This document provides an overview of bitcoin and blockchain technology. It discusses how bitcoin works as a cryptocurrency where value is determined by supply and demand. It has no central authority and uses cryptography and a distributed ledger called a blockchain to record transactions. The document then explains key aspects of bitcoin including how mining works to validate transactions and provide security, current inventory and reducing block rewards over time, comparative volatility to traditional currencies, and how the distributed blockchain ledger records transactions anonymously across a network. It also discusses different types of blockchains and potential other uses for blockchain technology beyond just representing money.

1. It’s A Little Bit Me,
It’s A Little Bitcoin
Joe Kleinwaechter
Vice President
Innovation & Design

2. THE TEAM
How many miners does it take
to change a lightbulb?
One miner to change it, and a
million miners running in circles
to determine who gets to do it.

3. THE TEAM

4. THE TEAM
A Cryptocurrency A Bearer Instrument Distributed
• It’s value, like most money, is
determined by supply and
demand
• Security through math
• Non-bitcoin cryptocurrencies
are called alt-coins.
• Whoever is in possession of it,
owns it.
• No record is kept of who owns
it.
• There is no central owner
• All integrity is held with the
participants.
• Self-policing based on math.
What is it? Bitcoin is...

5. What does a bitcoin look like?

7. For the Biz Geeks

8. Today’s Price
Price
Yesterday the US Dollar’s
value changed by
.3%.
Bitcoin’s value changed by
3.2%.
Source: https://btcvol.info/

9. Past 6 Years
Over the years
volatility is
reducing and looks
to be settling in…
Source: https://btcvol.info/

10. Past Year
…or not
Source: https://btcvol.info/

11. Comparative Volatility
…or not
Source: Bloomberg

12. For the Tech Geeks

13. Mining
Really Hard Math
Problem
Fastest Correct
Solution
Miners

14. Inventory
Current inventory
is 75% of eventual
population.
You can’t have a
permanently
increasing supply
of money…
...unless you are
the government.

15. Block Rewards
25
4 years 4 years 4 years
12.5 6.25 3.12
2012 2016 2020 2024
Rate
(bitcoins/ block)
Source: https://btcvol.info/

16. Economics
Fiat CurrencyBitcoin Currency

17. Transacting
2L7AG’s Bitcoin Wallet
1X2FD’s Bitcoin Wallet
Validate and Mass
Authenticate
Block 123
Trans1
Trans2
Trans3
…
TransN
Block 123
Trans1
Trans2
Trans3
…
TransN
…
Block 123
Trans1
Trans2
Trans3
…
TransN
Block 122
Trans1
Trans2
Trans3
…
TransN
Block 121
Trans1
Trans2
Trans3
…
TransN
Distributed Ledger

18. The Ledger
Integrity – Blockchains are immutable. All
commits are permanent and never retire.
Anonymity – Blockchains don’t record personal
identity, only account numbers
Resiliency - Every node or miner in a
decentralized system has a copy of the
blockchain.
Democracy - No miner is trusted more than any
other.
…
Block 123
Trans1
Trans2
Trans3
…
TransN
Block 122
Trans1
Trans2
Trans3
…
TransN
Block 121
Trans1
Trans2
Trans3
…
TransN
Distributed
Ledger
Known commonly
as the Blockchain

19. For the Innovation Geeks

20. Blockchain Types
Blockchains can be Public

21. Blockchains can be Private
Blockchain Types

22. Blockchain Types
…
…
…
Blockchains can be Federated

23. I wonder if blockchain
transactions could represent
something other than money?

24. Why yes, Rick,
they can.

25. Integrity – Blockchains are immutable. All
commits are permanent and never retire.
Anonymity – Blockchains don’t record
personal identity, only account numbers
Resiliency - Every node or miner in a
decentralized system has a copy of the
blockchain.
Democracy - No miner is trusted more than
any other.
Blockchain Possibilities
With these
attributes in
mind, what
else could
blockchain
be used
for?