Bitcoin is a digital currency and payment system that uses cryptography to secure and verify transactions. It allows for peer-to-peer transactions without an intermediary. Key features include using a distributed ledger called the blockchain to record all transactions, using cryptography through public/private key pairs to digitally sign transactions, and incentivizing a decentralized network of miners through a process called proof-of-work to confirm new transactions. Benefits include lower transaction fees, accessibility across borders, and resistance to censorship; challenges include volatility, risks of centralized control of mining, and scalability issues as the network grows.

1. Bitcoin 101
Ryan Milbourne
@RyanMilb
OCJUG
10/12/2016

2. Outline
Origins
Technicals
Problems it solves

4. Origin
● Hash Cash, 1997- Dr. Adam Back
● Satoshi Nakamoto - Bitcoin white
paper, 2008

5. What is Bitcoin?
Ledger of all transactions
Distributed proof of work
Decentralized Consensus Mechanism
Bitcoin is Protocol

6. 1.Private Key
2.Public Key
Elliptic Curve Cryptography

7. Private key
E9 87 3D 79 C6 D8 7D C0 FB 6A 57 78 63 33
89 F4 45 32 13 30 3D A6 1F 20 BD 67 FC 23
3A A3 32 62
Public Key
3J98t1WpEZ73CNmQviecrnyiWrnqRhWNLy

13. Raspberry Pi

16. Orphan blocks

17. Notes on Mining:
1 block mined approx every 10 min
Last bitcoin mined in 2140
Transaction fee
Halving Block Reward

19. Benefits of Bitcoin
Escape Capital Controls
Resistance to censorship
Algorithmic Regulation

20. For Merchants
Lower Fees
No Charge backs
Less fraudulent transactions*

21. Micro Transactions
One Satoshi 0.00000001
Publishing
Fundraising

24. Empower Billions
1 Billion with access to:
International Markets
Banking services
More people have access to a cellphone than
sanitation (U.N. Study)
Gets around obstacles of obtaining
a bank account

26. Disadvantages
Volatility
51% attack
Scalability

29. Scalability
Visa 2,000 tps
Pay Pal 40-100 tps
Bitcoin 7 tps

32. Keeping Mt. Gox in Perspective
State of Bitcoin Q2 2014
Source: Baseline Scenario
$8.9bn
fine

33. Regulation
FEC Approved
IRS released guidelines
SEC Reviewing Bitcoin backed ETF

34. BitLegal.io

35. Bitcoin’s Price is Now on Yahoo Finance,
Google Finance and Bloomberg
State of Bitcoin Q2 2014

36. Public vs Private
Open to innovation
Immutable*
Need proof of work
for security
Decentralized
Control supply
Editable
No need for proof of
work
Centralized
More detailed blog post

37. https://bitcoinj.github.io/

38. The Future
Crypto 2.0
Services built on top of bitcoin
“Smart Contracts”
Decentralized marketplaces

41. The DAO

43. For more info:
www.bitcoin.org
Andreas Antonopoulos Video
@aantonop
www.coindesk.com
Letstalkbitcoin.com
Khan Academy Videos
RyanTMilbourne@gmail.com
@RyanMilb