This presentation is the teaching companion. For successful comprehension, the core concepts of Bitcoin should be presented via physical table top media. (Print Media Here: http://1drv.ms/1sxY93Y) When digital and physical are used in unison, a facilitator is able to step interested learners from the money concepts they know now to the revolutionary concepts underpinning the Bitcoin ecosystem. At each step, physical props are used to visualize core concepts, identify challenges, and propose solutions. Authentic learning occurs when the learner connects each new concept to an existing one in their mind. The learned concept only sticks if an emotional reaction is elicited at the time of connection. As such, this information is successfully shared face to face, with a heavy focus on the learner’s mood, interest, and questions.

1. A JOURNEY TO BITCOIN
Evolving
Your
Dollars

2. Note:
This content is supplemental. The core concepts should be
presented via physical table top media for comprehension.
Print the physical media: http://1drv.ms/1sxY93Y
Authentic learning occurs when the learner connects each new
concept to an existing one in their mind. The learned concept
only sticks if an emotional reaction is elicited at the time of
connection.
This information is successfully shared face to face, with a heavy
focus on the learner’s mood, interest, and questions.

3. Paper Dollars in Leather Wallets
CORE IDEA
Individual Responsibility
CHALLENGE
Insecure
User Counterfeiting
SOLUTION
Secure in Bank
Bank Auditing
Next:Digital Dollars in Locked Bank Accounts

4. Digital Dollars in Locked Bank Accounts
CORE IDEA
Centralized Trust in 3rd Party
Account Number (ID/Deposits)
Account Password (Spending)
CHALLENGE
Bank Counterfeiting
No External Auditing
SOLUTION
Transparent Accounts
Next:Digital Dollars in Transparent Locked Bank Accounts

5. Digital Dollars in Transparent Locked Bank Accounts
CORE IDEA
Unlimited Auditing by Anyone
CHALLENGE
Lack of User Privacy
SOLUTION
Anonymize Accounts
Next:Digital Dollars in Anonymized Bank Accounts
VIS

6. Anonymity
USER IDENTIFIED ACCOUNT ANONYMOUS ACCOUNT
John Doe
265-33-7454
2-15-76
833-23-4432
Rockstr76
L!fEroCKs
5549
Name
SSN
DOB
Acct #
User ID
Password
PIN
833-23-4432
L!fEroCKs
Acct #
Password

7. Digital Dollars in Anonymized Bank Accounts
CORE IDEA
Bank Does Not Know Who Owns Accounts
Password Security & Management
CHALLENGE
Account Metaphor
• Privacy Risk if Acct # Discovered
• Payee Can Discover One’s Balance
• Limits Financial Management
SOLUTION
Key Metaphor
• Lock Individual Units
• Unlimited Keys
• Use Few or Many
Next:Transparent Locked Dollar Sequence in Bank

8. Transparent Locked Dollar Sequence in Bank
CORE IDEA
Public Key (ID/Deposits) ID’s One or Many Units, Free to Create
Private Key (Spending/Proof of Value) Unique to Each Public Key
Transaction - Using A Private Key to Reassign A Unit’s New Public Key
Wallet – Software or Hardware Used to Manage Public and Private Keys
CHALLENGE
Transparency Only In the
Moment
SOLUTION
Record New Unit Keys
Without Deleting Previous
Next:Transparent Locked Dollar Sequence w/ History in Bank
VIS

9. Keys
PUBLIC KEY
1H7vmqxqA785FFH3H
1FL8JH1bTi5xPDqVv
PRIVATE KEY
5HpHagT65TZzG1PH3CSu63k8Db
pvD8s5ip4nEB3kEsreAnchuDf

10. Transp. Locked D.Dollar Seq. w/ History in Bank
CORE IDEA
Transparent Ledger of Record Audits Through Time
Each Line is a Transaction Record Value, Date, Previous Key, Current Key
CHALLENGE
Open to Revision by Bank
Open to Challenge by Users
SOLUTION
Make Subsequent Transaction
Records Dependent on Previous
Ones
Next:Digital Dollars in Locked Bank Accounts

11. Transparent Ledger of Locked Digital Dollars w/ Transactions Chained
Together in Bank
CORE IDEA
Block – Collection of Transactions from a Period of Time
Validation – Each Block Proves Validity of Previous Block
Block Chain – Ledger of Blocks Whose Security Increases with Time
Hashing – Creation of Cryptographic Dependency Links
CHALLENGE
Bank is Single Point of Failure
SOLUTION
Duplicate the Block Chain
into Limitless Copies
Next:Transparent Secure Block Chain Stored on Any User's Computer
VIS

12. Numerical Dependency
DOMINOES HASHING
0 to 6 0
to
99999999999999999999999999999999
99999999999999999999999999999999
99999999999999999999999999999999
99999999999999999999999999999999
99999999999999999999999999999999
99999999999999999999999999999999
99999999999999999999999999999999
99999999999999999999999999999999

13. Transparent Secure Block Chain Stored on Any User's Computer
CORE IDEA
Distributed Network – Peer to Peer
Distributed Trust & Verification
Units Controlled by Banks are Dollars
Units Controlled by Users are Bitcoins
CHALLENGE
Who Will Collect Transactions
Create & Validate Blocks?
SOLUTION
Blocks Collected and Linked
by Any Volunteer (Miner)
Next:Block Chain Stored By All & Extended by Competing Miners
VIS

14. Network Arrangements
CENTRALIZED DECENTRALIZED DISTRIBUTED

15. Block Chain Stored By All & Extended by Competing Miners
CORE IDEA
Anyone Can Be a Miner
Miners Compete to Solve Blocks
Miners Confirm Validity of Solved Blocks
Miners Who Solve Blocks First are Rewarded with Bitcoins
Miners Prioritize Transactions Based on Voluntary Fees
Hash Difficulty is Adjusted So a Block is Solved Every 10 Minutes

16. Bitcoin is A Distributed Network Crypto Currency
Core Idea
Bitcoin Can Cost Nothing to Use
Bitcoin Transactions are Transparent and Permanent
Each User’s Self Interest Adds Security to the Network
Participation Can be Mostly Anonymous
The Bitcoin Network Belongs to No One and Everyone
Bitcoin Has No State, Cultural, or Language Boundaries

17. That’s the Evolution
from Dollars to Bitcoin!

18. The Distributed Block Chain is a World Changing Concept
Core Idea
A Shared Indelible Record, Secured and Witnessed by Millions
Possible Applications
Accounting
Auditing
Autonomous Entities
Budgeting
Business Structures
Contracts
Copyright
Insurance Records
Lease Agreements
Micro Transactions
Prenuptial Agreements
Promises
Reviews
Service Ratings
Speech Records
Stock Ownership
Warrantees
Last Wills

19. Producedby
Damon.Smith@gmail.com August 7, 2014