bitcoin an overview. why ? first crypto-currency

BitCoin

An overview

Why ?

First crypto-currency

Basics – Public key cryptography

How BitCoin ecosystem works ?

A wallet to start off

BitCoin transaction

The new Gold Rush

Genesis Block

Mining Details

• Hash strings beginning with 0’s• Mining program is open source!• Generate a new block by taking an existing

block, set of transactions and a nonce• Current target hash – less or equal is accepted• Difficulty – set by the network• Transaction fees to incentivize new block gen.• Become part of a pool

THE Network

• BitCoin network – one and only• Decentralized and open to all• Low transaction fees• Constant bitcoin generation (10 min / block)• 100 petaFLOPs • Irrevocable transactions

Advantages

• Almost 0 processing fee – across the world• No need of a bank account !• Equal chance of mining• Anyone can create an exchange• Anonymity• Businesses accept bitcoins (wordpress, baidu, reddit, etc..)• Financial Control – no one can question

Wait.. But..

Concerns

• BitCoin is anti-inflationary• No central authority – double edged sword• Hacker prone – tough to be exceed 30 trillion

calculations per second and 100 petaFLOPs – but possible

• Regulatory uncertainty• Secure your wallets – digitally!• Volatile exchange prices

Predictions..

• Present day disruptions thanks to P2P systems– Telephone ---> VOIP (skype / hangout)– SMS – almost obsolete– File transfers / music players– Mail (post boxes as antiques ? )

• Banks – do we really need them ?• Decentralized and global financial system– Money over Internet !

Opportunities

• A new way to transact – Irrevocable transactions (adv : E-Comm sites)

• Innovative applications – money reaches where banks can’t reach

• World-wide system – Forex (what’s that ?)• Optimizing face-to-face transactions – cannot

replace credit cards. Minimum 10 mins to confirm

Thank You