about the Bitcoin a digital currency

1. BIT COIN
A private currency

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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?

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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?

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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.

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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?

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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.

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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

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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.

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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

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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.

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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

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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.  Criminal
 Money
activity
laundering
 Un authorized
mining
 Thefts

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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

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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.

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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. Thank you….
For listening attentively 