Bitcoin is a digital currency and payment system created by an unknown person named Satoshi Nakamoto. It was introduced in 2008 as open-source software and allows for peer-to-peer transactions without an intermediary. Bitcoins are produced by people running computers to solve mathematical problems and verify transactions in a process called mining. There will only ever be 21 million bitcoins created and they are stored on a public ledger called the blockchain, which records every transaction ever made in the bitcoin network in an easily verifiable way.

1. Bitcoin
Open Source P2P Money
Presented by
Mr. Manish Tripathi ( I – 15-18-19)
Thakur Institute of Management Studies
&
Research
(Sunday 5 February, 2017)

2. What is Bitcoin?
Bitcoin is a form of digital currency, is a
cryptocurrency and a payment system, created and
held electronically. No one controls it. Bitcoins aren’t
printed, like dollars or euros – they’re produced by
people, and increasingly businesses, running
computers all around the world, using software that
solves mathematical problems.

3. History of Bitcoin
• A software developer called Satoshi Nakamoto
proposed bitcoin, whose identity is mystric, in a
research paper called "Bitcoin: A Peer-to-Peer
Electronic Cash System"
• Bitcoin was introduced on 31 October 2008 to a
cryptography mailing list
• Released as open-source software in 2009

4. Features of Bitcoin
• Bitcoin can be used to buy things electronically. In that
sense, it’s like conventional dollars, euros, or yen,
which are also traded digitally
• The idea was to produce a currency independent of
any central authority, transferable electronically, more
or less instantly, with very low transaction fees
• This currency isn’t physically printed in the shadows by
a central bank, so not inflated
• Bitcoin is created digitally, by a community of people
that anyone can join. This network also processes
transactions made with the virtual currency, effectively
making bitcoin its own payment network

5. Features of Bitcoin
• The bitcoin protocol – the rules that make bitcoin
work – say that only 21 million bitcoins can ever be
created by miners.
• However, these coins can be divided into smaller
parts
• It's decentralized : The bitcoin network isn’t
controlled by one central authority. Every machine
that mines bitcoin and processes transactions
makes up a part of the network, and the machines
work together.

6. Features of Bitcoin
• It's easy to set up: Conventional banks make you
jump through hoops to open a bank account.
However, you can set up a bitcoin address in seconds,
no questions asked, and with no fees payable.
• It's anonymous: Users can hold multiple bitcoin
addresses, and they aren’t linked to names, addresses,
or other personally identifying information.
• It's completely transparent: bitcoin stores details of
every single transaction that ever happened in the
network in a huge version of a general ledger, called
the blockchain.

7. Bitcoin Mining
New bitcoins are generated by a competitive and
decentralized process called "mining". This process
involves that individuals are rewarded by the
network for their services. Bitcoin miners are
processing transactions and securing the network
using specialized hardware and are collecting new
bitcoins in exchange.

9. Bitcoin Blockchain
A blockchain is a public ledger of all Bitcoin transactions that
have ever been executed. It is constantly growing as
‘completed’ blocks are added to it with a new set of
recordings. The blocks are added to the blockchain in a linear,
chronological order. Each node (computer connected to the
Bitcoin network using a client that performs the task of
validating and relaying transactions) gets a copy of the
blockchain, which gets downloaded automatically upon
joining the Bitcoin network. The blockchain has complete
information about the addresses and their balances right
from the genesis block to the most recently completed block