Bitcoin, Ethereum, and Blockchain - Digital Literacy @ Columbia University Business School
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The document explains Bitcoin as both a digital currency and technology, emphasizing its decentralized nature and the innovation of blockchain as a solution to centralization issues in the internet. It details the history of Bitcoin, from its inception by Satoshi Nakamoto in 2008 to its evolution and growing acceptance by various merchants and platforms. Additionally, it discusses the vulnerabilities and security concerns related to cryptocurrency exchanges and wallets, and outlines the investment landscape in Bitcoin and other cryptocurrencies.
![• Where to purchase bitcoin
• How to store bitcoin
• Why it exists
“SHOULD I BUY [SOME NAME OF ASSET]?”
Before you buy bitcoin (or any cryptocurrency) you should at least know](https://image.slidesharecdn.com/bitcoinethereumandblockchain-171130225651/85/Bitcoin-Ethereum-and-Blockchain-Digital-Literacy-Columbia-University-Business-School-163-320.jpg)
Bitcoin, Ethereum, and Blockchain - Digital Literacy @ Columbia University Business School
- 1. Bitcoin, Ethereum and Blockchain Chris Castiglione Digital Literacy at Columbia University School of Business
- 3. Bitcoin is two things: digital currency and a technology.
- 4. BITCOIN IS NOT A PHYSICAL COIN
- 6. The U.S Dollar is already a digital currency
- 8. $60 trillion dollars MONEY SUPPLY
- 9. $60 trillion dollars $6 trillion is in cash or coins MONEY SUPPLY
- 10. $60 trillion dollars $6 trillion is in cash or coins Which Means that… 10% of money is physical money MONEY SUPPLY
- 11. $60 trillion dollars $6 trillion is in cash or coins Which Means that… 10% of money is physical money Therefore, 90% of all money is nothing more than entries in a computer server. MONEY SUPPLY
- 12. $60 trillion dollars $6 trillion is in cash or coins Which Means that… 10% of money is physical money Therefore, 90% of all money is nothing more than entries in a computer server. MONEY SUPPLY
- 13. 90% OF MONEY IS A DIGITAL CURRENCY ON A LEDGER
- 14. Controlled by a central authority “Standard” fees apply Prone to fraud Controlled by the network Lower fees Higher security BTC Banking
- 15. “Saying Bitcoin is like digital money is like saying the internet is a fancy telephone.” - Andreas Antonopoulos
- 16. HOW DOES THE BITCOIN TECHNOLOGY WORK?
- 17. Decentralization: No permission is needed from a central authority to post anything on the web, there is no central controlling node, and so no single point of failure.
- 19. Bitcoin is maintained on a file called a ledger
- 20. Bitcoin is maintained on a file called a ledger
- 21. BLOCKCHAIN is one particular type of distributed ledger.
- 22. BLOCKCHAIN a combination of proven technologies applied in a new way. 1. Private Key Cryptography 2. P2P Network 3. The Blockchain Protocol
- 23. BLOCKCHAIN 1. Private Key Cryptography
- 24. BLOCKCHAIN 2. The P2P Network Centralized Control Distributed Control
- 25. BLOCKCHAIN 3. The blockchain protocol
- 26. is that it allows many entities who do not know one another to reliably reach consensus about the state of the bitcoin blockchain. BITCOIN'S INNOVATION
- 28. THE TECHNOLOGY OF THE INTERNET HAS CENTRALIZATION PROBLEMS, BLOCKCHAIN PROPOSES A SOLUTION
- 29. ARPANET IN DECEMBER 1969
- 30. ARPANET IN 1970
- 31. ARPANET GOES INT’L 1973
- 32. THE GLOBAL INTERNET IN 1993
- 34. THE PRIVATIZATION OF THE INTERNET BACKBONE
- 35. TOP ISPS BY STATE
- 37. BLOCKED
- 38. CENSORSHIP
- 39. INTERNET ACCESS DISRUPTED IN 2008
- 40. WHERE DID BITCOIN COME FROM?
- 41. Digicash (1990) Hashcash (1997) B-Money (1998) BitGold (1998) DIGITAL CURRENCIES BEFORE BITCOIN
- 42. Satoshi Nakamoto released a Bitcoin white paper in 2008. The 8 page paper announced the vision for a decentralized digital currency. 2008 BITCOIN WHITE PAPER
- 43. 2009 In January 2009, the bitcoin network came into existence with the release of the first open source bitcoin client and the issuance of the first bitcoins, with Satoshi Nakamoto mining the first block of bitcoins ever (known as the genesis block), which had a reward of 50 bitcoins.
- 44. The First Bitcoin Transaction 2010
- 45. The First Bitcoin Transaction On May 22nd 2010, Laszlo Hanyecz paid 10,000 BTC for two Papa John’s pizzas. 2010
- 47. FEBRUARY 2011 1 BTC = $1 USD
- 48. JUNE 2011 In June 2011 Wikileaks began to accept bitcoins for donations.
- 49. 1 BTC = $250 USD APRIL 2013
- 50. 1 BTC = $1200 USD NOVEMBER 2013
- 51. DECEMBER 2013 Mt. Gox - a bitcoin exchange based in Tokyo, Japan. Was handling over 70% of all bitcoin transactions worldwide, as the world's leading bitcoin exchange
- 52. MARCH 2014 Mt. Gox announced that approximately 850,000 bitcoins belonging to customers and the company were missing and likely stolen, an amount valued at more than $450 million at the time
- 53. MARCH 2014
- 54. JULY 2015 In November 2012, WordPress had started accepting bitcoins. In December 2013, Overstock.com In July 2014 Newegg and Dell started accepting bitcoin. As of August 2015 it was estimated that 160,000 merchants accept bitcoin payments
- 55. AUGUST 2016 In August 2016, a major bitcoin exchange, Bitfinex, was hacked and nearly 120,000 BTC (around $60m) was stolen.
- 56. AUGUST 2017 On August 1st, 2017 bitcoin split into two derivative digital currencies, the classic bitcoin (BTC) and the Bitcoin Cash (BCH). vs.
- 58. EARLY DAYS, THE ROADS ARE BEING BUILT
- 65. “WE WANT TO MAKE DUBAI THE FIRST BLOCKCHAIN-POWERED GOVERNMENT IN THE WORLD BY 2020,” -Aisha Bin Bishr, director general of Smart Dubai “THE AIM IS TO REPLACE PAPER-BASED CONTRACTS WITH SMART CONTRACTS THAT WILL HELP REDUCE COMPLEX DOCUMENTATION FOR THE TRACKING, SHIPPING AND MOVEMENT OF GOODS,”
- 67. PUBLIC KEYS
- 68. A public key is your Bitcoin address
- 70. PRIVATE KEYS
- 71. Do you own Bitcoin?
- 72. The truth is, you never own bitcoin. All you own is a private key
- 73. A private key is a secret number that allows bitcoins to be spent.
- 74. A private key in the context of Bitcoin is a secret number that allows bitcoins to be spent. 5HpHagT65TZzG1PH3CSu63k8DbpvD8s5ip4nEB3kEsreKamq6aB
- 75. COINBASE KEEPS YOUR PRIVATE KEYS
- 76. COINBASE KEEPS EVERYONE’S PRIVATE KEYS
- 77. NEVER LEAVE YOUR MONEY AT THE EXCHANGE
- 78. 1. Hackers 2. Government regulation 3. The exchange itself Exchanges are vulnerable to:
- 79. EXCHANGES ARE VULNERABLE TO 1. Hackers
- 80. EXCHANGES ARE VULNERABLE TO 1. Hackers
- 83. EXCHANGES ARE VULNERABLE TO 2. Government regulation
- 84. EXCHANGES ARE VULNERABLE TO 2. Government regulation
- 85. EXCHANGES ARE VULNERABLE TO 2. Government regulation
- 86. EXCHANGES ARE VULNERABLE TO 2. Government regulation
- 87. EXCHANGES ARE VULNERABLE TO 2. Government regulation
- 88. EXCHANGES ARE VULNERABLE TO 2. Government regulation • June 24, 2015 • a business license of virtual currency activities • Benjamin Lawsky (NYSDFS) Bitlicense
- 89. EXCHANGES ARE VULNERABLE TO 2. Government regulation
- 90. EXCHANGES ARE VULNERABLE TO 2. Government regulation WATERMARK WATERMARK WATERMARK WATERMARK
- 91. EXCHANGES ARE VULNERABLE TO 3. The exchange
- 92. EXCHANGES ARE VULNERABLE TO 3. The exchange
- 96. • Connected to the Internet • Centralized • The exchange holds your public key HOT WALLET COLD STORAGE • Not connected to the Internet • Distributed (or not-centralized) • You now your public key
- 97. WARM WALLET?
- 98. Trezor.io COLD WALLET aunt knuckle italics moisture hawk thorn iris abort chlorine smog uphill glass aptitude nowhere sewage plywood dual relic fierce divers anvil nodes bubble cabin abort 24 word recovery seed 5HpHagT65TZzG1PH3CSu63k8DbpvD8s5ip4nEB3kEsreKamq6aB
- 99. HOW NOT TO LOSE YOUR COINS
- 100. 1. MOVE MONEY INTO YOUR COLD STORAGE WALLET
- 101. 2. HAVE A BACKUP OF YOUR PASSWORD & CHECK ON YOUR BACKUPS
- 102. 3. USE A PASSWORD MANAGER
- 104. 1. Move money into your cold storage wallet 2. Check on your backups 3. Use a password manager 4. Use 2-Factor authentication HOW NOT TO LOSE YOUR COINS - A CHECKLIST
- 106. ARPANET IN DECEMBER 1969
- 107. ARPANET IN 1970
- 108. ARPANET GOES INT’L 1973
- 109. By October of 1990, Tim had written the three fundamental technologies that remain the foundation of today’s web (and which you may have seen appear on parts of your web browser): HTML: HyperText Markup Language. The markup (formatting) language for the web. URI: Uniform Resource Identifier. A kind of “address” that is unique and used to identify to each resource on the web. It is also commonly called a URL. HTTP: Hypertext Transfer Protocol. Allows for the retrieval of linked resources from across the web. TIM BERNERS-LEE INVENTED THE WORLD WIDE WEB IN 1989.
- 110. Decentralization: No permission is needed from a central authority to post anything on the web, there is no central controlling node, and so no single point of failure … and no “kill switch”! This also implies freedom from indiscriminate censorship and surveillance. Non-discrimination: If I pay to connect to the internet with a certain quality of service, and you pay to connect with that or a greater quality of service, then we can both communicate at the same level. This principle of equity is also known as Net Neutrality. Bottom-up design: Instead of code being written and controlled by a small group of experts, it was developed in full view of everyone, encouraging maximum participation and experimentation. THE VISION OF THE WORLD WIDE WEB
- 112. THE GLOBAL INTERNET IN 1993
- 113. THE PRIVATIZATION OF THE INTERNET BACKBONE
- 116. THE BIG THREE
- 118. MUSIC'S LOST DECADE: SALES CUT IN HALF
- 121. WHAT’S THE PROBLEM WITH MONEY?
- 122. 1. CURRENCY IS NOT STABLE
- 123. Indian Prime Minister Narendra Modi has announced that the 500 ($7.60) and 1,000 rupee banknotes will be withdrawn from the financial system overnight. 9 November 2016 INDIA SCRAPS 500 & 1000 RUPEE BANK NOTE OVERNIGHT
- 124. The pound's dramatic fall started overnight as the outcome of the referendum became clear. At one stage, it hit $1.3236, a fall of more than 10%. 24 June 2016 POUND PLUNGES
- 125. China’s central bank devalued the country’s currency, the renminbi, by about 2% against the U.S. dollar. Aug 11, 2015 CHINA DEVALUES ITS CURRENCY BY 2%
- 126. 2. CENTRAL BANKS HAVE TO CLEAR OUR TRANSACTIONS
- 127. ALTCOINS
- 130. CRYPTOCURRENCIES
- 131. ALTCOINS
- 133. Bitcoin (BTC) BITCOIN • Supply: 21 million bitcoins mined by 2140 • Smallest unit: 1 Satoshi = 0.00000001 BTC • Speed: New tokens mined every 10 minutes • Governance: Users, Developers, Miners (95%) • Transaction Fees: Roughly 110 satoshis/byte • Block size: 2MB • Trajectory of Infrastructure: Allows mining and mining pools • Privacy: Transactions are listed publicly the blockchain • User-friendly: Yes
- 145. TOKENS
- 147. Ethereum (ETH) ETHEREUM • Ether (ETH) is the token • Used for writing smart contracts
- 148. Ethereum (ETH) Ethereum Classic (ETC) ETHEREUM VS. ETHEREUM CLASSIC
- 149. SMART CONTRACTS If thiS -> then that
- 150. SMART CONTRACTS
- 151. SMART CONTRACTS If thiS -> then that
- 152. SMART CONTRACTS If thiS -> then that
- 154. DAPPS
- 155. DAPPS
- 156. DAPPS
- 157. TOKENS
- 158. ICOS & INVESTING IN CRYPTO
- 159. • There will only ever be 21 million bitcoins mined • By 2140 • Deflationary WHY IS BITCOIN SO VALUABLE?
- 162. SHOULD I BUY BITCOIN?
- 163. • Where to purchase bitcoin • How to store bitcoin • Why it exists “SHOULD I BUY [SOME NAME OF ASSET]?” Before you buy bitcoin (or any cryptocurrency) you should at least know
- 164. GO TO AN EXCHANGE
- 166. THE 5 TYPES OF PEOPLE INVESTED IN BITCOIN
- 167. 1. User 2. Miner 3. Developer 4. Investor 5. Business Owner 5 TYPES OF PEOPLE
- 168. WANT TO LEARN MORE ABOUT BITCOIN, BLOCKCHAIN & ETHEREUM?
- 169. One Month Bitcoin & Ethereum (Online Course) https://onemonth.com/courses/bitcoin The Rise and Rise of Bitcoin (Documentary) Tim Ferris Podcast Episode #244 The Quiet Master of Cryptocurrency — with Nick Szabo This Week in Ethereum Newsletter http://www.weekinethereum.com/ You can purchase Bitcoin at Coinbase coinbase.com RESOURCES
- 170. JOIN COINBASE NOW AND GET $10 OF FREE BITCOIN
- 171. One Month Bitcoin & Ethereum (Online Course) https://onemonth.com/courses/bitcoin LEARN ONLINE WITH ONE MONTH