Bitcoin P2P currency

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  • 1. Bitcoin Viet-Trung Tran Vn-S3c 2/07/11 1

2. Bitcoin Developed by Satoshi Nakamoto First currency without a central issuer Distributed Database to journal transacHons Peer-to-peer based Crypto-Currency Relies on Public/Private Key Cryptography Open Source, C++ Code available on Github 2/07/11 2 3. Bitcoin 2 Allows for fast transfer of value through Internet without middlemen 3rd parHes cant prevent or control transacHons Safe from instability of fracHonal reserve system 2/07/11 3 4. Bitcoin coins Saved on PC in the form of a wallet le or 3rd party exchange websites Divisible up to 0.00000001 or 10-8 of a BTC allowing for micro-payments Value is inherent, not backed by anything, as is standard for at currencies presently. Predictable inaHon built into system 21 million coins will ever exist ~5 million coins at present 2/07/11 4 5. Bitcoin transacHons Sender relinquishes ownership by signing hem them with her own private key r TransacHon is broadcast to the peer-to-peer network ks Fast: 1 to 30 minutes to complete Free: PC & Internet is all you need Permanent: no chargebacks/bounced checks 2/07/11 5 6. Now 1BTC = 16,80 USD 2/07/11 6 7. 2/07/11 7 8. TransacHons 2/07/11 8 9. Double spending No central authority Using distributed Hmestamp servers Each peer can work as a Hmestamp server if wished 2/07/11 9 10. Block chain Blocks in the main chain (black) are the longest series of blocks that go from the genesis block (green) to the current block. Orphan blocks longest s block (purple) are blocks that are not in ocks ngest the longest chain. 2/07/11 10 11. Role of Hmestamp server Collect recent transacHons Mining new block based on Previous block of the longest chain Recent transacHons Nonce (random number) If found a block, broadcast it 2/07/11 11 12. Network rules For the whole network 1 BLOCK created, 50 BTC reward 1 Block created for around every 10 minutes Controlled by the diculty of block generaHon Block value < an agreement target value 2/07/11 12 13. IncenHve of working as a Hmestamp server Get reward for each created block 50 BTC for the moment Reduce every 4 years (every 210,000 blocks) TransacHon fee 2/07/11 13 14. How the system works 2/07/11 14 15. Disk Space 2/07/11 15 16. TransacHon vericaHon 2/07/11 16 17. Conclusion Well design But not green Non-stop consummaHon of CPU, Storage, Network and its ALL about power 2/07/11 17 18. transacHon 2/07/11 18