SlideShare uma empresa Scribd logo
1 de 30
Baixar para ler offline
Bitcoin
A Peer-to-Peer
Electronic Cash System
Author: Satoshi Nakamoto
Presenter:
Course:
Professors:

Flavio Vit
UNICAMP –IA368
Christian Esteve Rothenberg,
Mauricio Ferreira Magalhães
November 20, 2013
Agenda
 Introduction
 Key Concepts
 BTC Transactions
 BTC Mining
 Bitcoins
 Proof of Work
 Digital Wallet
 Security

 Legal Considerations
 Conclusion
Introduction
What is Bitcoin?

 First decentralized digital / virtual currency
 Crypto Peer to Peer currency
 Electronic payment system based on cryptographic proof instead
of trust

 Developed by a person or group under the pseudonym of
Satoshi Nakamoto in 2008 / Operational since early 2009

 No financial institutions is managing
Key Concepts
Transactions

Digital
Wallet

Bitcoins

Mining

Proof of
Work
BTC Transactions
 Straight between the owner and the receiver
 Broadcasted through the P2P network
 All are public but anonymous
 Mining nodes collects the transactions into Blocks
BTC Transactions
 Transactions Blocks  Full page in a Ledger Book

 Block => contains information about transactions and
previous Block ( Block Chain ) linking to the first block
when Bitcoin Network started
BTC Transactions
 The Block Chain file is maintained on every node
BTC Transactions
 Each Block carries a Proof of Work

 BTC are generated for the machine which solved the
Proof of Work

 New block is started and linked to the block chain

 First transaction in a block = Special transaction = new
coins owned by the creator of the block

 New block chain status is broadcasted to the network
BTC Transactions
Fighting Transactions Hackers

 Transaction history cannot be changed unless redoing
all Proof of Work of all blocks in the chain

 Redoing the proof of work since the very first
transaction block =>
power

Enormous computational

 Double spending problem => solved using a P2P
distributed timestamp server to generate computational
proof of the chronological order of transactions
BTC Mining
• No centralized entity for generating BTC
• Mining Process => Solve the Proof of Work from a
Transaction Block

• Confirms transactions and increase security
• User can be miners and are rewarded by:
• Transactions fees for the transactions they confirm
• New block created / proof of work solved? => 25 BTC today

• Mining is a competitive market $$$$$$
• More miners => More secure network
BTC Mining
 September 2013 => 11,5 Million Bitcoins

 Bitcoins are generated in blocks
 Currently 25 Bitcoins are mined per block
 A New Block are generated every 10 minutes
 The mined BTC are kept with the PC which solved the
proof of work
BTC Mining
 BTC are generated in a steady rate

 In Jan 2009, 1 Transaction Block solved = 50 BTC
 After 210.000 transaction blocks, the reward drops by
50%

 BTC generation => to stop by 2140
 21 Million Bitcoins will be generated

 After 2140 the incentive will be only the transaction
fee
BTC Mining
Mining nodes

 Initially, CPU power to solve the Proof of Work for
Transaction Blocks

 Graphic cards solve faster the Proof of Work

 New dedicated chips for performing mining
 Miners are crucial BTC network by ensuring:
•
•
•

Impartial
Stable
Secure
Bitcoins
 BTC are entries in the transactions blocks / in the
ledger book

 Someone receives a BTC => transaction logged in the
transaction block chain (unconfirmed until Proof of
Work is solved)

 BTC ownership and transfer are ensured by digital
signatures (crypto private and public keys)
Proof of Work
 Protocol challenging the mining nodes

 Tough to be solved X Easy to be verified
 Every 2 weeks, BTC generation rate is auto adjusted.
 Increasing / decreasing the difficulty of the Proof of
Work => targeting 10 minutes block generation

 Solving the puzzle => Winning a lottery
Proof of Work
 Transactions in the Block Chain are protected by a
mathematical race

 Attacker computational power VERSUS The entire
network power
Proof of Work
 BTC uses Adam Back Hashcash Proof of Work with
configurable amount of work to compute

 Uses cryptographic hash SHA256
Proof of Work
 Time stamp server => hash of all data in a block
including the hash from previous block

 Solution to order the Transaction Blocks
Proof of Work
 Typical PC may take several years to solve it

 Solved in 10 minutes using the BTC network
 Extremely unlikely, but 2 or more nodes may solve the
Proof of Work at same time
Proof of Work
 Branches in the block chain are created in this case

 Tie!!! => to be broken when someone solves the next
block

 Nodes will switch to the longest branch

 Blocks will be discarded and respective transactions
will be handled by the wining branch

 The block chain stabilizes and nodes agree with the
chain sequence
Digital Wallet
 BTC can be stored in a digital Wallet
 Web services
 Local applications
 USB drivers

 BTC are protected by Private / Public keys
 Also possible to print the BTC
Digital Wallet
 No one can lock or freeze your money like a bank
account

 Bitcoins fraction => the smallest fraction:
1 Satoshi  0.00000001 BTC

 Losing your private key => losing yours BTCs
…Forever gone from BTC economy

 BTC is deflationary!
Security
 No one can change the BTC software without the
majority of the entire network of users accepting the
change

 While the majority of the nodes are honest, attackers
cannot harm the system

 End of Block Chain Insecurity => Branches => Double
Spending attack => Protected by the Hashcash / Time
Stamp Server

 The attacker would need astronomical computer power
to corrupt the block chain
Beware!!!
Where to use BTC?
Legal Considerations
 Money laundry – practically impossible to track BTC
transactions

• FBI x Silk Road – Bitcoin used for trading drugs among
other illicit products.
Governments are good at cutting off the heads of a centrally
controlled networks like Napster, but pure P2P networks like
Gnutella and Tor seem to be holding their own.”

Satoshi Nakamoto
Conclusions
 BTC: P2P digital currency with mathematic protection
 No centralized control / No evil Central Bank
 The exchange rates may oscillate drastically
“…we don’t really understand how that worked, as
economists.” - Lawrence White, economics professor
at George Mason University / IEEE Spectrum
interview
Conclusions
 No government can print more money

 Anonymity
 Lower global transaction costs
 A new bubble may emerge
 Oct 2013 = 150 USD
 Nov 2013 > 500 USD

 March 28th 2013: BTC passed the 1 Billion USD (11
million Bitcoins in circulation)
References
1. Satoshi Nakamoto. Bitcoin: A Peer-to-Peer Electronic Cash System.
http://bitcoin.org/bitcoin.pdf

2. Khan Academy.http://www.youtube.com/user/khanacademy
3. Scott Driscoll. How Bitcoin Works Under the Hood.
4. http://www.imponderablethings.com/2013/07/how-bitcoin-works-underhood.html

5. Adam Back. Hashcash. http://www.hashcash.org/

Mais conteúdo relacionado

Mais procurados

Introduction to Cryptocurrency (Bitcoin)
Introduction to Cryptocurrency (Bitcoin)Introduction to Cryptocurrency (Bitcoin)
Introduction to Cryptocurrency (Bitcoin)Kashif Khans
 
What is Cryptocurrency?
What is Cryptocurrency?What is Cryptocurrency?
What is Cryptocurrency?Rakesh Ranjan
 
Blockchain, Ethereum and ConsenSys
Blockchain, Ethereum and ConsenSysBlockchain, Ethereum and ConsenSys
Blockchain, Ethereum and ConsenSysWithTheBest
 
Blockchain Security Issues and Challenges
Blockchain Security Issues and Challenges Blockchain Security Issues and Challenges
Blockchain Security Issues and Challenges Merlec Mpyana
 
The Bitcoin Lightning Network
The Bitcoin Lightning NetworkThe Bitcoin Lightning Network
The Bitcoin Lightning NetworkShun Shiku
 
What Is Bitcoin And How Does It Work?
What Is Bitcoin And How Does It Work?What Is Bitcoin And How Does It Work?
What Is Bitcoin And How Does It Work?101 Blockchains
 
Introduction to Blockchain
Introduction to BlockchainIntroduction to Blockchain
Introduction to BlockchainJordan Harris
 
Blockchain consensus algorithms
Blockchain consensus algorithmsBlockchain consensus algorithms
Blockchain consensus algorithmsAnurag Dashputre
 
Introduction to bitcoin
Introduction to bitcoinIntroduction to bitcoin
Introduction to bitcoinWolf McNally
 
Bitcoin: A Peer-to-Peer Electronic Cash System
Bitcoin: A Peer-to-Peer Electronic Cash SystemBitcoin: A Peer-to-Peer Electronic Cash System
Bitcoin: A Peer-to-Peer Electronic Cash SystemParas Jain
 

Mais procurados (20)

Bitcoin School Project
Bitcoin School ProjectBitcoin School Project
Bitcoin School Project
 
Introduction to Cryptocurrency (Bitcoin)
Introduction to Cryptocurrency (Bitcoin)Introduction to Cryptocurrency (Bitcoin)
Introduction to Cryptocurrency (Bitcoin)
 
What is Cryptocurrency?
What is Cryptocurrency?What is Cryptocurrency?
What is Cryptocurrency?
 
Blockchain, Ethereum and ConsenSys
Blockchain, Ethereum and ConsenSysBlockchain, Ethereum and ConsenSys
Blockchain, Ethereum and ConsenSys
 
BLOCKCHAIN
BLOCKCHAINBLOCKCHAIN
BLOCKCHAIN
 
Blockchain Security Issues and Challenges
Blockchain Security Issues and Challenges Blockchain Security Issues and Challenges
Blockchain Security Issues and Challenges
 
The Bitcoin Lightning Network
The Bitcoin Lightning NetworkThe Bitcoin Lightning Network
The Bitcoin Lightning Network
 
Bitcoin
BitcoinBitcoin
Bitcoin
 
Bitcoin
BitcoinBitcoin
Bitcoin
 
Cryptocurrency
CryptocurrencyCryptocurrency
Cryptocurrency
 
Bitcoin - the Basics
Bitcoin - the BasicsBitcoin - the Basics
Bitcoin - the Basics
 
Analyzing Bitcoin Security
Analyzing Bitcoin SecurityAnalyzing Bitcoin Security
Analyzing Bitcoin Security
 
What Is Bitcoin And How Does It Work?
What Is Bitcoin And How Does It Work?What Is Bitcoin And How Does It Work?
What Is Bitcoin And How Does It Work?
 
Introduction to Blockchain
Introduction to BlockchainIntroduction to Blockchain
Introduction to Blockchain
 
Smart contracts
Smart contractsSmart contracts
Smart contracts
 
Bitcoin
BitcoinBitcoin
Bitcoin
 
Blockchain consensus algorithms
Blockchain consensus algorithmsBlockchain consensus algorithms
Blockchain consensus algorithms
 
Introduction to bitcoin
Introduction to bitcoinIntroduction to bitcoin
Introduction to bitcoin
 
Blockchain and Cryptocurrency for Dummies
Blockchain and Cryptocurrency for DummiesBlockchain and Cryptocurrency for Dummies
Blockchain and Cryptocurrency for Dummies
 
Bitcoin: A Peer-to-Peer Electronic Cash System
Bitcoin: A Peer-to-Peer Electronic Cash SystemBitcoin: A Peer-to-Peer Electronic Cash System
Bitcoin: A Peer-to-Peer Electronic Cash System
 

Destaque

Bitcoin powerpoint
Bitcoin powerpointBitcoin powerpoint
Bitcoin powerpointdcarro11
 
Bitcoin: Today and Future
Bitcoin: Today and FutureBitcoin: Today and Future
Bitcoin: Today and FutureIvano Digital
 
What is Bitcoin? - A guide for beginners
What is Bitcoin? - A guide for beginnersWhat is Bitcoin? - A guide for beginners
What is Bitcoin? - A guide for beginnersJonathan Waller
 
Bitcoin: The Internet of Money
Bitcoin: The Internet of MoneyBitcoin: The Internet of Money
Bitcoin: The Internet of Moneywinklevosscap
 
BitCoin explained
BitCoin explainedBitCoin explained
BitCoin explainedHarelc
 
An Overview on Bitcoin
An Overview  on Bitcoin         An Overview  on Bitcoin
An Overview on Bitcoin Touroxy
 
What is Bitcoin? How Bitcoin works in under 5 minutes.
What is Bitcoin? How Bitcoin works in under 5 minutes.What is Bitcoin? How Bitcoin works in under 5 minutes.
What is Bitcoin? How Bitcoin works in under 5 minutes.Ryan Shea
 
Block chain 101 what it is, why it matters
Block chain 101  what it is, why it mattersBlock chain 101  what it is, why it matters
Block chain 101 what it is, why it mattersPaul Brody
 
State of Bitcoin and Blockchain 2016
State of Bitcoin and Blockchain 2016State of Bitcoin and Blockchain 2016
State of Bitcoin and Blockchain 2016CoinDesk
 
Auto scaling in the Cloud: the Cloud application controller
Auto scaling in the Cloud: the Cloud application controllerAuto scaling in the Cloud: the Cloud application controller
Auto scaling in the Cloud: the Cloud application controllerGreenclouds
 
SGIP Webinar “Regulatory Commission Members Discuss How SGIP Helps Shape Sm...
SGIP Webinar  “Regulatory Commission Members Discuss How SGIP Helps Shape  Sm...SGIP Webinar  “Regulatory Commission Members Discuss How SGIP Helps Shape  Sm...
SGIP Webinar “Regulatory Commission Members Discuss How SGIP Helps Shape Sm...Smart Grid Interoperability Panel
 
Ethereum en Español
Ethereum en EspañolEthereum en Español
Ethereum en EspañolJorge V
 
Anonymous Individual Integration for IoT
Anonymous Individual Integration for IoTAnonymous Individual Integration for IoT
Anonymous Individual Integration for IoTPaul Fremantle
 
IBM Streams IoT Integration
IBM Streams IoT IntegrationIBM Streams IoT Integration
IBM Streams IoT Integrationlisanl
 
Divisible Transferable Anonymous Electronic Cash System for General Use
Divisible Transferable Anonymous Electronic Cash System for General UseDivisible Transferable Anonymous Electronic Cash System for General Use
Divisible Transferable Anonymous Electronic Cash System for General UseIJERD Editor
 
Emoney Cyprus, Electronic Money Institution
Emoney Cyprus, Electronic Money InstitutionEmoney Cyprus, Electronic Money Institution
Emoney Cyprus, Electronic Money InstitutionCriton Tornaritis
 
Electronic cash
Electronic cashElectronic cash
Electronic cashdhakarboy
 
Informe Blockchain BlockLift-web
Informe Blockchain BlockLift-webInforme Blockchain BlockLift-web
Informe Blockchain BlockLift-webAlex Preukschat
 

Destaque (20)

Bitcoin powerpoint
Bitcoin powerpointBitcoin powerpoint
Bitcoin powerpoint
 
Bitcoin: Today and Future
Bitcoin: Today and FutureBitcoin: Today and Future
Bitcoin: Today and Future
 
What is Bitcoin? - A guide for beginners
What is Bitcoin? - A guide for beginnersWhat is Bitcoin? - A guide for beginners
What is Bitcoin? - A guide for beginners
 
Bitcoin Internal
Bitcoin InternalBitcoin Internal
Bitcoin Internal
 
Bitcoin: The Internet of Money
Bitcoin: The Internet of MoneyBitcoin: The Internet of Money
Bitcoin: The Internet of Money
 
BitCoin explained
BitCoin explainedBitCoin explained
BitCoin explained
 
An Overview on Bitcoin
An Overview  on Bitcoin         An Overview  on Bitcoin
An Overview on Bitcoin
 
What is Bitcoin? How Bitcoin works in under 5 minutes.
What is Bitcoin? How Bitcoin works in under 5 minutes.What is Bitcoin? How Bitcoin works in under 5 minutes.
What is Bitcoin? How Bitcoin works in under 5 minutes.
 
Block chain 101 what it is, why it matters
Block chain 101  what it is, why it mattersBlock chain 101  what it is, why it matters
Block chain 101 what it is, why it matters
 
State of Bitcoin and Blockchain 2016
State of Bitcoin and Blockchain 2016State of Bitcoin and Blockchain 2016
State of Bitcoin and Blockchain 2016
 
Auto scaling in the Cloud: the Cloud application controller
Auto scaling in the Cloud: the Cloud application controllerAuto scaling in the Cloud: the Cloud application controller
Auto scaling in the Cloud: the Cloud application controller
 
SGIP Webinar “Regulatory Commission Members Discuss How SGIP Helps Shape Sm...
SGIP Webinar  “Regulatory Commission Members Discuss How SGIP Helps Shape  Sm...SGIP Webinar  “Regulatory Commission Members Discuss How SGIP Helps Shape  Sm...
SGIP Webinar “Regulatory Commission Members Discuss How SGIP Helps Shape Sm...
 
Ethereum en Español
Ethereum en EspañolEthereum en Español
Ethereum en Español
 
Anonymous Individual Integration for IoT
Anonymous Individual Integration for IoTAnonymous Individual Integration for IoT
Anonymous Individual Integration for IoT
 
IBM Streams IoT Integration
IBM Streams IoT IntegrationIBM Streams IoT Integration
IBM Streams IoT Integration
 
Bitcoin 2.0
Bitcoin 2.0 Bitcoin 2.0
Bitcoin 2.0
 
Divisible Transferable Anonymous Electronic Cash System for General Use
Divisible Transferable Anonymous Electronic Cash System for General UseDivisible Transferable Anonymous Electronic Cash System for General Use
Divisible Transferable Anonymous Electronic Cash System for General Use
 
Emoney Cyprus, Electronic Money Institution
Emoney Cyprus, Electronic Money InstitutionEmoney Cyprus, Electronic Money Institution
Emoney Cyprus, Electronic Money Institution
 
Electronic cash
Electronic cashElectronic cash
Electronic cash
 
Informe Blockchain BlockLift-web
Informe Blockchain BlockLift-webInforme Blockchain BlockLift-web
Informe Blockchain BlockLift-web
 

Semelhante a Bitcoin A Peer-to-Peer Electronic Cash System

Every thing bitcoin in baby language
Every thing bitcoin in baby languageEvery thing bitcoin in baby language
Every thing bitcoin in baby languageOssai Nduka
 
A primer on Bitcoin Technology
A primer on Bitcoin TechnologyA primer on Bitcoin Technology
A primer on Bitcoin TechnologySebin Benjamin
 
Understanding Bitcoin
Understanding BitcoinUnderstanding Bitcoin
Understanding BitcoinWill Rhodes
 
GET RICHER MINING BITCOIN VAULT - JOIN US- https://bit.ly/btcvminingmarket
GET RICHER MINING BITCOIN VAULT - JOIN US-  https://bit.ly/btcvminingmarketGET RICHER MINING BITCOIN VAULT - JOIN US-  https://bit.ly/btcvminingmarket
GET RICHER MINING BITCOIN VAULT - JOIN US- https://bit.ly/btcvminingmarketKennedy Odigie
 
Blockchain & Cryptocurrencies Intro - July 2017
Blockchain & Cryptocurrencies Intro - July 2017Blockchain & Cryptocurrencies Intro - July 2017
Blockchain & Cryptocurrencies Intro - July 2017🔗Audrey Chaing
 
Report on Bitcoin- The cryptocurrency (November 2017)
Report on Bitcoin- The cryptocurrency (November 2017)Report on Bitcoin- The cryptocurrency (November 2017)
Report on Bitcoin- The cryptocurrency (November 2017)AJSH & Co LLP
 
Bitcoin and the Rise of the Block Chains
Bitcoin and the Rise of the Block ChainsBitcoin and the Rise of the Block Chains
Bitcoin and the Rise of the Block ChainsDallas Kennedy
 
The Bitcoin blockchain (en)
The Bitcoin blockchain (en)The Bitcoin blockchain (en)
The Bitcoin blockchain (en)Davide Carboni
 
Overview of bitcoin
Overview of bitcoinOverview of bitcoin
Overview of bitcoinAbdul Nasir
 
Blockchain 101 - public, tokenized blockchains
Blockchain 101 - public, tokenized blockchainsBlockchain 101 - public, tokenized blockchains
Blockchain 101 - public, tokenized blockchainsBrett Colbert
 
14 Jan17- Nullmeets -Blockchain concept decoded by Ninad Sarang
14 Jan17- Nullmeets -Blockchain concept decoded by Ninad Sarang14 Jan17- Nullmeets -Blockchain concept decoded by Ninad Sarang
14 Jan17- Nullmeets -Blockchain concept decoded by Ninad SarangNinad Sarang
 
About Bitcoin, Blockchain, and the DLT Chimera
About Bitcoin, Blockchain, and the DLT ChimeraAbout Bitcoin, Blockchain, and the DLT Chimera
About Bitcoin, Blockchain, and the DLT ChimeraFerdinando Maria Ametrano
 
Blockchain, bitcoin, ethereum and ICOs
Blockchain, bitcoin, ethereum and ICOsBlockchain, bitcoin, ethereum and ICOs
Blockchain, bitcoin, ethereum and ICOsBogdan Fiedur
 
Bitcoin All The Way
Bitcoin All The WayBitcoin All The Way
Bitcoin All The WayAdmin SBS
 

Semelhante a Bitcoin A Peer-to-Peer Electronic Cash System (20)

Every thing bitcoin in baby language
Every thing bitcoin in baby languageEvery thing bitcoin in baby language
Every thing bitcoin in baby language
 
A primer on Bitcoin Technology
A primer on Bitcoin TechnologyA primer on Bitcoin Technology
A primer on Bitcoin Technology
 
Understanding Bitcoin
Understanding BitcoinUnderstanding Bitcoin
Understanding Bitcoin
 
GET RICHER MINING BITCOIN VAULT - JOIN US- https://bit.ly/btcvminingmarket
GET RICHER MINING BITCOIN VAULT - JOIN US-  https://bit.ly/btcvminingmarketGET RICHER MINING BITCOIN VAULT - JOIN US-  https://bit.ly/btcvminingmarket
GET RICHER MINING BITCOIN VAULT - JOIN US- https://bit.ly/btcvminingmarket
 
Blockchain & Cryptocurrencies Intro - July 2017
Blockchain & Cryptocurrencies Intro - July 2017Blockchain & Cryptocurrencies Intro - July 2017
Blockchain & Cryptocurrencies Intro - July 2017
 
Report on Bitcoin- The cryptocurrency (November 2017)
Report on Bitcoin- The cryptocurrency (November 2017)Report on Bitcoin- The cryptocurrency (November 2017)
Report on Bitcoin- The cryptocurrency (November 2017)
 
Bitcoin
BitcoinBitcoin
Bitcoin
 
BITCOIN EXPLAINED
BITCOIN EXPLAINEDBITCOIN EXPLAINED
BITCOIN EXPLAINED
 
Bitcoin p2p money
Bitcoin p2p moneyBitcoin p2p money
Bitcoin p2p money
 
Bitcoin and the Rise of the Block Chains
Bitcoin and the Rise of the Block ChainsBitcoin and the Rise of the Block Chains
Bitcoin and the Rise of the Block Chains
 
The Bitcoin blockchain (en)
The Bitcoin blockchain (en)The Bitcoin blockchain (en)
The Bitcoin blockchain (en)
 
Blockchain
BlockchainBlockchain
Blockchain
 
Bitcoins introduction
Bitcoins introduction Bitcoins introduction
Bitcoins introduction
 
Bitcoin
BitcoinBitcoin
Bitcoin
 
Overview of bitcoin
Overview of bitcoinOverview of bitcoin
Overview of bitcoin
 
Blockchain 101 - public, tokenized blockchains
Blockchain 101 - public, tokenized blockchainsBlockchain 101 - public, tokenized blockchains
Blockchain 101 - public, tokenized blockchains
 
14 Jan17- Nullmeets -Blockchain concept decoded by Ninad Sarang
14 Jan17- Nullmeets -Blockchain concept decoded by Ninad Sarang14 Jan17- Nullmeets -Blockchain concept decoded by Ninad Sarang
14 Jan17- Nullmeets -Blockchain concept decoded by Ninad Sarang
 
About Bitcoin, Blockchain, and the DLT Chimera
About Bitcoin, Blockchain, and the DLT ChimeraAbout Bitcoin, Blockchain, and the DLT Chimera
About Bitcoin, Blockchain, and the DLT Chimera
 
Blockchain, bitcoin, ethereum and ICOs
Blockchain, bitcoin, ethereum and ICOsBlockchain, bitcoin, ethereum and ICOs
Blockchain, bitcoin, ethereum and ICOs
 
Bitcoin All The Way
Bitcoin All The WayBitcoin All The Way
Bitcoin All The Way
 

Último

Salesforce Miami User Group Event - 1st Quarter 2024
Salesforce Miami User Group Event - 1st Quarter 2024Salesforce Miami User Group Event - 1st Quarter 2024
Salesforce Miami User Group Event - 1st Quarter 2024SkyPlanner
 
VoIP Service and Marketing using Odoo and Asterisk PBX
VoIP Service and Marketing using Odoo and Asterisk PBXVoIP Service and Marketing using Odoo and Asterisk PBX
VoIP Service and Marketing using Odoo and Asterisk PBXTarek Kalaji
 
AI You Can Trust - Ensuring Success with Data Integrity Webinar
AI You Can Trust - Ensuring Success with Data Integrity WebinarAI You Can Trust - Ensuring Success with Data Integrity Webinar
AI You Can Trust - Ensuring Success with Data Integrity WebinarPrecisely
 
Anypoint Code Builder , Google Pub sub connector and MuleSoft RPA
Anypoint Code Builder , Google Pub sub connector and MuleSoft RPAAnypoint Code Builder , Google Pub sub connector and MuleSoft RPA
Anypoint Code Builder , Google Pub sub connector and MuleSoft RPAshyamraj55
 
Artificial Intelligence & SEO Trends for 2024
Artificial Intelligence & SEO Trends for 2024Artificial Intelligence & SEO Trends for 2024
Artificial Intelligence & SEO Trends for 2024D Cloud Solutions
 
OpenShift Commons Paris - Choose Your Own Observability Adventure
OpenShift Commons Paris - Choose Your Own Observability AdventureOpenShift Commons Paris - Choose Your Own Observability Adventure
OpenShift Commons Paris - Choose Your Own Observability AdventureEric D. Schabell
 
The Data Metaverse: Unpacking the Roles, Use Cases, and Tech Trends in Data a...
The Data Metaverse: Unpacking the Roles, Use Cases, and Tech Trends in Data a...The Data Metaverse: Unpacking the Roles, Use Cases, and Tech Trends in Data a...
The Data Metaverse: Unpacking the Roles, Use Cases, and Tech Trends in Data a...Aggregage
 
NIST Cybersecurity Framework (CSF) 2.0 Workshop
NIST Cybersecurity Framework (CSF) 2.0 WorkshopNIST Cybersecurity Framework (CSF) 2.0 Workshop
NIST Cybersecurity Framework (CSF) 2.0 WorkshopBachir Benyammi
 
Comparing Sidecar-less Service Mesh from Cilium and Istio
Comparing Sidecar-less Service Mesh from Cilium and IstioComparing Sidecar-less Service Mesh from Cilium and Istio
Comparing Sidecar-less Service Mesh from Cilium and IstioChristian Posta
 
IESVE Software for Florida Code Compliance Using ASHRAE 90.1-2019
IESVE Software for Florida Code Compliance Using ASHRAE 90.1-2019IESVE Software for Florida Code Compliance Using ASHRAE 90.1-2019
IESVE Software for Florida Code Compliance Using ASHRAE 90.1-2019IES VE
 
UiPath Studio Web workshop series - Day 8
UiPath Studio Web workshop series - Day 8UiPath Studio Web workshop series - Day 8
UiPath Studio Web workshop series - Day 8DianaGray10
 
activity_diagram_combine_v4_20190827.pdfactivity_diagram_combine_v4_20190827.pdf
activity_diagram_combine_v4_20190827.pdfactivity_diagram_combine_v4_20190827.pdfactivity_diagram_combine_v4_20190827.pdfactivity_diagram_combine_v4_20190827.pdf
activity_diagram_combine_v4_20190827.pdfactivity_diagram_combine_v4_20190827.pdfJamie (Taka) Wang
 
UWB Technology for Enhanced Indoor and Outdoor Positioning in Physiological M...
UWB Technology for Enhanced Indoor and Outdoor Positioning in Physiological M...UWB Technology for Enhanced Indoor and Outdoor Positioning in Physiological M...
UWB Technology for Enhanced Indoor and Outdoor Positioning in Physiological M...UbiTrack UK
 
Designing A Time bound resource download URL
Designing A Time bound resource download URLDesigning A Time bound resource download URL
Designing A Time bound resource download URLRuncy Oommen
 
Nanopower In Semiconductor Industry.pdf
Nanopower  In Semiconductor Industry.pdfNanopower  In Semiconductor Industry.pdf
Nanopower In Semiconductor Industry.pdfPedro Manuel
 
COMPUTER 10 Lesson 8 - Building a Website
COMPUTER 10 Lesson 8 - Building a WebsiteCOMPUTER 10 Lesson 8 - Building a Website
COMPUTER 10 Lesson 8 - Building a Websitedgelyza
 
Building Your Own AI Instance (TBLC AI )
Building Your Own AI Instance (TBLC AI )Building Your Own AI Instance (TBLC AI )
Building Your Own AI Instance (TBLC AI )Brian Pichman
 
ADOPTING WEB 3 FOR YOUR BUSINESS: A STEP-BY-STEP GUIDE
ADOPTING WEB 3 FOR YOUR BUSINESS: A STEP-BY-STEP GUIDEADOPTING WEB 3 FOR YOUR BUSINESS: A STEP-BY-STEP GUIDE
ADOPTING WEB 3 FOR YOUR BUSINESS: A STEP-BY-STEP GUIDELiveplex
 
COMPUTER 10: Lesson 7 - File Storage and Online Collaboration
COMPUTER 10: Lesson 7 - File Storage and Online CollaborationCOMPUTER 10: Lesson 7 - File Storage and Online Collaboration
COMPUTER 10: Lesson 7 - File Storage and Online Collaborationbruanjhuli
 

Último (20)

Salesforce Miami User Group Event - 1st Quarter 2024
Salesforce Miami User Group Event - 1st Quarter 2024Salesforce Miami User Group Event - 1st Quarter 2024
Salesforce Miami User Group Event - 1st Quarter 2024
 
VoIP Service and Marketing using Odoo and Asterisk PBX
VoIP Service and Marketing using Odoo and Asterisk PBXVoIP Service and Marketing using Odoo and Asterisk PBX
VoIP Service and Marketing using Odoo and Asterisk PBX
 
AI You Can Trust - Ensuring Success with Data Integrity Webinar
AI You Can Trust - Ensuring Success with Data Integrity WebinarAI You Can Trust - Ensuring Success with Data Integrity Webinar
AI You Can Trust - Ensuring Success with Data Integrity Webinar
 
Anypoint Code Builder , Google Pub sub connector and MuleSoft RPA
Anypoint Code Builder , Google Pub sub connector and MuleSoft RPAAnypoint Code Builder , Google Pub sub connector and MuleSoft RPA
Anypoint Code Builder , Google Pub sub connector and MuleSoft RPA
 
Artificial Intelligence & SEO Trends for 2024
Artificial Intelligence & SEO Trends for 2024Artificial Intelligence & SEO Trends for 2024
Artificial Intelligence & SEO Trends for 2024
 
OpenShift Commons Paris - Choose Your Own Observability Adventure
OpenShift Commons Paris - Choose Your Own Observability AdventureOpenShift Commons Paris - Choose Your Own Observability Adventure
OpenShift Commons Paris - Choose Your Own Observability Adventure
 
The Data Metaverse: Unpacking the Roles, Use Cases, and Tech Trends in Data a...
The Data Metaverse: Unpacking the Roles, Use Cases, and Tech Trends in Data a...The Data Metaverse: Unpacking the Roles, Use Cases, and Tech Trends in Data a...
The Data Metaverse: Unpacking the Roles, Use Cases, and Tech Trends in Data a...
 
NIST Cybersecurity Framework (CSF) 2.0 Workshop
NIST Cybersecurity Framework (CSF) 2.0 WorkshopNIST Cybersecurity Framework (CSF) 2.0 Workshop
NIST Cybersecurity Framework (CSF) 2.0 Workshop
 
20230104 - machine vision
20230104 - machine vision20230104 - machine vision
20230104 - machine vision
 
Comparing Sidecar-less Service Mesh from Cilium and Istio
Comparing Sidecar-less Service Mesh from Cilium and IstioComparing Sidecar-less Service Mesh from Cilium and Istio
Comparing Sidecar-less Service Mesh from Cilium and Istio
 
IESVE Software for Florida Code Compliance Using ASHRAE 90.1-2019
IESVE Software for Florida Code Compliance Using ASHRAE 90.1-2019IESVE Software for Florida Code Compliance Using ASHRAE 90.1-2019
IESVE Software for Florida Code Compliance Using ASHRAE 90.1-2019
 
UiPath Studio Web workshop series - Day 8
UiPath Studio Web workshop series - Day 8UiPath Studio Web workshop series - Day 8
UiPath Studio Web workshop series - Day 8
 
activity_diagram_combine_v4_20190827.pdfactivity_diagram_combine_v4_20190827.pdf
activity_diagram_combine_v4_20190827.pdfactivity_diagram_combine_v4_20190827.pdfactivity_diagram_combine_v4_20190827.pdfactivity_diagram_combine_v4_20190827.pdf
activity_diagram_combine_v4_20190827.pdfactivity_diagram_combine_v4_20190827.pdf
 
UWB Technology for Enhanced Indoor and Outdoor Positioning in Physiological M...
UWB Technology for Enhanced Indoor and Outdoor Positioning in Physiological M...UWB Technology for Enhanced Indoor and Outdoor Positioning in Physiological M...
UWB Technology for Enhanced Indoor and Outdoor Positioning in Physiological M...
 
Designing A Time bound resource download URL
Designing A Time bound resource download URLDesigning A Time bound resource download URL
Designing A Time bound resource download URL
 
Nanopower In Semiconductor Industry.pdf
Nanopower  In Semiconductor Industry.pdfNanopower  In Semiconductor Industry.pdf
Nanopower In Semiconductor Industry.pdf
 
COMPUTER 10 Lesson 8 - Building a Website
COMPUTER 10 Lesson 8 - Building a WebsiteCOMPUTER 10 Lesson 8 - Building a Website
COMPUTER 10 Lesson 8 - Building a Website
 
Building Your Own AI Instance (TBLC AI )
Building Your Own AI Instance (TBLC AI )Building Your Own AI Instance (TBLC AI )
Building Your Own AI Instance (TBLC AI )
 
ADOPTING WEB 3 FOR YOUR BUSINESS: A STEP-BY-STEP GUIDE
ADOPTING WEB 3 FOR YOUR BUSINESS: A STEP-BY-STEP GUIDEADOPTING WEB 3 FOR YOUR BUSINESS: A STEP-BY-STEP GUIDE
ADOPTING WEB 3 FOR YOUR BUSINESS: A STEP-BY-STEP GUIDE
 
COMPUTER 10: Lesson 7 - File Storage and Online Collaboration
COMPUTER 10: Lesson 7 - File Storage and Online CollaborationCOMPUTER 10: Lesson 7 - File Storage and Online Collaboration
COMPUTER 10: Lesson 7 - File Storage and Online Collaboration
 

Bitcoin A Peer-to-Peer Electronic Cash System

  • 1. Bitcoin A Peer-to-Peer Electronic Cash System Author: Satoshi Nakamoto Presenter: Course: Professors: Flavio Vit UNICAMP –IA368 Christian Esteve Rothenberg, Mauricio Ferreira Magalhães November 20, 2013
  • 2. Agenda  Introduction  Key Concepts  BTC Transactions  BTC Mining  Bitcoins  Proof of Work  Digital Wallet  Security  Legal Considerations  Conclusion
  • 3. Introduction What is Bitcoin?  First decentralized digital / virtual currency  Crypto Peer to Peer currency  Electronic payment system based on cryptographic proof instead of trust  Developed by a person or group under the pseudonym of Satoshi Nakamoto in 2008 / Operational since early 2009  No financial institutions is managing
  • 5. BTC Transactions  Straight between the owner and the receiver  Broadcasted through the P2P network  All are public but anonymous  Mining nodes collects the transactions into Blocks
  • 6. BTC Transactions  Transactions Blocks  Full page in a Ledger Book  Block => contains information about transactions and previous Block ( Block Chain ) linking to the first block when Bitcoin Network started
  • 7. BTC Transactions  The Block Chain file is maintained on every node
  • 8. BTC Transactions  Each Block carries a Proof of Work  BTC are generated for the machine which solved the Proof of Work  New block is started and linked to the block chain  First transaction in a block = Special transaction = new coins owned by the creator of the block  New block chain status is broadcasted to the network
  • 9. BTC Transactions Fighting Transactions Hackers  Transaction history cannot be changed unless redoing all Proof of Work of all blocks in the chain  Redoing the proof of work since the very first transaction block => power Enormous computational  Double spending problem => solved using a P2P distributed timestamp server to generate computational proof of the chronological order of transactions
  • 10. BTC Mining • No centralized entity for generating BTC • Mining Process => Solve the Proof of Work from a Transaction Block • Confirms transactions and increase security • User can be miners and are rewarded by: • Transactions fees for the transactions they confirm • New block created / proof of work solved? => 25 BTC today • Mining is a competitive market $$$$$$ • More miners => More secure network
  • 11. BTC Mining  September 2013 => 11,5 Million Bitcoins  Bitcoins are generated in blocks  Currently 25 Bitcoins are mined per block  A New Block are generated every 10 minutes  The mined BTC are kept with the PC which solved the proof of work
  • 12. BTC Mining  BTC are generated in a steady rate  In Jan 2009, 1 Transaction Block solved = 50 BTC  After 210.000 transaction blocks, the reward drops by 50%  BTC generation => to stop by 2140  21 Million Bitcoins will be generated  After 2140 the incentive will be only the transaction fee
  • 13. BTC Mining Mining nodes  Initially, CPU power to solve the Proof of Work for Transaction Blocks  Graphic cards solve faster the Proof of Work  New dedicated chips for performing mining  Miners are crucial BTC network by ensuring: • • • Impartial Stable Secure
  • 14. Bitcoins  BTC are entries in the transactions blocks / in the ledger book  Someone receives a BTC => transaction logged in the transaction block chain (unconfirmed until Proof of Work is solved)  BTC ownership and transfer are ensured by digital signatures (crypto private and public keys)
  • 15. Proof of Work  Protocol challenging the mining nodes  Tough to be solved X Easy to be verified  Every 2 weeks, BTC generation rate is auto adjusted.  Increasing / decreasing the difficulty of the Proof of Work => targeting 10 minutes block generation  Solving the puzzle => Winning a lottery
  • 16. Proof of Work  Transactions in the Block Chain are protected by a mathematical race  Attacker computational power VERSUS The entire network power
  • 17. Proof of Work  BTC uses Adam Back Hashcash Proof of Work with configurable amount of work to compute  Uses cryptographic hash SHA256
  • 18. Proof of Work  Time stamp server => hash of all data in a block including the hash from previous block  Solution to order the Transaction Blocks
  • 19. Proof of Work  Typical PC may take several years to solve it  Solved in 10 minutes using the BTC network  Extremely unlikely, but 2 or more nodes may solve the Proof of Work at same time
  • 20. Proof of Work  Branches in the block chain are created in this case  Tie!!! => to be broken when someone solves the next block  Nodes will switch to the longest branch  Blocks will be discarded and respective transactions will be handled by the wining branch  The block chain stabilizes and nodes agree with the chain sequence
  • 21. Digital Wallet  BTC can be stored in a digital Wallet  Web services  Local applications  USB drivers  BTC are protected by Private / Public keys  Also possible to print the BTC
  • 22. Digital Wallet  No one can lock or freeze your money like a bank account  Bitcoins fraction => the smallest fraction: 1 Satoshi  0.00000001 BTC  Losing your private key => losing yours BTCs …Forever gone from BTC economy  BTC is deflationary!
  • 23. Security  No one can change the BTC software without the majority of the entire network of users accepting the change  While the majority of the nodes are honest, attackers cannot harm the system  End of Block Chain Insecurity => Branches => Double Spending attack => Protected by the Hashcash / Time Stamp Server  The attacker would need astronomical computer power to corrupt the block chain
  • 25. Where to use BTC?
  • 26. Legal Considerations  Money laundry – practically impossible to track BTC transactions • FBI x Silk Road – Bitcoin used for trading drugs among other illicit products.
  • 27. Governments are good at cutting off the heads of a centrally controlled networks like Napster, but pure P2P networks like Gnutella and Tor seem to be holding their own.” Satoshi Nakamoto
  • 28. Conclusions  BTC: P2P digital currency with mathematic protection  No centralized control / No evil Central Bank  The exchange rates may oscillate drastically “…we don’t really understand how that worked, as economists.” - Lawrence White, economics professor at George Mason University / IEEE Spectrum interview
  • 29. Conclusions  No government can print more money  Anonymity  Lower global transaction costs  A new bubble may emerge  Oct 2013 = 150 USD  Nov 2013 > 500 USD  March 28th 2013: BTC passed the 1 Billion USD (11 million Bitcoins in circulation)
  • 30. References 1. Satoshi Nakamoto. Bitcoin: A Peer-to-Peer Electronic Cash System. http://bitcoin.org/bitcoin.pdf 2. Khan Academy.http://www.youtube.com/user/khanacademy 3. Scott Driscoll. How Bitcoin Works Under the Hood. 4. http://www.imponderablethings.com/2013/07/how-bitcoin-works-underhood.html 5. Adam Back. Hashcash. http://www.hashcash.org/