Evolving Your Dollars - A Journey to Bitcoin
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The document outlines the evolution of currency from traditional paper dollars to digital forms, particularly focusing on Bitcoin as a decentralized and transparent currency. It emphasizes the roles of individual responsibility, privacy, and the benefits of a distributed blockchain system, where transactions are secure, transparent, and validated by a network of users (miners). Additionally, it highlights various applications of this technology beyond currency, including contracts and record-keeping.
Evolving Your Dollars - A Journey to Bitcoin
- 1. A JOURNEY TO BITCOIN Evolving Your Dollars
- 2. Note: This content is supplemental. The core concepts should be presented via physical table top media for comprehension. Print the physical media: http://1drv.ms/1sxY93Y Authentic learning occurs when the learner connects each new concept to an existing one in their mind. The learned concept only sticks if an emotional reaction is elicited at the time of connection. This information is successfully shared face to face, with a heavy focus on the learner’s mood, interest, and questions.
- 3. Paper Dollars in Leather Wallets CORE IDEA Individual Responsibility CHALLENGE Insecure User Counterfeiting SOLUTION Secure in Bank Bank Auditing Next:Digital Dollars in Locked Bank Accounts
- 4. Digital Dollars in Locked Bank Accounts CORE IDEA Centralized Trust in 3rd Party Account Number (ID/Deposits) Account Password (Spending) CHALLENGE Bank Counterfeiting No External Auditing SOLUTION Transparent Accounts Next:Digital Dollars in Transparent Locked Bank Accounts
- 5. Digital Dollars in Transparent Locked Bank Accounts CORE IDEA Unlimited Auditing by Anyone CHALLENGE Lack of User Privacy SOLUTION Anonymize Accounts Next:Digital Dollars in Anonymized Bank Accounts VIS
- 6. Anonymity USER IDENTIFIED ACCOUNT ANONYMOUS ACCOUNT John Doe 265-33-7454 2-15-76 833-23-4432 Rockstr76 L!fEroCKs 5549 Name SSN DOB Acct # User ID Password PIN 833-23-4432 L!fEroCKs Acct # Password
- 7. Digital Dollars in Anonymized Bank Accounts CORE IDEA Bank Does Not Know Who Owns Accounts Password Security & Management CHALLENGE Account Metaphor • Privacy Risk if Acct # Discovered • Payee Can Discover One’s Balance • Limits Financial Management SOLUTION Key Metaphor • Lock Individual Units • Unlimited Keys • Use Few or Many Next:Transparent Locked Dollar Sequence in Bank
- 8. Transparent Locked Dollar Sequence in Bank CORE IDEA Public Key (ID/Deposits) ID’s One or Many Units, Free to Create Private Key (Spending/Proof of Value) Unique to Each Public Key Transaction - Using A Private Key to Reassign A Unit’s New Public Key Wallet – Software or Hardware Used to Manage Public and Private Keys CHALLENGE Transparency Only In the Moment SOLUTION Record New Unit Keys Without Deleting Previous Next:Transparent Locked Dollar Sequence w/ History in Bank VIS
- 10. Transp. Locked D.Dollar Seq. w/ History in Bank CORE IDEA Transparent Ledger of Record Audits Through Time Each Line is a Transaction Record Value, Date, Previous Key, Current Key CHALLENGE Open to Revision by Bank Open to Challenge by Users SOLUTION Make Subsequent Transaction Records Dependent on Previous Ones Next:Digital Dollars in Locked Bank Accounts
- 11. Transparent Ledger of Locked Digital Dollars w/ Transactions Chained Together in Bank CORE IDEA Block – Collection of Transactions from a Period of Time Validation – Each Block Proves Validity of Previous Block Block Chain – Ledger of Blocks Whose Security Increases with Time Hashing – Creation of Cryptographic Dependency Links CHALLENGE Bank is Single Point of Failure SOLUTION Duplicate the Block Chain into Limitless Copies Next:Transparent Secure Block Chain Stored on Any User's Computer VIS
- 12. Numerical Dependency DOMINOES HASHING 0 to 6 0 to 99999999999999999999999999999999 99999999999999999999999999999999 99999999999999999999999999999999 99999999999999999999999999999999 99999999999999999999999999999999 99999999999999999999999999999999 99999999999999999999999999999999 99999999999999999999999999999999
- 13. Transparent Secure Block Chain Stored on Any User's Computer CORE IDEA Distributed Network – Peer to Peer Distributed Trust & Verification Units Controlled by Banks are Dollars Units Controlled by Users are Bitcoins CHALLENGE Who Will Collect Transactions Create & Validate Blocks? SOLUTION Blocks Collected and Linked by Any Volunteer (Miner) Next:Block Chain Stored By All & Extended by Competing Miners VIS
- 14. Network Arrangements CENTRALIZED DECENTRALIZED DISTRIBUTED
- 15. Block Chain Stored By All & Extended by Competing Miners CORE IDEA Anyone Can Be a Miner Miners Compete to Solve Blocks Miners Confirm Validity of Solved Blocks Miners Who Solve Blocks First are Rewarded with Bitcoins Miners Prioritize Transactions Based on Voluntary Fees Hash Difficulty is Adjusted So a Block is Solved Every 10 Minutes
- 16. Bitcoin is A Distributed Network Crypto Currency Core Idea Bitcoin Can Cost Nothing to Use Bitcoin Transactions are Transparent and Permanent Each User’s Self Interest Adds Security to the Network Participation Can be Mostly Anonymous The Bitcoin Network Belongs to No One and Everyone Bitcoin Has No State, Cultural, or Language Boundaries
- 17. That’s the Evolution from Dollars to Bitcoin!
- 18. The Distributed Block Chain is a World Changing Concept Core Idea A Shared Indelible Record, Secured and Witnessed by Millions Possible Applications Accounting Auditing Autonomous Entities Budgeting Business Structures Contracts Copyright Insurance Records Lease Agreements Micro Transactions Prenuptial Agreements Promises Reviews Service Ratings Speech Records Stock Ownership Warrantees Last Wills