Bitcoin The cryptographic currency. Talk at BCBOMO6

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A talk about the Bitcoin cryptocurrency I prepared whilst eating breakfast this morning for Barcamp Bournemouth 6. #BCBOMO6

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Bitcoin The cryptographic currency. Talk at BCBOMO6

  1. 1. Bitcoin The cryptographic currency Dave Hulbert
  2. 2. @dave1010
  3. 3. Who's heard of Bitcoin?
  4. 4. What is Bitcoin?
  5. 5. Currency
  6. 6. Bitcoin is a peer-to-peer payment system introduced as open source software in 2009 by developer Satoshi Nakamoto. The digital currency created and used in the system is also called bitcoin and is alternatively referred to as a virtual currency, electronic money, or cryptocurrency. The bitcoin system is not controlled by a single entity, like a central bank, which has led the US Treasury to call bitcoin a decentralized currency. Because bitcoins can be transferred directly from one person to another they are sometimes described as "digital cash". --Wikipedia
  7. 7. Why is it interesting? Why does it matter?
  8. 8. Dogecoin Namecoin Freicoin Litecoin ...
  9. 9. Market cap $5,000,000,000.00
  10. 10. Use it today
  11. 11. Future?
  12. 12. What is A Bitcoin?
  13. 13. Market value 1BTC = $452 1mBTC = $0.452 Lots of markets
  14. 14. A market is a place you can trade goods Buyers and sellers agree on a price NYSE, LSE, MtGox, Behind the bus station
  15. 15. Markets: ●ForEx (USD, GBP, EUR, YEN) ●Gold ●FCOJ (Trading places) ●Virtual currencies in games ●Tesco clubcard points? ●Facebook likes ●Bitcoin!
  16. 16. How is Bitcoin different?
  17. 17. Bitcoin is a peer-to-peer payment system introduced as open source software in 2009 by developer Satoshi Nakamoto. The digital currency created and used in the system is also called bitcoin and is alternatively referred to as a virtual currency, electronic money, or cryptocurrency. The bitcoin system is not controlled by a single entity, like a central bank, which has led the US Treasury to call bitcoin a decentralized currency. Because bitcoins can be transferred directly from one person to another they are sometimes described as "digital cash". --Wikipedia
  18. 18. Centralized control ● Banks ● Paypal
  19. 19. Decentralized control ● Cash ● Gold
  20. 20. “Double spending problem” AKA copy & paste 3 volunteers
  21. 21. The blockchain Ledger 6 confirmations
  22. 22. Trusting the blockchain Proof of work Mining
  23. 23. What is mining? ● SHA-256 Hash (twice) hello 2cf24dba5fb0a30e26e83b2ac5b9e29e1b161e5c 1fa7425e73043362938b9824 hello34534563 00000000000b0a30e26e83b2ac5b9e29e1b161e 5c1fa7425e73043362938b9824
  24. 24. Mining ● Gold rush ● Maintaining the blockchain ● Rewards built into the Bitcoin protocol ● Fees ● Block reward (25BTC) ● CPU / GPU / FPGA / ASIC ● Mining pools
  25. 25. Blockchain ● ~10 mintues (adjusted automatically) ● Public transaction ledger (17GB!) ● Data! ● Other uses: ● prooving ownership ● Timestamps (patents) ● Integrity ● ???
  26. 26. Pseudo-anonymity
  27. 27. Wallets ● Public address and private key (like SSH) ● Talk to the P2P network (like Bittorrent)
  28. 28. Security ● Wallets ● Exchanges ● Regulation
  29. 29. Thanks! Questions? Exchange? @dave1010 18S7CKZVhdvU4j23bwRGXXqq3iYP14TYB3

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