Bitcoin - Introduction for programmers

Wojciech Langiewicz, Chamber Conf 2016http://www.wlangiewicz.com

History

● Appeared in 2009 thanks to author - Satoshi Nakamoto

What problem Bitcoin solves?

● Assigning a notion of ownership to digital goods (bits)

● Ability to transfer ownership of those goods (bits)

Online Bitcoin Exchanges

● Many companies are running various Bitcoin exchanges● You can trade fiat currencies to Bitcoin

Bitcoin Wallet

Mining - overview

● Bitcoin nodes collect unconfirmed transactions and try to create new valid block

Mining continued

● If miner finds a block, it’s announced to the whole network● If miner tries to cheat, relay nodes will reject invalid block

Mining - creating new coins

Blockchain - overview

● The Bitcoin database● Each block references

previous one

Blockchain

A little similar to Git

image source: Theymos from Bitcoin wiki CC BY 3.0

Blockchain

Blockchain is append only

Blockchain

Blockchain is also distributed

Without any central authority

Blockchain use case

Proof of Existence

Blockchain and accounting

● Double entry accounting

● Each transaction has 2 sides

● Inputs● Outputs

Transaction Inputs and Outputs

Transaction Types

Multisig Transactions

Thank you, you can read more here:

● https://github.com/bitcoinbook/bitcoinbook - Very good and technical Bitcoin book- Also the source for some of the images