This Presentation gives an Overview of the Bitcoin Technology used today to make online transactions possible which are very secure, fast and tax-free. This shows the future scope of the Bitcoins.

1. Bitcoin Technology
CryptoCurrency the new currency

2. Contents :
1. Introduction - What is a Bitcoin?
2. How it works?
3. Advantages of Bitcoins
4. Applications in real world today!
5. Future of Bitcoins
6. References

3. What is Bitcoin?
Bitcoin is a Digital currency aka Crypto currency in which encryption techniques are
used to regulate the generation of units of currency and verify the transfer of funds,
operating independently of a central Bank.
Bitcoin is the first decentralized digital currency. Bitcoins are digital coins you can send
over the internet.

4. continued..
1. Bitcoins are generated over the internet by a free application called Bitcoin
Miner.
2. Bitcoins are stored in your digital wallet.
3. When you transfer bitcoins an electronic signature is added. Then the
transaction is verified by a miner.
4. Transaction is permanently & anonymously stored over the network.
5. Bitcoin software is completely open source.
6. Several currency exchange exists where you can trade your bitcoins for
dollars, euro’s and more.

5. How does Bitcoin Work?
When you install a Bitcoin wallet on your computer or mobile phone, it will generate your first
Bitcoin address. You can disclose your addresses to your friends so that they can pay you or
vice versa. It is pretty similar to how email works, except that Bitcoin addresses should only
be used once.

6. Balances - block chain
● The block chain is a shared public ledger on which the entire Bitcoin network relies.
● All confirmed transactions are included in the block chain. This way, Bitcoin wallets can calculate
their spendable balance and new transactions can be verified to be spending bitcoins that are
actually owned by the spender.
● The integrity and the chronological order of the block chain are enforced with cryptography.
Transactions - private keys
● A transaction is a transfer of value between Bitcoin wallets that gets included in the block chain.
● Bitcoin wallets keep a secret piece of data called a private key or seed, which is used to sign
transactions, providing a mathematical proof that they have come from the owner of the wallet.
● The signature also prevents the transaction from being altered by anybody once it has been issued.
All transactions are broadcast between users and usually begin to be confirmed by the network in
the following 10 minutes, through a process called mining.

7. Processing - mining
● Mining is a distributed consensus system that is used to confirm waiting transactions by
including them in the block chain.
● It enforces a chronological order in the block chain, protects the neutrality of the network,
and allows different computers to agree on the state of the system.
● To be confirmed, transactions must be packed in a block that fits very strict cryptographic
rules that will be verified by the network. These rules prevent previous blocks from being
modified because doing so would invalidate all following blocks.
● Mining also creates the equivalent of a competitive lottery that prevents any individual from
easily adding new blocks consecutively in the block chain. This way, no individuals can
control what is included in the block chain or replace parts of the block chain to roll back
their own spends.

8. Block chain Working!

11. How Mining works!
Bitcoin mining - is the process of adding transaction records to Bitcoin's public ledger of past
transactions or blockchain. This ledger of past transactions is called the block chain as it is a chain
of blocks. The block chain serves to confirm transactions to the rest of the network as having taken
place.

15. Advantages of using Bitcoins
1. Bitcoins are transferred directly between people via the net without going
through a bank. - Fees are much lower
2. You can use them in every country.
3. Your account cannot be frozen.
4. There are no prerequisites and arbitrary limits.
Bitcoins are a great way for small business and freelancers to get noticed. It
doesn't cost anything to start accepting them. There are no chargebacks or fees
and you will get additional business from the bitcoin economy.

16. Applications in Real World!
You can purchase anything with bitcoins -
1. Video games
2. Gifts
3. Books
4. Servers
5. And so on..

17. Future of Bitcoins!
Bitcoins provide :
● ​Globalism - Bitcoin and the blockchain address globalism with mobile applications and
exchange platforms that facilitate financial and economic activities worldwide.
● Security - The blockchain technology addresses security in areas including insurance,
law, and data security by validation of the information in the blockchain ledger.
● Democracy - Bitcoin and the blockchain address democracy by reshaping the functions
of governments, organizations, and corporations with commercial influence in addition
to the blockchain's ability to make voting systems more effective.
Thus Bitcoins have a huge scope in the future and could replace the manual transactions
completely supporting only digital online transactions which are very secure, fast and do not
add extra overhead intermediary charges since it is decentralized.

18. References:
https://bitcoin.org/en/how-it-works
https://medium.com/@lhartikk/a-blockchain-in-200-lines-of-code-963cc1cc0e54
https://www.bitcoinmining.com/
http://bitvolution.weebly.com/conclusion.html

19. Ensuring a Secure & Tax Free
Transaction using Bitcoins!
Thank You :)