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Bitcoin:Global Digital Currency

  1. The Only Beginning For Blockchain Technology Presented By: Surbhi Jain Department of Computer Science and Engineering
  2. BlockChain? 2  The blockchain is seen as the main technological innovation of Bitcoin.  It stands as proof of all the transactions on the network.  A block is the ‘current’ part of a blockchain which records some or all of the recent transactions.  once transaction is completed goes into the blockchain as permanent database.  Each time a block gets completed, a new block is generated.
  3. What is Bitcoin? (Introduction) 3  Bitcoin is software-based online payment system ,described by Satoshi Nakamoto in 2008.  Payments are recorded in a public ledger.  It is the first decentralized ,peer-to-peer payment network.  No central authority or middlemen.  Bitcoin is commonly referred to as cryptocurrency and it can be divided into 8 smaller unit called Satoshi (one hundred milionth of a BTC) (0.00000001),we can use a very small amount of it like rupees into paisa.
  4. 4  Before a bitcoin transaction is approved and processed by the network, it is verified using a cryptographic algorithm.  You can’t reach out and touch a bitcoin. It doesn’t exist in the physical world.  It can be used like cash to pay for goods and services like credit card and debit card. Cont.....
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  8. Why Bitcoin? 8  Bitcoins can be used to buy merchandise anonymously.  In addition, international payments are easy and cheap because bitcoins are not tied to any country or subject to regulation.  Small businesses may like them because there are no credit card fees.  Some people just buy bit coins as an investment, hoping that they’ll go up in value.
  9. How does Bitcoin work? 9 The basics for a new user •As a new user, you have to installed a Bitcoin wallet on your computer or mobile phone. •It will generate your first Bitcoin address and you can create more whenever you need one. •You can disclose your addresses to your friends so that they can pay you or vice versa. •In fact, this is pretty similar to how email works, except that Bitcoin addresses should only be used once.
  10. What makes the blockchain unique 10 The blockchain differs from conventional databases in a few important ways:-  It does not uses a centralised system.  Instead of storing data in one central location, it distributes it among a network of users running the bitcoin software.  Complete history of every bitcoin transaction is stored on the blockchain, and all of these recorded transactions are open to public scrutiny.  Established companies are interested in the blockchain because it can clear transactions almost instantly,offering both parties a high degree of transparency and security.
  11. What is it based on? 11  System is runned by The Bitcoin protocol.  Bitcoin has several features : 1. It is decentralized. 2. It is easy to set up and it is fast. 3. It is anonymous. 4. It is completely transparent. 5. Transaction fees are miniscule. 6. Transactions are irreversible.
  12. 1. It’s decentralized 12  Base for the Bitcoin protocol is a peer-to-peer system which means that there is no need for a third party.  Therefore, in theory, bitcoin network is not controled by central authority (fully decentralized monetary system).  Bitcoins are being created by a community of people that anyone can join.
  13. 13  Bitcoin is often described as an anonymous currency because it is possible to send and receive bitcoins without giving any personally identifying information.  Bitcoins are stored in wallet with digital credentials ,allows you to access them.  Wallet uses cryptography, in which two keys, one public and one private are generated.  Public key can be thought of as an account number or name and the private key, ownership credentials.  Bitcoin is transferred to the next owner ,when the next owner gives a public key and previous owner uses his private key to publish a record into system. 2. It’s anonymus and transparent
  14. How are Bitcoins created - Mining process 14  Miners use special software to solve math problems (Bitcoin algorithm), and upon completing the task they receive certain amount of coins.  They are created each time a user discovers new block .  Software is creating new units until it reaches amount of 21 million unites (currency with Finite Supply).  The rate of block creation is approximately consistant over time (6 per hour) with 50 % reduction every four years....
  15. 15  Bitcoin doesn’t charge fees for either national or international transfers.  Bitcoin is not the first private money, not the first digital currency, and not first currency based on cryptography, but it has been the first to rely on peer to peer network decentralization .  Bitcoin protects against double spending .  It verifying each transaction added to the block chain to ensure that the inputs for the transaction had not previously already been spent. 3. Negligible fees and irreversible process
  16. How can one obtain Bitcoins? 16 1. Earn Bitcoins from mining. 2. Earn Bitcoins by accepting them as a means of payment. 3. Earn Bitcoins trough trading. 4. Earn Bitcoins as a regular income. 5. Earn Bitcoin from interest payments. 6. Various ways (donations, gambling, getting tipped, completing tasks on websites...)
  17. Bitcoin Transfers 17  People can send bitcoins to each other using mobile apps or their computers. It’s similar to sending cash digitally.
  18. Bitcoin Mining 18  People compete to “mine” bitcoins using computers to solve complex math puzzles.  This is how bitcoins are created.  Currently, a winner is rewarded with 25 bitcoins roughly every 10 minutes.
  19. Who controls the Bitcoin network? 19  Nobody owns the Bitcoin network much like no one owns the technology behind email or the Internet.  Bitcoin transactions are verified by Bitcoin miners which has an entire industry and Bitcoin cloud mining options.
  20. 20 Why price of bitcoins soared and why it became the world pionner in virtual currency field? data source: and, own calculations
  21. Legality of Bitcoin by country 21 • PERMISSIVE • CONTENTIOUS • HOSTILE • UNKNOWN
  22. ADVANTAGES DISADVANTAGES  It is easy to set up and it is fast.  Low and irreversible transaction fees.  Without central authority. (possible disadvantage)  Bitcoins Are Not Widely Accepted.  Absence of relevant theoretical background.  Illegal or undefined in most countries of the world.  No Valuation Guarantee.  No Physical Form.  No Buyer Protection.  Wallets Can Be Lost. 22 Conclusion
  23. Thank you for your attention! 23