Bitcoin The cryptographic currency. Talk at BCBOMO6

Bitcoin

The cryptographic currency

Dave Hulbert

@dave1010

Who's heard of Bitcoin?

What is Bitcoin?

Currency

Bitcoin is a peer-to-peer payment system introduced as open source software in 2009 by developer Satoshi Nakamoto. The digital currency created and used in the system is also called bitcoin and is alternatively referred to as a virtual currency, electronic money, or cryptocurrency. The bitcoin system is not controlled by a single entity, like a central bank, which has led the US Treasury to call bitcoin a decentralized currency. Because bitcoins can be transferred directly from one person to another they are sometimes described as "digital cash". --Wikipedia

Why is it interesting?Why does it matter?

DogecoinNamecoinFreicoinLitecoin

...

Market cap $5,000,000,000.00

Use it today

Future?

What is A Bitcoin?

Market value

1BTC = $4521mBTC = $0.452

Lots of markets

A market is a place you can trade goods

Buyers and sellers agree on a price

NYSE, LSE, MtGox, Behind the bus station

Markets:

●ForEx (USD, GBP, EUR, YEN)●Gold●FCOJ (Trading places)●Virtual currencies in games●Tesco clubcard points?●Facebook likes●Bitcoin!

How is Bitcoin different?

Bitcoin is a peer-to-peer payment system introduced as open source software in 2009 by developer Satoshi Nakamoto. The digital currency created and used in the system is also called bitcoin and is alternatively referred to as a virtual currency, electronic money, or cryptocurrency. The bitcoin system is not controlled by a single entity, like a central bank, which has led the US Treasury to call bitcoin a decentralized currency. Because bitcoins can be transferred directly from one person to another they are sometimes described as "digital cash". --Wikipedia

Centralized control● Banks● Paypal

Decentralized control

● Cash● Gold

“Double spending problem”

AKA copy & paste

3 volunteers

The blockchain

Ledger

6 confirmations

Trusting the blockchain

Proof of work

Mining

What is mining?

● SHA-256 Hash (twice)

hello2cf24dba5fb0a30e26e83b2ac5b9e29e1b161e5c

1fa7425e73043362938b9824

hello3453456300000000000b0a30e26e83b2ac5b9e29e1b161e

5c1fa7425e73043362938b9824

Mining

● Gold rush● Maintaining the blockchain● Rewards built into the Bitcoin protocol

● Fees● Block reward (25BTC)

● CPU / GPU / FPGA / ASIC● Mining pools

Blockchain

● ~10 mintues (adjusted automatically)● Public transaction ledger (17GB!)● Data!● Other uses:

● prooving ownership● Timestamps (patents)● Integrity● ???

Pseudo-anonymity

Wallets

● Public address and private key (like SSH)● Talk to the P2P network (like Bittorrent)

Security

● Wallets● Exchanges● Regulation

Thanks!

Questions?

Exchange?

@dave1010

18S7CKZVhdvU4j23bwRGXXqq3iYP14TYB3