bitcoin the cryptographic currency. talk at bcbomo6
DESCRIPTION
A talk about the Bitcoin cryptocurrency I prepared whilst eating breakfast this morning for Barcamp Bournemouth 6. #BCBOMO6TRANSCRIPT
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Bitcoin
The cryptographic currency
Dave Hulbert
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@dave1010
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Who's heard of Bitcoin?
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What is Bitcoin?
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Currency
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Bitcoin is a peer-to-peer payment system introduced as open source software in 2009 by developer Satoshi Nakamoto. The digital currency created and used in the system is also called bitcoin and is alternatively referred to as a virtual currency, electronic money, or cryptocurrency. The bitcoin system is not controlled by a single entity, like a central bank, which has led the US Treasury to call bitcoin a decentralized currency. Because bitcoins can be transferred directly from one person to another they are sometimes described as "digital cash". --Wikipedia
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Why is it interesting?Why does it matter?
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DogecoinNamecoinFreicoinLitecoin
...
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Market cap $5,000,000,000.00
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Use it today
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Future?
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What is A Bitcoin?
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Market value
1BTC = $4521mBTC = $0.452
Lots of markets
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A market is a place you can trade goods
Buyers and sellers agree on a price
NYSE, LSE, MtGox, Behind the bus station
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Markets:
●ForEx (USD, GBP, EUR, YEN)●Gold●FCOJ (Trading places)●Virtual currencies in games●Tesco clubcard points?●Facebook likes●Bitcoin!
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How is Bitcoin different?
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Bitcoin is a peer-to-peer payment system introduced as open source software in 2009 by developer Satoshi Nakamoto. The digital currency created and used in the system is also called bitcoin and is alternatively referred to as a virtual currency, electronic money, or cryptocurrency. The bitcoin system is not controlled by a single entity, like a central bank, which has led the US Treasury to call bitcoin a decentralized currency. Because bitcoins can be transferred directly from one person to another they are sometimes described as "digital cash". --Wikipedia
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Centralized control● Banks● Paypal
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Decentralized control
● Cash● Gold
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“Double spending problem”
AKA copy & paste
3 volunteers
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The blockchain
Ledger
6 confirmations
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Trusting the blockchain
Proof of work
Mining
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What is mining?
● SHA-256 Hash (twice)
hello2cf24dba5fb0a30e26e83b2ac5b9e29e1b161e5c
1fa7425e73043362938b9824
hello3453456300000000000b0a30e26e83b2ac5b9e29e1b161e
5c1fa7425e73043362938b9824
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Mining
● Gold rush● Maintaining the blockchain● Rewards built into the Bitcoin protocol
● Fees● Block reward (25BTC)
● CPU / GPU / FPGA / ASIC● Mining pools
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Blockchain
● ~10 mintues (adjusted automatically)● Public transaction ledger (17GB!)● Data!● Other uses:
● prooving ownership● Timestamps (patents)● Integrity● ???
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Pseudo-anonymity
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Wallets
● Public address and private key (like SSH)● Talk to the P2P network (like Bittorrent)
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Security
● Wallets● Exchanges● Regulation
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Thanks!
Questions?
Exchange?
@dave1010
18S7CKZVhdvU4j23bwRGXXqq3iYP14TYB3