BitCoin An overview. Why ? First crypto-currency.
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Transcript of BitCoin An overview. Why ? First crypto-currency.
![Page 1: BitCoin An overview. Why ? First crypto-currency.](https://reader035.fdocuments.us/reader035/viewer/2022062517/56649e7c5503460f94b7eb29/html5/thumbnails/1.jpg)
BitCoin
An overview
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Why ?
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First crypto-currency
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Basics – Public key cryptography
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How BitCoin ecosystem works ?
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A wallet to start off
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BitCoin transaction
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The new Gold Rush
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Genesis Block
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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
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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
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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
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Wait.. But..
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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
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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 !
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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
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Thank You