Bitcoin P2P currency

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Bitcoin P2P currency

  1. 1. Bitcoin     Viet-­‐Trung  Tran   Vn-­‐S3c  2/07/11   1  
  2. 2. Bitcoin  •  Developed  by  Satoshi  Nakamoto  •  First  “currency”  without  a  central  issuer  •  Distributed  Database  to  journal  transacHons  •  Peer-­‐to-­‐peer  based  Crypto-­‐Currency  •  Relies  on  Public/Private  Key  Cryptography  •  Open  Source,  C++  Code  available  on  Github  2/07/11   2  
  3. 3. Bitcoin  2  •  Allows  for  fast  transfer  of  value  through   Internet  without  middlemen  •  3rd  parHes  cant  prevent  or  control   transacHons  •  Safe  from  instability  of  fracHonal  reserve   system  2/07/11   3  
  4. 4. Bitcoin  coins  •  Saved  on  PC  in  the  form  of  a  wallet  file  or  3rd   party  exchange  websites  •  Divisible  up  to  0.00000001  or  10-­‐8  of  a  BTC   allowing  for  micro-­‐payments  •  Value  is  inherent,  not  backed  by  anything,  as  is   standard  for  fiat  currencies  presently.  •  Predictable  inflaHon  built  into  system  •  21  million  coins  will  ever  exist  •  ~5  million  coins  at  present  2/07/11   4  
  5. 5. Bitcoin  transacHons   •  Sender  relinquishes  ownership  by  signing  hem   them  with  her  own  private  key  r   •  TransacHon  is  broadcast  to  the  peer-­‐to-­‐peer   network  ks   •  Fast:  1  to  30  minutes  to  complete   •  Free:  PC  &  Internet  is  all  you  need   •  Permanent:  no  chargebacks/bounced  checks   2/07/11   5  
  6. 6. Now  1BTC  =  16,80  USD  2/07/11   6  
  7. 7. 2/07/11   7  
  8. 8. TransacHons  2/07/11   8  
  9. 9. Double  spending  •  No  central  authority  •  Using  distributed  Hmestamp  servers  •  Each  peer  can  work  as  a  Hmestamp  server  if   wished  2/07/11   9  
  10. 10. Block  chain   •  Blocks  in  the  main  chain  (black)  are   the  longest  series  of  blocks  that  go   from  the  genesis  block  (green)  to  the   current  block.  Orphan  blocks   longest  s  block   (purple)  are  blocks  that  are  not  in  ocks   ngest   the  longest  chain.   2/07/11   10  
  11. 11. Role  of  Hmestamp  server  •  Collect  recent  transacHons  •  Mining  new  block  based  on   – Previous  block  of  the  longest  chain   – Recent  transacHons   – Nonce  (random  number)  •  If  found  a  block,  broadcast  it  2/07/11   11  
  12. 12. Network  rules  •  For  the  whole  network     – 1  BLOCK  created,  50  BTC  reward   – 1  Block  created  for  around  every  10   minutes  •  Controlled  by  the  difficulty  of  block   generaHon   – Block  value  <  an  agreement  target  value    2/07/11   12  
  13. 13. IncenHve  of  working  as  a  Hmestamp   server  •  Get  reward  for  each  created  block   – 50  BTC  for  the  moment   – Reduce  every  4  years  (every  210,000  blocks)  •  TransacHon  fee  2/07/11   13  
  14. 14. How  the  system  works  2/07/11   14  
  15. 15. Disk  Space  2/07/11   15  
  16. 16. TransacHon  verificaHon  2/07/11   16  
  17. 17. Conclusion  •  Well  design  •  But  not  green   – Non-­‐stop  consummaHon  of  CPU,  Storage,   Network  and  it’s  ALL  about  power  2/07/11   17  
  18. 18. transacHon  2/07/11   18  

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