A DECENTRALIZED DIGITAL CURRENCY

SEMINAR GUIDE: CAROLINE DAVID

Dr. Sheena Mathew Reg no :12120097
S7 Computer Science B
AGENDA…
INTRODUCTION
EVOLUTION
TERMS USED IN BITCOIN
MINING
AQUIRING BITCOIN
HOW TO STORE BITCOINS
TYPES OF WALLET
HOW BITCOIN ACTUALLY WORKS
TRANSACTION
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.

 EVOLUTION
Bitcoin 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)
QR CODE TRANSACTION OF
BITCOIN
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.com
www.torrentfreak.com
www.overstock.com
www.highcart.com
www.bitcoinshop.us
www.51attack.com
www.venturebeat.com
www.eztv.it
And many more…
TOP 5 COUNTRIES FOR BITCOIN
DOWNLOADS
 US -- 12,07,661
 CHINA -- 5,05,904
 GERMANY -- 2,70,043
 UK -- 2,36,523
 RUSSIA -- 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.
 CONCLUSION
Bitcoin 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 areliable
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.
 REFERENCE
https://bitcoin.org/en/
http://en.wikipedia.org/wiki/Bitcoin#History
http://whatis.techtarget.com/definition/Bitcoin -mining
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