Introduction to Bitcoin & Blockchain @ darefest16

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@SDWOUTERS
& blockchain
bitcoin
#Darefest16

@sdwouters
Bitcoin & Blockchain since 2013
Digital Transformation Consultant
at Duval Union Consulting
sam.wouters@duvalun...

‣ We are a digital consulting company.
‣ Founded in 2009 as DearMedia.
‣ We work for large European clients.
‣ We have a s...

One of many
DISRUPTIVE
PLAYERS

“bitcoin is
digital money”
Who has heard of Bitcoin before today?
Positive image? Negative image?
Who fundamentally
unders...

Media that predicted The Death of Bitcoin
bitcoinobituaries.com
Deaths by publication:
DailyPaulCNNCity A.M.ChronBroken Li...

"Don't forget that the millions of people all over the world
who are now part of the Bitcoin network were once very
strong...

@SDWOUTERS
A Quick Introduction
To Bitcoin & Blockchain

Invented in 2008: a system to eliminate  
the need for “trusted” third parties
bitcoin.org/bitcoin.pdf

? ?
? ?
?
??

The first thing bought with 10.000 Bitcoins in 2010

@SDWOUTERS
Bitcoin’s best days
must be over!
Is worth over  
€5 Million today
at €500 per BTC

So much value, all for shady digital money?

Banks don’t believe Bitcoin can work, but they
are investing in its technology, the Blockchain

What’s the difference?
Bitcoin is a way to digitally
transfer ownership
without a middleman
The blockchain is a
database t...

A 5 minute explanation won’t make  
you understand why they matter

WHAT
can we do with them?
HOW
do they work?
WHY
do Bitcoin &
Blockchain
exist?

WHY
do Bitcoin &
Blockchain
exist?

Why do digital money transfers take days?

Imagine you want to BUILD A BUSINESS
9% FEE?

@SDWOUTERS
Financial innovation is held
back by rules and regulations

@SDWOUTERS
But this is innovation!

Say that to the 40% unbanked adults worldwide…

And to the people who pay 5-25% money transfer fees  
$175 Billion profit per year for Western Union & co!

If you want to send money you have to
WAIT PAY

@SDWOUTERS
Yet we can do THIS?

@SDWOUTERS
Bitcoin is about more
than global payments

We have more debt than can EVER be repaid

Currencies are not backed by anything

Leading to unprecedented money printing

The money in your bank loses value
Inﬂation Interest>

Soon you’ll be PAYING banks so they can  
do risky investments with your money

If finance is so messed up
why don’t we fix it?

Rules are decided behind closed doors

Governments are not in charge in the financial world
Governments
Corporates
Banks
National central banks
International cen...

Resulting in "cosy" relationships between
financial businesses and regulators

Banks won’t stop messing around

Resulting in "cosy" relationships between
ﬁnancial businesses and regulators.
We are fighting a never ending ﬂood

HOW
do they work?
WHY
do Bitcoin &
Blockchain
exist?

Fundamentally different
Transactions Security

Transactions Security

Money is sent directly between two parties

The blockchain is a global “bookkeeping” system
It records who owns
what, and when

Transactions are synchronised through the network

Every ~10 minutes, they are permanently
recorded in a new block in the blockchain
…

How do we SAFELY Record
the transactions so
nobody can change them?

Transactions Security

Problems Solutions
Central point of failure Decentralized network
Expensive to secure Shared security cost
Trust who is in...

Problems Solutions
Central point of failure Decentralized network
Expensive to secure Shared security cost
Trust who is in...

The Bitcoin Blockchain is secured by computing power
from people and companies all over the world

“So much energy waste!”  
Bitcoin’s ecological footprint is tiny

In return for their work, the “miners”  
earn new bitcoins and transaction fees

They verify the transactions and  
add them to the next block in the Blockchain

The transactions are permanently recorded in  
a new block, linked to the others in a chain

When you change a transaction  
the link to that block changes as well

The network will know that your version  
has been messed with and reject it

You then need to create a longer blockchain
than the entire network combined

The network is 20.000 times stronger than
the top 500 supercomputers in the world

Who decides what everyone does with their computer?
Problems Solutions
Central point of failure Decentralized network
Expe...

It started from the base code, ever since improvements
have been proposed by developers around the world
bitcoin.org/bitco...

If the vast majority of the network
agrees, the code can be changed

But everything
can be hacked
right?

Wallets can be hacked if they are not secured,  
but the Bitcoin protocol can’t be hacked

With over $50M per day in irreversible transactions,
it is the biggest target for hackers on the Internet

What does this
technical stuﬀ
mean for me?

You can send payments
without encryption
and on any network,
without risk

Send & receive payments
anywhere in the world.
Nobody can stop it

Bitcoin is open to any participant
without identiﬁcation or authentication

No criminal wants to leave permanent evidence

The power is in the hands of the user,
we want to protect and use our money

Anyone can develop new applications
for Bitcoin, without permission

internetlivestats.com/internet-users/
The same force driving internet innovation for 20 years

Creates huge value for consumers, economic growth, jobs

I don’t really
need Bitcoin
Until your life is
international

Have you ever…
Transferred money internationally,
with a large fee or a terrible exchange rate?
Tried to understand why th...

Have you ever been to a country where the
majority of the population is unbanked?

Have you ever met people who cannot  
use their debit or credit cards abroad?

Exchanged money on the black market?

Returned home with leftover foreign currency?

Dealt with currency controls?

Or Hyperinﬂation?

Perhaps you & your country don’t really need it…

But it will help the world  
a lot if Bitcoin succeeds.

WHAT
can we do with them?
HOW
do they work?
WHY
do Bitcoin &
Blockchain
exist?

Sending money
0.00000001 BTC1 BTC

Is it accepted anywhere?
Antwerpen
Gent
Arnhem
Buenos Aires
Amsterdam
Montreal

Money is the  
tip of the iceberg

Logical Evolution
INTERNET
Transfer information
BLOCKCHAIN
Transfer ownership
TEXT IMAGES PROGRAMS VIDEOS
MONEY CONTRACTS ...

Everledger stores unique info and ownership
of (900k) diamonds on the Bitcoin blockchain
everledger.io

“Blockchain could disrupt everything”

@SDWOUTERS
THE BLOCKCHAIN is an
ineﬃcient database

3
Censorship
resistance
2
Immutability
5
Open
Access
Decentralization
4
1
Open
Innovation
Banks/governments won’t  
replic...

But all these banks are investing in blockchains!

Private blockchains are like every company
building their own Dropbox service
>The Internet

Both will have their own uses, but the Open
Blockchain will create the most value

If Bitcoin is so great,  
why isn’t everyone using it?

‣ Bitcoin is only 7 years old, it
still needs a lot of development. 
‣ This has never been tried
before and it is about MO...

Some links to help you get started with Bitcoin
Get a wallet (and make a backup!)
• Coinbase/Circle Pay/Xapo/Mycelium (And...

Thanks!  
Want to learn more?
WWW
@sdwouters
sam.wouters@duvalunion.com
samwouters.com

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