bitcoin technology

BITCOIN TECHNOLOGY

What is BITCOIN….???

o A decentralized digital currency like virtual cash or gold

o No bank or government prerequisites or control

What is Bitcoin?????

Peer to peer network

First Bitcoin issued in 2009 -Satoshi Nakamoto

No requirement of third party intermediary

Divisible to .00000001

Very difficult and expensive to hack

Controlled by consensus of market participants

Limited to 21 million Bitcoins -X amount released every 10 minutes -until 2140

BITCOIN Bitcoin is a technology-start of

decentralized ideas.

It uses a peer-peer network to transfer values from one person to other.

Every transaction is recorded by every user in network.

WORKING PROCESS

WHY BITCOIN????

People don’t have access to banking services

Flat currencies getting inflated by printing money

Cross currency transfers are expensive

Why Bitcoin?????

Easy

Secure

Open

Fair

Why Bitcoin?????

CURRENCY

Sends units of Value, Fungible and Divisible

COMMODITY

Scarcity stores wealth, Market fluctuates with speculation

BRANDMarketing message, Community and Sharing Knowledge

PROTOCOL

Decentralized trust on Block Chain

HOW TO GET BITCOINS????

Web wallets

Software wallets

Mobile phone wallets

Hardware wallets

How to get Bitcoins?????

Blockchain

Coinbase

Coinjar

Coinpunk

coinkite

Web wallets

bitcoinQT

Armony

Multibit

Software wallets

Blockchain

Coinjar

Coinpunk

Mobile phone wallets

Trezor

Bitsafe

Hardware wallets

Limited/Scarce Decentralized Peer-to-peer Can be anonymous Transparent Easy to buy and sell Very low transaction fees

Features of Bitcoin

Without a third party, digital money could be spent twice

Digital cash-simply a computer file

Double spending problem

Distribute the necessary ledger among all the users of the

system. Every transaction is registered in a

public, distributed ledger, which is called the block chain. New transactions checked against the

block chain. Ensure that the same bitcoins haven’t

been previously spent

The solution…..

Money-deposited into a bank account Bitcoin-stored in public ledger Sending/receiving BTC as easy as

sending an email Coins stored in wallets

Transactions

Each user is assigned two keys 1 Public Key- Account no / Address 27-

34 alphanumeric characters 2 Private Key- Password to access

bitcoins in the account. Public Key example

12kj2F35MB09Ida453reTYU6i730v

Transactions

Challenges

Volatility. Security breaches. Criminal uses -Silk Road. Not widely used. Losing Your Wallet.

Undoubtedly Bitcoin has changed the way transactions occur, now even the currency is virtual. There are many challenges that still remain unanswered, since bitcoin is not regulated by any bank, so in case you lose your computer or format your hard drive then all your bitcoins just vanish. Since no bank regulation is applied on the transactions, we still need a way to make it work in such a way that there are regulated transactions and no illegal activities such as Silk Road happen again.

Conclusion