Download - Bitcoin 101 - So Cal Code Camp 11.16.14
What is Bitcoin?
● Decentralized Consensus Mechanism
● Open source
● Ledger of all transactions
● Created by “Satoshi Nakamoto”
Misc Facts
● Only 21 Million will ever be created
● Bitcoin mining network 8 times faster
than top 500 supercomputers
● Bitcoin is Protocol
Private key
E9 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 Key
3J98t1WpEZ73CNmQviecrnyiWrnqRhWNLy
Transaction Script
scriptPubKey: OP_DUP OP_HASH160 <pubKeyHash> OP_EQUALVERIFY
OP_CHECKSIG
scriptSig: <sig> <pubKey>
Securing the Bitcoin Network
● Verifies transactions using the blockchain
● Prevents double spending
Notes on Mining:
● 1 block mined approx every 10 min
● Last bitcoin mined in 2140
● Transaction fee
● Block Reward set at 25
Empower Billions
● 1 Billion with access to:o International Markets
o Banking services
● More people have access to a cellphone
than sanitation (U.N. Study)
● Gets around obstacles of obtaining
a bank account
BitPay’s $30m Round was the Largest
Bitcoin VC Deal to Date
• More than 30,000 total merchants
• As of January 2014, adding more than 1,000 merchants to its network each week
• Processing $1m in bitcoin payments every day
• Processed more than $100m in bitcoin payments in 2013
• Most recent VC round valued BitPay at $160mState of Bitcoin Q2 2014
Key Bitcoin Adoption Metrics
State of Bitcoin Q2 2014
Commerce Jun-14 Jun-13 YoY Δ
Wallets 5,327,688 765,039 7x
Merchants 63,000 N/A N/A
ATMs 103 N/A N/A
Unique bitcoin addresses used per day 136,152 41,271 3x
Media
Mentions in mainstream media 9,500 2,163 4x
Technology
Network hash rate (billion/second) 111,194,683 162,269 685x
Github No. of updated repositories 12,365 676 18x
Investment
Bitcoin market capitalization ($bn) 8.3 1.0 8x
Industry
VC investment over last 12 months ($m) 200.7 17.1 12x
Number of VC-backed start-ups 49 7 7x
The Future
● Crypto 2.0
● Services build on top of bitcoin
● Smart Contracts
● Decentralized marketplace
“I really like Bitcoin. I own Bitcoins. It’s a store
of value, a distributed ledger. It’s a great place
to put assets, especially in places like
Argentina with 40 percent inflation, where $1
today is worth 60 cents in a year, and a
government’s currency does not hold value. It’s
also a good investment vehicle if you have an
appetite for risk. But it won’t be a currency until
volatility slows down.”David Marcus, CEO of Paypal
Thank you
For more info:
www.coindesk.com
@RyanMilb