Bitcoin and Blockchain explained for chamber of commerce ver 1.0

Understanding
Bitcoin & Blockchain
M.Naghipourfar
Entrepreneur
& Innovation Consultant
Naghipourfar
Naghipourfar
M.Naghipourfar
Naghipourfar

Preface
• The bursting of the US housing bubble, which peaked at the end of 2006
• liquidity crisis, can be dated from August 9, 2007
• Freddie Mac and Fannie Mae were taken over by the federal government on September
7, 2008.
• Lehman Brothers filed for bankruptcy on September 15, 2008.
• US, Congress passed the American Recovery and Reinvestment Act of 2009.
• large financial institutions was prevented by the bailout of banks by national
governments
• the bailout to Fannie Mae and Freddie Mac exceeds $300 billion
• United States Secretary of the Treasury to spend up to $700 billion to purchase distressed
assets, Troubled Asset Relief Program (TARP)
• Bloomberg found the Federal Reserve had, by March 2009, committed $7.77 trillion to
rescuing the financial system
• the Great Recession of 2008–2012
• economist Joseph Stiglitz's May 2011 article "Of the 1%, by the 1%, for the 1%“
• "We are the 99%" became a unifying slogan of the Occupy movement in August 2011

How Started
• On 18 August 2008, the domain name "bitcoin.org" was registered.
• In November 2008, a link to a paper authored by Satoshi Nakamoto titled
Bitcoin: A Peer-to-Peer Electronic Cash System
• the bitcoin software as open source code and released it in January 2009
• In January 2009, the bitcoin network came into existence after Satoshi
Nakamoto mined the first ever block on the chain, known as the genesis
block, for a reward of 50 bitcoins, Embedded in the coinbase of this block
was the following text:
– The Times 03/Jan/2009 Chancellor on brink of second bailout for
banks.
• programmer Hal Finney. Finney downloaded the bitcoin software the day it
was released, and received 10 bitcoins from Nakamoto in the world's first
bitcoin transaction.
• Other early supporters were Wei Dai, creator of bitcoin predecessor b-
money, and Nick Szabo, creator of bitcoin predecessor bit gold.
• Nakamoto is estimated to have mined 1 million bitcoins.
• In 2010, Nakamoto handed the network alert key and control of the Bitcoin
Core code repository over to Gavin Andresen
– Nakamoto subsequently disappeared from any involvement in bitcoin.

Peer to Peer Networks
• Napster was envisioned as an independent Peer to
Peer File Sharing service by Shawn Fanning. The
service operated between June 1999 and July
2001 (26.4 Million users).
• Unstructured peer-to-peer networks (Gnutella,
Gosip, and Kazaa)
• structured peer-to-peer network implement a
Distributed Hash Table (DHT) which enables peers
to search for resources on the network using a
hash table (BitTorrent , Kad Network, Storm
Botnet, YaCy, and Coral Content Distribution
Network )

Overview of Bitcoin Whitepaper

Digital currency (Centralized)
• Digital currency (digital money or electronic money or
electronic currency) is a type of currency available only in
digital form, not in physical
• eCach (DigiCash) was an electronic money corporation
founded by David Chaum in 1989.
– eCash (DigiCash) transactions were unique in that they
were anonymous due to a number of cryptographic
protocols
• The E-Gold system was founded by Douglas Jackson and
Barry Downey and launched online in 1996 and had grown to
five million accounts by 2009
• Centralized systems—such as PayPal, eCash, WebMoney,
Payoneer, and cashU will sell their electronic currency directly
to the end user.

Digital Currency (Decentralized)
• A cryptocurrency is a type of digital token that relies on cryptography for chaining together digital signatures of
token transfers, peer-to-peer networking and decentralization.
• Bitcoin, the first cryptocurrency, a peer-to-peer electronic monetary system based on cryptography.
• Etherium, an open-source, public, blockchain-based distributed computing platform featuring smart contract
(scripting) functionality.
• Bitcoin Cash, a 2017 fork of bitcoin; main differences from bitcoin are larger blocks, different difficulty
adjustment algorithm, and lack of Segregated Witness.
• IOTA, an open source distributed ledger and an electronic monetary system designed for the Internet of Things.
It uses a Directed Acyclic Grapgh (DAG) instead of a Blockchain.
• Ripple monetary system, a monetary system based on trust networks.
• Litecoin, originally based on the bitcoin protocol, intended to improve upon its alleged inefficiencies. Faster
block times and different mining algorithm compared to bitcoin.
• Dash, originally based on the bitcoin protocol, it offers the option of instant and private transactions. It is a
Decentralized Autonomous Organization.
• NEM, a peer-to-peer electronic monetary system and a blockchain platform which allows for storing digital
assets.
• NEO], an open-source, public, blockchain-based distributed computing platform featuring smart assets contract
functionality.
• Monero, an open source cryptocurrency created in April 2014 that focuses on privacy, decentralisation and
scalability.
• Zcash, a cryptocurrency that offers privacy and selective transparency of transactions.

Market survey
• Market grows despite regulatory challenges:
Multiple executive regulators announced
aggressive action, markets boom to all-time high
above $500bn.
• ICOs and VC hit new highs: only in Q3 2017, ICOs
raise $1.24bn, led by Filecoin, Tezos. i.e. Coinbase
raises $100mn: puts valuation at $1.6bn,
becoming the industry’s first unicorn.
• Bitcoin tested by soft and hard fork: Often
debated soft fork resulted in segregated witness,
opened Bitcoin to cryptographic innovations; hard
fork resulted in big block Bitcoin Cash.
Confidential
‫محرمانه‬
All Rights belongs to BitArix.com

Market survey
• Bitcoin tested by regulators, forks, breaks all time high of
$20000 (now less than 15000$).
• Bitcoin begins to reassert market dominance over ETH, XRP.
• Global trading volumes accelerate and grow in diversity in
terms of geography, exchanges, and currency pairs.
• Transactions on major blockchains increased, except for
Bitcoin. Ethereum sets transaction record for any blockchain.
• Only in Q3 2017, Major digital assets BTC, ETH, XRP, DASH,
and XMR rally ~3000%, almost 5% daily return.
• Industry terms like Bitcoin, Cryptocurrency and Blockchain
hit all-time high in Google search frequencies.
Confidential

Market survey
• Digital Assets outperformed Traditional Assets (Q3 2017)
Confidential

Cryptocurrency Forecast
Confidential

Disrupted industries by Blockchain

‫کرد؟‬ ‫باید‬ ‫چه‬
•1)‫تجربه‬
•2)‫همکاری‬
•3)‫به‬ ‫کمک‬‫استانداردها‬ ‫توسعه‬‫و‬‫قانونی‬ ‫مفاهیم‬ ‫درک‬‫بلوک‬ ‫زنجیره‬ ‫سازی‬ ‫پیاده‬ ‫حقوقی‬ ‫و‬
•4)‫درست‬ ‫تعریف‬‫استفاده‬ ‫موارد‬
•5)‫ایجاد‬ ‫برای‬ ‫آمادگی‬‫کار‬ ‫و‬ ‫کسب‬ ‫مدل‬ ‫در‬ ‫تغییر‬

‫پیشنهادی‬ ‫راهبرد‬–‫مدت‬ ‫کوتاه‬(3‫تا‬12‫ماه‬)
•‫یک‬ ‫انتشار‬ ‫و‬ ‫توسعه‬‫راه‬ ‫نقشه‬‫داخلی‬
•‫ها‬ ‫فرصت‬ ‫شناسایی‬‫فعال‬ ‫نوآوری‬ ‫طریق‬ ‫از‬ ‫کار‬ ‫و‬ ‫کسب‬ ‫تقویت‬ ‫برای‬
•‫مستمر‬ ‫تحقیقات‬ ‫انجام‬‫صنعت‬ ‫درون‬ ‫در‬ ‫محور‬ ‫بلوک‬ ‫زنجیره‬ ‫تغییرات‬ ‫پیگیری‬ ‫منظور‬ ‫به‬
•‫کلیدی‬ ‫کارکنان‬ ‫آموزش‬‫پرداخت‬ ‫کار‬ ‫و‬ ‫کسب‬ ‫های‬ ‫فرصت‬ ‫و‬ ‫تهدیدها‬ ،‫توسعه‬ ‫خصوص‬ ‫در‬
•‫و‬ ‫جلسات‬ ‫برگزاری‬‫آموزشی‬ ‫های‬ ‫کارگاه‬
•‫یک‬ ‫توسعه‬‫نوآوری‬ ‫برنامه‬
•‫به‬ ‫شروع‬‫فناوری‬ ‫آزمون‬‫باشد‬ ‫می‬ ‫ارائه‬ ‫قابل‬ ‫فناوری‬ ‫توسط‬ ‫هایی‬ ‫حل‬ ‫راه‬ ‫چه‬ ‫اینکه‬ ‫کردن‬ ‫پیدا‬ ‫برای‬

Any Question?
Naghipourfar
M.Naghipourfar
Naghipourfar
Naghipourfar

Bitcoin and Blockchain explained for chamber of commerce ver 1.0

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