Bitcoin, Blockchain Technology, Block Chain Ecosystem : What You Need to Know? Speaker : Zuriati Ahmad Zukarnain Designation : Associate Professor Company : Universiti Putra Malaysia
Bitcoin, Blockchain Technology, Block Chain Ecosystem: What You Need to Know?
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Bitcoin, Blockchain Technology, Block Chain Ecosystem: What You Need to Know? Topics include: 1. Understanding Bitcoin 2. Understanding the Blockchain 3. Context: Block Chain Ecosystem
Bitcoin, Blockchain Technology, Block Chain Ecosystem: What You Need to Know? 1. Understanding Bitcoin What it is and how it works How Bitcoin differs from fiat currency How Bitcoin is mined (manufactured) Using Bitcoin and tracking its value Bitcoin strengths Bitcoin weaknesses The outlook for Bitcoin will it fail?
INFOGRAPHIC OF BITCOIN TRANSACTION
What is Bitcoin? Released by Satoshi Nakamoto 2008 as softwarebased online payment system A distributed, decentralized digital currency system Effectively a bank run by an ad hoc network, without a central repository or single administrator Digital checks A distributed transaction log Payments are recorded in a public ledger using its own unit of account (Bitcoin).
XE Currency
Bitcoin Wallet Download software to create a Bitcoin wallet (see https://bitcoin.org/en/choose-your-wallet) The wallet holds the private keys you use to prove you own specific Bitcoins. The wallet also contains software that allows you to send and receive bitcoins. You send bitcoins by registering your payments in the block chain, which is bitcoin s public ledger containing all transactions since the beginning of bitcoin.
Bitcoin Wallet
How can one obtain Bitcoin? 1. Earn Bitcoins from mining 2. Earn Bitcoins by accepting them as a means of payment 3. Earn Bitcoins trough trading 4. Earn Bitcoins as a regular income 5. Earn Bitcoin from interest payments 6. Various ways (donations, gambling, getting tipped, completing tasks on websites...)
Difference Of Bitcoin And Fiat Currency
How Bitcoin works? System is runned by The Bitcoin protocol It is based on mathematics unlike conventional currencies that had been based on fixed quantity of metal (gold, silver ) or fiat currencies. Bitcoin has several features that set it apart from fiat currencies: 1. It is decentralized 2. It is easy to set up and it is fast 3. It is anonymous 4. It is completely transparent 5. Transaction fees are miniscule 6. Transactions are irreversible
1. It s decentralized Base for the Bitcoin protocol is a peer-to-peer system which means that there is no need for a third party. Therefore, in theory, bitcoin network is not controled by central authority (fully decentralized monetary system). Bitcoins are being created by a community of people that anyone can join. In theory, there is no authority (financial institution) which can tinker with monetary policy and in that sense devalue or revalue Bitcoin currency.
2. It s anonymus and transparent Bitcoins are stored in wallet with digital credentials for your bitcoin holdings and allows you to access them. Wallet uses public-key cryptography, in which two keys, one public and one private are generated. Public key can be thought of as an account number or name and the private key, ownership credentials. Bitcoin is transferred to the next owner when the next owner gives a public key and previous owner uses his private key to publish a record into system announcing that the ownership has changed to the new public key. Bitcoin protocol stores details of every single transaction that occurred in the network in huge version of general ledger (Block chain).
3. Negligible fees and irreversible process Bitcoin doesn t charge fees for either national or international transfers. Bitcoin is not the first private money, not the first digital currency, and not first currency based on cryptography, but it has been the first to rely on peer to peer network decentralization to avoid double spending. Bitcoin protects against double spending by verifying each transaction added to the block chain to ensure that the inputs for the transaction had not previously already been spent.
Bitcoin Mining Every ten minutes, one lucky Bitcoin miner earns a reward for extending the block chain by one block. In 2009, the reward was 50 BTC. Today it is 12.5 BTC. (See https://blockchain.info/q to issue queries about the block chain.) Mining is the only mechanism for creating new bitcoins. The total number of Bitcoins will never exceed 21M. The rewarded miner also receives all (optional) transaction fees in the block.
Mining rewards
Bitcoin and Mining A Bitcoin miner creates a block by (1) Gathering a set of pending transactions, prioritizing those with transaction fees (2) Verifying the transactions (3) Solving a hashing problem
How is a transaction verified? send these Bitcoins from address Y to address Z The miner first checks the signature using the public key for address Y. compute hash of public key for Y, which should be Y check signature of transaction using public key for Y Then the miner checks the public ledger to verify that Y hasn t already sent these Bitcoins to someone else.
How Bitcoin is mined? Miners use special software to solve math problems (Bitcoin algorithm), and upon completing the task they receive certain amount of coins. They are created each time a user discovers new block (finds hash value). Software is creating new units until it reaches amount of 21 million unites (currency with Finite Supply).
Some Best Sites To Help You Track Bitcoin Exchange Rates
Blockchain
Latest block
Blockchain Explorer
Bitcoin Strengths Low or non-existent fees No chargebacks Every time a customer swipes a credit card at the grocery store, banks and credit card companies collect up to 4 percent of the total bill. Hedge against inflation You can email money You can send money to anyone in the world who needs quick cash Profit Can not be deflated due to printing
Bitcoin Weaknesses Theft Lost keys Lost memory Exchange Collapse Value collapse Hacking grey market unit of selling drugs
Bitcoin mining hardware
Mining pools
Mining pools
Bitcoin, Blockchain Technology, Block Chain Ecosystem: What You Need to Know? 2. Understanding the Blockchain How it works/what it does How Blockchain interacts with Bitcoin How Blockchain will impact other transactional documents
What is Blockchain? Blockchain is simply a public ledger Bitcoin is transacted through a peer to peer network and each transaction is recorded in a public ledger called the block chain. If I send 1 bitcoin from my bitcoin address to my friend John. The bitcoin network records that transaction in the block chain and I no longer have possession of that bitcoin. The coin moved from my bitcoin wallet to John s wallet.
Understanding Blockchain The blokchain is an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value. Don & Alex Tapscott, authors Blockchain Revolution (2016).
Blockchain and Bitcoin The bitcoin protocol set so each block takes roughly 10 minutes to mine. Transaction fees are calculated using various factors. Some wallets let you set transaction fees manually. Any portion of a transaction that isn t picked up by the recipient or returned as change is considered a fee.
How blockchain interacts with bitcoin? The basis for Blockchain technology are the socalled public and private keys. A public key is a users address on the blockchain. Bitcoins sent across the network gets recorded as belonging to that address. The private key is like a password that gives its owner access to their Bitcoin or ther digital assets will also require safeguarding of your private key by printing it out, creating what s referred to as a paper wallet.
Bitcoin, Blockchain Technology, Block Chain Ecosystem: What You Need to Know? 3. Block Chain Ecosystem Current Bitcoin/Blockchain-related events affecting the supply chain Who is using these technologies and how are they using them? What does the future of commerce look like? Resources to keep pace with Bitcoin/Blockchain development
Business using Bitcoins
Business using Bitcoins
Black Markets
E-commerce
The Outlook For Bitcoin Will It Fail? One technical analyst, who looks at historical trading patterns to determine future price moves, told CNBC that $2,800 could mark a level of resistance where the bitcoin pulls back. Currently, the bitcoin world is in wave three and according to Duke s analysis, $2,800 could be the level at which bitcoin begins its fall.
How bout with Blockchain future? Most stores will no longer exist in real life There will be no more cash If you go to a store, you won t leave with the product, it will be shipped to you There will be no more gas pump attendants, sales clerks or employees checking in a consumer to a location or activity - The thing about real transformation is that it happens little by little and then all at once peeter smith, co-founder and CEO of Blockchsin - Blockchain and AI are gaining traction and broader acceptance by consumers globally
True Story of Crypto Trading Millionaire
Cont.. He became the youngest and yet most knowledgeable guy of any virtual currency tech community. He has successfully developed a very dedicated, smart, and legendary system called Crypto Trading. The system out-beats all the existing stock trading systems in the world in term of speed, intelligence, and ability to make winning trades anytime. Daniel has lost only 9 trades out of 1000 trades (less than 1%) which made him the yougest Bitcoin multi-millionaire last week.
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