Is cryptocurrency really the future of money? Bitcoin is the first and most famous cryptocurrency that exploded in late 2013 when the price per Bitcoin exceeded $1200. This is an explanation of what cryptocurrency is and how payments are processed

1. What is Cryptocurrency?
By: James Travis

2. What is it?
Cryptocurrency is a
peer to peer
electronic cash
system
Can be used to
anonymously buy goods
Not subject to
international fees
because it's not tied
to any country
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3. Types of Cryptocurrency
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4. Preventing Double
Spending
Records need to be
kept to make sure one
person doesn't spend
the same money twice
There is no central
server who regulates
this, instead every
peer in the network
has a list of every
transaction to
prevent spending the
same money twice
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5. A Completely Decentralized
Digital Cash System
The cash system is
regulated by
“miners” who
confirm
transactions
Bitcoins can’t be
duplicated because
it isn’t data.
It’s an entry on
the BlockChain
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6. What is the
blockchain?
It records every
bitcoin transaction
that has ever
happened
It works because
lots of people are
keeping track of
the same thing to
make sure all
transactions are
accurate
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7. How transactions are
recorded on the Blockchain
Your account
number
The account
number of the
person you’re
sending bitcoins
to
How many bitcoins
you want to send
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8. How are
transactions secure?
Your bitcoin wallet is
linked to two keys, a
private key & a public
key
The private key marks the
data letting everyone
know its really from you
If the public key works
its proof the transaction
was something that was
meant to be sent
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9. How is transaction
order picked
To add a block to
the chain each
person has to solve
a cryptographic
hash function
A hash function
takes an input of
any size and turns
it into an output
with a fixed size
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10. Hash Function
Explained
When given an input its easy
to find an output
Ex. 7+7=14
A hash function gives you
the output for you to figure
out the correct input
14 can equal 10+4, 8+6, etc
but only one combination is
correct
The only way to figure it
out is to guess until you
get it right
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11. Maintaining the
blockchain
Whoever solves the
hash gets to add
the next block of
transactions to the
blockchain
Whoever gets to add
the next block is
usually rewarded in
cryptocurrency and/
or tips
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12. Privacy
Buyers and sellers
names are never
logged, only their
wallet id’s
It allows you to
buy or sell things
without it being
easily traced back
to the buyer or
seller
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13. Storing Bitcoins
Bitcoins are stored in
a digital wallet,
either on a cloud
account or a users
computer.
Cloud Wallet servers
have been hacked before
You may accidentally
delete your wallet on
the computer, viruses
could destroy it also
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14. 5 things to know about
cryptocurrency transactions
All transactions are
irreversible
No account is connected to
your real world identity
Transactions occur nearly
instantly
Because of the hash
function they are
incredibly secure
Everybody can use it, it's
unregulated
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