2. Events
JP Morgan Chase & CO. chief Jamie
Dimon: bitcoin is “fraud” and anyone
who buys bitcoin is “stupid”
Neil Dwane of Allianz Global Investors
said it’s a “scam for criminals around
the world”
….
The former chief economist of the
World Bank - Joseph Stigliz: Bitcoin
'Ought to Be Outlawed,'
3. Objectives – To answer the questions
How can bitcoin store the “values”?
If yes, what could be the value of bitcoin?
5. Merkle's Puzzles – Public Key
Cryptography
Alice and Bob wish to communicate securely
Bob creates 10 puzzles:
All must be possible for Alice to solve with a moderate amount of time.
The puzzles are in the form of an encrypted message with an unknown key
The key must be short enough to allow a brute force attack
Bob sends all of the puzzles to Alice
Alice chooses one randomly, and solves it, and gets K and ID
Alice encrypts her message with K and send to Bob encrypted message + ID
Bob finds the secret key paired with that ID to deciphers Alice's message
6. RSA Public/Private Keys
Take the prime numbers 13 and 7
13 * 7 = 91
Let's take public encryption key = 5
Private key = f(91, 5) = 29
f = Extended Euclidean Algorithm
7. RSA Algorithm
Encrypt the C = 67 (ASCII)
Multiply it by itself pub-key times (5
times) to get the encrypted value
67×67 = 4489 = 30
Since 4489 is larger than max, we
have to wrap it around. We do that
by dividing by 91 and taking the
remainder.
4489 = 91×41 + 30
30×67 = 2010 = 8
8×67 = 536 = 81
81×67 = 5427 = 58
→ encrypted version of 67 is 58.
Decrypt: the scrambled 58
Multiply it by itself priv-key times (29
times)
58×58 = 3364 = 88 (remember, we
wrap around when the number is
greater than max)
88×58 = 5104 = 8
…
9×58 = 522 = 67
→ decrypted version of 58 is 67.
9. Google ECC
max: 115792089210356248762697446949407573530086143415290314195533631308867097853951
curve: y² = x³ + ax + b
a = 115792089210356248762697446949407573530086143415290314195533631308867097853948
b = 41058363725152142129326129780047268409114441015993725554835256314039467401291
Facts:
Breaking a 228-bit RSA key requires less energy to than it takes to boil a teaspoon
of water. Comparatively, breaking a 228-bit elliptic curve key requires enough
energy to boil all the water on earth.
For this level of security with RSA, you'd need a key with 2,380-bits
ECDSA signature with a 256-bit key is over 20x faster than an RSA signature with a
2,048-bit key
36. Why Can’t It Be?
No one controls bitcoin
No way to ban bitcoin
The unstoppable power of
leaderless
Decentralized vs Centralized
Network
37. What Makes The Value of Bitcoin?
Historical electric power consumption on mining activities
Inventions behind blockchain technology
Like real estate, it is Inflation free
After all:
It is NOT about the product, it is about FREEDOM.
Freedom of Money
38. Food For Thought
Will US National Debt Go To The Moon ?
If Yes, then Bitcoin also goes to the Moon
What if bitcoin would replace 15% of dollars in circulation?
$21 Trillion x 15% / 21 Million BTC = $150,000 / BTC
What if bitcoin become world currency?
1 BTC = $500,000 USD
39. Opera Solutions - Big Data Analytics on
Block-chain
First time in the history all the currency accounts and transactions are
available publicly
Signals for the Price Trend Prediction ???
Growth rate of the newly created wallets
Growth rate of the small value transactions
Movement of “institution wallets”
Growth rate of the global hashing power
