Bitcoin Noob

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  • impromptu
  • created anonymous satoshi nakamoto...speculate mailing list back in the 90s assange.. openpgp, bittorr, openssl (primitive) any one can create an address without documents cryptography limited supply
  • Cypriot issue - anywhere with
  • normal banks with separate database
  • think
  • proof of work protocol - challenge string miners compete .. lucky ones win, more tries = more luck
  • ASICMiner
  • this is predicted - faster
  • why ? repeatative GPU litecoin - fork of BTC
  • it’ll still be smaller than CCs
  • pool mining - 2 probalities in play different market - good for the community
  • freicoin -kickstarter funded
  • bitpay abtracts everything and USD
  • public .. USD -> BTC trackable.. follow breadcrumbs Mt gox recently verification try laundering
  • Bitcoin Noob

    1. 1. Bitcoins
    2. 2. Suhas SharmaIndie Developerhttp://suhastech.com@suhastech
    3. 3. What?• Cryptocurrency P2P• Cypherfunk’s dream• Anonymous• Hard to counterfeit• Like Gold• Store in numerous ways• Not a store of value but a medium ofexchange
    4. 4. Why?• Works everywhere• Easy to transfer• Low transaction fee• Immune to government intervention• Buy weed
    5. 5. How it works
    6. 6. Centralized
    7. 7. Decentralized
    8. 8. Simply put• It’s a immutable list (or a ledger) oftransactions called a blockchainPerson A to Person B 50 BTCPerson B to Person C 30 BTCPerson C to Person A 20 BTC
    9. 9. then it gets a bitcomplicated...• Bitcoin generation• Computation of transaction• This is taken care of by Miners
    10. 10. • Multiple blocks create a Blockchain
    11. 11. Mining• A miner needs to solve a computationalpuzzle to create a new block• Longest blockchain is the valid one• Forking is also taken care of
    12. 12. Why mine?• With every block created, a miner cangenerate bitcoins (adding it to the ledger)• People sending money can allocate atransaction cost• That speeds up the process
    13. 13. Stopping Inflation with21 Million
    14. 14. Why ASIC’s are sickLitecoin, here I come
    15. 15. The loop• Every bitcoin node has the Blockchain• Blockchain is a list of all transactions• Miners have to burn computational powerto create a new block• They earn money doing that• Creating a block: Difficult.• Verifying a block: Easy
    16. 16. Me wants monies!• Most straightforward: Mining• Realistic: Pool Mining• Easy chunk change:Arbitrage• Play the stock market game
    17. 17. What can you buy?• Wordpress.com upgrades• Pizza• HD TVs• more things are popping up
    18. 18. What can you sell?• Basically, anything!• Don’t want to mess with BTC? Bitpay.com
    19. 19. Caution on Anonymity• All transactions are public
    20. 20. Getting started• Install aWallet• “Cloud” wallet
    21. 21. Wallet• Has private key that signs the transactionto ‘authenticate’• Transactions are confirmed in the miningprocess
    22. 22. Details!• http://bitcoin.org/bitcoin.pdf
    23. 23. Other forks• Freicoin• Litecoin
    24. 24. Conclusion• I’m just an observer• Has the disruptive capability similar to theinternet in the 90s• Possibly the ARPANET of internet currency

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