on why

BITCOIN and FRIENDSlike Blockchain

Grzegorz GawronArini Labs

marketics at arini.biz

agendamotivation - work on marketics

digital cash short history

bitcoin overview

blockchain technology - the basis

build your own cryptocurrency

* Marketics

MOTIVATION

investorMARKETICS

investment exchange platform

investment provider

transaction PROOF

Digital CashShort History

transactions

cashanonymity

offline transactions

creditledger

credit-risk

barter

digital cash representing fiat currency● double-spending, so cash-spent ledgers, then ● anonymity lost, so ‘blind signatures’, then

○ Chaum 1983 (voter and ballot example)

● online only, so don’t prevent double-spending, detect it■ Chaum et al. 1988: detect double spending, not prevent it

● 1989: Chaum’s DigiCash○ failure, merchants weren’t keen,

■ additional communication for the receiver, so b2c only

digital cash on its own● bitcoin

○ no double spending + anonymity/ownership + security/value

...

Bitcoin - overview

Bitcoin...

first decentralised crypto-currency

no trusted intermediaries required (eg banks)

bitcoin timeline● 2007 - coding started● 2008 - bitcoin.org registered● 2010 - Satoshi still anonymous goes offline

○ cyberpunk anonymity○ AML/patent legal issues○ personal security

● 2010 may - pizza bought for 10000 BTC● 2013 apr - Mt Gox handles 70% of BTC world trade● 2013 may - Mt Gox goes down● 2013 oct - Silk Road taken down● 2014 jan - 1 BTC = 1000 USD

... and friendslitecoin - few changes to bitcoin (scrypt vs SHA-256, speed)

dogecoin - for fun

ripple - any asset, no POW

ethereum - smart contract focus

market cap chart

name market cap mln USDbitcoin 6831ripple 202litecoin 156ethereum 72dash 20dogecoin 14

* 7/1/2015 (coinmarketcap.com); < 10 mln USD ignored

bitcoin price history chart

May 2010

pizza10k BTC

* 7/1/2015 (coinmarketcap.com)

How it rolls

miner exchange

buyer seller

BlockChain technology - the Basis

The common underlying techA block chain or blockchain is a permissionless distributed database based on the bitcoin protocol that maintains a continuously growing list of transactional data records hardened against tampering and revision, even by operators of the data store's nodes.

* 7/1/2015 wikipedia

digital cash on its own (cont)● bitcoin

○ no double spending + anonymity/ownership + security/value

● hash timestamped ledger○ prove relative ordering○ prevent double-spending

● digital signatures○ ‘anonymously prove’ ownership

● POW○ enables limited resource thus giving value○ ensures security

■ eg fighting spam

block chain diagram

* 7/1/2015 https://21.co/learn/bitcoin-mining/#the-merkle-root

transactions

* Bitcoin: A Peer-to-Peer Electronic Cash System, Satoshi Nakamoto

transaction: combine / split

* Bitcoin: A Peer-to-Peer Electronic Cash System, Satoshi Nakamoto

build your own crypto-currency?

cryptoNote - your own cryptocurrency ‘in 10 minutes’steps

● clone sources● add your configuration● ‘mine’ genesis block● create client● distribute

...and mine like there’s no tomorrow till everyone joins

References- Bitcoin: A Peer-to-Peer Electronic Cash System, Satoshi

Nakamotohttps://bitcoin.org/bitcoin.pdf

- Princeton University: ‘Bitcoin and cryptocurrency technologies’https://www.coursera.org/course/bitcointech

- http://coinmarketcap.com- https://21.co/learn/#reference-21-bitcoin-org- https://cryptonotestarter.org/

- last but not least: wiki*edia

Thank You

Grzegorz GawronArini Labs

marketics at arini.biz