The document provides an introduction to cryptocurrencies like Bitcoin. It discusses how cryptocurrencies differ from traditional fiat currencies and the challenges involved in creating a digital currency. The key aspects covered are:
- Bitcoin was created in 2008 as a decentralized digital currency not backed by any government or bank.
- Transactions are recorded on a public ledger called the blockchain to prevent double spending without a central authority.
- The price of Bitcoin has been very volatile, rising from around $3,000 to over $18,000 in late 2017 before falling again.
- Miners are incentivized to validate transactions and secure the network through block rewards and transaction fees in new Bitcoins.
This document contains the transcript of a presentation on Bitcoin and cryptocurrencies. It introduces Bitcoin as an experimental digital currency that enables instant global payments without a central authority. It explains that Bitcoin uses peer-to-peer technology and blockchain to manage transactions collectively on the network. The presentation discusses why people may want to invest in or use Bitcoin, outlines how to obtain Bitcoin through exchanges or mining, and provides a basic technical overview of how Bitcoin transactions and blockchain work.
The document provides an overview of Bitcoin, blockchain technology, and distributed ledgers. It discusses Bitcoin's origins and resilience despite challenges like crackdowns in China and the Mt. Gox exchange bankruptcy. The document also summarizes how the blockchain works through a process of mining and distributed consensus to record transactions without a centralized authority. Finally, it explores the potential for blockchain technology beyond Bitcoin and comparisons of Bitcoin to digital gold in the evolution of currency.
1. The document provides an overview of Bitcoin, including its origins, how it works as a decentralized digital currency, and some of its key features and advantages.
2. It discusses Bitcoin's theoretical underpinnings and compares it to traditional fiat currencies and commodities like gold. However, it notes that Bitcoin faces significant challenges from its volatility, lack of regulation, and theoretical shortcomings regarding use as a stable currency.
3. In conclusion, the document outlines both advantages and disadvantages of Bitcoin, questioning its independence and stability as a currency due to issues like its unregulated status, anonymity enabling tax evasion, and lack of a clear theoretical framework supporting its use as money.
Study on Bitcoin - Technical & Legal Aspects (Presentation at Cyber Cell Gurg...Lovey Jain
This document provides an overview of Bitcoin including its origins, basic terminology, technology, and issues. It was created by Lovey Jain for a presentation at the Cyber Crime Cell in Gurgaon, India. The document discusses how Bitcoin was started in 2008 by Satoshi Nakamoto, defines Bitcoin as a digital currency not backed by any government, and explains the basic mechanisms of how Bitcoin works including mining and the blockchain.
Sixth lesson for the Bitcoin and Blockchain Technology course of Milano Bicocca University (2017)
Video (in Italian) available at https://goo.gl/g65Nzp
This document provides an overview of Bitcoin including:
1. The history and creation of Bitcoin, how it works without a central authority, and how new bitcoins are created through mining.
2. How transactions work using private keys and the blockchain to record balances and verify transactions.
3. Methods for individuals and merchants to use Bitcoin, including obtaining, storing, and spending bitcoins as well as advantages like low fees and risks to consider.
4. Both advantages like payment freedom and security, and disadvantages like price volatility.
This document contains the transcript of a presentation on Bitcoin and cryptocurrencies. It introduces Bitcoin as an experimental digital currency that enables instant global payments without a central authority. It explains that Bitcoin uses peer-to-peer technology and blockchain to manage transactions collectively on the network. The presentation discusses why people may want to invest in or use Bitcoin, outlines how to obtain Bitcoin through exchanges or mining, and provides a basic technical overview of how Bitcoin transactions and blockchain work.
The document provides an overview of Bitcoin, blockchain technology, and distributed ledgers. It discusses Bitcoin's origins and resilience despite challenges like crackdowns in China and the Mt. Gox exchange bankruptcy. The document also summarizes how the blockchain works through a process of mining and distributed consensus to record transactions without a centralized authority. Finally, it explores the potential for blockchain technology beyond Bitcoin and comparisons of Bitcoin to digital gold in the evolution of currency.
1. The document provides an overview of Bitcoin, including its origins, how it works as a decentralized digital currency, and some of its key features and advantages.
2. It discusses Bitcoin's theoretical underpinnings and compares it to traditional fiat currencies and commodities like gold. However, it notes that Bitcoin faces significant challenges from its volatility, lack of regulation, and theoretical shortcomings regarding use as a stable currency.
3. In conclusion, the document outlines both advantages and disadvantages of Bitcoin, questioning its independence and stability as a currency due to issues like its unregulated status, anonymity enabling tax evasion, and lack of a clear theoretical framework supporting its use as money.
Study on Bitcoin - Technical & Legal Aspects (Presentation at Cyber Cell Gurg...Lovey Jain
This document provides an overview of Bitcoin including its origins, basic terminology, technology, and issues. It was created by Lovey Jain for a presentation at the Cyber Crime Cell in Gurgaon, India. The document discusses how Bitcoin was started in 2008 by Satoshi Nakamoto, defines Bitcoin as a digital currency not backed by any government, and explains the basic mechanisms of how Bitcoin works including mining and the blockchain.
Sixth lesson for the Bitcoin and Blockchain Technology course of Milano Bicocca University (2017)
Video (in Italian) available at https://goo.gl/g65Nzp
This document provides an overview of Bitcoin including:
1. The history and creation of Bitcoin, how it works without a central authority, and how new bitcoins are created through mining.
2. How transactions work using private keys and the blockchain to record balances and verify transactions.
3. Methods for individuals and merchants to use Bitcoin, including obtaining, storing, and spending bitcoins as well as advantages like low fees and risks to consider.
4. Both advantages like payment freedom and security, and disadvantages like price volatility.
Bitcoin is a decentralized digital currency created by unknown person or group called Satoshi Nakamoto. It allows for peer-to-peer transactions without an intermediary. Bitcoins are produced through mining, where computers validate transactions by solving complex math problems and are rewarded with new bitcoins. The total number of bitcoins is limited to 21 million. While bitcoin offers advantages like low fees and accessibility, it also faces criticisms around its energy use and potential for criminal activity. Whether to invest in bitcoin depends on one's risk tolerance since its value is volatile without an underlying asset.
Bitcoin and blockchain technology allows for decentralized, permissionless, and censorship-resistant digital currency and payments. Bitcoins are created through a process called mining where miners validate transactions and are rewarded with new bitcoins approximately every 10 minutes. The fixed and predictable monetary policy means bitcoin supply is inelastic and decreases over time. Bitcoin has proven resilient despite events like the shutdown of Silk Road and Mt. Gox exchange hack.
Bit-I-Coin is a new cryptocurrency launched from the Bitcoin platform. It uses the SHA256 algorithm and proof-of-work/proof-of-stake blockchain. Bit-I-Coin aims to create a fair global financial system and plans to offer lending programs with 40% monthly returns, mining programs, trading, and wallet services. The roadmap details ongoing development of the coin including an ICO, exchanges, and integration of artificial intelligence into a trading bot.
This presentation provides an overview of cryptocurrency. It defines cryptocurrency as a digital asset designed to work as a medium of exchange using cryptography. It compares conventional currency to digital currency, highlighting aspects like anonymity and decentralization. The presentation discusses reasons for using cryptocurrency like lack of third party involvement. It also outlines some risks like hackers, lack of protections, and scams. It provides examples of different cryptocurrencies like Bitcoin, describing Bitcoin's technology and transaction process. The conclusion states that cryptocurrency remains a monetary experiment that may not fully displace conventional currencies.
Cryptocurrency is the name given to a system that uses cryptography to allow the secure transfer and exchange of digital tokens in a distributed and decentralized manner. These tokens can be traded at market rates for fiat currencies.
What is Bitcoin and How is it related to Satoshi Nakamoto White Paper.pdfSuraj Sharma
Well the terms like bitcoin & block chain are being coined and referred to everywhere over the internet or over any investment or financial platform the reason being its increasing popularity and the mammoth returns that people have made by investing in these avenues.
Although the concept of bitcoin is known to many but still there are many that are confronted with this question that what is a bitcoin and how does it work? so, in this blog I have made a sincere effort to explain the same in the easiest of manner for you to understand this concept. So as we move ahead we will dive in this concept of What is Bitcoin? How is it related to White paper of Satoshi Nakamoto? to understand the basics of bitcoins and how would its future be like.
The term crypto currency is being coined everywhere due to its increased popularity worldwide, it is being looked at with great aspiration to park one’s money for a lucrative and manifold return. One can well imagine the return percentage on his/her investment in bitcoins by the fact that 1 bitcoin was worth $0 in 2009 and it now values at $55,353 (at the time of writing this article).
This means you could have been a millionaire or a billionaire if a reasonable investment was made in bitcoins in 2009 and was to be redeemed now.
Cryptocurrency- A Digital asset as a medium of exchange:
Crypto currency is a digital asset that is designed in such a manner that it offers the benefits of a medium of exchange like any other currency, so you can buy any item in exchange of these digital assets that you possess from the seller that accepts these forms of payments.
These digital assets are stored in computerized databases as they do not exist in physical form, using strong cryptography to secure the transaction records.
Decentralized Cryptocurrency Explained in Easy:
Whenever these digital currencies are minted, mined or created by the originator , the process is said to have exercised a centralized control, however when these are further disseminated to larger groups a decentralized control is said to have exercised. Each cryptocurrency functions through a distributed ledger technology that is typically known as block chain technology that serves as a public financial transaction database.
Although there are several other Cryptocurrencies that exist in the digital world and they too have offered good returns over a period of time, but the major issue involved in these digital currencies is that they are not backed by any of the apex bank of any country nor do they are traded in any banking channel.
Usually these digital currencies or cryptocurrencies that are not backed by any government or banking channel have no intrinsic value and nor do they will have in future.
Their values are derived purely on the basis of market forces of demand and supply and are a private fiat money. The market of these digital assets is highly volatile and have no capping on their price increase or decrease.
A digital currency is a form of currency that exists only in digital form, not as physical money. Cryptocurrencies use cryptography for security and many use blockchain technology. There are thousands of cryptocurrencies today with a total market value over $200 billion, though Bitcoin represents over 50% of that value. Cryptocurrencies allow direct transfers between parties without third parties like banks but their value fluctuates widely.
All you want to know about #cryptocurrency and blockchain as well as hashing bitcoin.
- there are something is so difficult to understand in the power point but don't hesitate and write down your comment and surly i will make it easier for you.
Bitcoin price today BTC to USD market cap.pdfFranck La Rocca
As of 4:11 p.m., the price of Bitcoin is $16,171.30, changing -2.19% from the previous day. The market capitalization of the tokens was $310,785,787,847.95 after the recent fluctuations in the price of bitcoin. Bitcoin has had a shift of -65.00% so far this year. According to the CoinDesks Digital Asset Classification Standard, Bitcoin is categorized as a currency (DACS).
The document discusses Bitcoin and blockchain technology. It explains that blockchain is a constantly growing ledger that records all transactions in a secure, chronological and immutable manner. Bitcoin uses blockchain to allow digital assets to be securely bought, sold, and transferred over the internet without a third party. The blockchain underlies Bitcoin and keeps a decentralized record of all transactions across the Bitcoin network, making the records secure and less prone to fraud. Miners on the Bitcoin network process and confirm transactions by solving complex cryptography problems and are rewarded with Bitcoin.
Crypto assets fundamentals presentation. It provides an overview on cryptocurrencies, cryptoassets and their principles. How they works, where their value come from, statistics, their regulatory environment, how to use and store them, type of wallets, investment principles and more!
Quick Understanding of Bitcoin/Cryptocurrency.Satish Mudaliar
This slide briefs you about the BItcoin/Cryptocurrency knowledge and facts. This slide is made for diffrent purpose but sharing here to help someone getting a quick knowledge of Bitcoins.
Quick Understanding of Bitcoin/Cryptocurrency.Satish Mudaliar
This Slide refers to a quick Understanding of Bitcoin/Cryptocurrency. The purpose to prepare is different but this slide can help ones in better understanding than other presentation.
The presentation provided an overview of cryptocurrency, including its key features, history from Bitcoin's launch in 2009, and examples like Bitcoin, Ethereum, and Ripple. Cryptocurrency uses cryptography to secure transactions and control the creation of new units in a decentralized, peer-to-peer system without intermediaries. Risks of cryptocurrency include hackers targeting systems and lack of protections if something goes wrong with companies holding cryptocurrencies. The future of cryptocurrency may include more retailers accepting it and reduced volatility increasing its common usage similar to credit cards.
This document provides an overview of Bitcoin and how Bitcoin transactions work. It describes the key players in a Bitcoin transaction which include the payer, payee, blockchain, transaction records, and miners. It explains how payer uses their private key to digitally sign transactions which are then broadcast to the network and compiled into blocks by miners. Miners work to verify transactions and add new blocks to the blockchain through proof of work. This process typically takes 10 minutes to add a new block to the distributed ledger and confirm the transaction. The document also summarizes different types of Bitcoin wallets and how Bitcoins can be acquired.
Cryptocurrencies: The Mechanics Economic and FinanceErnie Teo
Presented at the INAUGURAL CAIA-SKBI CRYPTOCURRENCY CONFERENCE 2014 on 04 November 2014 held at the Singapore Management University
This talk gives a general overview of Bitcoin and other cryptocurrencies.
5 Common Mistakes to Avoid During the Job Application Process.pdfAlliance Jobs
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Learnings from Successful Jobs SearchersBruce Bennett
Are you interested to know what actions help in a job search? This webinar is the summary of several individuals who discussed their job search journey for others to follow. You will learn there are common actions that helped them succeed in their quest for gainful employment.
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Similar to Module-2-Introduction-to-Cryptocurrencies.pdf
Bitcoin is a decentralized digital currency created by unknown person or group called Satoshi Nakamoto. It allows for peer-to-peer transactions without an intermediary. Bitcoins are produced through mining, where computers validate transactions by solving complex math problems and are rewarded with new bitcoins. The total number of bitcoins is limited to 21 million. While bitcoin offers advantages like low fees and accessibility, it also faces criticisms around its energy use and potential for criminal activity. Whether to invest in bitcoin depends on one's risk tolerance since its value is volatile without an underlying asset.
Bitcoin and blockchain technology allows for decentralized, permissionless, and censorship-resistant digital currency and payments. Bitcoins are created through a process called mining where miners validate transactions and are rewarded with new bitcoins approximately every 10 minutes. The fixed and predictable monetary policy means bitcoin supply is inelastic and decreases over time. Bitcoin has proven resilient despite events like the shutdown of Silk Road and Mt. Gox exchange hack.
Bit-I-Coin is a new cryptocurrency launched from the Bitcoin platform. It uses the SHA256 algorithm and proof-of-work/proof-of-stake blockchain. Bit-I-Coin aims to create a fair global financial system and plans to offer lending programs with 40% monthly returns, mining programs, trading, and wallet services. The roadmap details ongoing development of the coin including an ICO, exchanges, and integration of artificial intelligence into a trading bot.
This presentation provides an overview of cryptocurrency. It defines cryptocurrency as a digital asset designed to work as a medium of exchange using cryptography. It compares conventional currency to digital currency, highlighting aspects like anonymity and decentralization. The presentation discusses reasons for using cryptocurrency like lack of third party involvement. It also outlines some risks like hackers, lack of protections, and scams. It provides examples of different cryptocurrencies like Bitcoin, describing Bitcoin's technology and transaction process. The conclusion states that cryptocurrency remains a monetary experiment that may not fully displace conventional currencies.
Cryptocurrency is the name given to a system that uses cryptography to allow the secure transfer and exchange of digital tokens in a distributed and decentralized manner. These tokens can be traded at market rates for fiat currencies.
What is Bitcoin and How is it related to Satoshi Nakamoto White Paper.pdfSuraj Sharma
Well the terms like bitcoin & block chain are being coined and referred to everywhere over the internet or over any investment or financial platform the reason being its increasing popularity and the mammoth returns that people have made by investing in these avenues.
Although the concept of bitcoin is known to many but still there are many that are confronted with this question that what is a bitcoin and how does it work? so, in this blog I have made a sincere effort to explain the same in the easiest of manner for you to understand this concept. So as we move ahead we will dive in this concept of What is Bitcoin? How is it related to White paper of Satoshi Nakamoto? to understand the basics of bitcoins and how would its future be like.
The term crypto currency is being coined everywhere due to its increased popularity worldwide, it is being looked at with great aspiration to park one’s money for a lucrative and manifold return. One can well imagine the return percentage on his/her investment in bitcoins by the fact that 1 bitcoin was worth $0 in 2009 and it now values at $55,353 (at the time of writing this article).
This means you could have been a millionaire or a billionaire if a reasonable investment was made in bitcoins in 2009 and was to be redeemed now.
Cryptocurrency- A Digital asset as a medium of exchange:
Crypto currency is a digital asset that is designed in such a manner that it offers the benefits of a medium of exchange like any other currency, so you can buy any item in exchange of these digital assets that you possess from the seller that accepts these forms of payments.
These digital assets are stored in computerized databases as they do not exist in physical form, using strong cryptography to secure the transaction records.
Decentralized Cryptocurrency Explained in Easy:
Whenever these digital currencies are minted, mined or created by the originator , the process is said to have exercised a centralized control, however when these are further disseminated to larger groups a decentralized control is said to have exercised. Each cryptocurrency functions through a distributed ledger technology that is typically known as block chain technology that serves as a public financial transaction database.
Although there are several other Cryptocurrencies that exist in the digital world and they too have offered good returns over a period of time, but the major issue involved in these digital currencies is that they are not backed by any of the apex bank of any country nor do they are traded in any banking channel.
Usually these digital currencies or cryptocurrencies that are not backed by any government or banking channel have no intrinsic value and nor do they will have in future.
Their values are derived purely on the basis of market forces of demand and supply and are a private fiat money. The market of these digital assets is highly volatile and have no capping on their price increase or decrease.
A digital currency is a form of currency that exists only in digital form, not as physical money. Cryptocurrencies use cryptography for security and many use blockchain technology. There are thousands of cryptocurrencies today with a total market value over $200 billion, though Bitcoin represents over 50% of that value. Cryptocurrencies allow direct transfers between parties without third parties like banks but their value fluctuates widely.
All you want to know about #cryptocurrency and blockchain as well as hashing bitcoin.
- there are something is so difficult to understand in the power point but don't hesitate and write down your comment and surly i will make it easier for you.
Bitcoin price today BTC to USD market cap.pdfFranck La Rocca
As of 4:11 p.m., the price of Bitcoin is $16,171.30, changing -2.19% from the previous day. The market capitalization of the tokens was $310,785,787,847.95 after the recent fluctuations in the price of bitcoin. Bitcoin has had a shift of -65.00% so far this year. According to the CoinDesks Digital Asset Classification Standard, Bitcoin is categorized as a currency (DACS).
The document discusses Bitcoin and blockchain technology. It explains that blockchain is a constantly growing ledger that records all transactions in a secure, chronological and immutable manner. Bitcoin uses blockchain to allow digital assets to be securely bought, sold, and transferred over the internet without a third party. The blockchain underlies Bitcoin and keeps a decentralized record of all transactions across the Bitcoin network, making the records secure and less prone to fraud. Miners on the Bitcoin network process and confirm transactions by solving complex cryptography problems and are rewarded with Bitcoin.
Crypto assets fundamentals presentation. It provides an overview on cryptocurrencies, cryptoassets and their principles. How they works, where their value come from, statistics, their regulatory environment, how to use and store them, type of wallets, investment principles and more!
Quick Understanding of Bitcoin/Cryptocurrency.Satish Mudaliar
This slide briefs you about the BItcoin/Cryptocurrency knowledge and facts. This slide is made for diffrent purpose but sharing here to help someone getting a quick knowledge of Bitcoins.
Quick Understanding of Bitcoin/Cryptocurrency.Satish Mudaliar
This Slide refers to a quick Understanding of Bitcoin/Cryptocurrency. The purpose to prepare is different but this slide can help ones in better understanding than other presentation.
The presentation provided an overview of cryptocurrency, including its key features, history from Bitcoin's launch in 2009, and examples like Bitcoin, Ethereum, and Ripple. Cryptocurrency uses cryptography to secure transactions and control the creation of new units in a decentralized, peer-to-peer system without intermediaries. Risks of cryptocurrency include hackers targeting systems and lack of protections if something goes wrong with companies holding cryptocurrencies. The future of cryptocurrency may include more retailers accepting it and reduced volatility increasing its common usage similar to credit cards.
This document provides an overview of Bitcoin and how Bitcoin transactions work. It describes the key players in a Bitcoin transaction which include the payer, payee, blockchain, transaction records, and miners. It explains how payer uses their private key to digitally sign transactions which are then broadcast to the network and compiled into blocks by miners. Miners work to verify transactions and add new blocks to the blockchain through proof of work. This process typically takes 10 minutes to add a new block to the distributed ledger and confirm the transaction. The document also summarizes different types of Bitcoin wallets and how Bitcoins can be acquired.
Cryptocurrencies: The Mechanics Economic and FinanceErnie Teo
Presented at the INAUGURAL CAIA-SKBI CRYPTOCURRENCY CONFERENCE 2014 on 04 November 2014 held at the Singapore Management University
This talk gives a general overview of Bitcoin and other cryptocurrencies.
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1. Module 2 – Introduction to
Cryptocurrencies
Debasis Bhattacharya, JD, DBA
University of Hawaii Maui College
debasisb@Hawaii.edu
@uhmcabit
maui.hawaii.edu/cybersecurity
2. Currencies - Online Transactions
• Physical cash
• Non-traceable (well, mostly!)
• Secure (mostly)
• Low inflation
• Fiat Currency – legal tender whose value is backed by a government
• Note that since 1971, the US$ has no backing with gold!
• Cryptocurrencies are not fiat currencies!
• Physical currencies can’t be used online directly
Electronic credit or debit transactions
Bank sees all transactions
Merchants can track/profile customers
Cryptocurrencies are not associated with any bank or regulatory agency!
Faculty Workshop 2018 - Bhattacharya - Intro to
Cryptocurrencies
5/16/2018 2
3. Bitcoin
• A distributed, decentralized digital currency system
• Released by Satoshi Nakamoto 2008
• Effectively a bank run by an ad hoc network
• Digital checks
• A distributed transaction log
Faculty Workshop 2018 - Bhattacharya - Intro to
Cryptocurrencies
5/16/2018 3
4. Size of the BitCoin Economy
• Number of BitCoins in circulation ~17 million (April 8, 2018)
• Total number of BitCoins generated cannot exceed 21 million.
• Around 4 million left to be mined!
• Average price of a Bitcoin:
• $8,522 in May 15, 2018
• $7,149 in April 8, 2018
• $18,000 in December, 2017
• $3,867 on September 25, 2017;
• $2,350 on June 27, 2017
Price has been very unstable and speculative.
• Currently, 244,157 tx/day or ~170 tx/minute.
(In contrast, Visa transaction 200,000 per minute!)
Faculty Workshop 2018 - Bhattacharya - Intro to
Cryptocurrencies
5/16/2018 4
5. Faculty Workshop 2018 - Bhattacharya - Intro to
Cryptocurrencies
5/16/2018 5
Bitcoins – All Charts as of Sunday May 15, 2018
12. BitCoin: Challenges
• Creation of a virtual coin/note
• How is it created in the first place?
• How do you prevent inflation? (What prevents anyone from creating lots of coins?)
• Validation
• Is the coin legit? (proof-of-work)
• How do you prevent a coin from double-spending?
• Buyer and Seller protection in online transactions
• Buyer pays, but the seller doesn’t deliver
• Seller delivers, buyer pays, but the buyer makes a claim.
• Trust on third-parties
• Rely on “proof of work” instead of trust
• Verifiable by everyone – blockchain is visible to all
• No central bank or clearing house
Faculty Workshop 2018 - Bhattacharya - Intro to
Cryptocurrencies
5/16/2018 12
13. Security in Bitcoin
• Authentication
• Am I paying the right person? Not some other impersonator?
• Integrity
• Is the coin double-spent?
• Can an attacker reverse or change transactions?
• Availability
• Can I make a transaction anytime I want?
• Confidentiality
• Are my transactions private? Anonymous?
Faculty Workshop 2018 - Bhattacharya - Intro to
Cryptocurrencies
5/16/2018 13
14. Security in Bitcoin
• Authentication Public Key Crypto: Digital Signatures
• Am I paying the right person? Not some other impersonator?
• Integrity Digital Signatures and Cryptographic Hash
• Is the coin double-spent?
• Can an attacker reverse or change transactions?
• Availability Broadcast messages to the P2P network
• Can I make a transaction anytime I want?
• Confidentiality Pseudonymity
• Are my transactions private? Anonymous?
Faculty Workshop 2018 - Bhattacharya - Intro to
Cryptocurrencies
5/16/2018 14
15. Back to BitCoin
• Validation
• Is the coin legit? (proof-of-work) Use of Cryptographic Hashes
• How do you prevent a coin from double-spending? Broadcast to all nodes
• Creation of a virtual coin/note
• How is it created in the first place? Provide incentives for miners, earn
bitcoins after work!
• How do you prevent inflation? (What prevents anyone from creating lots of
coins?) Limit the creation rate of the BitCoins. Right now, 12.5 coins to
miners
Faculty Workshop 2018 - Bhattacharya - Intro to
Cryptocurrencies
5/16/2018 15
16. Bitcoin Transactions
Public key 0xa8fc93875a972ea
Signature 0xa87g14632d452cd
Public key 0xc7b2f68...
Faculty Workshop 2018 - Bhattacharya - Intro to
Cryptocurrencies
5/16/2018 16
17. Bitcoin Network
• Each P2P node runs the following algorithm:
• New transactions are broadcast to all nodes.
• Each node (miners) collects new transactions into a block.
• Each node works on finding a proof-of-work for its block. (Hard to do.
Probabilistic. The one to finish early will probably win.)
• When a node finds a proof-of-work, it broadcasts the block to all nodes.
• Nodes accept the block only if all transactions in it are valid (digital signature
checking) and not already spent (check all the transactions).
• Nodes express their acceptance by working on creating the next block in the
chain, using the hash of the accepted block as the previous hash.
Faculty Workshop 2018 - Bhattacharya - Intro to
Cryptocurrencies
5/16/2018 17
18. Practical Limitation
• At least 10 mins to verify a transaction.
• Agree to pay
• Wait for one block (10 mins) for the transaction to go through.
• But, for a large transaction ($$$) wait longer, around 60 minutes. Because if
you wait longer it becomes more secure.
• For large $$$, you wait for six blocks (1 hour).
Faculty Workshop 2018 - Bhattacharya - Intro to
Cryptocurrencies
5/16/2018 18
19. BitCoin Economics
Rate limiting on the creation of a new block
Adapt to the “network’s capacity”
A block created every 10 mins (six blocks every hour)
How? Difficulty is adjusted every two weeks to keep the rate fixed as capacity/computing power
increases
N new Bitcoins per each new block: credited to the miner incentives for
miners
N was 50 initially. In 2013, N=25
Since 2016 N = 12.5, next half is June 2020 for N = 6.25.
Halved every 210,000 blocks (every four years)
Thus, the total number of BitCoins will not exceed 21 million. (After this miner takes a fee)
Faculty Workshop 2018 - Bhattacharya - Intro to
Cryptocurrencies
5/16/2018 19
20. Privacy Implications
• No anonymity, only pseudonymity
• All transactions remain on the block chain– indefinitely!
• Retroactive data mining
• Target used data mining on customer purchases to identify pregnant women
and target ads at them
(NYT 2012), ended up informing a woman’s father that his teenage daughter
was pregnant
• Imagine what credit card companies could do with the data
Faculty Workshop 2018 - Bhattacharya - Intro to
Cryptocurrencies
5/16/2018 20
29. Cryptocurrencies and Blockchains
• Cryptocurrencies and technology are here to stay…
• http://www.bitcoin.org/ - Started Satoshi Nakamoto, 10/08
• www.ZeroCoin.org - Extend Bitcoin to make it private
• www.Litecoin.org - Open Source P2P Internet Currency
• www.Ethereum.org - Smart Contracts (Microsoft)
• www.Hyperledger.org - Blockchains for Business (IBM)
• www.getmonero.org – Monero Cryptocurrency (XMR)
• https://aws.amazon.com/blockchain/templates/ AWS
• https://azure.microsoft.com/en-us/solutions/blockchain/ MS Azure
• Security is an issue just like anything else
• Consumers: Social Engineering, Malware, Phishing etc.
• Exchanges: Hacks, Botnets, Malware, Phishing, APT etc.
Faculty Workshop 2018 - Bhattacharya - Intro to
Cryptocurrencies
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30. Acknowledgements
Some of the slides, content, or pictures are borrowed from the following resources, and
some pictures are obtained through Google search without being referenced below:
• Most of the OSINT content in this presentation is from - Online Class on Open Source
Intelligence (OSINT) 2016 class at Cyber Watch West (CWW) by Anastacia Webster,
Adjunct Instructor at California State University, San Bernardino, CA
• Michael Bazzell- Open Source Intelligence Techniques; Hiding from The Internet; Privacy
and Security; Personal Digital Security
• Johnny Long- No Tech Hacking : Google Hacking
• L24-BitCoin and Security, many of the slides borrowed from this presentation with
modifications.
• Presentation by Amir Houmansadr from Umass CS entitled “Secure Digital Currency:
Bitcoin”, CS660, Spring 2015
Faculty Workshop 2018 - Bhattacharya - Intro to
Cryptocurrencies
5/16/2018 30
31. Faculty Workshop 2018 - Bhattacharya - Intro to
Cryptocurrencies
Dr. Debasis Bhattacharya, JD, DBA
debasisb@hawaii.edu
@uhmcabit
http://maui.hawaii.edu/cybersecurity
5/16/2018 31