technical introduction to bitcoins by gilles barbier, partner at thefamily
TRANSCRIPT
![Page 1: Technical Introduction to Bitcoins by Gilles Barbier, Partner at TheFamily](https://reader034.vdocuments.us/reader034/viewer/2022051404/58eec7901a28ab36518b456f/html5/thumbnails/1.jpg)
Bitcoin:Theoretical Principles
Gilles Barbier, partner @TheFamily
![Page 2: Technical Introduction to Bitcoins by Gilles Barbier, Partner at TheFamily](https://reader034.vdocuments.us/reader034/viewer/2022051404/58eec7901a28ab36518b456f/html5/thumbnails/2.jpg)
![Page 3: Technical Introduction to Bitcoins by Gilles Barbier, Partner at TheFamily](https://reader034.vdocuments.us/reader034/viewer/2022051404/58eec7901a28ab36518b456f/html5/thumbnails/3.jpg)
Oussama
Aliceone thousand
1000
Recipient Amount
AuthentificationAlice’s bank account
![Page 5: Technical Introduction to Bitcoins by Gilles Barbier, Partner at TheFamily](https://reader034.vdocuments.us/reader034/viewer/2022051404/58eec7901a28ab36518b456f/html5/thumbnails/5.jpg)
Using Private & Public keys
MessagePrivate key
Public keyea43e18442cc4e511cd2c8c58c25ef5c181a5d7dfb65c8e2873eb6f4ec73aaae
hash
Public keys
![Page 6: Technical Introduction to Bitcoins by Gilles Barbier, Partner at TheFamily](https://reader034.vdocuments.us/reader034/viewer/2022051404/58eec7901a28ab36518b456f/html5/thumbnails/6.jpg)
Authenticate a email check
ea43e18442cc4e511cd2c8c58c25ef5c181a5d7dfb65c8e2873eb6f4ec73aaae
Public keyPrivate key
![Page 7: Technical Introduction to Bitcoins by Gilles Barbier, Partner at TheFamily](https://reader034.vdocuments.us/reader034/viewer/2022051404/58eec7901a28ab36518b456f/html5/thumbnails/7.jpg)
reuse
modify
emulate
no_money
A Bitcoin Transaction
From: To : Amount : 2.5
ea43e18442cc4e511cd2c8c58c25ef5c181a5d7dfb65c8e2873eb6f4ec73aaae
readable instruction + hash obtained
from Alice private key
Alice Oussama
public keys as accounts identification
![Page 8: Technical Introduction to Bitcoins by Gilles Barbier, Partner at TheFamily](https://reader034.vdocuments.us/reader034/viewer/2022051404/58eec7901a28ab36518b456f/html5/thumbnails/8.jpg)
In real world, you use a wallet
Private key
![Page 9: Technical Introduction to Bitcoins by Gilles Barbier, Partner at TheFamily](https://reader034.vdocuments.us/reader034/viewer/2022051404/58eec7901a28ab36518b456f/html5/thumbnails/9.jpg)
> record transactions (avoid duplication) > manage balance (check you have money) > guarantee ‘honesty’
![Page 10: Technical Introduction to Bitcoins by Gilles Barbier, Partner at TheFamily](https://reader034.vdocuments.us/reader034/viewer/2022051404/58eec7901a28ab36518b456f/html5/thumbnails/10.jpg)
> record transactions (avoid duplication) > manage balance (check you have money) > guarantee ‘honesty’
![Page 11: Technical Introduction to Bitcoins by Gilles Barbier, Partner at TheFamily](https://reader034.vdocuments.us/reader034/viewer/2022051404/58eec7901a28ab36518b456f/html5/thumbnails/11.jpg)
Blockchain :)
![Page 12: Technical Introduction to Bitcoins by Gilles Barbier, Partner at TheFamily](https://reader034.vdocuments.us/reader034/viewer/2022051404/58eec7901a28ab36518b456f/html5/thumbnails/12.jpg)
What is the blockchain?time
![Page 13: Technical Introduction to Bitcoins by Gilles Barbier, Partner at TheFamily](https://reader034.vdocuments.us/reader034/viewer/2022051404/58eec7901a28ab36518b456f/html5/thumbnails/13.jpg)
How to alter the blockchain?• A fraudulent miner CAN NOT
• create or modify a valid transaction from someone else
• A fraudulent miner COULD
• remove a transaction
• modify its own transactions
• include an invalid transaction (syntax or double spend)
time
![Page 14: Technical Introduction to Bitcoins by Gilles Barbier, Partner at TheFamily](https://reader034.vdocuments.us/reader034/viewer/2022051404/58eec7901a28ab36518b456f/html5/thumbnails/14.jpg)
Decentralised consensus
• Proposed by Satoshi Nakamoto (2008):
• Emergent consensus: consensus is guaranteed only after some time (typically about 1h)
![Page 15: Technical Introduction to Bitcoins by Gilles Barbier, Partner at TheFamily](https://reader034.vdocuments.us/reader034/viewer/2022051404/58eec7901a28ab36518b456f/html5/thumbnails/15.jpg)
Decentralised consensus• independent verification of all new
transactions by all miner
• independent aggregation of those transactions into a new “block”.
• “random” selection of one of these new blocks (one miner wins a “lottery”)
• independent verification of this new block by all other miners
• independent aggregation of this new block to the blockchain
• independent selection of the “official” blockchain as the longest if any fork occurred
![Page 16: Technical Introduction to Bitcoins by Gilles Barbier, Partner at TheFamily](https://reader034.vdocuments.us/reader034/viewer/2022051404/58eec7901a28ab36518b456f/html5/thumbnails/16.jpg)
It’s a bit more complicated than that :)
Mining Find a hash of * new transactions * previous block id * random number <= 0000000???????
(“difficulty”)
![Page 17: Technical Introduction to Bitcoins by Gilles Barbier, Partner at TheFamily](https://reader034.vdocuments.us/reader034/viewer/2022051404/58eec7901a28ab36518b456f/html5/thumbnails/17.jpg)
Blockchain Convergencetwo concurrent winners => a blockchain fork
blockchain converge
blockchaintheoreticalattack
![Page 18: Technical Introduction to Bitcoins by Gilles Barbier, Partner at TheFamily](https://reader034.vdocuments.us/reader034/viewer/2022051404/58eec7901a28ab36518b456f/html5/thumbnails/18.jpg)
![Page 19: Technical Introduction to Bitcoins by Gilles Barbier, Partner at TheFamily](https://reader034.vdocuments.us/reader034/viewer/2022051404/58eec7901a28ab36518b456f/html5/thumbnails/19.jpg)
reuse
modify
emulate
no_money
Bitcoin Transaction
From: To : Amount : 2.5
ea43e18442cc4e511cd2c8c58c25ef5c181a5d7dfb65c8e2873eb6f4ec73aaae
hashing message with Alice private key
Alice Oussama
![Page 20: Technical Introduction to Bitcoins by Gilles Barbier, Partner at TheFamily](https://reader034.vdocuments.us/reader034/viewer/2022051404/58eec7901a28ab36518b456f/html5/thumbnails/20.jpg)
Why 21m bitcoins?
![Page 21: Technical Introduction to Bitcoins by Gilles Barbier, Partner at TheFamily](https://reader034.vdocuments.us/reader034/viewer/2022051404/58eec7901a28ab36518b456f/html5/thumbnails/21.jpg)
• Miner reward at t0 = 50 bitcoins
• Time to generate a block: 10 min
• Halving rate: 4 years
• 50 +50 +…+ 25 + 25 + … 12.5 + 12 + …etc
• = 50*(1+1/2+1/4+1/8+…)*(4*365*24*6) = 21m !
![Page 22: Technical Introduction to Bitcoins by Gilles Barbier, Partner at TheFamily](https://reader034.vdocuments.us/reader034/viewer/2022051404/58eec7901a28ab36518b456f/html5/thumbnails/22.jpg)
Farm
![Page 23: Technical Introduction to Bitcoins by Gilles Barbier, Partner at TheFamily](https://reader034.vdocuments.us/reader034/viewer/2022051404/58eec7901a28ab36518b456f/html5/thumbnails/23.jpg)
![Page 24: Technical Introduction to Bitcoins by Gilles Barbier, Partner at TheFamily](https://reader034.vdocuments.us/reader034/viewer/2022051404/58eec7901a28ab36518b456f/html5/thumbnails/24.jpg)
![Page 25: Technical Introduction to Bitcoins by Gilles Barbier, Partner at TheFamily](https://reader034.vdocuments.us/reader034/viewer/2022051404/58eec7901a28ab36518b456f/html5/thumbnails/25.jpg)
![Page 26: Technical Introduction to Bitcoins by Gilles Barbier, Partner at TheFamily](https://reader034.vdocuments.us/reader034/viewer/2022051404/58eec7901a28ab36518b456f/html5/thumbnails/26.jpg)
![Page 27: Technical Introduction to Bitcoins by Gilles Barbier, Partner at TheFamily](https://reader034.vdocuments.us/reader034/viewer/2022051404/58eec7901a28ab36518b456f/html5/thumbnails/27.jpg)
![Page 28: Technical Introduction to Bitcoins by Gilles Barbier, Partner at TheFamily](https://reader034.vdocuments.us/reader034/viewer/2022051404/58eec7901a28ab36518b456f/html5/thumbnails/28.jpg)
Pool
![Page 29: Technical Introduction to Bitcoins by Gilles Barbier, Partner at TheFamily](https://reader034.vdocuments.us/reader034/viewer/2022051404/58eec7901a28ab36518b456f/html5/thumbnails/29.jpg)
![Page 30: Technical Introduction to Bitcoins by Gilles Barbier, Partner at TheFamily](https://reader034.vdocuments.us/reader034/viewer/2022051404/58eec7901a28ab36518b456f/html5/thumbnails/30.jpg)
![Page 31: Technical Introduction to Bitcoins by Gilles Barbier, Partner at TheFamily](https://reader034.vdocuments.us/reader034/viewer/2022051404/58eec7901a28ab36518b456f/html5/thumbnails/31.jpg)
Altcoins
![Page 32: Technical Introduction to Bitcoins by Gilles Barbier, Partner at TheFamily](https://reader034.vdocuments.us/reader034/viewer/2022051404/58eec7901a28ab36518b456f/html5/thumbnails/32.jpg)
Blockchain
![Page 33: Technical Introduction to Bitcoins by Gilles Barbier, Partner at TheFamily](https://reader034.vdocuments.us/reader034/viewer/2022051404/58eec7901a28ab36518b456f/html5/thumbnails/33.jpg)
Thanks
@gillesbarbier