SlideShare a Scribd company logo

BITCOIN TECHNOLOGY AND ITS USES

•Download as PPTX, PDF•
•
Rishikese MR
Rishikese MR

This document discusses Bitcoin, a decentralized digital currency. It describes how Bitcoin works through peer-to-peer technology without a central authority. Key topics covered include how new Bitcoins are generated through mining, how to acquire and store Bitcoins using wallets, how transactions are processed and recorded on the blockchain, and some advantages and disadvantages of using Bitcoin.

Related slideshows

Cryptocurrency
Cryptocurrency Cryptocurrency
Cryptocurrency
 
Blockchain technology
Blockchain technologyBlockchain technology
Blockchain technology
 
Seminar Report On Bitcoin
Seminar Report On BitcoinSeminar Report On Bitcoin
Seminar Report On Bitcoin
 
1 of 26
A DECENTRALIZED DIGITAL CURRENCY CAROLINE DAVID Reg no :12120097 S7 Computer Science B SEMINAR GUIDE: Dr. Sheena Mathew
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)
TRANSACTION OF BITCOIN QR CODE
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 .
BITCOIN TECHNOLOGY AND ITS USES
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 a reliable 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
BITCOIN TECHNOLOGY AND ITS USES

More Related Content

BITCOIN TECHNOLOGY AND ITS USES

  • 1. A DECENTRALIZED DIGITAL CURRENCY CAROLINE DAVID Reg no :12120097 S7 Computer Science B SEMINAR GUIDE: Dr. Sheena Mathew
  • 2. AGENDA…  INTRODUCTION  EVOLUTION  TERMS USED IN BITCOIN  MINING  AQUIRING BITCOIN  HOW TO STORE BITCOINS  TYPES OF WALLET  HOW BITCOIN ACTUALLY WORKS  TRANSACTION
  • 3. AGENDA  WHO CONTROL THE NETWORK  MERITS AND DEMERITS  APPLICATIONS  CONCLUSION  REFERENCES
  • 4. 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.
  • 5. 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
  • 6. 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.
  • 7. 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.
  • 8. 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.
  • 9. 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!!!)
  • 10. 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
  • 11. 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.
  • 12. 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
  • 13. 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)
  • 15. 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.
  • 16. HOW TO KEEP BITCOIN SECURE?  Use strong passwords.  Always encrypt your wallet.  Keep your private key secret.  Always run antivirus software.
  • 17. ADVANTAGES OF BITCOIN  Payment freedom.  Very low fees.  Few risk for merchants.  Security and control.  Transparent and neutral.
  • 18. DISADVANTAGES OF BITCOIN  Lack of awareness.  No Physical Form.  Bitcoins are not widely accepted.  Wallets can be lost.  No valuation guarantee.
  • 19. 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 .
  • 21. 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…
  • 22. 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
  • 23. 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.
  • 24. 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 a reliable 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.
  • 25. 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