Bitcoin Noob
- 1. Bitcoins
- 3. What? • Cryptocurrency P2P • Cypherfunk’s dream • Anonymous • Hard to counterfeit • Like Gold • Store in numerous ways • Not a store of value but a medium of exchange
- 4. Why? • Works everywhere • Easy to transfer • Low transaction fee • Immune to government intervention • Buy weed
- 6. How it works
- 7. Centralized
- 9. Simply put • It’s a immutable list (or a ledger) of transactions called a blockchain Person A to Person B 50 BTC Person B to Person C 30 BTC Person C to Person A 20 BTC
- 10. then it gets a bit complicated... • Bitcoin generation • Computation of transaction • This is taken care of by Miners
- 11. • Multiple blocks create a Blockchain
- 12. Mining • A miner needs to solve a computational puzzle to create a new block • Longest blockchain is the valid one • Forking is also taken care of
- 13. Why mine? • With every block created, a miner can generate bitcoins (adding it to the ledger) • People sending money can allocate a transaction cost • That speeds up the process
- 15. Stopping Inflation with 21 Million
- 16. Why ASIC’s are sick Litecoin, here I come
- 17. The loop • Every bitcoin node has the Blockchain • Blockchain is a list of all transactions • Miners have to burn computational power to create a new block • They earn money doing that • Creating a block: Difficult. • Verifying a block: Easy
- 18. Me wants monies! • Most straightforward: Mining • Realistic: Pool Mining • Easy chunk change:Arbitrage • Play the stock market game
- 19. What can you buy? • Wordpress.com upgrades • Pizza • HD TVs • more things are popping up
- 20. What can you sell? • Basically, anything! • Don’t want to mess with BTC? Bitpay.com
- 21. Caution on Anonymity • All transactions are public
- 22. Getting started • Install aWallet • “Cloud” wallet
- 23. Wallet • Has private key that signs the transaction to ‘authenticate’ • Transactions are confirmed in the mining process
- 25. Other forks • Freicoin • Litecoin
- 26. Conclusion • I’m just an observer • Has the disruptive capability similar to the internet in the 90s • Possibly the ARPANET of internet currency
Editor's Notes
- #2: impromptu
- #4: created anonymous satoshi nakamoto...speculate mailing list back in the 90s assange.. openpgp, bittorr, openssl (primitive) any one can create an address without documents cryptography limited supply
- #5: Cypriot issue - anywhere with
- #8: normal banks with separate database
- #9: think
- #13: proof of work protocol - challenge string miners compete .. lucky ones win, more tries = more luck
- #15: ASICMiner
- #16: this is predicted - faster
- #17: why ? repeatative GPU litecoin - fork of BTC
- #18: it’ll still be smaller than CCs
- #19: pool mining - 2 probalities in play different market - good for the community
- #20: freicoin -kickstarter funded
- #21: bitpay abtracts everything and USD
- #22: public .. USD -> BTC trackable.. follow breadcrumbs Mt gox recently verification try laundering