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about the Bitcoin a digital currency

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  1. 1. BIT COIN A private currency
  2. 2.    Bitcoin is a digital currency introduced as open source software in 2009 by pseudonymous developer Satoshi Nakamoto. It is a cryptocurrency, socalled because it uses cryptography to control the creation and transfer of money. Sathoshi nakamoto a person or a group that designed and created the bit coin software,published a paper in 2008 and launched the software in 2009. Intro: What does a bitcoin mean?
  3. 3.    Users send payments by broadcasting digitally signed messages to the network. Participants known as miners verify and timestamp transactions into a shared public database called the block chain, for which they are rewarded with transaction fees and newly minted bitcoins Bitcoins can be obtained by mining or in exchange for products, services, or other currencies. Process of transactions How it will transact?
  4. 4.      . Bitcoin has been a subject of scrutiny due to ties with illicit activity. In 2013 the FBI shut down the Silk Road online black market and seized 144,000 bitcoins worth US$28.5 million at the time. The United States, however, is currently considered to be Bitcoin friendly compared to other governments Bitcoins can be stolen, and chargebacks are impossible. So In China, new rules restricted bitcoin exchange for local currency, and the European Banking Authority has warned that Bitcoin lacks consumer protections. Commercial use of Bitcoin, illicit or otherwise,Bitcoin as a form of payment for products and services has seen growth, however, and merchants have an incentive to accept the currency because transaction fees are lower than the 2–3% typically imposed by credit card processors.
  5. 5.    Bitcoin client software, or simply Bitcoin clients, allow a user to transact bitcoins. The first was released in 2009 by Satoshi Nakamoto as open source code. This socalled Satoshi client, Bitcoin-Qt, has since been maintained and enhanced by a group of core developers and other contributors. Bitcoin-Qt can be used as a desktop client for regular payments or as a server utility for merchants and other payment services. Software On the which basis it runs?
  6. 6.    Historically, Bitcoin-Qt also supported mining, but this feature was removed because specialized mining clients are more efficient. Bitcoin-Qt is sometimes referred to as the reference client because it serves to define the Bitcoin protocol and acts as a standard for other implementations. Bitcoin clients have been implemented in several programming languages for personal computers, mobile devices, and as web applications. At the most basic a client generates and stores private keys and communicates with peers on the Bitcoin network. When making a purchase with a mobile device, the use of QR codes to simplify transactions is ubiquitous. There are also now several server software implementations of the Bitcoin protocol. So-called "full client" nodes on the network validate transactions and blocks they receive and relay them to connected peers.
  7. 7.    Bitcoin uses public-key cryptography, in which pairs of cryptographic keys, one public and one private, are generated. A collection of keys is called a wallet. Note that sometimes this term is used to mean client software in the sense of digital wallet. A Bitcoin transaction transfers ownership to a new address, an alphanumeric string of the form 1FfmbHfnpaZjKFvyi1okTjJJ usN455paPH derived from public keys by application of a hash function and encoding scheme. Wallets The physical form
  8. 8.    The corresponding private keys act as a safeguard; a valid payment message from an address must contain the associated public key and a digital signature proving possession of the associated private key. Because anyone with a private key can spend all of the bitcoins sent to the corresponding address, the essence of Bitcoin security is protection of private keys. Theft of bitcoins has occurred on numerous occasions. The practical day-to-day security of Bitcoin wallets remains an ongoing concern. Risk of theft can be reduced by generating keys offline on an uncompromised computer and saving them on external storage or paper printouts.
  9. 9.     sequential record of all transactions, known as the block chain, that records current bitcoin ownership as well as at all points in the past. By keeping a record of all transactions, the block chain prevents doublespending. Those that maintain the block chain are called miners and are rewarded with newly created bitcoins as well as transaction fees. Payment processing work done by miners verifies each transaction as valid and adds it to the block chain. Block chain
  10. 10.    Bitcoin payment processing fees are optional and generally substantially lower than those of credit cards or money transfers. Currently, doing the work of payment processing is rewarded with newly created bitcoins, 25 per block. The block reward will be halved to 12.5 bitcoins in 2017 and again approximately every four years thereafter. By 2140 there will be approximately 21 million bitcoins in existence and transaction processing will be solely incentivized by transaction fees.
  11. 11.    Through various exchanges, bitcoins are bought and sold at a variable price against the value of other currencies. While there may be a seemingly large number, exchanges regularly fail, taking client bitcoins with them. A published research study showed that of 40 Bitcoin exchange markets studied, 18 ended up closing over a period of 3 years.Bitcoin prices are fragmented and vary widely across exchanges. Exchanges
  12. 12.     Criminal activity linked to Bitcoin has largely centered around theft of the currency, the use of botnets for mining, and the fact that some will accept bitcoins in exchange for illegal items or services. Certain nation states may feel that its use in circumventing capital controls and for gambling are also undesirable. While some governments have taken a hands-off approach, others have moved to regulate Bitcoin and similar, private currencies. This may stem from a perceived association with criminal activity, the ability of Bitcoin to evade capital controls, and the fact that the currency lacks consumer protections. Legal issues
  13. 13.  Criminal  Money activity laundering  Un authorized mining  Thefts
  14. 14.      As some countries allowed this currency its still in trail base at world wide markets It is very useful to decrease the in equalities between currencies of nations , Ex: Indian rupee v/s American dollar. If we increase the security levels of these bitcoin money system it has the capability to change the world economy. central banks cant manipulate. Advantages
  15. 15.      The supply is absolutely fixed It’s a real money. 57% of bitcoins were already minted. And the total will be never exceeds 21 millions by the year of 2140. After that we will have the circulation of already minted bitcoins.
  16. 16.    Simply we can compare the bitcoin with our precious metal “Gold” . Because its also a pseudonymous to our real existed money. “I wish it will low down the transactions fees and foolish money systems of several countries”. The end
  17. 17. Thank you…. For listening attentively 