The practical side of bitcoin code camp 2014
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Bitcoins The Practical Side
Judy Katzman [email protected]
NYC Code Camp Saturday September 13, 2014
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Welcome to Bitcoin ● Why is Bitcoin important?
● Create an online bitcoin wallet
● How to obtain bitcoins
● Merchant services
● Introduction to the block chain
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Why Bitcoin? ● Brings together global economy
● Transactions times in minutes, not days
● Fundraising - no currency transaction fees
● No minimum deposits required (as compared to checking accounts)
● Governments cannot confiscate savings - Cyprus
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What Is A Bitcoin?
New digital currency No banks
Minimal fees Not tied to any country No personal information
No credit card processors
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Fun Facts About Bitcoins ● Created in 2008 by Satoshi Nakamoto ● Bitcoin is also the name of the protocol used to create bitcoins. ● Bitcoin is based on an algorithm which is solved approximately every
10 minutes, no matter how many miners and CPU power is used. The algorithm difficulty increases exponentially over time
● Every 4 years, the number of bitcoins created is halved ● The maximum number of bitcoins is fixed at 21 million, which will be
reached by 2140 ● Created by the interaction of cryptography and distributed systems:
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What Is A Wallet? ● Place to store bitcoins
● Allows transfer of bitcoin between people and/or businesses
● Two basic options:
○ cell phone ○ on-line
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Types of Bitcoin Wallets ● web-wallet - online - trusting a third party to store bitcoins (like a
bank) ● application (phone,computer, tablet, etc...)
● cold storage - This is more like a safety deposit box than a saving
account - not used as often DO DUE DILIGENCE
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Create a Bitcoin Wallet ● https://blockchain.info/
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Create a Bitcoin Wallet ● https://blockchain.info/
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New Bitcoin Wallet ● https://blockchain.info/
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Blockchain.info
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Methods of Obtaining Bitcoin Bitcoin ATM machin
Mining
Old Fashion Way - Earn It
Conversion
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What Am I Going To Do With My Bitcoins
● https://www.bitpremier.com ● http://coinmap.org/
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Merchant Services ● Online stores that accept bitcoin as payment
● Local merchants
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What is the Blockchain?
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Blockchain Sample Cindy gave Scott .1 BTC and this block was created: https://blockchain.info/address/1Cdid9KFAaatwczBwBttQcwXYCpvK8h7FK
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Blockchain Sample Scott bought coffee for .015 BTC: https://blockchain.info/address/1GdK9UzpHBzqzX2A9JFP3Di4weBwqgmoQA
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Bitcoin Keys Cell Phone
Application Private Key
Blockchain
5aa6c862-bb47-45b7-89ac-49bdd69653f4 key
Keys are mathematically related
Bitcoin address can be calculated from the private key
private key cannot be calculated from blockchain
The key calculations are often taken care of by the “third party” wallet vendors 18
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Going Forward? ● New industry ● US Government has declared bitcoin a “commodity”, not currency ● New York is contemplating regulations for exchanges ● Great potential for people who cannot afford banking ● Replacing wire transfers, money orders or money grams ● Other uses for bitcoin protocol
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Resources ● blockchain.info ● https://bitcoin.org/en/ ● https://bitcoinfoundation.org/ ● http://howtobuybitcoins.info/us.html ● http://letstalkbitcoin.com/ ● http://www.reddit.com/r/CryptoCurrency/ ● http://www.cryptocoinsnews.com/ ● http://staging.spectrum.ieee.org/img/06Bitcoin-1338412974774.jpg - How a Bitcoins transaction works
● Mastering Bitcoin -Unlocking Digital Crypt-Currencies by Andreas Antonopoulous
Contact Infoformation: Judy Katzman [email protected]
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