bitcoin technology
TRANSCRIPT
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