![What is Bitcoin?
• Bitcoin - a collection of concepts and
technologies that form the basis of a digital money
ecosystem.[1]
• A digital ledger that is replicated across all
network participants
@horeaporutiu
• Open source project - source code on GitHub
IBM Code
https://www.safaribooksonline.com/library/view/mastering-bitcoin-2nd/9781491954379/ch01.html](https://image.slidesharecdn.com/firststepsbitcoin-180805054834/85/First-steps-with-Bitcoin-6-320.jpg)
First steps with Bitcoin
- 1. @horeaporutiu IBM Code Horea Porutiu Developer Advocate First Steps with Bitcoin
- 2. Slides @horeaporutiu 1. Go to my twitter - @horeaporutiu 2. Link to my slide share is the first pinned tweet IBM Code
- 3. Agenda @horeaporutiu 1. Bitcoin concepts 2. Blockchain concepts IBM Code
- 5. What is Bitcoin? @horeaporutiu IBM Code
- 6. What is Bitcoin? • Bitcoin - a collection of concepts and technologies that form the basis of a digital money ecosystem.[1] • A digital ledger that is replicated across all network participants @horeaporutiu • Open source project - source code on GitHub IBM Code https://www.safaribooksonline.com/library/view/mastering-bitcoin-2nd/9781491954379/ch01.html
- 7. What is Bitcoin? • Bitcoin protocol (decentralized network) @horeaporutiu • Public ledger - the blockchain IBM Code https://www.safaribooksonline.com/library/view/mastering-bitcoin-2nd/9781491954379/ch01.html • Rules for issuing currency, and transaction validation • Consensus rules (Proof of work)
- 8. Problems with digital currency • Can I trust the money is not counterfeit? @horeaporutiu • Can I trust the money will only be spent once? (Double-spending problem) IBM Code https://www.safaribooksonline.com/library/view/mastering-bitcoin-2nd/9781491954379/ch01.html
- 9. Solution - physical money @horeaporutiu IBM Code • Physical money uses holographic strips to ensure authenticity • As you can see there are still problems with physical money
- 10. Solution - digital money @horeaporutiu IBM Code • Digital money uses cryptography to ensure authenticity • Cryptographic digital signatures (with a supporting network) solve double-spending problem • Cryptographic - means `secret writing` in Greek
- 11. Bitcoin uses @horeaporutiu IBM Code • Transactions • Cross- border payment • Mining bitcoin (earn money)
- 12. Cryptography & Bitcoin @horeaporutiu IBM Code • Cryptography can be used to used to prove knowledge of a secret without knowing the secret https://www.safaribooksonline.com/library/view/mastering-bitcoin-2nd/9781491954379/ch04.html#ch04_keys_addresses
- 13. Bitcoin transactions @horeaporutiu IBM Code • Double-entry bookkeeping https://www.safaribooksonline.com/library/view/mastering-bitcoin-2nd/9781491954379/ch02.html
- 14. Bitcoin transactions @horeaporutiu IBM Code • Each time a user transactions on the bitcoin network, they sign their transaction with their digital signature https://www.safaribooksonline.com/library/view/mastering-bitcoin-2nd/9781491954379/ch02.html • Digital signature = public key + (derivative of private key) ✍🏻
- 15. Cryptography & Bitcoin Cont. @horeaporutiu IBM Code • Three concepts help us prove knowledge of a secret without knowing the secret https://www.safaribooksonline.com/library/view/mastering-bitcoin-2nd/9781491954379/ch04.html#ch04_keys_addresses • Digital keys 🔑 • Bitcoin Address 🏡 • Digital signatures ✍🏻
- 16. Bitcoin payments @horeaporutiu IBM Code https://www.safaribooksonline.com/library/view/mastering-bitcoin-2nd/9781491954379/ch04.html#ch04_keys_addresses • Bitcoin Address 🏡 • To send bitcoin over the network, you will need to have a address to sent it do
- 17. Elliptic Curve Multiplication @horeaporutiu IBM Code https://www.safaribooksonline.com/library/view/mastering-bitcoin-2nd/9781491954379/ch04.html#ch04_keys_addresses Elliptic curve point multiplication is the operation of s https://en.wikipedia.org/wiki/Elliptic_curve_point_multiplication
- 18. Elliptic Curve Multiplication @horeaporutiu IBM Code https://www.safaribooksonline.com/library/view/mastering-bitcoin-2nd/9781491954379/ch04.html#ch04_keys_addresses • Easy to do in one direction ➡️ • Impossible to do in other direction ⬅️ • Owner of private key
- 19. Key Takeaway @horeaporutiu IBM Code • Owner of private key can easily create a public key and share it with the world 🌍 • Why? • Because nobody can calculate the private key from the public key • Why? • This is the property of elliptical curve multiplication ⬇️ ⬇️
- 20. Generate public key @horeaporutiu IBM Code https://www.safaribooksonline.com/library/view/mastering-bitcoin-2nd/9781491954379/ch04.html#ch04_keys_addresses K = k * G • K = public key • k = private key, which is a random number from 0 to n -1 where n = 1.15 * 10^77 • G = generator point
- 21. Why does this matter? @horeaporutiu IBM Code • Ensures payments on the bitcoin network are public, but nobody can find the password (private key) for each transaction
- 22. Why does this matter? @horeaporutiu IBM Code https://www.safaribooksonline.com/library/view/mastering-bitcoin-2nd/9781491954379/ch04.html#ch04_keys_addresses • Miners in the Bitcoin network can easily approve that transactions are valid, without knowing the private keys of the participants • Anyone on the network can validate transactions, without the need for a bank, or central authority
- 23. Bitcoin summary @horeaporutiu IBM Code https://www.safaribooksonline.com/library/view/mastering-bitcoin-2nd/9781491954379/ch04.html#ch04_keys_addresses • Transactions on network are signed using public, and private keys • Nodes (computers) on the network, solve proof- of-work calculation to approve transactions • Bitcoin is digital payment ecosystem • Bitcoin is decentralized - no need for a bank, or central authority to approve transactions 💵
- 24. Types of blockchain Public Private @horeaporutiu • Open to anyone • Large computational requirement • Participants incentivized with cryptocurrency • Bitcoin • Need permission to join the network • Walmart solution • Less computational power required • Cryptocurrency is typically not involved • Transactions can be kept private IBM Code
- 25. Private (permissioned) blockchain @horeaporutiu IBM Code • BaaS (Blockchain as a service) based on Hyperledger Fabric • Open source software project with over 185 organizations contributing • IBM Blockchain Starter Plan is free for one month - used for developing and testing networks
- 26. Contact info @horeaporutiu IBM Code • Questions: horea.porutiu@ibm.com • Social: Tweets @horeaporutiu • Site: https://horeaporutiu.github.io/ • Blog: https://medium.com/@horeaporutiu
- 27. Thank you! @horeaporutiu IBM Code
Editor's Notes
- #2: Hey everyone, my name is Horea Porutiu and I am a Developer advocate for Emerging Technologies at IBM. My team focuses on Artificial Intelligence, blockchain, Internet of Things, and Augmented/Virtual reality. Our mission is to help software developers use the IBM Cloud platform. We write blog posts about how to use Watson, the blockchain platform, etc, do video tutorials, and speak at meet ups and conferences. I have a computer science and a management science major from UCSD. I graduated last March, so I am still less than a year out of school. I have been with IBM for about 10 months now.
- #3: before we get started, by a show of hands, how many of you know about blockchain? How many have taken a course or been to class on blockchain? How many have developed applications using blockchain technoloies? Well no matter your skill level, and familiarity with blockchain, I think you will be able to learn something useful from this session. Today, I want to take you through a journey with blockchain. I’ll go over the main concepts of blockchain, and more importantly, when blockchain is a suitable solution for your problem. I’ll talk about Hyperledger, a popular open source technology for building blockchain applications and then I’ll go into a demo of how to start building blockchain apps with Hyperledger, and then go into Q/A.
- #4: before we get started, by a show of hands, how many of you know about blockchain? How many have taken a course or been to class on blockchain? How many have developed applications using blockchain technoloies? Well no matter your skill level, and familiarity with blockchain, I think you will be able to learn something useful from this session. Today, I want to take you through a journey with blockchain. I’ll go over the main concepts of blockchain, and more importantly, when blockchain is a suitable solution for your problem. I’ll talk about Hyperledger, a popular open source technology for building blockchain applications and then I’ll go into a demo of how to start building blockchain apps with Hyperledger, and then go into Q/A.
- #5: The most popular and typical solution of blockchain is Bitcoin. With a show of hands, has anyone here owned parts of a bitcoin? If you have, you’ll be able to relate to this
- #6: So here is the mandatory definition slide The main points here is that blockchain is a list of records, which enables participants to transact with each over a network with TRUST. also, the ledger is replicated across all participants, so everyone in the network has a single source of truth
- #7: So here is the mandatory definition slide The main points here is that blockchain is a list of records, which enables participants to transact with each over a network with TRUST. also, the ledger is replicated across all participants, so everyone in the network has a single source of truth
- #8: So here is the mandatory definition slide The main points here is that blockchain is a list of records, which enables participants to transact with each over a network with TRUST. also, the ledger is replicated across all participants, so everyone in the network has a single source of truth
- #9: So here is the mandatory definition slide The main points here is that blockchain is a list of records, which enables participants to transact with each over a network with TRUST. also, the ledger is replicated across all participants, so everyone in the network has a single source of truth
- #10: So here is the mandatory definition slide The main points here is that blockchain is a list of records, which enables participants to transact with each over a network with TRUST. also, the ledger is replicated across all participants, so everyone in the network has a single source of truth
- #11: So here is the mandatory definition slide The main points here is that blockchain is a list of records, which enables participants to transact with each over a network with TRUST. also, the ledger is replicated across all participants, so everyone in the network has a single source of truth
- #12: So here is the mandatory definition slide The main points here is that blockchain is a list of records, which enables participants to transact with each over a network with TRUST. also, the ledger is replicated across all participants, so everyone in the network has a single source of truth
- #13: So here is the mandatory definition slide The main points here is that blockchain is a list of records, which enables participants to transact with each over a network with TRUST. also, the ledger is replicated across all participants, so everyone in the network has a single source of truth
- #14: So here is the mandatory definition slide The main points here is that blockchain is a list of records, which enables participants to transact with each over a network with TRUST. also, the ledger is replicated across all participants, so everyone in the network has a single source of truth
- #15: So here is the mandatory definition slide The main points here is that blockchain is a list of records, which enables participants to transact with each over a network with TRUST. also, the ledger is replicated across all participants, so everyone in the network has a single source of truth
- #16: So here is the mandatory definition slide The main points here is that blockchain is a list of records, which enables participants to transact with each over a network with TRUST. also, the ledger is replicated across all participants, so everyone in the network has a single source of truth
- #17: So here is the mandatory definition slide The main points here is that blockchain is a list of records, which enables participants to transact with each over a network with TRUST. also, the ledger is replicated across all participants, so everyone in the network has a single source of truth
- #18: So here is the mandatory definition slide The main points here is that blockchain is a list of records, which enables participants to transact with each over a network with TRUST. also, the ledger is replicated across all participants, so everyone in the network has a single source of truth
- #19: So here is the mandatory definition slide The main points here is that blockchain is a list of records, which enables participants to transact with each over a network with TRUST. also, the ledger is replicated across all participants, so everyone in the network has a single source of truth
- #20: So here is the mandatory definition slide The main points here is that blockchain is a list of records, which enables participants to transact with each over a network with TRUST. also, the ledger is replicated across all participants, so everyone in the network has a single source of truth
- #21: So here is the mandatory definition slide The main points here is that blockchain is a list of records, which enables participants to transact with each over a network with TRUST. also, the ledger is replicated across all participants, so everyone in the network has a single source of truth
- #22: So here is the mandatory definition slide The main points here is that blockchain is a list of records, which enables participants to transact with each over a network with TRUST. also, the ledger is replicated across all participants, so everyone in the network has a single source of truth
- #23: So here is the mandatory definition slide The main points here is that blockchain is a list of records, which enables participants to transact with each over a network with TRUST. also, the ledger is replicated across all participants, so everyone in the network has a single source of truth
- #24: So here is the mandatory definition slide The main points here is that blockchain is a list of records, which enables participants to transact with each over a network with TRUST. also, the ledger is replicated across all participants, so everyone in the network has a single source of truth
- #25: Explain private vs public, and what each means What is a public blockchian, is private hyperledger a blockchain implementation?
- #26: Explain private vs public, and what each means What is a public blockchian, is private hyperledger a blockchain implementation?
- #27: Explain private vs public, and what each means What is a public blockchian, is private hyperledger a blockchain implementation?