BITCOIN TECHNOLOGY A DECENTRALIZED DIGITAL CURRENCY

CAROLINE DAVID Reg no :12120097

S7 Computer Science B

SEMINAR GUIDE:Dr. Sheena Mathew

AGENDA…INTRODUCTIONEVOLUTIONTERMS USED IN BITCOINMININGAQUIRING BITCOINHOW TO STORE BITCOINSTYPES OF WALLETHOW BITCOIN ACTUALLY

WORKSTRANSACTION

AGENDA WHO CONTROL THE NETWORK

MERITS AND DEMERITS

APPLICATIONS

CONCLUSION

REFERENCES

INTRODUCTION…

Virtual money that exist in cyber space.

It uses peer to peer technology.

Bitcoin is an open source.

Bitcoins are used for electronic purchases and transfers.

Not supported by any bank or government.

EVOLUTIONBitcoin is the first implementation of a concept called

"crypto-currency“.

First Bitcoin specification was published in 2009 in a cryptography mailing list by Satoshi Nakamoto.

1 BTC = 333.71$ is the current value.

i.e Rs. 21,481.63

TERMS USED IN BITCOIN…

Installing a bitcoin wallet on mobile phone or PC.

Generating a bitcoin address.

The Bitcoin network is sharing a public ledger called the "block chain".

Authenticity of each transaction is protected by “digital signatures”.

Transaction is processed using “Mining” also.

Mining New bitcoins are generated by a competitive and decentralized process called

"mining”.

Mining is the process of adding transaction records to Bitcoin's public

ledger of past transactions.

Mining is intentionally designed to be resource-intensive.

The primary purpose of mining is to allow Bitcoin nodes to reach a secure, tamper-resistant consensus.

Mining is also the mechanism used to introduce Bitcoins into the system.

Miners are paid any transaction fees as well as a "subsidy" of newly created coins.

HOW CAN ONE ACQUIRE BITCOIN?

As payment for goods or services.

Purchase bitcoins at a Bitcoin exchange.

Exchange bitcoins with someone near you.

Earn bitcoins through competitive mining.

HOW TO STORE BITCOIN ? Bitcoins are stored in what are called wallets

Wallet is a randomly generated string of numbers and consists of two parts : Public key and private key

Public key – For transferring money to your account

eg : 14GabW85FUMQy62CMWLCToQLo81w7iXL2x

Private key – Only for the wallet Owner. If anyone gets ahold your private key, they will have access to all your bitcoins

(ALWAYS KEEP YOUR PRIVATE KEY PRIVATE!!!)

TYPES OF WALLET

Online wallet services

* All that is required here is to create an account and remember the password

* Most popular services are Blockchain.info and Coinbase Local or Offline wallets

* It is an application that can be downloaded in your computer

* Your private key will be stored locally on the hard drive Paper wallets

* Here the public key and the private key which are generated offline are printed in a physical piece of paper and then stored in a safe location

HOW BITCOIN WORKS?

Create a Bitcoin account using open source software.

Software outputs a private key and a public key.

Private key must be kept secret.

Private key - transferring money from account.

If private key is lost the funds are irrevocably lost .

Public key -transferring money to our account.

HOW BITCOIN WORKS?(CONT..)

• To transfer funds to your account, other people will enter in their owns account's private key and your public key.

• Block chain - a global, distributed cartographic ledger of transactions

• i.e. transaction details are recorded in the block chain

TRANSACTION Sending or receiving bitcoins are as simple as

scanning a QR code with your smartphone. Online services such as Blockchain.com and

Coinbase help us for this. Both have security features that require you to use a

PIN for transaction. Simply scan the receivers QR , enter the number of

coins to send, and you are done.(QR code will be generated when we enter the public

key)

TRANSACTION OF BITCOIN

QR CODE

WHO CONTROLS THE NETWORK ?

Nobody owns the Bitcoin network.

Bitcoin is controlled by all Bitcoin users around the world.

The price of bitcoin is determined by “Supply and Demand”

When demand for bitcoin increases, the price increases, and when demand falls, the price falls.

HOW TO KEEP BITCOIN SECURE?

Use strong passwords.

Always encrypt your wallet.

Keep your private key secret.

Always run antivirus software.

ADVANTAGES OF BITCOIN

Payment freedom.

Very low fees.

Few risk for merchants.

Security and control.

Transparent and neutral.

DISADVANTAGES OF BITCOIN

Lack of awareness.

No Physical Form.

Bitcoins are not widely accepted.

Wallets can be lost.

No valuation guarantee.

APPLICATIONS OF BITCOIN You can save them .

You can spend them just like cash .

You can day trade with them .

You can invest in various BTC based companies .

WHERE THEY ARE ACCEPTED

www.wordpress.comwww.torrentfreak.comwww.overstock.comwww.highcart.comwww.bitcoinshop.uswww.51attack.comwww.venturebeat.comwww.eztv.itAnd many more…

TOP 5 COUNTRIES FOR BITCOIN DOWNLOADS

US -- 12,07,661CHINA -- 5,05,904GERMANY -- 2,70,043UK -- 2,36,523RUSSIA -- 2,26,680

Note :- India ranks 16th -- 35,648

APPS WHICH YOU CAN DOWNLOAD

MultiBit is an app you can download for Windows, Mac and Linux.

Bitcoin Wallet for Android runs on your smartphone or tablet.

CONCLUSIONBitcoin is a revolutionary currency system which can work in parallel or even replace the existing forms of currencies in the future. Bitcoin can be used as a reliable alternative for fast cashless payments by proposing solutions .The low transaction fees of the network and the instant availability of money to the merchant might render bitcoins interesting for vending machine operators.

REFERENCEhttps://bitcoin.org/en/ http://en.wikipedia.org/wiki/Bitcoin#History http://whatis.techtarget.com/definition/Bitcoin-min

ing

https://products.butterflylabs.com/ https://bitcoin.org/en/faq#what-are-the-advantages

-of-bitcoin

https://bitcoin.org/en/faq#what-are-the-disadvantages-of-bitcoin http://en.wikipedia.org/wiki/Bitcoin#Economics

http://en.wikipedia.org/wiki/Bitcoin#Security  

THANK YOU