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Bitcoin secrets unleashed


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Secrets and insights of Bitcoin currency and trading. In this tutorial, you will learn all about BitCoin and other cryptocurrencies. This slide will also explain you about the links between Ransomware and Bitcoin.

Published in: Technology

Bitcoin secrets unleashed

  1. 1. 15/24/2017
  2. 2. Disclaimer: This tutorial is of 100 slides and NOT meant to educate the user for BitCoin trading. I am not an expert in trading and do not advice Bitcoin trading. If you want to do trading in Bitcoin, do it at your own risk. I sometimes feel that these Cryptocurrencies are world’s biggest scam. If the government does not legalize it, then very soon it will become a threat to all Governments. At least government should start using the technology and start issuing their own cryptocurrencies and these cryptocurrencies should have the facility to talk to each other. About Me: You can know all about me at: 25/24/2017
  3. 3. BitCoin In this tutorial, we will learn many things about BitCoin which you always wanted to know, but had no time to log on to the Internet and browse through more than 500 pages to learn all about BitCoin. I have taken that pain for you and tried to compile that information in this Tutorial. 35/24/2017
  4. 4. No, BitCoin does not look like this and it does not come in Metallic form, this is just a picture downloaded from the Internet!. 45/24/2017
  5. 5. BitCoin is highly secured. 55/24/2017
  6. 6. What is BitCoin? Before we start understanding about BitCoin, we need to understand Digital Currency and Cryptocurrency. Digital currency or digital money is distinct from physical (such as banknotes and coins) that exhibits properties similar to physical currencies but allows for instantaneous transactions and borderless transfer-of- ownership. Examples include virtual currencies and cryptocurrencies, among others. A cryptocurrency is a digital asset designed to work as a medium of exchange using cryptography to secure the transactions and to control the creation of additional units. There are more than 800 Cryptocurrencies available as of 21-May-2017. BitCoin is one of them which has become very popular. BitCoin is the first decentralized cryptocurrency, created in 3-Jan-2009 by Satoshi Nakamoto. It uses SHA-256, a cryptographic hash function, as its proof-of-work PoW. One Bitcoin can be further subdivided into Satoshi and there is 10 crores (10^8, 100 Million) Satoshi in one BitCoin. BITCOIN (B) is a protocol which runs BitCoin Network. Currency is called bitcoins(b). 65/24/2017
  7. 7. Analogy of BitCoin with Government Currency? 1. In olden days, there were no Governments and no paper currency. 2. People used to buy and sell products using Barter System. 3. People had lots of trust on each other and hence no Guarantee was required. 4. When governments were formed, politics came into existence and they started printing paper currency and took all the gold from citizens assuring them the Guarantee. 5. This was the biggest Scam and we all came under Government Control. 6. Of-late people felt of having currencies which should not be in control of anybody. 7. Hence, they were in search of Neutral Body who can take the Guarantee and they found that COMPUTER can be the neutral body with the help of blockchain technology and BitCoin was born. 8. In this technology, you can create your own Currency, but it will have zero value unless you recharge it with the help of Mining or get it recharged by someone whose Bitcoin has value. 9. Whenever there is a transaction in Bitcoin, millions of computers come together to update the public ledger and by doing this, these computers get rewarded with BitCoins. 75/24/2017
  8. 8. Why BitCoin is in news these days? Since WannaCry ransomware attack which happened on 12-May-2017, in 10 days the price of BitCoin has increased from $1,695.79 (12-May-2017) $2,044.22 (21-May-2017). 85/24/2017
  9. 9. How does Ransomware look like? 95/24/2017
  10. 10. Ransomware attack Map? 105/24/2017
  11. 11. Do we need a Bank Account to have BitCoin? Yes and No 1. If you know someone who has a BitCoin, then you can purchase directly from him. 2. If you have a powerful computer, then you can Mine your own BitCoin. 3. If you do not have any of these, then you can buy online. Some sites allow anonymous buying and some wants that the buyer should have Bank Account and do the KYC. 115/24/2017
  12. 12. Is BitCoin similar to PayTM or other Wallets? Yes and No 1. No, it is not similar to PayTM. However, if you have your BitCoins stored in Wallet, then it somewhat similar to PayTM. 125/24/2017
  13. 13. Is BitCoin similar to Shares? Yes and No 1. No, it is not similar to shares, because it is not owned by Company. However, nowadays it is getting traded like shares in Private Exchanges or directly. 2. In normal shares, you buy them from a company who is actually doing business and if something happens, it is controlled by Government Agencies. 135/24/2017
  14. 14. Is BitCoin similar to real currency Yes and No 1. Yes, it is similar to real currency. Jeetna note Government ney nahi chaapa, utna in computerone chaapa hain. 2. However, it is not backed up by Government. Recently some countries have started recognizing it, but not all governments are recognizing. 3. Real currencies are recognised by all Government. 145/24/2017
  15. 15. Can BitCoin be stolen? Yes 1. Yes, it can be stolen. If you have printed your BitCoin and kept it in your drawer and someone steals that, then it is gone; unless you have a copy with you and you immediately transfer to some other BitCoin Address. 155/24/2017
  16. 16. Can BitCoin be Hacked? Yes and No 1. Yes, it can be hacked if you have stored your BitCoin in Online Wallet and that Wallet gets hacked. But, as a technology, it cannot be hacked. 165/24/2017
  17. 17. Can BitCoin be Forged / Counterfeited? IMPOSSIBLE 1. No, it cannot be forged or counterfeited. You cannot create duplicate BitCoins with the help of any Technology in the world. 175/24/2017
  18. 18. Who invented BitCoin? Satoshi Nakamoto is the name used by the unknown person or persons who designed bitcoin and created its original reference implementation. As a part of the implementation, he also devised the first blockchain database. In the process, he was the first to solve the double spending problem for the digital currency. He was active in the development of bitcoin up until December 2010. was registered on August 18th 2008, the registrant actually used a Japanese anonymous registration service, and hosted it using a Japanese ISP. The registration for the site was only transferred to Finland on May 18th 2011. 185/24/2017
  19. 19. Who is Satoshi Nakamoto? Nakamoto has claimed to be a man living in Japan, born on 5 April 1975. However, speculation about the true identity of Nakamoto has mostly focused on a number of cryptography and computer science experts of non-Japanese descent, living in the United States and Europe. As of 2 February 2017, Nakamoto is believed to own up to roughly one million bitcoins, with a value estimated at over US$1.9 billion. 195/24/2017
  20. 20. What do you mean by Satoshi Nako moto? “Satoshi” means "clear thinking, quick witted; wise". “Naka” can mean “medium, inside, or relationship”. “Moto” can mean “origin”, or “foundation” 205/24/2017
  21. 21. Who owns BitCoin? The general concept of currency and money is that a bank controls and owns the Currency. Bitcoin defies all of these. It is, in fact, not controlled and owned by any single body/org/government. 215/24/2017
  22. 22. How BitCoin Looks like? BitCoin Address (Public Key) BitCoin Private Key 1EHNa6Q4Jz2uvNExL497mE43ikXhwF6kZm 5HpHagT65TZzG1PH3CSu63k8DbpvD8s5ip4nEB3kEsreAnchuDf Starting with 1 or 3 and it is 34 Characters Private Key starting with 5, 51 Characters (256 bit) 225/24/2017
  23. 23. What is the actual value of BitCoin? If you look at any currency, you know that it is simply a piece of paper with a number on it and some fancy pictures saying that it is “worth” 100 INR or $1 and so on. It, in fact, only has value because we say it does. Bitcoins are the same way. Those little digital pieces of code are only worth money because people say they are and want to trade real goods/services for them. The more popular bitcoin gets, the more value is going to be placed on each individual bitcoin 235/24/2017
  24. 24. How to get BitCoin? There are multiple ways to get Bitcoin:- 1. Mining 2. Buy from the Internet 3. Buy from direct seller 4. We can buy/transfer Bitcoin using Bluetooth, NFC, Sweeping QR Code or even noting it in a piece of paper. However, always make sure to update it online so that it reflects in public ledger. Or else, there is a huge chance of getting it used by the Bitcoin seller. 245/24/2017
  25. 25. How to send and receive BitCoin? You need to have a BitCoin Address(Public Key) with a private Key. You can give your public key to the sender and ask him to transfer funds in that. You can do this even without going online and have a Wallet. The only thing what you need is BitCoin Address(Public Key) with a private Key. 255/24/2017
  26. 26. How to send and receive BitCoin using Wallet? If you have online Wallet, it becomes easy to send and receive bitcoins. Your wallet automatically creates new bitcoin addresses as it needs them. You can optionally import an existing address and transfer the funds to your wallet if you have the corresponding Private Key. This is an advanced functionality and only suggested for advanced users. You can only access these funds if you have the private key stored elsewhere. If you do not have a paper wallet or other backup you should not instruct anyone to send you coins to this address. 265/24/2017
  27. 27. What happens if you loose the BitCoin Wallet?: Losing a wallet means those bitcoins are lost forever. While the bitcoins in the wallet may still be in existence because they were recorded on the block chain, they are no longer able to be spent because the wallet is lost. These bitcoins have unique keys to them and so if they’re lost with a wallet, then they are essentially removed from circulation forever. However, if you have printed the Printed them or kept it somewhere, then you can reuse them. You can also try to recover it with the help of Recovery method provided by Wallet provider. 275/24/2017
  28. 28. You can also send and receive BitCoin using Software 285/24/2017
  29. 29. Where to keep BitCoin? Mobile Phone Wallet Web Wallet Desktop Software Hardware Paper Brain 295/24/2017
  30. 30. You can keep BitCoins in Mobile Phone Wallet 305/24/2017
  31. 31. You can keep BitCoins in Website Wallet 315/24/2017
  32. 32. You can keep BitCoins in Desktop Software 325/24/2017
  33. 33. You can use special Hardware to store BitCoin 335/24/2017
  34. 34. You can print and keep the BitCoins 345/24/2017
  35. 35. You can also memorize your BitCoin 355/24/2017
  36. 36. How many BitCoins can be Mined/Created? 12.5 bitcoins per block (approximately every ten minutes) until mid 2020, and then afterwards 6.25 bitcoins per block for 4 years until next halving. This halving continues until 2140, when 21 million bitcoins will have been issued. Note: You can have more than 21M BitCoin address, but not BTC. 365/24/2017
  37. 37. How BitCoin works? Bitcoin uses public-key cryptography, peer-to-peer networking, and proof-of-work to process and verify payments. Bitcoins are sent (or signed over) from one address to another with each user potentially having many, many addresses. Each payment-transaction is broadcasted to the network and included in the blockchain so that the included bitcoins cannot be spent twice. After an hour or two, each transaction is locked in time by the massive amount of processing power that continues to extend the blockchain. Using these techniques, Bitcoin provides a fast and extremely reliable payment network that anyone can use. 375/24/2017
  38. 38. Architecture of BitCoin? Centralized DeCentralized Federated Distributed 385/24/2017
  39. 39. What is Mining and Can I mine BitCoin? Bitcoin mining is the process of adding transaction records to Bitcoin's public ledger of past transactions. This ledger of past transactions is called the blockchain as it is a chain of blocks. The block chain serves to confirm transactions to the rest of the network as having taken place. You can do mining with the help of a computer(preferably powerful PC) along with the BitCoin Software. 395/24/2017
  40. 40. How does mining Hardware look like and how to buy one? 405/24/2017
  41. 41. 415/24/2017
  42. 42. How many BitCoin Address one can have? There is no upper limit to the number of addresses a bitcoin holder can control. All one’s bitcoins can be stored in a single address, or they can be dispersed into dozens or even thousands of addresses. Meanwhile, good practice recommends (though does not enforce) that every address is used only once. Any amount left over in change from a transaction should not be kept in the old address but moved to a new one. 425/24/2017
  43. 43. How many BitCoin Address can be created? 435/24/2017
  44. 44. How Anonymous is BitCoin? 445/24/2017
  45. 45. How Anonymous is BitCoin? Bitcoin is anonymous but not private. Identities are nowhere recorded in the bitcoin protocol itself, but every transaction performed with bitcoin is visible on the distributed electronic public ledger known as the blockchain. For many users of bitcoin, who access the currency through one of the popular online wallet or exchange services, their participation at the outset entails linking their personal identity to their bitcoin holdings. Bitcoin for these users is effectively no more anonymous than a bank account. For those who wish to take advantage of bitcoin’s intrinsic anonymity, they must find an alternative entry point, such as acquiring bitcoin in a private transaction, as compensation for goods or services rendered, or as a reward for mining. Subsequent bitcoin transactions can then be anonymous, since real-world identities are not recorded on the blockchain ledger: the only identifying information recorded there are the bitcoin addresses, whose corresponding private keys are held by the owners as proof of ownership. Maintaining one’s anonymity from this point forward, however, is in no way guaranteed. An example of this kind of IP address deanonymization made public is, which discloses the IP address of the first node to report a transaction to its servers. 455/24/2017
  46. 46. Real life use-cases of BitCoin? 465/24/2017
  47. 47. Interesting facts about BitCoin. 475/24/2017
  48. 48. Some interesting facts and claims about BitCoin March 30, 2010, 12:18:53 AM SmoketooMuch wanted to sell 10000 BTC for 50$ May 18, 2010, 12:35:20 AM Laszlo Hanyecz claim to sell 10,000 BTC for 2 Pizza 157fRrqAKrDyGHr1Bx3yDxeMv8Rh45aUet April 25, 2011, 02:53:46 AM theymos claiming to sell 15000 BTC for 0.003 USD 1NXYoJ5xU91Jp83XfVMHwwTUyZFK64BoAD bitcoin-landfill-site Missing: hard drive containing 7500 Bitcoins - James Howells 150 BitCoins Hard Drive given in trash lost-forever-the-phenomenon-of-disappearing-Bitcoins.html £625m lost forever - the phenomenon of disappearing Bitcoins February 15, 2011, 02:49:16 AM An Australian member of the Bitcoin Forum attempts to sell his 1984 Celica Supra for 3000 BTC, and becomes the first person to offer a vehicle in exchange for Bitcoins First BitCoin ATM 485/24/2017
  49. 49. Some Facts about BitCoin The FBI owns 15 percent of the world's bitcoins When the US federal government raided and shut down the first online drug marketplace, Silk Road, it also seized bitcoins to the tune of $28.5 million or almost 15 percent of the world's bitcoin mine. It is now auctioning them off to put them back in circulation without flooding the market and crashing their value. A man threw away his hard drive with $4 million worth of bitcoins on it. In Newport, Wales, sometime in July 2013, a man named James Howell innocently threw away his old hard drive, without realising that it also held his digital wallet with 7,500 bitcoins. He had mined them in 2009 when bitcoins were only known in tech circles. By the time he discovered his mistake in November 2013, the value of those bitcoins had soared to $4 million and it was lost under five-feet . 495/24/2017
  50. 50. Some more Facts about BitCoin 1. Maximum of 21M BTC can be mined. 2. The last bitcoin will be mined in the year 2140. 3. Satoshi Nakamoto did the first transaction of BitCoins and sent 100 bitcoins to Hal Finney on January 12th, 2009. 4. The computing power of the Bitcoin network is 7468 times higher than the cumulative of 500 world supercomputers. 5. In 2008, 3000 BTC used to get mined each day! 6. It took 5 years for Bitcoin to reach 1000$ from 0$. 7. You cant create a block, but can validate the block. 8. Only 36% of the actual BitCoins are in use, 64% are sitting in accounts that have not been touched. 9. 31000 lines of computer code behind Bitcoin Protocol. 505/24/2017
  51. 51. Some Facts about BitCoin 1. Transaction of a BitCoin Address is transparent and open to the public. This means anyone having your BitCoin Address can know the balance of that BitCoin Address. 2. A Person can have more than 1 BitCoin Address. 3. You cannot reverse a transaction or be forced to pay. One of the most integral features about bitcoins is that you can never be forced to pay, nor can you take back a transaction. If you send a company some bitcoins for a product, you cannot revoke that transaction nor can they repeat bill you and force money to be taken out. 515/24/2017
  52. 52. Smoketoomuch – wanted to sell 10K BTC for 50 USD 525/24/2017
  53. 53. Laszlo- Asking some one to sell Pizza – 18-May-2010 BC: 157fRrqAKrDyGHr1Bx3yDxeMv8Rh45aUet 535/24/2017
  54. 54. Theymos – Claiming to sell 15K BTC for 0.003 USD 545/24/2017
  55. 55. First Block of BitCoin worth 50 BTC 555/24/2017
  56. 56. First Block of BitCoin 565/24/2017
  57. 57. Financial information about BitCoin. 575/24/2017
  58. 58. 585/24/2017
  59. 59. Bitcoin Price in USD till 2012 Date USD : 1 BTC Notes Jan 2009 – Mar 2010 basically none No exchanges or market, users were mainly cryptography fans who were sending bitcoins for hobby purposes representing low or no value. In 30- March-2010, user "SmokeTooMuch" auctioned 10,000 BTC for $50 (cumulatively), but no buyer was found. Apr-2010 $0.00 On 25 Apr 2010, the now-defunct exchange is the first one that starts operating. May-2010 less than $0.01 On 22 May 2010, Laszlo Hanyecz made the first real-world transaction by buying two pizzas in Jacksonville, Florida for 10,000 BTC. Jul-2010 $0.08 In five days, the price grew 1000%, rising from $0.008 to $0.08 for 1 bitcoin. 9-Feb-2011 $1.00 Bitcoin reached parity with the US dollar, touching $1 per BTC at MtGox. 25-Apr-2011 NIL Theymos claiming to sell 15000 BTC for 0.003 USD 08-Jul-11 $31.00 top of first "bubble", followed by the first price drop Dec-2011 $2.00 minimum after few months Dec-2012 $13.00 In Mar-2012 it was 4.91 $ and then it slowly increased to 13 $ in Dec-2012 595/24/2017
  60. 60. Bitcoin Price in INR since 2012 12-Mar- 12 13-Jan-13 13-Feb-13 13-Mar- 13 13-Oct-13 13-Nov- 13 13-Dec- 13 14-Jan-14 14-Feb-14 14-Mar- 14 14-Jun-14 14-Sep-14 14-Dec- 14 15-Jan-15 15-Dec- 15 16-Jan-16 16-May- 16 16-Nov- 16 16-Dec- 16 17-Jan-17 17-Apr-17 20-May- 17 Series1 250 1087 1815 5050 12216 69410 44980 50148 34914 27127 38439 23979 19982 13484 28465 24910 35726 50900 65823 65519 87589 129988 250 1087 1815 5050 12216 69410 44980 50148 34914 27127 38439 23979 19982 13484 28465 24910 35726 50900 65823 65519 87589 129988 -20000 0 20000 40000 60000 80000 100000 120000 140000 160000 605/24/2017
  61. 61. Bitcoin Price in INR for last 2 Months 1 19-Apr-17 78611 26-Apr-17 84015 02-May-17 94905 09-May-17 111684 16-May-17 115505 20-May-17 129868 78611 84015 94905 111684 115505 129868 0 20000 40000 60000 80000 100000 120000 140000 19-Apr-17 26-Apr-17 02-May-17 09-May-17 16-May-17 20-May-17 Linear (20-May-17) 615/24/2017
  62. 62. Do you want to go Back in Time? Don’t you wish you can go back to May-2011 and buy a 1000 Bitcoins for the price of $10? Then wait around until May 20th, 2017 to sell all of them and make a 20 million dollars! Yes, we all do. Unfortunately, we can’t go back, but what you can do; is make a new smart investment. You can enter in ByteCoin whose value as of 21-May-2017 is 0.002473$. Cryptocurrencies are a form of money specifically designed to take advantage of the architecture of the internet. Instead of relying on a standard financial institution to guarantee and verify transactions, cryptocurrency transactions are checked, or "confirmed," by the computers of the users on the currency's network. The computers that verify the transactions usually receive a small amount of currency as a reward. The process of receiving rewards in exchange for verifying transactions is called "mining," and it is the main way that new currency is produced. Mining works differently for different currencies. 625/24/2017
  63. 63. Information about Cryptocurrencies 635/24/2017
  64. 64. Frequently used Cryptocurrencies? Sr. # Currency Symbol Website 1 Bitcoin BTC, XBT 2 Bytecoin BCN 3 Dogecoin DOGE, XDG 4 Ethereum ETH 5 Litecoin LTC 6 Monero XMR 7 Namecoin NMC 8 Peercoin PPC 9 Primecoin XPM 10 Ripple XRP 645/24/2017
  65. 65. Some addresses of Cryptocurrencies Currencies Code Public Key BitCoin BTC 1FvMYwtkrQakoL8Zq1GjfKqTkm2a7TKt6N Litecoin LTC LbMPUzwPRkWa5hCJGrEiRCeoYExY6Ujt1D Namecoin NMC N7q9zg9h4Scfx6R25RTL8LdGxCBQbgq8wz I0Coin I0C jU8MuSJcw7XmauyddGFSoo5HzEAPgjxfsz Ixcoin IXC xhUfkeNiVGaWFkEcuv8tTUGHX6PLt9dZ94 Peercoin PPC PDtcFPhMa9Hc9zTfoRG7zcURCRpcpRdMym Terracoin TRC 1FzdruHpffAeW2ZBctDLwR8P4APVpATu2j FreiCoin FRC 1BADxscUvT42SFXZwXgxEfWVDHkV1QPTEj 655/24/2017
  66. 66. Cryptocurrency Market Cap # Name Symbol Market Cap Price $ Circulating Supply Volume $ (24h) 1 Bitcoin BTC $33,670,687,341 2060 16,337,750 887751000 2 Ripple XRP $13,990,471,016 0.363082 38,532,538,149 257885000 3 Ethereum ETH $8,846,382,912 96.45 91,722,738 191338000 4 NEM XEM $1,809,918,000 0.201102 8,999,999,999 66763800 5 Litecoin LTC $1,428,125,817 27.91 51,163,282 99382000 6 Dash DASH $652,120,494 89.28 7,304,062 13623500 7 Ethereum Classic ETC $601,607,685 6.56 91,749,608 39664200 8 Monero XMR $443,306,893 30.61 14,482,752 15751700 9 Stellar Lumens XLM $437,161,902 0.045732 9,559,275,117 34584600 10 Bytecoin BCN $240,673,037 0.001316 182,907,264,533' 4171940 11 Steem STEEM $211,256,943 0.904607 233,534,500 5726120 12 Golem GNT $209,934,048 0.254505 824,872,000 10277600 13 Augur REP $175,836,100 15.99 11,000,000 1774190 14 Dogecoin DOGE $160,453,912 0.001466 109,424,766,543' 30328300 15 MaidSafeCoin MAID $154,962,997 0.34242 452,552,412 1796140 16 Gnosis GNO $147,430,732 133.47 1,104,590 1584280 17 Waves WAVES $137,773,000 1.38 100,000,000 985109 18 BitShares BTS $137,523,657 0.052868 2,601,240,000 11303800 19 GameCredits GAME $136,449,884 2.18 62,734,425 3071460 20 Stratis STRAT $131,244,001 1.33 98,389,709 2761190 665/24/2017
  67. 67. Top 5 Cryptocurrency Market Cap $33,670,687,341 $13,990,471,016 $8,846,382,912 $1,809,918,000 $1,428,125,817 $0 $5,000,000,000 $10,000,000,000 $15,000,000,000 $20,000,000,000 $25,000,000,000 $30,000,000,000 $35,000,000,000 $40,000,000,000 1 Bitcoin Ripple Ethereum NEM Litecoin 675/24/2017
  68. 68. Cryptocurrency Dollar Rate # Name Symbol Market Cap Price $ Circulating Supply Volume $ (24h) 1 Bitcoin BTC $33,670,687,341 2060 16,337,750 887751000 2 Gnosis GNO $147,430,732 133.47 1,104,590 1584280 3 Ethereum ETH $8,846,382,912 96.45 91,722,738 191338000 4 Dash DASH $652,120,494 89.28 7,304,062 13623500 5 Monero XMR $443,306,893 30.61 14,482,752 15751700 6 Litecoin LTC $1,428,125,817 27.91 51,163,282 99382000 7 Augur REP $175,836,100 15.99 11,000,000 1774190 8 Ethereum Classic ETC $601,607,685 6.56 91,749,608 39664200 9 GameCredits GAME $136,449,884 2.18 62,734,425 3071460 10 Waves WAVES $137,773,000 1.38 100,000,000 985109 11 Stratis STRAT $131,244,001 1.33 98,389,709 2761190 12 Steem STEEM $211,256,943 0.904607 233,534,500 5726120 13 Ripple XRP $13,990,471,016 0.363082 38,532,538,149 257885000 14 MaidSafeCoin MAID $154,962,997 0.34242 452,552,412 1796140 15 Golem GNT $209,934,048 0.254505 824,872,000 10277600 16 NEM XEM $1,809,918,000 0.201102 8,999,999,999 66763800 17 BitShares BTS $137,523,657 0.052868 2,601,240,000 11303800 18 Stellar Lumens XLM $437,161,902 0.045732 9,559,275,117 34584600 19 Dogecoin DOGE $160,453,912 0.001466 109,424,766,543' 30328300 20 Bytecoin BCN $240,673,037 0.001316 182,907,264,533' 4171940685/24/2017
  69. 69. Top 10 Cryptocurrency Dollar Rate 1 Bitcoin 2060 Gnosis 133.47 Ethereum 96.45 Dash 89.28 Monero 30.61 Litecoin 27.91 Augur 15.99 Ethereum Classic 6.56 GameCredits 2.18 Waves 1.38 2060 133.47 96.45 89.28 30.61 27.91 15.99 6.56 2.18 1.38 0 500 1000 1500 2000 2500 Bitcoin Gnosis Ethereum Dash Monero Litecoin Augur Ethereum Classic GameCredits Waves 695/24/2017
  70. 70. Market share of most popular bitcoin mining pool 705/24/2017
  71. 71. Mystery and Facts of BitCoin inventor/founder 715/24/2017
  72. 72. Satoshi Nakamoto – from Australia One person, Australian programmer Craig Steven Wright, has claimed to be Nakamoto, though he has not yet offered proof of this. 725/24/2017
  73. 73. The New Yorker’s Joshua Davis believed that Satoshi Nakamoto was Michael Clear, a graduate cryptography student at Dublin's Trinity College. He arrived at this conclusion by analyzing 80,000 words of Nakamoto’s online writings, and searching for linguistic clues. He also suspected Finnish economic sociologist and former games developer Vili Lehdonvirta. Both have denied being bitcoin’s inventor. Michael Clear publicly denied being Satoshi at the 2013 Web Summit. Satoshi Nakamoto – from Ireland and Finland 735/24/2017
  74. 74. Adam Penenberg at FastCompany claimed that Nakamoto may actually have been three people: Neal King, Vladimir Oksman, and Charles Bry. He figured this out by typing unique phrases from Nakamoto’s bitcoin paper into Google, to see if they were used anywhere else. One of them, "computationally impractical to reverse," turned up in a patent application made by these three for updating and distributing encryption keys. The domain name originally used by Satoshi to publish the paper had been registered three days after the patent application was filed. Satoshi Nakamoto – Part-1 745/24/2017
  75. 75. Others think that it was Martii Malmi, a developer living in Finland who has been involved with bitcoin since the beginning, and developed its user interface. A finger has also been pointed at Jed McCaleb, a lover of Japanese culture and resident of Japan, who created troubled bitcoin exchange Mt. Gox and co-founded decentralized payment systems Ripple and later Stellar. Satoshi Nakamoto – Part-2 755/24/2017
  76. 76. Another theory suggests that computer scientists Donal O'Mahony and Michael Peirce are Satoshi, based on a paper that they authored concerning digital payments, along with Hitesh Tewari, based on a book that they published together. O’Mahony and Tewari also studied at Trinity College, where Michael Clear was a student. Israeli scholars Dorit Ron and Adi Shamir of the Weizmann Institute retracted allegations made in a paper suggesting a link between Satoshi and Silk Road, the black market website that was taken down by the FBI in October 2013. They had suggested a link between an address allegedly owned by Satoshi, and the site. Security researcher Dustin D. Trammell owned the address, and disputed claims that he was Satoshi. Satoshi Nakamoto – Part-3 765/24/2017
  77. 77. In May 2013, Internet pioneer Ted Nelson threw another hat into the ring: Japanese mathematician Professor Shinichi Mochizuki, although he admits that the evidence is circumstantial at best. In February 2014, Newsweek’s Leah McGrath Goodman claimed to have tracked down the real Satoshi Nakamoto. Dorian S Nakamoto has since denied he knows anything about bitcoin, eventually hiring a lawyer and releasing an official statement to that effect Satoshi Nakamoto – Part-4 775/24/2017
  78. 78. Technical Details about BitCoin 785/24/2017
  79. 79. Technical Details of BitCoin? During mining, your Bitcoin mining hardware runs a cryptographic hashing function (two rounds of SHA256) on what is called a block header. For each new hash that is tried, the mining software will use a different number as the random element of the block header, this number is called the nonce. Depending on the nonce and what else is in the block the hashing function will yield a hash which looks something like this: 93ef6f358fbb998c60802496863052290d4c63735b7fe5bdaac821de96a53a9a To keep blocks coming roughly every 10 minutes, the difficulty is adjusted using a shared formula every 2016 blocks. The network tries to change it such that 2016 blocks at the current global network processing power take about 14 days. That's why, when the network power rises, the difficulty rises as well. 795/24/2017
  80. 80. Lifecycle of BitCoin Transaction 805/24/2017
  81. 81. Life Cycle of BitCoin Mining? 815/24/2017
  82. 82. What is Mining Difficulty? 825/24/2017
  83. 83. What is BitCoin Mining Difficulty? Computationally-Difficult Problem Bitcoin mining a block is difficult because the SHA-256 hash of a block's header must be lower than or equal to the target in order for the block to be accepted by the network. This problem can be simplified for explanation purposes: The hash of a block must start with a certain number of zeros. The probability of calculating a hash that starts with many zeros is very low, therefore many attempts must be made. In order to generate a new hash each round, a nonce is incremented. See Proof of work for more information. Network Difficulty Metric The Bitcoin mining network difficulty is the measure of how difficult it is to find a new block compared to the easiest it can ever be. It is recalculated every 2016 blocks to a value such that the previous 2016 blocks would have been generated in exactly two weeks had everyone been mining at this difficulty. This will yield, on average, one block every ten minutes. As more miners join, the rate of block creation will go up. As the rate of block generation goes up, the difficulty rises to compensate which will push the rate of block creation back down. Any blocks released by malicious miners that do not meet the required difficulty target will simply be rejected by everyone on the network and thus will be worthless. 835/24/2017
  84. 84. How does Mining Difficulty work? 845/24/2017
  85. 85. What is Cloud Mining? 855/24/2017
  86. 86. Cloud Mining Advantages and Disadvantages? 865/24/2017
  87. 87. What is Proof of Work(PoW)? A proof of work is a piece of data which was difficult (costly, time-consuming) to produce so as to satisfy certain requirements. It must be trivial to check whether data satisfies said requirements. Producing a proof of work can be a random process with low probability, so that a lot of trial and error is required on average before a valid proof of work is generated. Bitcoin uses the Hashcash proof of work. 875/24/2017
  88. 88. What is Block Reward? When a block is discovered, the discoverer may award themselves a certain number of bitcoins, which is agreed-upon by everyone in the network. Currently, this bounty is 25 bitcoins; this value will halve every 210,000 blocks. See Controlled Currency Supply. Additionally, the miner is awarded the fees paid by users sending transactions. The fee is an incentive for the miner to include the transaction in their block. In the future, as the number of new bitcoins miners are allowed to create in each block dwindles, the fees will make up a much more important percentage of mining income. 885/24/2017
  89. 89. Common Vocabulary of BitCoin 895/24/2017
  90. 90. Cryptography Cryptography is the branch of mathematics that lets us create mathematical proofs that provide high levels of security. Online commerce and banking already use cryptography. In the case of Bitcoin, cryptography is used to make it impossible for anybody to spend funds from another user's wallet or to corrupt the block chain. It can also be used to encrypt a wallet, so that it cannot be used without a password. Bitcoin Bitcoin - with capitalization, is used when describing the concept of Bitcoin, or the entire network itself. e.g. "I was learning about the Bitcoin protocol today." bitcoin - without capitalization, is used to describe bitcoins as a unit of account. e.g. "I sent ten bitcoins today."; it is also often abbreviated BTC or XBT. Bitcoin is different than any currency you’ve used before, so it's very important to understand some key points. Unlike government-issued money that can be inflated at will, the supply of Bitcoin is mathematically limited to twenty-one million bitcoins and that can never be changed. 905/24/2017
  91. 91. BTC BTC is a common unit used to designate one bitcoin (B⃦). Block Chain The Bitcoin blockchain is a public record of all Bitcoin transactions. You might also hear the term used as a “public ledger.” The block chain shows every single record of bitcoin transactions in order, dating back to the very first one. The entire block chain can be downloaded and openly reviewed by anyone, or you can use a block explorer to review the block chain online. The blockchain is a public record of Bitcoin transactions in chronological order. The block chain is shared between all Bitcoin users. It is used to verify the permanence of Bitcoin transactions and to prevent double spending. 915/24/2017
  92. 92. Block Blocks are found in the Bitcoin blockchain. Blocks connect all transactions together. Transactions are combined into single blocks and are verified every ten minutes through mining. Each subsequent block strengthens the verification of the previous blocks, making it impossible to double spend bitcoin transactions (see double spend below). A block is a record in the blockchain that contains and confirms many waiting transactions. Roughly every 10 minutes, on average, a new block including transactions is appended to the block chain through mining. Block Height The block height is just the number of blocks connected together in the block chain. Height 0, for example refers to the very first block, called the “genesis block.” 925/24/2017
  93. 93. What is Block Reward?Difficulty Difficulty is directly related to Bitcoin mining (see mining below), and how hard it is to verify blocks in the Bitcoin network. Bitcoin adjusts the mining difficulty of verifying blocks every 2016 blocks. Difficulty is automatically adjusted to keep block verification times at ten minutes. Confirmation A confirmation means that the bitcoin transaction has been verified by the network, through the process known as mining. Once a transaction is confirmed, it cannot be reversed or double spent. Transactions are included in blocks. Confirmation means that a transaction has been processed by the network and is highly unlikely to be reversed. Transactions receive a confirmation when they are included in a block and for each subsequent block. Even a single confirmation can be considered secure for low-value transactions, although. for larger amounts like 1000 US$, it makes sense to wait for 6 confirmations or more. Each confirmation exponentially decreases the risk of a reversed transaction. 935/24/2017
  94. 94. Change Let’s say you are spending $1.90 in your local super market, and you give the cashier $2.00. You will get back .10 cents in change. The same logic applies to bitcoin transactions. Bitcoin transactions are made up of inputs and outputs. When you send bitcoins, you can only send them in a whole “output.” The change is then sent back to the sender. 945/24/2017
  95. 95. What is Block Reward?Mining Bitcoin mining is the process of using computer hardware to do mathematical calculations for the Bitcoin network in order to confirm transactions. Miners collect transaction fees for the transactions they confirm and are awarded bitcoins for each block they verify. Bitcoin mining is the process of making computer hardware do mathematical calculations for the Bitcoin network to confirm transactions and increase security. As a reward for their services, Bitcoin miners can collect transaction fees for the transactions they confirm, along with newly created bitcoins. Mining is a specialized and competitive market where the rewards are divided up according to how much calculation is done. Not all Bitcoin users do Bitcoin mining, and it is not an easy way to make money. 955/24/2017
  96. 96. What is Block Reward?Double Spend If someone tries to send a bitcoin transaction to two different recipients at the same time, this is double spending. Once a bitcoin transaction is confirmed, it makes it nearly impossible to double spend it. The more confirmations that a transaction has, the harder it is to double spend the bitcoins. If a malicious user tries to spend their bitcoins to two different recipients at the same time, this is double spending. Bitcoin mining and the block chain are there to create a consensus on the network about which of the two transactions will confirm and be considered valid. Halving Bitcoins have a finite supply, which makes them scarce. The total amount that will ever be issued is 21 million. The number of bitcoins generated per block is decreased 50% every four years. This is called “halving.” The final halving will take place in the year 2140. 965/24/2017
  97. 97. What is Block Reward?Signature A cryptographic signature is a mathematical mechanism that allows someone to prove ownership. In the case of Bitcoin, a Bitcoin wallet and its private key(s) are linked by some mathematical magic. When your Bitcoin software signs a transaction with the appropriate private key, the whole network can see that the signature matches the bitcoins being spent. However, there is no way for the world to guess your private key to steal your hard-earned bitcoins. Hash Rate The hash rate is the measuring unit of the processing power of the Bitcoin network. The Bitcoin network must make intensive mathematical operations for security purposes. When the network reached a hash rate of 10 Th/s, it meant it could make 10 trillion calculations per second. 975/24/2017
  98. 98. What is Block Reward?Wallet A Bitcoin wallet is loosely the equivalent of a physical wallet on the Bitcoin network. The wallet actually contains your private key(s) which allow you to spend the bitcoins allocated to it in the block chain. Each Bitcoin wallet can show you the total balance of all bitcoins it controls and lets you pay a specific amount to a specific person, just like a real wallet. This is different to credit cards where you are charged by the merchant. Block Reward When a block is discovered, the discoverer may award themselves a certain number of bitcoins, which is agreed-upon by everyone in the network. Currently, this bounty is 25 bitcoins; this value will halve every 210,000 blocks. See Controlled Currency Supply. Additionally, the miner is awarded the fees paid by users sending transactions. The fee is an incentive for the miner to include the transaction in their block. In the future, as the number of new bitcoins miners are allowed to create in each block dwindles, the fees will make up a much more important percentage of mining income. 985/24/2017
  99. 99. Nonce For each new hash that is tried, the mining software will use a different number as the random element of the block header, this number is called the nonce. P2P Peer-to-peer refers to systems that work like an organized collective by allowing each individual to interact directly with the others. In the case of Bitcoin, the network is built in such a way that each user is broadcasting the transactions of other users. And, crucially, no bank is required as a third party. 995/24/2017
  100. 100. Thank You!!!! 1005/24/2017