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BitCoin
An overview

2.
Why ?

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First crypto-currency

4.
Basics – Public key cryptography

5.
How BitCoin ecosystem works ?

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A wallet to start off

7.
BitCoin transaction

8.
The new Gold Rush

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Genesis Block

10.
Mining Details
• Hash strings beginning with 0’s
• Mining program is open source!
• Generate a new block by taking an existing
block, set of transactions and a nonce
• Current target hash – less or equal is accepted
• Difficulty – set by the network
• Transaction fees to incentivize new block gen.
• Become part of a pool

11.
THE Network
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BitCoin network – one and only
Decentralized and open to all
Low transaction fees
Constant bitcoin generation (10 min / block)
100 petaFLOPs
Irrevocable transactions

12.
Advantages
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Almost 0 processing fee – across the world
No need of a bank account !
Equal chance of mining
Anyone can create an exchange
Anonymity
Businesses accept bitcoins (wordpress, baidu, reddit, etc..)
Financial Control – no one can question

13.
Wait.. But..

14.
Concerns
• BitCoin is anti-inflationary
• No central authority – double edged sword
• Hacker prone – tough to be exceed 30 trillion
calculations per second and 100 petaFLOPs –
but possible
• Regulatory uncertainty
• Secure your wallets – digitally!
• Volatile exchange prices

15.
Predictions..
• Present day disruptions thanks to P2P systems
– Telephone ---> VOIP (skype / hangout)
– SMS – almost obsolete
– File transfers / music players
– Mail (post boxes as antiques ? )
• Banks – do we really need them ?
• Decentralized and global financial system
– Money over Internet !

16.
Opportunities
• A new way to transact
– Irrevocable transactions (adv : E-Comm sites)
• Innovative applications – money reaches
where banks can’t reach
• World-wide system – Forex (what’s that ?)
• Optimizing face-to-face transactions – cannot
replace credit cards. Minimum 10 mins to
confirm

17.
Thank You