What is a Bitcoin?
Bitcoin is a decentralized digital currency, made up of a block of encrypted data. This currency exists purely in electronic form, and exchanged through a secure peer-to-peer file transfer system. Bitcoins are considered to have value because they are accepted as payment by a number of online vendors.
LA VERDAD SOBRE LOS OVNI´s Y ALIENÍGENASHelio Colombe
Este documento discute la posibilidad de vida extraterrestre a la luz de las Escrituras. Argumenta que los seres llamados "alienígenas" son en realidad ángeles o espíritus, ya sea buenos o malos. Señala que la Biblia predice que espíritus engañadores traerán un mensaje diferente y usarán trucos sobrenaturales para alejar a la humanidad de Dios. También advierte que, según la Biblia, en los últimos días habrá señales en el cielo y espíritus poseerán a la gente
Ben puede transformarse en diferentes alienígenas usando un reloj mágico para luchar contra el malvado Bilgax y otros villanos, ayudado por sus amigos Guen que tiene poderes y Quebin que puede absorber materia. Juntos buscan el mapa del infinito para derrotar a un enemigo misterioso que absorbió a cinco alienígenas.
The document discusses the different layers of the web, including the surface web, deep web, and dark web. The dark web is a small portion of the deep web that can only be accessed through specialized browsers like TOR that aim to conceal users' identities and locations. The dark web is known as a place for illegal activities like drug trafficking and weapons sales, and uses bitcoin as its currency to facilitate anonymous transactions.
El documento resume el choque cultural que ocurrió entre los nativos americanos y los exploradores europeos inicialmente españoles luego del viaje de Cristóbal Colón en 1492. Colón, impulsado por la situación económica de España y sus creencias, lideró una expedición de tres naves que llegó a las Américas el 12 de octubre, dando inicio al encuentro de dos culturas muy diferentes - los nativos americanos que creían en varios dioses frente a los europeos católicos, y que tuvieron consecuencias como enfermedades,
Este documento discute la posibilidad de vida extraterrestre en otros lugares del universo, mencionando que científicos como Percival Lowell creían que había canales en Marte. También menciona que el Instituto para la Búsqueda de Inteligencia Extraterrestre trata de encontrar vida fuera de la Tierra y que las Naciones Unidas han tenido discusiones secretas sobre este tema.
The document discusses the deep web and dark web. It defines the deep web as content that is not indexed by search engines, including academic databases and government records. The dark web refers to hidden services that can only be accessed through anonymity software like Tor. The document outlines how Tor and other anonymous browsers work to protect users' identities and locations. It provides examples of whistleblowers and leaks that have relied on dark web anonymity, such as WikiLeaks and Edward Snowden. In the end, it argues that while dark nets enable free speech, they should be used wisely.
The document discusses the differences between the deep web and surface web. The deep web refers to content that is not indexed by typical search engines, as it is stored in dynamic databases rather than static web pages. It contains over 500 times more information than the surface web. Some key differences are that deep web content is accessed through direct database queries rather than URLs, and search results are generated dynamically rather than having fixed URLs. Specialized search engines are needed to access the deep web.
This document discusses the convergence of 5G and Internet of Things (IoT) technologies. It begins by defining each technology individually, with 5G offering speeds up to 20Gbps and lower latency compared to 4G, while IoT refers to an ecosystem of connected devices that collect and analyze physical data. The document then explains how 5G can improve all components of IoT by providing more bandwidth for sensors, faster network transmission, enabling real-time cloud/AI processing, and supporting more advanced applications. Several applications of 5G in IoT are described, such as for automotive, industrial and healthcare use cases. Finally, some challenges of the technologies converging are presented, such as operating across spectrum bands and establishing business models
LA VERDAD SOBRE LOS OVNI´s Y ALIENÍGENASHelio Colombe
Este documento discute la posibilidad de vida extraterrestre a la luz de las Escrituras. Argumenta que los seres llamados "alienígenas" son en realidad ángeles o espíritus, ya sea buenos o malos. Señala que la Biblia predice que espíritus engañadores traerán un mensaje diferente y usarán trucos sobrenaturales para alejar a la humanidad de Dios. También advierte que, según la Biblia, en los últimos días habrá señales en el cielo y espíritus poseerán a la gente
Ben puede transformarse en diferentes alienígenas usando un reloj mágico para luchar contra el malvado Bilgax y otros villanos, ayudado por sus amigos Guen que tiene poderes y Quebin que puede absorber materia. Juntos buscan el mapa del infinito para derrotar a un enemigo misterioso que absorbió a cinco alienígenas.
The document discusses the different layers of the web, including the surface web, deep web, and dark web. The dark web is a small portion of the deep web that can only be accessed through specialized browsers like TOR that aim to conceal users' identities and locations. The dark web is known as a place for illegal activities like drug trafficking and weapons sales, and uses bitcoin as its currency to facilitate anonymous transactions.
El documento resume el choque cultural que ocurrió entre los nativos americanos y los exploradores europeos inicialmente españoles luego del viaje de Cristóbal Colón en 1492. Colón, impulsado por la situación económica de España y sus creencias, lideró una expedición de tres naves que llegó a las Américas el 12 de octubre, dando inicio al encuentro de dos culturas muy diferentes - los nativos americanos que creían en varios dioses frente a los europeos católicos, y que tuvieron consecuencias como enfermedades,
Este documento discute la posibilidad de vida extraterrestre en otros lugares del universo, mencionando que científicos como Percival Lowell creían que había canales en Marte. También menciona que el Instituto para la Búsqueda de Inteligencia Extraterrestre trata de encontrar vida fuera de la Tierra y que las Naciones Unidas han tenido discusiones secretas sobre este tema.
The document discusses the deep web and dark web. It defines the deep web as content that is not indexed by search engines, including academic databases and government records. The dark web refers to hidden services that can only be accessed through anonymity software like Tor. The document outlines how Tor and other anonymous browsers work to protect users' identities and locations. It provides examples of whistleblowers and leaks that have relied on dark web anonymity, such as WikiLeaks and Edward Snowden. In the end, it argues that while dark nets enable free speech, they should be used wisely.
The document discusses the differences between the deep web and surface web. The deep web refers to content that is not indexed by typical search engines, as it is stored in dynamic databases rather than static web pages. It contains over 500 times more information than the surface web. Some key differences are that deep web content is accessed through direct database queries rather than URLs, and search results are generated dynamically rather than having fixed URLs. Specialized search engines are needed to access the deep web.
This document discusses the convergence of 5G and Internet of Things (IoT) technologies. It begins by defining each technology individually, with 5G offering speeds up to 20Gbps and lower latency compared to 4G, while IoT refers to an ecosystem of connected devices that collect and analyze physical data. The document then explains how 5G can improve all components of IoT by providing more bandwidth for sensors, faster network transmission, enabling real-time cloud/AI processing, and supporting more advanced applications. Several applications of 5G in IoT are described, such as for automotive, industrial and healthcare use cases. Finally, some challenges of the technologies converging are presented, such as operating across spectrum bands and establishing business models
Quantum computers are designed to perform tasks much more accurately and efficiently than conventional computers, providing developers with a new tool for specific applications.
It is clear in the short-term that quantum computers will not replace their traditional counterparts; instead, they will require classical computers to support their specialized abilities, such as systems optimization.
The convergence of IoT and Quantum ComputingAhmed Banafa
One of the top candidates to help in securing IoT is Quantum Computing, while the idea of convergence of IoT and Quantum Computing is not a new topic, it was discussed in many works of literature and covered by various researchers, but nothing is close to practical applications so far.
Quantum Computing is not ready yet, it is years away from deployment on a commercial scale.
Building a quantum internet is a key ambition for many countries around the world, such a breakthrough will give them competitive advantage in a promising disruptive technology, and opens a new world of innovations and unlimited possibilities.
COVID-19 has impacted countries, communities, and individuals in countless ways, from business and school closures to job losses not to undermined loss of lives.
Quantum teleportation is a technique for transferring quantum information from a sender at one location to a receiver some distance away.
While teleportation is portrayed in science fiction as a means to transfer physical objects from one location to the next, quantum teleportation only transfers quantum information.
The Zero Trust Model of information #security simplifies how #information security is conceptualized by assuming there are no longer “trusted” interfaces, applications, traffic, networks, or users. It takes the old model— “trust but verify”—and inverts it, because recent breaches have proven that when an organization trusts, it doesn’t verify
How blockchain is revolutionizing crowdfundingAhmed Banafa
According to experts, there are five key benefits of crowdfunding platforms: efficiency, reach, easier presentation, built-in PR and marketing, and near-immediate validation of concept, which explains why crowdfunding has become an extremely useful alternative to venture capital (VC), and has also allowed non-traditional projects, such as those started by in-need families or hopeful creatives, a new audience to pitch their cause.
Blockchain technology and supply chain managementAhmed Banafa
Blockchain technology has the potential to transform supply chain management by increasing transparency and efficiency. It can help track products across international supply chains involving hundreds of entities. Key issues it addresses include lack of transparency, difficulty tracking products, and high costs. Blockchain provides an immutable record of transactions that all entities on the chain can see, reducing disputes. It can improve traceability by mapping supply chains and transparency by openly sharing verified data on certifications and claims in real-time. Several companies are already using blockchain to track food, diamonds, and mined materials throughout the supply chain.
8 key tech trends in a post covid-19 world editedAhmed Banafa
Prof. Ahmed Banafa is an expert in IoT, blockchain, AI and cybersecurity. He has extensive research experience and has served as faculty at several universities. The document discusses 8 key tech trends for a post-COVID world: 1) Increased use of AI for forecasting consumer behavior and logistics. 2) Growth in cloud computing to support remote work and learning. 3) Expanded use of VR and AR for training, conferences and collaboration. 4) Accelerated 5G rollout to support increased bandwidth demands. 5) Rise of voice interfaces to reduce surface touching. 6) Proliferation of IoT for remote health monitoring. 7) Stronger focus on cybersecurity as attacks increase. 8) Blockchain
The COVID-19 coronavirus has impacted countries, communities and individuals in countless ways, from school closures to health-care insurance issues not to undermined loss of lives.
As governments scramble to address these problems, different solutions based on blockchain technologies have sprung up to help deal with the worldwide health crisis. Blockchain will surely not prevent the emergence of new viruses itself, but what it can do is create the first line of rapid protection through a network of connected devices whose primary goal is to remain alert about disease outbreaks.
Therefore, the use of blockchain-enabled platforms can help prevent these pandemics by enabling early detection of epidemics, fast-tracking drug trials, and impact management of outbreaks and treatment.
It’s clear that blockchain will revolutionize operations and processes in many industries and governments agencies if adopted, but its adoption requires time and efforts, in addition blockchain technology will stimulate people to acquire new skills, and traditional business will have to completely reconsider their processes to harvest the maximum benefits from using this promising technology. The following 10 trends will dominate blockchain technology in 2020:
Quantum Computing and Blockchain: Facts and Myths Ahmed Banafa
The biggest danger to Blockchain networks from quantum computing is its ability to break traditional encryption . Google sent shock waves around the internet when it was claimed, had built a quantum computer able to solve formerly impossible mathematical calculations–with some fearing crypto industry could be at risk . Google states that its experiment is the first experimental challenge against the extended Church-Turing thesis — also known as computability thesis — which claims that traditional computers can effectively carry out any “reasonable” model of computation
In this webinar Prof. Banafa will discuss in details the use of Blockchain in the following businesses: Insurance; Payments; Internet-of-Things (IoT); Supply Chain; Healthcare; Government; Identity; Advertising; Marketing; Banking.
In this seminar you will listen to in depth explanation of the hottest technologies in 2019 and beyond. Prof. Banafa will discuss each technology its applications and challenges with real life cases. The interaction among all the four technology will be explored with focus on future trends in each of technology. As all technologies can be summarized in one word IBAC (IoT, Blockchain, AI, Cybersecurity) they can be explained with the following words: IoT: senses, Blockchain: remembers, AI: thinks, and Cybersecurity: protects.
Blockchain and Artificial Intelligence are two of the hottest technology trends right now. Even though the two technologies have highly different developing parties and applications, researchers have been discussing and exploring their combination. With both these technologies able to effect and enact upon data in different ways, their coming together makes sense, and it can take the exploitation of data to new levels. At the same time, the integration of machine learning and AI into blockchain, and vice versa, can enhance blockchain’s underlying architecture and boost AI’s potential.
The following list of predictions (Figure 1) explores the state of IoT in 2019 and covering IoT impact on many aspects business and technology including Digital Transformation, Blockchain, AI, and 5G.
Secure and Smart IoT using Blockchain and AIAhmed Banafa
This document discusses securing and enabling smart capabilities for Internet of Things (IoT) devices using blockchain and artificial intelligence. It covers challenges facing IoT implementation including lack of standardization, security and privacy issues, and integrating diverse data formats from different sensors and devices. The document proposes that combining blockchain and AI can help address these challenges by decentralizing IoT networks, adding an extra layer of security to device authentication and data transmission, and powering smart analytics on the large volumes of data generated by IoT. Overall, the document argues that blockchain and AI will be important technologies to realize the full potential of a secure, smart IoT.
The Blockchain Wave in 2019 and BeyondAhmed Banafa
We’re still in the early days of Blockchain as a technology, and so we’re yet to see the full impact that it will have on the world that we live in. Still, it’s already showing potential across a range of industries and started to enter the public consciousness, so the real question is what will happen when Blockchain technology starts to mature.
New trends of IoT in 2018 and beyond (SJSU Conference ) Ahmed Banafa
The Internet of things (IoT) is growing rapidly and 2018 will be a fascinating year for the IoT industry. IoT technology continues to evolve at an incredibly rapid pace. Consumers and businesses alike are anticipating the next big innovation. They are all set to embrace the ground-breaking impact of the Internet of Things on our lives like ATMs that report crimes around them, forks that tell you if you are eating fast, or IP address for each organ of your body for doctors to connect and check
Quantum computers are designed to perform tasks much more accurately and efficiently than conventional computers, providing developers with a new tool for specific applications.
It is clear in the short-term that quantum computers will not replace their traditional counterparts; instead, they will require classical computers to support their specialized abilities, such as systems optimization.
The convergence of IoT and Quantum ComputingAhmed Banafa
One of the top candidates to help in securing IoT is Quantum Computing, while the idea of convergence of IoT and Quantum Computing is not a new topic, it was discussed in many works of literature and covered by various researchers, but nothing is close to practical applications so far.
Quantum Computing is not ready yet, it is years away from deployment on a commercial scale.
Building a quantum internet is a key ambition for many countries around the world, such a breakthrough will give them competitive advantage in a promising disruptive technology, and opens a new world of innovations and unlimited possibilities.
COVID-19 has impacted countries, communities, and individuals in countless ways, from business and school closures to job losses not to undermined loss of lives.
Quantum teleportation is a technique for transferring quantum information from a sender at one location to a receiver some distance away.
While teleportation is portrayed in science fiction as a means to transfer physical objects from one location to the next, quantum teleportation only transfers quantum information.
The Zero Trust Model of information #security simplifies how #information security is conceptualized by assuming there are no longer “trusted” interfaces, applications, traffic, networks, or users. It takes the old model— “trust but verify”—and inverts it, because recent breaches have proven that when an organization trusts, it doesn’t verify
How blockchain is revolutionizing crowdfundingAhmed Banafa
According to experts, there are five key benefits of crowdfunding platforms: efficiency, reach, easier presentation, built-in PR and marketing, and near-immediate validation of concept, which explains why crowdfunding has become an extremely useful alternative to venture capital (VC), and has also allowed non-traditional projects, such as those started by in-need families or hopeful creatives, a new audience to pitch their cause.
Blockchain technology and supply chain managementAhmed Banafa
Blockchain technology has the potential to transform supply chain management by increasing transparency and efficiency. It can help track products across international supply chains involving hundreds of entities. Key issues it addresses include lack of transparency, difficulty tracking products, and high costs. Blockchain provides an immutable record of transactions that all entities on the chain can see, reducing disputes. It can improve traceability by mapping supply chains and transparency by openly sharing verified data on certifications and claims in real-time. Several companies are already using blockchain to track food, diamonds, and mined materials throughout the supply chain.
8 key tech trends in a post covid-19 world editedAhmed Banafa
Prof. Ahmed Banafa is an expert in IoT, blockchain, AI and cybersecurity. He has extensive research experience and has served as faculty at several universities. The document discusses 8 key tech trends for a post-COVID world: 1) Increased use of AI for forecasting consumer behavior and logistics. 2) Growth in cloud computing to support remote work and learning. 3) Expanded use of VR and AR for training, conferences and collaboration. 4) Accelerated 5G rollout to support increased bandwidth demands. 5) Rise of voice interfaces to reduce surface touching. 6) Proliferation of IoT for remote health monitoring. 7) Stronger focus on cybersecurity as attacks increase. 8) Blockchain
The COVID-19 coronavirus has impacted countries, communities and individuals in countless ways, from school closures to health-care insurance issues not to undermined loss of lives.
As governments scramble to address these problems, different solutions based on blockchain technologies have sprung up to help deal with the worldwide health crisis. Blockchain will surely not prevent the emergence of new viruses itself, but what it can do is create the first line of rapid protection through a network of connected devices whose primary goal is to remain alert about disease outbreaks.
Therefore, the use of blockchain-enabled platforms can help prevent these pandemics by enabling early detection of epidemics, fast-tracking drug trials, and impact management of outbreaks and treatment.
It’s clear that blockchain will revolutionize operations and processes in many industries and governments agencies if adopted, but its adoption requires time and efforts, in addition blockchain technology will stimulate people to acquire new skills, and traditional business will have to completely reconsider their processes to harvest the maximum benefits from using this promising technology. The following 10 trends will dominate blockchain technology in 2020:
Quantum Computing and Blockchain: Facts and Myths Ahmed Banafa
The biggest danger to Blockchain networks from quantum computing is its ability to break traditional encryption . Google sent shock waves around the internet when it was claimed, had built a quantum computer able to solve formerly impossible mathematical calculations–with some fearing crypto industry could be at risk . Google states that its experiment is the first experimental challenge against the extended Church-Turing thesis — also known as computability thesis — which claims that traditional computers can effectively carry out any “reasonable” model of computation
In this webinar Prof. Banafa will discuss in details the use of Blockchain in the following businesses: Insurance; Payments; Internet-of-Things (IoT); Supply Chain; Healthcare; Government; Identity; Advertising; Marketing; Banking.
In this seminar you will listen to in depth explanation of the hottest technologies in 2019 and beyond. Prof. Banafa will discuss each technology its applications and challenges with real life cases. The interaction among all the four technology will be explored with focus on future trends in each of technology. As all technologies can be summarized in one word IBAC (IoT, Blockchain, AI, Cybersecurity) they can be explained with the following words: IoT: senses, Blockchain: remembers, AI: thinks, and Cybersecurity: protects.
Blockchain and Artificial Intelligence are two of the hottest technology trends right now. Even though the two technologies have highly different developing parties and applications, researchers have been discussing and exploring their combination. With both these technologies able to effect and enact upon data in different ways, their coming together makes sense, and it can take the exploitation of data to new levels. At the same time, the integration of machine learning and AI into blockchain, and vice versa, can enhance blockchain’s underlying architecture and boost AI’s potential.
The following list of predictions (Figure 1) explores the state of IoT in 2019 and covering IoT impact on many aspects business and technology including Digital Transformation, Blockchain, AI, and 5G.
Secure and Smart IoT using Blockchain and AIAhmed Banafa
This document discusses securing and enabling smart capabilities for Internet of Things (IoT) devices using blockchain and artificial intelligence. It covers challenges facing IoT implementation including lack of standardization, security and privacy issues, and integrating diverse data formats from different sensors and devices. The document proposes that combining blockchain and AI can help address these challenges by decentralizing IoT networks, adding an extra layer of security to device authentication and data transmission, and powering smart analytics on the large volumes of data generated by IoT. Overall, the document argues that blockchain and AI will be important technologies to realize the full potential of a secure, smart IoT.
The Blockchain Wave in 2019 and BeyondAhmed Banafa
We’re still in the early days of Blockchain as a technology, and so we’re yet to see the full impact that it will have on the world that we live in. Still, it’s already showing potential across a range of industries and started to enter the public consciousness, so the real question is what will happen when Blockchain technology starts to mature.
New trends of IoT in 2018 and beyond (SJSU Conference ) Ahmed Banafa
The Internet of things (IoT) is growing rapidly and 2018 will be a fascinating year for the IoT industry. IoT technology continues to evolve at an incredibly rapid pace. Consumers and businesses alike are anticipating the next big innovation. They are all set to embrace the ground-breaking impact of the Internet of Things on our lives like ATMs that report crimes around them, forks that tell you if you are eating fast, or IP address for each organ of your body for doctors to connect and check
Discover the benefits of outsourcing SEO to Indiadavidjhones387
"Discover the benefits of outsourcing SEO to India! From cost-effective services and expert professionals to round-the-clock work advantages, learn how your business can achieve digital success with Indian SEO solutions.
Gen Z and the marketplaces - let's translate their needsLaura Szabó
The product workshop focused on exploring the requirements of Generation Z in relation to marketplace dynamics. We delved into their specific needs, examined the specifics in their shopping preferences, and analyzed their preferred methods for accessing information and making purchases within a marketplace. Through the study of real-life cases , we tried to gain valuable insights into enhancing the marketplace experience for Generation Z.
The workshop was held on the DMA Conference in Vienna June 2024.
HijackLoader Evolution: Interactive Process HollowingDonato Onofri
CrowdStrike researchers have identified a HijackLoader (aka IDAT Loader) sample that employs sophisticated evasion techniques to enhance the complexity of the threat. HijackLoader, an increasingly popular tool among adversaries for deploying additional payloads and tooling, continues to evolve as its developers experiment and enhance its capabilities.
In their analysis of a recent HijackLoader sample, CrowdStrike researchers discovered new techniques designed to increase the defense evasion capabilities of the loader. The malware developer used a standard process hollowing technique coupled with an additional trigger that was activated by the parent process writing to a pipe. This new approach, called "Interactive Process Hollowing", has the potential to make defense evasion stealthier.
Ready to Unlock the Power of Blockchain!Toptal Tech
Imagine a world where data flows freely, yet remains secure. A world where trust is built into the fabric of every transaction. This is the promise of blockchain, a revolutionary technology poised to reshape our digital landscape.
Toptal Tech is at the forefront of this innovation, connecting you with the brightest minds in blockchain development. Together, we can unlock the potential of this transformative technology, building a future of transparency, security, and endless possibilities.
1. Bitcoin Accepted Here!
By: Ahmed Banafa, Distinguished Tenured Staff | Faculty | SME | E-Learning Expert | Four-time
winner of instructor of the year award
What is a Bitcoin?
Bitcoin is a decentralized digital currency, made up of a block of encrypted data. This currency
exists purely in electronic form, and exchanged through a secure peer-to-peer file transfer
system. Bitcoins are considered to have value because they are accepted as payment by a number
of online vendors.
Bitcoin‘s value, is determined by supply and demand in the market, much like gold or any other
traded commodity. It‘ is subject to the same volatility and sometimes irrational performance.
Paula Rosenblum explained it well in her article in Forbes :It‘s a cross between a stock and a
form of payment. It‘s a form of payment because you can use Bitcoins to pay for things. You
can also send small amounts of currency to people in other countries, without worrying about
exchange rates or currency conversion fees.
It‘s a stock because there‘s a fixed number of ―Bitcoins‖ in the universe. The value of each
Bitcoin fluctuates based on the law of supply and demand. The more people that want to use
them, the higher their value.
Bitcoin was envisioned as a peer-to-peer trustless exchange. In plain English, that means I want
to do a transaction with you, but I don‘t trust you with my credit card number or other personal
information. I don‘t care what country you live in, who you are, or what you do. I understand
that any transaction we enter into will be irrevocable. That means I can‘t call someone to say
2. ―Stop that payment.‖ Payment is made immediately. If you have a dispute, it has to be with the
party you made the arrangement with.
Information on every Bitcoin is recorded in what‘s called a ―ledger.‖ Think of it as the
equivalent of the book and page number of the title to your house. The book and page number
didn‘t change, only the owner of the title. When you sell your house, the ownership was
transferred to someone else. The book and page number remained the same. Similarly, when
someone pays for something with a Bitcoin, that spot in the ledger is transferred to the buyer.
But no one knows who the current owner of that spot is, or who the seller was. That information
is encrypted. In fact, it‘s very hard to separate Bitcoin, the currency, from Bitcoin, the
technology. They‘re inextricably linked. One could not exist without the other.
Problems with Bitcoin
Bitcoin as a currency is completely unregulated
Bitcoin‘s value is not backed by anything real or tangible.
Bitcoins are not so easy to buy.
How can I get Bitcoins?
Buy on an Exchange : Several marketplaces called ―Bitcoin exchanges‖ allow people to
buy or sell Bitcoins using different currencies.
Transfers : People can send Bitcoins to each other using mobile apps or their computers.
It‘s similar to sending cash digitally.
Mining: People compete to ―mine‖ Bitcoins using computers to solve complex math
puzzles.
Bitcoin Mining
A common analogy for Bitcoins is gold: like gold, they have value only because people want
them, the supply is limited, more Bitcoins are created only by ‗mining‘ for them and the
difficulty in mining grows as they are mined. But rather than being stored in underground vaults
Bitcoins are simply entries in a notional ledger held across many computers around the world.
The actual mining of Bitcoins is by a purely mathematical process. A useful analogy is with the
search for prime numbers: it used to be fairly easy to find the small , but as they were found it
got harder to find the larger ones. Nowadays researchers use advanced high-performance
computers to find them.
For Bitcoins the search is not actually for prime numbers but to find a sequence of data (called a
‗block‘) that produces a particular pattern when the Bitcoin ‗hash‘ algorithm is applied to the
data. When a match occurs the miner obtains a bounty of Bitcoins (and also a fee if that block
3. was used to certify a transaction). The size of the bounty reduces as Bitcoins around the world
are mined.
Is Bitcoin secure?
Bitcoin is referred to as a cryptocurrency because it relies on cryptography for security. Bitcoins
are cryptographically signed each time they are exchanged, which requires that each Bitcoin user
have both a public and unique private key. These transactions are maintained in a master registry
called the blockchain, which is maintained by all of Bitcoin‘s users.
Despite these measures, however, Bitcoin is still vulnerable to hacking, largely because Bitcoins
are stored on individual users‘ PCs.
Digital Wallet
Bitcoins are stored in a ―digital wallet,‖ which exists either in the cloud or on a user‘s computer.
The wallet is a kind of virtual bank account that allows users to send or receive Bitcoins, pay for
goods or save their money. Unlike bank accounts, Bitcoin wallets are not insured by the FDIC.
Though each Bitcoin transaction is recorded in a public log, names of buyers and sellers are
never revealed – only their wallet IDs. While that keeps Bitcoin users‘ transactions private, it
also lets them buy or sell anything without easily tracing it back to them.
4. The Future of Bitcoin?
As Marc Andreessen mentioned in his article : Bitcoin is a classic network effect, a positive
feedback loop. The more people who use Bitcoin, the more valuable Bitcoin is for everyone who
uses it, and the higher the incentive for the next user to start using the technology. Bitcoin shares
this network effect property with the telephone system, the web, and popular Internet services
like eBay and Facebook.
Bitcoin is a four-sided network effect. There are four constituencies that participate in expanding
the value of Bitcoin as a consequence of their own self-interested participation. Those
constituencies are (1) consumers who pay with Bitcoin, (2) merchants who accept Bitcoin, (3)
―miners‖ who run the computers that process and validate all the transactions and enable the
distributed trust network to exist, and (4) developers and entrepreneurs who are building new
products and services with and on top of Bitcoin.
One immediately obvious and enormous area for Bitcoin-based innovation is international
remittance.Switching to Bitcoin, which charges no or very low fees, for these remittance
payments will therefore raise the quality of life of migrant workers and their families
significantly.
Here in the United States, a long-recognized problem is the extremely high fees that the
“unbanked” — people without conventional bank accounts – pay for even basic financial
services. Bitcoin can be used to go straight at that problem, by making it easy to offer extremely
low-fee services to people outside of the traditional financial system.
A fascinating use case for Bitcoin is micropayments. Micropayments have never been feasible,
despite 20 years of attempts, because it is not cost effective to run small payments (think $1 and
below, down to pennies or fractions of a penny) through the existing credit/debit and banking
systems. The fee structure of those systems makes that nonviable.
Think about content monetization, for example. One reason media businesses such as
newspapers struggle to charge for content is because they need to charge either all (pay the entire
subscription fee for all the content) or nothing (which then results in all those terrible banner ads
everywhere on the web). All of a sudden, with Bitcoin, there is an economically viable way to
charge arbitrarily small amounts of money per article, or per section, or per hour, or per video
play, or per archive access, or per news alert.
Another potential use of Bitcoin micropayments is to fight spam. Future email systems and
social networks could refuse to accept incoming messages unless they were accompanied with
tiny amounts of Bitcoin – tiny enough to not matter to the sender, but large enough to deter
spammers, who today can send uncounted billions of spam messages for free with impunity.
Some prominent economists are deeply skeptical of Bitcoin, even though Ben S. Bernanke,
formerly Federal Reserve chairman, recently wrote that digital currencies like Bitcoin ―may hold
long-term promise, particularly if they promote a faster, more secure and more efficient payment
system.‖ And in 1999, the legendary economist Milton Friedman said: ―One thing that‘s missing
5. but will soon be developed is a reliable e-cash, a method whereby on the Internet you can
transfer funds from A to B without A knowing B or B knowing A – the way I can take a $20 bill
and hand it over to you, and you may get that without knowing who I am.‖
Of course there is a dark side of all this , including illegal activities like drug trafficking, money
laundry , and more . But nothing is pure evil or pure good, regulations will evolve with this
technology to minimize the dark side of Bitcoin.
References
http://dealbook.nytimes.com/2014/01/21/why-bitcoin-
matters/?_php=true&_type=blogs&_php=true&_type=blogs&smid=tw-share&_r=1
http://www.forbes.com/sites/paularosenblum/2014/01/27/bitcoin-the-currency-of-the-future/
http://www.businessinsider.com/how-bitcoins-are-mined-and-used-2013-4
https://bitcoin.org/en/faq
http://money.cnn.com/infographic/technology/what-is-bitcoin/