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Bitcoins 24 March 2014 Prepared by: Jasur Hasanov Prepared for: Dr. Noor Mohamed

Bitcoins Jasur Hasanov

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Page 1: Bitcoins Jasur Hasanov

Bitcoins24 March 2014

Prepared by: Jasur Hasanov

Prepared for:

Dr. Noor Mohamed

Page 2: Bitcoins Jasur Hasanov

Who designed the concept of Bitcoin?

Jasur Hasanov © Copyright 2014Bitcoins – The new gold

As an idea described by Wei Dai in 1998

The first Bitcoin specification and proof of concept was

published in 2009 by Satoshi Nakamoto

Page 3: Bitcoins Jasur Hasanov

What is Bitcoin?

Jasur Hasanov © Copyright 2014Bitcoins – The new gold

Currency without notes and coins, a digital currency

Decentralized digital Crypto-Currency

P2P currency system

No Central authority

Page 4: Bitcoins Jasur Hasanov

Decentralized and centralized architectures

Jasur Hasanov © Copyright 2014Bitcoins – The new gold

Page 5: Bitcoins Jasur Hasanov

Peer-to-peer currency system (P2P)

Jasur Hasanov © Copyright 2014Bitcoins – The new gold

A peer-to-peer (P2P) network in which interconnected

nodes ("peers") share resources amongst each other without

the use of a centralized administrative system.

The only requirements for a computer to join a P2P network are an

Internet connection and P2P software such as Kazaa, Limewire,

BearShare, Morpheus.

A network based on the client-server model, where

individual clients request services and resources from

centralized servers.

Page 6: Bitcoins Jasur Hasanov

No central authority

Jasur Hasanov © Copyright 2014Bitcoins – The new gold

Bitcoins transaction

Rely on proof instead of trust

Current online transactions rely on a trusted party (e.g, VISA)

However, bitcoins technology is proved itself in term of security

Conventional method

Page 7: Bitcoins Jasur Hasanov

No central authority cont’

Jasur Hasanov © Copyright 2014Bitcoins – The new gold

Page 8: Bitcoins Jasur Hasanov

Number of Bitcoins in circulation 12 million (March 2014)

https://blockchain.info/charts/total-bitcoins

Total number of BitCoins generated cannot exceed 21 million

Average price of a Bitcoin :

1 BTC = 570.28 USD (23 March 2014)

Price is very unstable

30 Transactions per min. (Visa transaction 200,000 per minute.)

Size of the Bitcoin Economy

Jasur Hasanov © Copyright 2014Bitcoins – The new gold

Page 9: Bitcoins Jasur Hasanov

Bitcoin world map

Jasur Hasanov © Copyright 2014Bitcoins – The new gold

https://blockchain.info/nodes-globe

Page 10: Bitcoins Jasur Hasanov

How to create bitcoins?

Jasur Hasanov © Copyright 2014Bitcoins – The new gold

Anybody can become a Bitcoin miner by running software with specialized hardware.

Miner performs appropriate tasks to process and confirm transactions in the network.

Earn transaction fees paid by users for faster transaction processing

Page 11: Bitcoins Jasur Hasanov

Bitcoin Miners

Jasur Hasanov © Copyright 2014Bitcoins – The new gold

Special Supercomputers or workstations (Miners)

Solving mathematical equation of bitcoin transaction GPU: Radeon HD 6990 about 700 MH/s

Page 12: Bitcoins Jasur Hasanov

Bitcoin wallet

Jasur Hasanov © Copyright 2014Bitcoins – The new gold

Lets test with android bitcoin app

Here is my private key:

1AVULL3v9jXc65mCaqPuiKJdi6tw5qw8q6

Page 13: Bitcoins Jasur Hasanov

Bitcoin ATM

Jasur Hasanov © Copyright 2014Bitcoins – The new gold

Not many but number of ATMs increases

Page 14: Bitcoins Jasur Hasanov

Where to spend?

Jasur Hasanov © Copyright 2014Bitcoins – The new gold

Sellers tend to accept bitcoins because of no central

authority in transaction enables them to have better

control over their product prices

Page 15: Bitcoins Jasur Hasanov

Where to spend in Malaysia?

Jasur Hasanov © Copyright 2014Bitcoins – The new gold

In KL around 5 shops accept bitcoins

Page 16: Bitcoins Jasur Hasanov

Can be printed on paper and used

Jasur Hasanov © Copyright 2014Bitcoins – The new gold

QR code scanning system is high-speed

https://www.bctip.org/

Page 17: Bitcoins Jasur Hasanov

END

Jasur Hasanov © Copyright 2014Bitcoins – The new gold

Thank you