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Bitcoin presentation
Bitcoin is imagined as a currency for a board game with multiple players keeping identical digital ledgers of account balances. As players trade game tokens between accounts, they update their ledgers to reflect the new balances, then broadcast updates to others to keep all ledgers in sync. This design allows any number of players worldwide to transact directly without central control. By recording transactions publicly yet anonymously on distributed ledgers, Bitcoin emerged as a new form of digital currency independent of traditional banking.
Bitcoin presentation
- 1. What is Bitcoin? Changingthe dimensions of Currency
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- 3. •NEED OF STUDY According to me, it was a new type of Self-Emerging Economy. AND, there was no one to control it or owe it. It gives me a curiosity about its working and its Impacts on Real world.
- 4. Rather than discusswhat Bitcoin is... What is Bitcoin?
- 5. Here we go... Let’sindependently design something that resembles Bitcoin
- 6. Let’s imagine we’replaying a board game like Monopoly. Where we have tradable assets (such as houses and hotels)
- 7. To trade effectively,we need mutually interchangeable tokens that we all agree have some value In other words, we need a currency
- 8. Now, with thiscurrency, we’ll want to easily trade in any denomination, as getting exact change can be a hassle
- 9. And we’ll alsowant it to be immune to counterfeiting So, we’ll avoid paper bills And instead, we’ll give ourselves “balances” and record them in a notebook.
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- 11. We’ll refer tothis list of balances as our ledger
- 12. A book orother collection of financial accounts of a particular type. ledger
- 13. This ledger is“law” OR, In other words, one’s balance is whatever the ledger says. And that’s final
- 14. But what ifwe have a large game with say 20 or 30 players? Then who holds the ledger?
- 15. If only Ihave the ledger, I can increase my balance and cheat So... we give everyone a notebook with a copy of the ledger And when balances are updated, the changes are propagated
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- 17. Now, let’s sayAli sells something to Sam for 7.5 tokens On Ali’s copy of the ledger, he decreases Sam’s balance by 7.5 and increases his by 7.5
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- 19. Then Ali showseveryone his copy and says “make these updates”
- 20. Ali 107.5 tokens Sam92.5 tokens Trevor 100.0 tokens Arianna 100.0 tokens Ali 107.5 tokens Sam 92.5 tokens Trevor 100.0 tokens Arianna 100.0 tokens Ali 107.5 tokens Sam 92.5 tokens Trevor 100.0 tokens Arianna 100.0 tokens Ali 107.5 tokens Sam 92.5 tokens Trevor 100.0 tokens Arianna 100.0 tokens
- 21. But there areanother issues What if we want to have more players in the game? And what if some of them are halfway around the world? How do we synchronize all of these paper ledgers?
- 22. We’ll have asoftware that does the ledger syncing for us.. Well, we could just move from paper records to digital records
- 23. And a mathto ensure that our digital signatures can’t be forged, & thus nobody can spend our money
- 24. And... we’ll havebalances listed next to account numbers instead of names (our ledger needs unique lookup values, because names are not guaranteed to be unique)
- 25. With these modifications,our game will allow millions and even billions of people to transact and trade
- 26. Come to thinkof it, we could probably even use this system as a real world global currency and payment mechanism
- 27. Notice that withthis system, nobody owns it or controls it
- 28. Just as within-person cash transactions, only the sender and recipient are involved - there are no middle men
- 29. And because thereare no middle men, no fees are required
- 30. So for the1st time, you and I can trade directly online and from anywhere in the world
- 31. We just recorda transaction amongst ourselves and broadcast it to the world, proving that it actually occurred
- 32. Our currency andpayment system is powerful but simple, and we designed it together
- 33. And we’ll callit Bitcoin
- 35. •CONCLUSIONS Understood the workingand Decentralization of currency which gives Bitcoins a Unique identity to FLOW as a Independent currency. Understood the all emerging problems regarding a virtual currency. The Related Risk of Currency in every country is different , so every country can use the bitcoins with some modifications in Economic and legal policies. BITCOINS IN INDIA are not completely banned or illegal but still there is no strict stand of government or central bank for its regulation.
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