1. THE WORLD OF BITCOIN,
CRYPTOCURRENCY,AND BLOCKCHAIN
2. WHAT WE’LL DISCUSS
• What it is Blockchain
• CrytoCurrencies
• Blockchain Social Media Platforms
• MakerDao
3. WHAT IS IT?
• Bitcoin – a peer-to-peer electronic cash
system
• Deflationary
• Finite amount
• Cryptocurrency – a virtual currency that
uses encryption to prevent “double
spending”
• Blockchain – a decentralized, trustless
ledger (list of transactions), on which only
additions can be made
• The ledger history can never be changed
• All computers on the blockchain have the
ledger
4. WHAT IS IT?
• A system that allows for the digital exchange of tangible
assets
5. HOW IT BEGAN
• Financial collapse of 2008
• Poor fiscal management by banks, investment
firms, and government
• The world had a need to get away from the
central authority of money
• Satoshi Nakamoto
• Bitcoin’s anonymous creator
• Believed to be a pseudonym
• Published bitcoin’s white
paper in 2009
• Dive Deeper? Yes/No
• 1990s Cyberpunks
• Digicash, Bitgold and others
• First known experimentation with virtual
currency
• Could not figure out how to make it trustless
6. BLOCKCHAIN EXPLAINED
• The Yap Tribe
This giant stone is their
currency
• All tribespeople know and keep track of every
transaction within their village
• They all know who owns what and how much
• Any time a transaction is made all the people in
the tribe are gathered and are told of the
transaction
• Subsequently, they all “update” the database in
their head of who owns what
8. HOW IT WORKS
• Hashing – takes input of any
size, performs an operation,
and returns an output of a
fixed size
• Common for password
storage
• This is how the blockchain is
able to securely encrypt
transactions
9. WHEREDOES IT COMEFROM?
• Mining (mining rigs) –
computer processors
connected to the blockchain
that validate transactions by
solving complex
cryptographic hashing
algorithms
• Coins are given as rewards
to the machine/person that
solves the algorithm
11. WHAT GIVES IT VALUE?
• It is worth what people will pay for it
• Supply and Demand
• What gives our dollars value?
12. FIAT VS CYRPTOCURRENCY
Fiat (USD, Euro, GBP) Cryptocurrency (Bitcoin, Ethereum, IOTA)
• Controlled by banks and governments
• Created by governments
• Inflationary
• Infinite supply
• Can be created at any time
• Open M – F, 9 to 5
• Controlled by the people that use it
• Created by solving math algorithms
(mined)
• Deflationary
• Finite supply
• Set amount released every year
• Open 24/7/365
13. IS IT SAFE?
• Blockchain is unhackable
• Altering the ledger would require 51%
ownership/takeover of the network
• Personal
• Hashing and cryptography hide
password input
• Private keys are 64 characters long
• XXXXXXXXXXXXXXXXXXXXXXXXXXXXX
XXXXXXXXXXXXXXXXXXXXXXXXXXXXX
XXXXXX
• Danger still lies in 3rd party
exchanges holding your wallet
Typical Database Security = 1
central point for hackers to focus
on
Blockchain Secutiry = millions of
points, hacker would have to
simultaneously hack every
computer
14. HOW IT WILL CHANGE THE WORLD
• People are in control of their money
• Electronic trading of tangible assets
• real estate
• vehicles
• Instantly and extremely cheaply send money abroad
• Avg transaction fee (Ethereum) = $1.10
• Avg transaction fee (Western Union) = 9-10%
• Avg transaction fee (Visa) = 3%
• Give access of the global financial market to the nearly 2 billion people who
do not/cannot get bank accounts
• Prevent fraud
• Voting
• Banking
15. Introduction to MakerDao
MakerDAO is a decentralized organization built on
Ethereum to allow lending and borrowing of
cryptocurrencies without the need for a middle man
MakerDAO is made up of a smart contract service that
manages borrowing and lending, as well as two
currencies: DAI and MKR to regulate the value of loans.
16. Blockchain Social Media Platforms
Blockchain Social Media are decentralized platforms built on blockchain
technology that allows the development of applications and smart
contracts.
These decentralized social media platforms enable end-to-end
encryptions for every interaction. Moreover, typical to the Blockchain
ecosystems, they usually have features like native currency used for:
• in-platform transactions
• rewarding users
• crowdfunding
