Bitcoins at Python for Quants NYC 2014

19,354 views

Published on

This was the presentation given by Dr Antonio Roldao at the first Python for Quants conference in New York.

Published in: Economy & Finance
0 Comments
5 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
19,354
On SlideShare
0
From Embeds
0
Number of Embeds
16,105
Actions
Shares
0
Downloads
0
Comments
0
Likes
5
Embeds 0
No embeds

No notes for slide
  • ----- Meeting Notes (14/03/2014 17:19) -----How do bitcoins get generatedHow is ownership proven and transferedHow is double spend prevented
  • Bitcoins at Python for Quants NYC 2014

    1. 1. itcoins Analytics & Statistics Python Libraries New Services Enabled Dr. Antonio Roldao March / 2014
    2. 2. About Me http://anton.io 2
    3. 3. Concerns - Ponzi Scheme / Tulip Mania 3
    4. 4. Concerns - Illicit Activities / Drugs 4
    5. 5. Concerns - Conspiracy Theories or should one say Dorian Nakamoto?! 5
    6. 6. Concerns - Legal Framework “The Federal Reserve simply does not have authority to supervise or regulate bitcoin in any way.” – Janet Yellen 6
    7. 7. Concerns - Others 7
    8. 8. Why Bitcoins?  Micro-payments  Payment freedom  Frictionless transactions  No central point of failure  Public and transparent ledger  Fast transactions across borders  No central point of manipulation  No risk of physical possession/loss  Well understood and mathematical  The gold standard in crypto-currencies  Very low fees, some times even zero fees  Anyone/Thing can open/close an account  Human2Human/Machine2H/H2M/M2M Business  … 8
    9. 9. Confusing Media Circus 9
    10. 10. How Does Bitcoin Work?
    11. 11. Key Concepts - Hashes  Hashing functions 11
    12. 12. Key Concepts – Digital Signature Algorithms 12
    13. 13. Key Concepts – Public Ledger Time Account Inputs Outputs Balance 1 addr1 20 - 20 2 addr2 100 - 100 3 addr1 - 10 10 4 addr1 20 - 30 5 addr2 - 100 0 6 addr2 2 - 2 7 addr3 5 - 5 8 addr3 2 4 3 9 addr1 5 - 35 … … … … … 13 All Transactions
    14. 14. Key Concepts – P2P Networks 14
    15. 15. Details - Transactions 15
    16. 16. Details - Storing Transactions 16
    17. 17. Details - Block 17
    18. 18. Details - Blockchain 18
    19. 19. Mining 19
    20. 20. Mining – Computing a Block Hash https://blockchain.info/block-height/288888 20
    21. 21. Mining - Pools 21
    22. 22. Mining – Pools Contribution source: https://blockchain.info/pools 22
    23. 23. Analytics & Statistics
    24. 24. Price Evolution 24
    25. 25. Discovering Bitcoin’s Fair Price? ?? $(Mining-kit + Energy) = $(BTCs mined + Fees) = ~Perception ?? ~Perception is subjective, so let the market decide!  How will diminishing coinbases affect fees?  Will mining make energy generation more efficient or more expensive for day-to-day use?  Will mining drive innovation for faster and cheaper electronics or make high-end chips more expensive? 25
    26. 26. Mining Efficiency CPU >1Mh/s ~5khps/W GPGPU >1Gh/s ~2Mhps/W FPGA >1Gh/s ~10Mhps/W ASIC >10Gh/s ~235Mhps/W 400x 5x 32x 64000x source: https://en.bitcoin.it/wiki/Mining_hardware_comparison 26
    27. 27. FPGA Spaghetti Monster source: http://www.bitcoinminingrigs.com/ 27
    28. 28. Hash Rates 28 0 5000000 10000000 15000000 20000000 25000000 30000000 35000000 40000000 Hash rate (Gh/s)
    29. 29. Difficulty Rates 29 0 50000000 1E+09 1.5E+09 2E+09 2.5E+09 3E+09 3.5E+09 4E+09 4.5E+09 Difficulty
    30. 30. Ledger Storage 30
    31. 31. Blockchain Browsers  Blockchain  Block Explorer  BTCLook 31  Biteasy  Blockr.io
    32. 32. Current Statistics (09.03.2014)  Total blocks  Time between blocks  Terahashs/s  PetaFLOPS  Average transactions/h  Average fees/h  Bitcoins mined  Market cap 289,702 8.37 (minutes) 29318.62 372346.47 (1st in top500 = 54.902) 2642.46 0.625 / 375 USD 12,492,575 BTCs (62%) 7,720,411,350 USD 5,621,658,750 EUR 4,859,611,675 GBP source: http://bitcoinwatch.com/ 32
    33. 33. Wallet Statistics 33
    34. 34. Python Libraries
    35. 35. Some Bitcoin Python Libs/Apps  Source code of reference Bitcoin client github/bitcoin/bitcoin  RPC-based library – not maintained anymore github/laanwj/bitcoin-python  Low-level library does follows the bitcoin core v0.9 github/petertodd/python-bitcoinlib  Alternative to main client - relies on original net stack github/etotheipi/BitcoinArmory  Out-dated but had great tools for dumping data out of db github/gavinandresen/bitcointools  Trading application with SMSs alerts (MtGox though!) github/skylarweaver/Bitcoin-Trader  Simple ticker that collects data from multiple exchanges github/rgho/bitcoin_prices_python  Blockchain explorer github/bitcoin-abe/bitcoin-abe  Automated arbitrage trading application github/maxme/bitcoin-arbitrage 35
    36. 36. Generating a Custom Address 36
    37. 37. New Services 37
    38. 38. New Services Enabled  Zero/Low commission betting (WinCoins)  Music made of transactions (Listen to Bitcoins)  Smart contracts (Etherium)  Time stamping (Btproof)  Micro-donations (Laybit)  Tracking places of tension (Fiatleak)  Virtual IPOs / Stock Market / Derivatives (mpex.co)  Arbitrage between fiat and crypto currencies (btcarb)  Machines that work for own profit/upgrades  e.g. self driving cars / delivery drones  … many many others … 38
    39. 39. Thank you Have a cryptic day!

    ×