Bitcoin 101 Ryan Milbourne @RyanMilb OCJUG 10/12/2016
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Bitcoin 101
Ryan Milbourne@RyanMilb
OCJUG10/12/2016
OutlineOrigins
Technicals
Problems it solves
Origin● Hash Cash, 1997- Dr. Adam Back
● Satoshi Nakamoto - Bitcoin white paper, 2008
What is Bitcoin?Ledger of all transactions
Distributed proof of workDecentralized Consensus Mechanism
Bitcoin is Protocol
1.Private Key
2.Public Key
Elliptic Curve Cryptography
Private keyE9 87 3D 79 C6 D8 7D C0 FB 6A 57 78 63 33 89 F4 45 32 13 30 3D A6 1F 20 BD 67 FC 23 3A A3 32 62
Public Key3J98t1WpEZ73CNmQviecrnyiWrnqRhWNLy
Raspberry Pi
Orphan blocks
Notes on Mining:
1 block mined approx every 10 min
Last bitcoin mined in 2140
Transaction fee
Halving Block Reward
Benefits of Bitcoin
Escape Capital Controls
Resistance to censorship
Algorithmic Regulation
For Merchants
Lower Fees
No Charge backs
Less fraudulent transactions*
Micro TransactionsOne Satoshi 0.00000001
Publishing
Fundraising
Empower Billions1 Billion with access to:
International MarketsBanking services
More people have access to a cellphone than sanitation (U.N. Study)
Gets around obstacles of obtaining a bank account
Disadvantages
Volatility
51% attack
Scalability
Scalability
Visa 2,000 tps
Pay Pal 40-100 tps
Bitcoin 7 tps
Keeping Mt. Gox in Perspective
State of Bitcoin Q2 2014Source: Baseline Scenario
$8.9bn fine
Regulation
FEC Approved
IRS released guidelines
SEC Reviewing Bitcoin backed ETF
BitLegal.io
Bitcoin’s Price is Now on Yahoo Finance, Google Finance and
Bloomberg
State of Bitcoin Q2 2014
Public vs Private
Open to innovationImmutable*Need proof of work
for securityDecentralized
Control supplyEditableNo need for proof of
workCentralized
More detailed blog post
The Future
Crypto 2.0
Services built on top of bitcoin
“Smart Contracts”
Decentralized marketplaces
The DAO
For more info:
www.bitcoin.orgAndreas Antonopoulos Video
@aantonopwww.coindesk.comLetstalkbitcoin.com
Khan Academy Videos
[email protected]@RyanMilb