Bitcoin practical and useful
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This document discusses Bitcoin and its practical uses. It provides information on blockchain explorers, charts, and wallets including mobile, desktop, hardware, web, and paper options. Practical uses of Bitcoin mentioned include international money transfers and buying gift cards. Multisig and hierarchical deterministic wallets are also summarized. The document concludes by stating that blockchain technology will disrupt centralized apps in the future as supporting technologies mature.
Bitcoin practical and useful
- 1. Bitcoin Practical & Useful bitcoin belong to everyone and the future is ours to build William K. Santiago (william@wksit.com) Twitter (#williamsantiago) Certified Bitcoin Professional (CBP ID 69d4e6)
- 2. Tools The blockchain explorer: Allows for the view of all transactions. Public view of the public ledger. ○ https://blockchain.info/ Charts: ○ http://bitcoincharts.com/ Simple price converter: ○ http://preev.com/
- 3. Hands-On-Wallets Choose yours:https://bitcoin.org/en/choose-your-wallet Mobile: Mycelium Provides the ability to send and receive bitcoins while benefiting from bank-grade security. Desktop: Armory An advanced Bitcoin client that expands its features for Bitcoin power users. It offers many backup and encryption features, and it allows secure cold-storage on offline computers. Hardware: Trezor A hardware wallet providing a high level of security without sacrificing convenience. Unlike cold storage, TREZOR is able to sign transactions while connected to an online device.
- 4. Hands-On-Wallets Choose yours: (Cont.) Web: Blockchain.info A user-friendly hybrid wallet. It stores an encrypted version of your wallet online but decryption happens in your browser Paper: ???? Mycelium Entropy A small USB device that uses hardware based entropy (note below) to generate printable Bitcoin paper wallets Note: entropy (a system in which energy can only be transferred in one direction from an ordered state to a disordered state) Chrome Extension: Kryptokit Bitcoin wallet and tools built right into your browser
- 5. Practical Uses Send money internationally saving on the cost of using money transmitters like Western Union Example: SurBitcoin, El primer Mercado de Bitcoin de Venezuela. Use Gyft to buy gift cards from over 200 retailers Use Mycelium mobile wallet to trade bitcoins Mycelium Local Trader is a decentralized in-person exchange that is built right into your bitcoin wallet. Because the coins are stored locally in your wallet, the Local Trader exchange never needs to hold any of your bitcoins or fiat.
- 6. Multisig Wallet How it Works 3 Private Keys Secure each Wallet 3rd party holds one private key, user control the two remaining private keys 2 Private Keys Unlock the Wallet Because two private keys are needed to access your Bitcoins, the wallet is virtually hack proof 1 Multisig Wallet This means best-in-class protection for your bitcoin holdings Example: Copay (https://copay.io/)
- 7. Hierarchical Deterministic (HD) wallet BIP32 hierarchical deterministic (HD) wallet Typically, bitcoin wallets generate each new bitcoin address from a unique random number HD wallets instead use a “master seed” (a single large random number), to derive all future bitcoin addresses sequentially from that single seed. With an HD account new addresses are created whenever you send and receive funds, making your transaction activity and total balance very hard to track.
- 8. The Future of Bitcoin We are a few years until Bitcoin killer app like: decentralized database and side chains, technologies will mature. bitcoin not only disrupts the financial industry, blockchain technology will disrupt apps like Facebook, Twitter, WhatsApp, reddit and github which are all centralized services suddenly being decentralized by this technology.
- 9. Lets Show!
Editor's Notes
- #8: Typically, bitcoin wallets generate each new bitcoin address from a unique random number, requiring a separate backup of each new address. To avoid losses from lack of backups, such wallets use a single bitcoin address for all your transactions. HD wallets instead use a “master seed” (a single large random number), to derive all future bitcoin addresses sequentially from that single seed. This means that you only need to make a backup once, and all the keys generated by an HD wallet can be restored at any time in the future just from that single master seed. HD wallets greatly improve your privacy by being able to keep generating new addresses. If you use the same address continuously all your transactions will be associated with a single address, and because all bitcoin transactions are public anyone can see what addresses you are sending funds to, and calculate your total balance. With an HD account new addresses are created whenever you send and receive funds, making your transaction activity and total balance very hard to track.