Bitcoin and Blockchains Updated 1-20-18 Me Class Website What's - - PowerPoint PPT Presentation

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Bitcoin and Blockchains Updated 1-20-18 Me Class Website What's - - PowerPoint PPT Presentation

Sep 08, 2022 664 likes •1.49k views

Bitcoin and Blockchains Updated 1-20-18 Me Class Website What's a Blockchain? Live Online Blockchain Demo Link Blockchain 10 Bitcoin Why Should Anyone Care? Bitcoin itself is not very attractive Scams Pyramid schemes

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Bitcoin and Blockchains

Updated 1-20-18

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Me

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Class

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Website

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What's a Blockchain?

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Link Blockchain 10

Live Online Blockchain Demo

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Bitcoin

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Why Should Anyone Care?

  • Bitcoin itself is not very attractive
  • Scams
  • Pyramid schemes
  • High-risk investment
  • Money laundering
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My Evolving Position

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Why Does Bitcoin Have Any Value?

  • Three killer apps
  • Silk Road (purchase illegal things)
  • Ransomware (must pay in Bitcoin)
  • Economies with high inflation (like Argentina)
  • 2017: Speculation
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7% of all Bitcoins Stolen

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0.75% of all Bitcoins Stolen

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Largest Bitcoin Heists Before 2014

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Bitcoin Price History

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Bitcoin Prices 2017-Now

  • From $1,000 to $20,000 in one year
  • What real value has increased this year?
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Bitcoin Rose Faster than the DotCom Bubble

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In 1637, a single tulip bulb sold for more than the cost of a large mansion

http://www.bbc.com/ culture/story/ 20160419-tulip- mania-the-flowers- that-cost-more-than- houses

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This part of my life, this part right here, this part is called "being stupid"

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  • Visa is valued at $6 per transaction
  • Bitcoin over $10,000 per transaction

Is Bitcoin a Means of Exchange?

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Is Bitcoin a Store of Value?

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Gold is the Classic Store of Value

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...only 20 of the currencies are actually being used for something other than trading. The rest are purely speculative trading instruments.

Initial Coin Offerings (ICO)

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https://youtu.be/Gq_bjaI0NTo

Cryptocurrency Infographic

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Bitcoin Power Consumption

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Ethereum

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Smart Contracts

  • Programs that run on the Ethereum blockchain
  • A company can be run by a program, and have no

physical location

  • Advocates expected to be exempt from all laws

and taxes

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Digital Autonomous Organization (DAO)

  • Started with $150 M investment
  • Launched in May, 2016
  • Security concerns were raised but ignored
  • On June 18, a hacker stole $70 M
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  • "White-Hat Hackers" stole rescued the remaining

Ether from the DAO to pressure Ethereum into forking

  • Reportedly, the funds were returned later
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July - Oct, 2017

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Blockchains

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Blockchains

  • The technology behind Bitcoin
  • Everyone has a copy of the complete ledger
  • Very difficult to lie or cheat
  • Enables business dealings with people you don't trust
  • No trusted central authority
  • Bank, government, regulator, ...
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How Bitcoin Works

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How Bitcoin Works

  • Blocks are signed by miners with a SHA-256(SHA-256(block))

hash

  • The hash must start with 69 bits of zero
  • Difficulty is adjusted to keep the time between successes near

10 min.

  • This makes forging signatures very difficult
  • Miners get an award (currently 25 bitcoins) plus transaction fees
  • Link Bitcoin 8
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Bitcoin's Importance

  • Bitcoin is a real-world test of blockchain technology
  • A bunch of rebels, criminals, scammers, and

suckers

  • Demonstrated how well blockchains work
  • AND THEY WORK
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History

  • "Satoshi Nakamoto" invented and launched Bitcoin
  • n Jan. 3, 2009
  • A response to the 2008 financial crisis
  • Fiat money without any bank or government

controlling it

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Merkle Tree

  • Designed to "allow efficient and secure verification
  • f large data structures" -- Link Bitcoin 2
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Block

  • A block is a public ledger of all bitcoin transactions
  • Every computer running the full bitcoin software has a copy of

the entire blockchain

  • Every 10 minutes, the Bitcoin transactions are gathered together

into a block and finalized by miners with proof of work

  • A hash value that's very difficult to compute, but easy to

verify

  • Each mined block produces 25 new bitcoins (soon this value

will halve)

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Genesis Block

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Decoding the Coinbase

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Bitcoin's Block Size Limit

  • Bitcoin has reached its limit of transactions per block
  • Link Bitcoin 24
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Bitcoin Forked in Aug, 2017

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Blockchain Voting

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Blockchain Voting

  • Every stakeholder has

the complete blockchain

  • Voters can verify that

their voted were counted

  • Anyone can verify the

totals at any time

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People Voted

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Verify that Your Vote was Counted

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Verify Vote Totals

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  • Much hype about security
  • Obviously they know

nothing about security

  • They don't care to hear

criticism either

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Cryptokitties

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