Bitcoin: Evolution of Virtual Currency
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www.cyberoam.com www.cyberoam.com Presenter: Keyur Shah Presales Manager, Cyberoam Our Products Network Security Appliances - UTM, NGFW (Hardware & Virtual) Modem Router Integrated Security appliance Bitcoin: Evolution of Virtual Currency
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Since its launch in 2009, Bitcoin has emerged like a global phenomenon. Garnering massive success, Bitcoin has added to proliferation of virtual currencies, leading to creation of virtual trading / crypto currency exchanges, bringing an unprecedented semantic distinction to the form of money. While Bitcoin saga brought a distinctive financial ecosystem to life, it didn't come without its own set of risks and challenges. In recent years, Bitcoin infrastructure and users have faced numerous risks including money laundering incidents, targeted cyber attacks and malware threats on digital wallets. As many security professionals observe, proliferation of digital currencies has also given rise to cyber crime and other forms of digital disruption. This webinar aims to facilitate useful understanding into Bitcoin evolution, its growing importance and several security incidents launched at Bitcoin infrastructure
Transcript of Bitcoin: Evolution of Virtual Currency
www.cyberoam.com
www.cyberoam.com
Presenter: Keyur ShahPresales Manager, Cyberoam
Our Products
Network Security Appliances - UTM, NGFW (Hardware & Virtual)
Modem Router Integrated Security appliance
Bitcoin: Evolution of Virtual Currency
www.cyberoam.com
What is Bitcoin?What is Bitcoin?
Decentralized Digital Currency
Like virtual cash or gold
Transfer person to person
No bank or Government prerequisites
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Did Bitcoin bring anything new?Did Bitcoin bring anything new?
Crypto-currencies around since 1980's
Bitcoin solves "double spend" problem
through distributed network
First Bitcoin issued in 2009 -- satoshi nakamoto
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Bitcoin founder…Bitcoin founder…
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Anatomy of Bitcoin and its workingAnatomy of Bitcoin and its working
Limited to 21 million Bitcoins
X amount release every ~10 minutes until 2140
Divisible to .000000001 (USD = .01)
Very Difficult & expensive to hack
Controlled by consensus of market participants
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What is Money
• Means of exchanging goods & services• USD, gold
• Four properties of Money:1. Divisible ( broken into small amount)
2. Durable ( stands test of time)
3. Fungible( commoditization)
4.Verifiable ( verify it's real)
Bitcoin – new digital moneyBitcoin – new digital money
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• Limited/ Scarce (like gold)• Decentralized ( no government)• Peer-to-Peer ( like torrents)• Can be anonymous• Transparent (open source)• Trusted (vetted for over 5 years)• Easy to buy and sell• Extremely low transaction fees• Irreversible ( no chargebacks)
Key benefits that accord greater value to BitcoinKey benefits that accord greater value to Bitcoin
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Key differences with electronic form of moneyKey differences with electronic form of money
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Factors that add to Bitcoin’s riseFactors that add to Bitcoin’s rise
6.5 billion people don't have access to banking services
Fiat currencies (government / federal regulated) are getting inflated
cross-currency purchases & transfers are expensive
and have friction
• Bitcoin facilitates instant peer-to-peer transactions
• Enables worldwide payments
• Involves almost no processing fees
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How Bitcoin works?How Bitcoin works?
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InfographicInfographic
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• Two Parts of a Bitcoin " account"
1. Public Key - account number / address
27 -34 alphanumeric characters
2. Private key - Password to access bitcoins in the account
• Public Key example -
172ExtQasasssA3E4BNirSdEGRTFRTASwsartgtgaEw
How Bitcoin works?How Bitcoin works?
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InfographicInfographic
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Bitcoin transaction process diagramBitcoin transaction process diagram
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What is Bitcoin mining?What is Bitcoin mining?
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Mining is the process of adding transaction records to Bitcoin ledger of past transaction. This ledger of past transaction is called block chain. The block chain servers confirm transactions to the rest of the network as having taken place.
Bitcoin miningBitcoin mining
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Example of Bitcoin protocol in useExample of Bitcoin protocol in use
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Crypto is used to Authenticate transaction – prevent double spending, false ownership.
Bitcoin Mining - illustratedBitcoin Mining - illustrated
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Bitcoin Mining - illustratedBitcoin Mining - illustrated
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Bitcoin Mining illustratedBitcoin Mining illustrated
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Cybercrime and BitcoinCybercrime and Bitcoin
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World’s largest Bitcoin exchange goes bustWorld’s largest Bitcoin exchange goes bust
Mt.Gox CEO Mark Karpeles bowed in apology at a press conference in Tokyo announcing the bitcoin exchange would seek bankruptcy protection.
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2013 – the year of Bitcoin Malware Scare2013 – the year of Bitcoin Malware Scare
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2013 – Bitcoin Malware Trend2013 – Bitcoin Malware Trend
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CTRL exposes Bitcoin Mining Malware factories!CTRL exposes Bitcoin Mining Malware factories!
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Security research by CTRL on Bitcoin Mining MalwareSecurity research by CTRL on Bitcoin Mining Malware
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Thank you
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