger
Sending/receiving BTC as easy as sending an email
Coins stored in wallets
Tejas Shembalkar Bitcoin
37. Bitcoin
Double spending problem
Transactions
Conclusion
How does it work?
How to buy Bitcoins?
Earning profit using Bitcoins
How does it work?
Money-deposited into a bank account
Bitcoin-stored in public ledger
Sending/receiving BTC as easy as sending an email
Coins stored in wallets
Tejas Shembalkar Bitcoin
38. Bitcoin
Double spending problem
Transactions
Conclusion
How does it work?
How to buy Bitcoins?
Earning profit using Bitcoins
How does it work?
Money-deposited into a bank account
Bitcoin-stored in public ledger
Sending/receiving BTC as easy as sending an email
Coins stored in wallets
Tejas Shembalkar Bitcoin
39. Bitcoin
Double spending problem
Transactions
Conclusion
How does it work?
How to buy Bitcoins?
Earning profit using Bitcoins
How does it work?
Each user is assigned two keys
1 Public Key- Account no / Address 27-34 alphanumeric
characters
2 Private Key- Password to access bitcoins in the account.
Public Key example 12kj2F35MB09Ida453reTYU6i730v
Tejas Shembalkar Bitcoin
42. Bitcoin
Double spending problem
Transactions
Conclusion
How does it work?
How to buy Bitcoins?
Earning profit using Bitcoins
Outline
1 Bitcoin
What is Bitcoin?
Why is it Important?
Why does it have value?
2 Double spending problem
Double spending problem
How bitcoin solves this problem
3 Transactions
How does it work?
How to buy Bitcoins?
Earning profit using Bitcoins
4 Conclusion
Tejas Shembalkar Bitcoin
45. Bitcoin
Double spending problem
Transactions
Conclusion
How does it work?
How to buy Bitcoins?
Earning profit using Bitcoins
Outline
1 Bitcoin
What is Bitcoin?
Why is it Important?
Why does it have value?
2 Double spending problem
Double spending problem
How bitcoin solves this problem
3 Transactions
How does it work?
How to buy Bitcoins?
Earning profit using Bitcoins
4 Conclusion
Tejas Shembalkar Bitcoin
46. Bitcoin
Double spending problem
Transactions
Conclusion
How does it work?
How to buy Bitcoins?
Earning profit using Bitcoins
Earning profit using Bitcoins
1 Mine, then sell
2 Invest or trade
3 Offer discounts in products /services for payment in BTC
Tejas Shembalkar Bitcoin
47. Bitcoin
Double spending problem
Transactions
Conclusion
How does it work?
How to buy Bitcoins?
Earning profit using Bitcoins
Earning profit using Bitcoins
1 Mine, then sell
2 Invest or trade
3 Offer discounts in products /services for payment in BTC
Tejas Shembalkar Bitcoin
48. Bitcoin
Double spending problem
Transactions
Conclusion
How does it work?
How to buy Bitcoins?
Earning profit using Bitcoins
Earning profit using Bitcoins
1 Mine, then sell
2 Invest or trade
3 Offer discounts in products /services for payment in BTC
Tejas Shembalkar Bitcoin
51. Bitcoin
Double spending problem
Transactions
Conclusion
Conclusion
Undoubtedly Bitcoin has changed the way transactions occur, now
even the currency is virtual. There are many challenges that still
remain unanswered, since bitcoin is not regulated by any bank, so
in case you lose your computer or format your hard drive then all
your bitcoins just vanish. Since no bank regulation is applied on the
transactions, we still need a way to make it work in such a way that
there are regulated transactions and no illegal activities such as Silk
Road happen again.
Tejas Shembalkar Bitcoin
