Top Banner
Bitcoin, P2P & Distributed Computing How to mine on the Internet By :Michelle Davies
21

BitCoin, P2P, Distributed Computing

Jan 28, 2015

Download

Technology

Michelle Davies

Presentation prepared for 4/17/13's ComputerWise on Blue Ridge TV.

You can also watch the video of the Interview Here: http://www.youtube.com/watch?v=xxY-E-ETFiM
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Page 1: BitCoin, P2P, Distributed Computing

Bitcoin, P2P & Distributed Computing How to mine on the InternetBy :Michelle Davies

Page 2: BitCoin, P2P, Distributed Computing

WHAT ISBITCOIN?

Page 3: BitCoin, P2P, Distributed Computing

• Instant peer to peer transactions• Worldwide payments• Low or zero processing fees• And much more!

Bitcoin is an open source digital currency, a protocol, and a software that enables…

Source: http://bitcoin.org

Page 4: BitCoin, P2P, Distributed Computing

More….• Created in 2009 by pseudonymous developer Satoshi

Nakamoto, it was released under the MIT license• It is a decentralized currency• Bitcoin uses public-key cryptography, peer-to-peer networking,

and proof-of-work to process and verify payments. (Each transaction requires confirmations - the more confirmations means the more valid the transaction was, most places go off 4)

• Bitcoins can be transferred back and forth using a wallet.• Wallets have unique addresses with an identifier of 27-34

alphanumeric characters, beginning with the number 1 or 3, that represents a possible destination for a Bitcoin payment.

Page 5: BitCoin, P2P, Distributed Computing

How Does It Work??As a new user, you only need to choose a wallet that you will install on your computer or on your mobile phone. Once you have your wallet installed, it will generate your first Bitcoin address and you can create more whenever you need one.

You can disclose one of your Bitcoin addresses to your friends so that they can pay you or vice versa, you can pay your friends if they give you their addresses. In fact, this is pretty similar to how email works. So all that is left to do at this point is to get some bitcoins and to keep them safe.

Source: http://bitcoin.org

Page 6: BitCoin, P2P, Distributed Computing
Page 7: BitCoin, P2P, Distributed Computing

Casascius Physical Bitcoin(can be purchased from Ebay or Casascius's website at a higher rate, could be brass, gold or silver plated depending on the series purchased)

What does it look like?

BackFront

Page 8: BitCoin, P2P, Distributed Computing

Wallets, Transactions, Etc.

$$$$

Online BasedBlock Chain Info: https://blockchain.infoMTGox: https://mtgox.com/MultiBit: https://multibit.org/

Downloadable/Application BasedBitcoin-Qt is an app you can download for Windows, Mac and Linux.Bitcoin Wallet for Android runs on your phone or tablet.

Page 9: BitCoin, P2P, Distributed Computing

Mining on your PC/Mac/Unix machinehttps://en.bitcoin.it/wiki/Software#Mining_apps

There are 2 CategoriesYou can either…

A: mining for yourselfB: part of a mining pool

***If you are mining for yourself then you may just want a basic mining app to run on your computerif you are mining towards a "mining pool/group" then you would fill out that info in the mining clientbeing part of a mining pool increases your chances of getting bit coins because you are part of a groupbut at same time anything you mine gets distributed across the entire group

Page 10: BitCoin, P2P, Distributed Computing

Bitcoin Mining Deviceshttps://products.butterflylabs.com/

Page 11: BitCoin, P2P, Distributed Computing

BITCOIN VOLUME vs. PRICEMtGox Info for the period 3/17/13 – 4/17/13

Source: https://mtgox.com

Page 12: BitCoin, P2P, Distributed Computing

What can you do with BitCoins?

• List of Online Vendors who accept BitCoin: https://www.spendbitcoins.com/places/

• BitCoin ATMs are gradually being rolled out: https://bitcoinatm.com/

• Man tries to sell house for BitCoins: http://mashable.com/2013/03/22/house-bitcoins/

• Texas man sells Porsche for BitCoins: http://www.chron.com/communityblogs/atmosphere/article/Texas-family-sells-Porsche-for-bitcoins-4409598.php

Page 13: BitCoin, P2P, Distributed Computing

Articles of Interest

Recently in the news…

The Bitcoin Boom http://www.newyorker.com/online/blogs/elements/2013/04/the-future-of-bitcoin.html

Trust: The Bitcoin Of Innovative Cultureshttp://www.forbes.com/sites/henrydoss/2013/04/09/trust-the-bitcoin-of-innovative-cultures/?ss=strategies-solutionsDigital 'bitcoin' currency surpasses 20 national currencies in valuehttp://www.foxnews.com/tech/2013/03/29/digital-currency-bitcoin-surpasses-20-national-currencies-in-value/#ixzz2Qkj8Q9N6

Page 14: BitCoin, P2P, Distributed Computing

WHAT IS THE DIFFERENCEBETWEEN P2P NETWORKSAND GRID COMPUTING?

…And how does Bit Coin factor in?

Page 15: BitCoin, P2P, Distributed Computing

P2P Network Model

P2P (peer to peer) computing or networking is a distributed application architecture that partitions tasks or work loads between peers. Peers are equally privileged, equipotent participants in the application. They are said to form a peer-to-peer network of nodes.

Via Computerworld.com

Page 16: BitCoin, P2P, Distributed Computing

BIT TORRENT

A protocol that supports the practice of peer-to-peer file sharing and is used for distributing large amounts of data over the Internet.

The service allows users to communicate with peers by voice using a microphone, video by using a webcam, and instant messaging over the Internet.

SKYPE

P2P Network ExamplesCommon uses of P2P: file sharing, instant messaging, voice communication, collaboration, backup, sensor nets, distributed computing, defense

Page 17: BitCoin, P2P, Distributed Computing

Grid Computing ModelA type of distributed computing. Grid computers are multiple numbers of same classes of computers clustered together. A grid computer is connected through a super fast network and share the devices like disk drives, mass storage, printers and RAM Grid Computing is a cost efficient solution with respect to Super Computing. Operating system has capability of parallelism

Grid computing combines computers from multiple administrative domains to reach a common goal, to solve a single task, and may then disappear just as quickly.

Page 18: BitCoin, P2P, Distributed Computing

CLIMATEPREDICTION.NETA distributed computing project to investigate and reduce uncertainties in climate modeling. It aims to do this by running hundreds of thousands of different models (a large climate ensemble) using the donated idle time of ordinary personal computers, thereby leading to a better understanding of how models are affected by small changes in the many parameters known to influence the global climate.

(Search for Extraterrestrial Intelligence) SETI@home is a scientific experiment that uses Internet-connected computers in the Search for Extraterrestrial Intelligence (SETI). You can participate by running a free program that downloads and analyzes radio telescope data.

SETI@HOME PROJECT

Grid Computing ExamplesCommon uses of Grid Computing: intensive scientific, mathematical, and academic problems through volunteer computing, and it is used in commercial enterprises for such diverse applications as drug discovery, economic forecasting, seismic analysis, and back office data processing in support for e-commerce and Web services.

Page 19: BitCoin, P2P, Distributed Computing

Bitcoin Network ModelBitcoin (BTC) is an online commodity which was first described in a 2009 paper by pseudonymous developer Satoshi Nakamoto, who called it an anonymous, peer-to-peer, electronic payments system. Bitcoin creation and transfer is based on an open source encryption protocol and is not managed by any central authority. The creation of new bitcoins is automated and may be accomplished by servers, called bitcoin miners that run on an internet-based network and confirm bitcoin transactions by adding codes to a decentralized log, which is updated and archived periodically. Each bitcoin is subdivided into 100 million smaller units called satoshis, defined by eight decimal places.

Page 20: BitCoin, P2P, Distributed Computing

Could potentially be used for nefarious purposes, since it is not regulated

• Crime• Drug Purchases• Weapons• Murder• DDOS Attacks• Etc, etc.

Legality

Page 21: BitCoin, P2P, Distributed Computing

THE END