Bitcoin: what is Bitcoin and why did it become a hype?

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My presentation at Bizcamp Ghent June 11th 2011 (http://bizcamp.be/).
I tried to explain bitcoin with the following metaphors:

- a cash register copied over the hard drives of all participants
- public/private keys as coloured pens: a transaction is only valid if it is written in the color of the pen that is writing the transaction in the register (unlimited number of colours, none is the same)
- bitcoin blocks as pages in the cash register
- the node that first solves a sudoku puzzle made up of all the transactions in the page (and with the puzzle on the previous page), gets 50 bitcoins as a prize (as a metaphor for mining, this one turned out the most difficult to grasp)
- the transaction history can't be falsified because that would require solving sudoku puzzles faster than the combined rest of the world
- economic value generated by mining is the stability of the system as a whole (transaction history not falsifiable)

Rest of the screenshots:
- how the client works
- discussion of (relative) "anonymity"
- driver behind current speculation: expectation that a sizeable amount of the underground economy will move into bitcoin
- mining hardware and business
- risks and challenges for bitcoin

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  • WhoAmI: Lived in Ghent, now in The Hague.
  • Connect
  • Startup: main side project: http://mindsmeetup.com
  • NOT relatedwithwhat I do, justfascinating
  • Whitepaper
  • Neem whitepaper erbij
  • Metaphors!
  • No hierarchie
  • Git
  • Crypto pens!
  • Bittorrent
  • Whywouldthey do that
  • Race betweenminers
  • Attackson the network
  • Whyanonymity? –daarom drugs en porno
  • Anonymity
  • Mining
  • Mining still profitable?
  • Mining
  • Cryptorisks
  • Otherrisks (also: deflation)
  • Bitcoin: what is Bitcoin and why did it become a hype?

    1. 1. Bitcoin introduction at BizcampGhent June 11th 2011 (http://bizcamp.be/).<br />I have tried to explain bitcoin with the following metaphors:<br />a cash register copied over the hard drives of all participants<br />public/private keys as coloured pens: a transaction is only valid if it is written in the color of the pen that is writing the transaction in the register (unlimited number of colours, none is the same) <br />bitcoin blocks as pages in the cash register<br />the node that first solves a sudoku puzzle made up of all the transactions in the page (and with the puzzle on the previous page), gets 50 bitcoins as a prize (as a metaphor for mining, this one turned out the most difficult to grasp)<br />the transaction history can't be falsified because that would require solving sudoku puzzles faster than the combined rest of the world <br />economic value generated by mining is the stability of the system as a whole (transaction history not falsifiable)<br />Rest of the screenshots:<br />how the client works<br />discussion of (relative) "anonymity”<br />driver behind current speculation: expectation that a sizeable amount of the underground economy will move into bitcoin<br />Bitcoinmining hardware and business<br />risks and challenges for bitcoin<br />
    2. 2.
    3. 3. http://vanhecke.info<br />
    4. 4.
    5. 5.
    6. 6. Bitcoin<br />a Peer-to-Peer Electronic Cash System<br />
    7. 7.
    8. 8.
    9. 9.
    10. 10.
    11. 11.
    12. 12.
    13. 13.
    14. 14. Blue sends 3 to green<br />Blue sends 3 to green<br />Blue sends 3 to green<br />Blue sends 3 to green<br />Blue sends 3 to green<br />
    15. 15. all transactions between 6h50 and 7h00 am<br />Red sends 1.1 to green<br />Blue sends 3 to green<br />Grey sends 1 to red<br />Blue sends 3 to red<br />Red sends 1.1 to grey<br />
    16. 16.
    17. 17. all transactions between 6h50 and 7h00 am<br />Red sends 1.1 to green<br />Blue sends 3 to green<br />Grey sends 1 to red<br />Blue sends 3 to red<br />Red sends 1.1 to grey<br />
    18. 18. I have a page of all transactions between 6h50 and 7h00 amAND<br />I have solved the Sudoku puzzle!<br />
    19. 19. all transactions between 6h50 and 7h00 am<br />Red sends 1.1 to green<br />Blue sends 3 to green<br />Grey sends 1 to red<br />Blue sends 3 to red<br />Red sends 1.1 to grey<br />Red gets 50 for the puzzle!<br />
    20. 20. all transactions between 7h00 and 7h10 am<br />Blue sends 4 to green<br />…<br />
    21. 21.
    22. 22.
    23. 23.
    24. 24.
    25. 25. Bitcoin price evolution<br />
    26. 26.
    27. 27.
    28. 28.
    29. 29. Bitcoin price evolution<br />
    30. 30. Bitcoin price evolution<br />
    31. 31.
    32. 32.
    33. 33.
    34. 34. Bitcoinmining<br />
    35. 35. Cryptorisks<br />
    36. 36.
    37. 37. Future<br />
    38. 38. ?<br />

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