how to make bitcoin a better currency

8/10/2019 How to Make Bitcoin a Better Currency

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Bitter to Better

How to Make Bitcoin

a Better Currency

Stephen RejiS7 D55


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Presenting to you..

Bitcoin

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First decentralized digital currency.

Bitcoin is an open source software.

It uses P2P network.

What is Bitcoin?

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At the present time there are about 13million bitcoins in circulation.

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At present the value of one bitcoin is

nearly $600.

Independent from Government.

Anonymous.

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It was designed and developed by Satoshi Nakamoto in2009.

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Why is

itso successful????????

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Advantages

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1. No central point of trust

Completely distributed architecture

No centralized bank or governingbody

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2. Divisibility and fungibility

1. Coins can be divided and recombined

to create any denomination2. A Bitcoin can be divided up to 8

decimal places, i.e.0.00000001 BTC

exists

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3. Versatility, Openness and

Vibrancy

1. Bitcoin is very flexible and is an open-source project.

2. Increasing amount of services acceptBitcoin payments

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4. Scripting

1. Users can embed scripts intransactions.

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5. Transaction Irreversibility

1. Bitcoin transactions quickly becomeirreversible.

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7. Readily AvailableImplementation

Bitcoin can be implemented both ondesktop computers and mobilephones.

It is an open source projectmaintained by a vibrant community.

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Working Of Bitcoin

2 types of objects are broadcast to all the

nodes in the network; they aretransactions and blocks.

Transactions are operations in whichmoney is combined, divided or remitted.

Blocks record the transactions vetted asvalid.

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Vetting

Various components of transaction

must be validated and checked fordouble spending before beingconfirmed.

Transactions are included in officialrecords called blocks.

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Minting

Each block may contain a special

generation transaction that paysthe block creator an amount. Bitcoin transaction verification is a

lucrative but expensive race.

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Transactions And Scripting

The scripting language is Forth-like stacklanguage.

Operators include SHA1 andCHECKSIG(which pops an ECDSA publickey and signature from the stack, verifiesthe signature for a message defined intransaction data and leaves the result astrue or false on stack).

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Structural Problems AndSolutions

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1. Deflationary Spiral

Hoarding

Decentralized organic inflation

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Countering History-

Revision Attack Private Check-pointing

Implicit Voting and Phase Transition

Comparative behaviour

Check-pointing todayPage 26


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1. Malware Attacks

Threshold Cryptography

Super-Wallets

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2. Accidental Loss OfBitcoins

Backups

Pseudo-random keys

Encryptioni. Offline(single) password based

encryption

ii. Online(multi) password basedencryption

Trusted PathsPage 29


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Scalability Data Retention And Communication

failures

Linear Transaction history

Delayed Transaction Confirmation

Dynamically Growing Private KeyStorage

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Improved Anonymity With

Reduced Trust

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how to make bitcoin a better currency

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