This document provides an introduction to blockchain technology and cryptocurrencies. It discusses the origins of blockchain in Satoshi Nakamoto's 2008 whitepaper proposing Bitcoin as a peer-to-peer electronic cash system. It then outlines some key aspects of blockchain including how it uses cryptography and proof-of-work to form an immutable record stored across a distributed network without a central authority. The document also briefly reviews topics like cryptocurrency mining, smart contracts, initial coin offerings (ICOs), and the current state and opportunities of blockchain applications.
5. A Peer-to-Peer Electronic Cash System
9 Page whitepaper | October 2008
A purely peer-to-peer version of electronic cash would allow online
payments to be sent directly from one party to another without going
through a financial institution. Digital signatures provide part of the
solution, but the main benefits are lost if a trusted third party is still
required to prevent double-spending. The network timestamps
transactions by hashing them into an ongoing chain of hash-based
proof-of-work, forming a record that cannot be changed without
redoing the proof-of-work.
Satoshi Nakamoto
6. •Open source (with exceptions)
•Shared Records
No Central Authority
•Time-Stamped
•Hashed
Immutable Record Keeping
•Solution to ‘double-spend’ problem
•Proof-of-Work by Miners
Chained by Cryptography
Blockchain Basics
11. Contract written as code Contract becomes part of Contract
parties may
on blockchain public blockchain stay
anonymous
Contract executes by itself Transaction recorded
when conditions are met (optional 3rd party validation)
Smart Contracts
“internet of value” – Deloitte Touche
“Paradigm Shift”
- Internet and world wide web highly centralized
Google : more than 25% US Internet traffic
Outage of google 2012 caused worldwide traffic to plummet by 40%
Fiat money is a currency without intrinsic value established as money, oftentimes by government regulation.
- bitcoin was not the first currency
- bitcoin was not the first cryptographic currency
- First cryptographic currency : DigiCash in 1989
- bitcoin first decentralized cryptocurrency
- bitcoin is name of the Blockchain AND Currency- Increments are called ‘satoshis’
256-bit alphanumeric string / solved in 10 Minutes
When Bitcoin was first created, the reward was set at 50 bitcoins per block mined. And, the code specified that every 210,000 blocks mined that reward would be cut in half, until it eventually is reduced to zero after 64 halving events.
- Turing: general purpose computer
Crowdfunding -> ERC20
35% of total – rest (225 raised on average $10MM)
Tezos closed June 14th 2017 - $1.43B
35% of total – rest (225 raised on average $10MM)
There are 147 exchanges - TOP 20 make up 95% of trading volume
Amazon: via BitPay
Expedia: via Coinbase
15 locations in greater San Diego area
There are 147 exchanges - TOP 20 make up 95% of trading volume
The world's largest futures exchange: Chicago Mercantile Exchange CME, announces it has completed self-certification with the Commodity Futures Trading Commission to launch its bitcoin futures contract on Dec. 18.
Several smaller exchanges are already trading bitcoin futures.
$1,000 invested in bitcoin in January 2013 ($13) would be $1.1m at the end of 2017 (1,087x)
35% of total – rest (225 raised on average $10MM)
35% of total – rest (225 raised on average $10MM)
$1,000 invested in bitcoin in January 2013 ($13) would be $1.1m at the end of 2017 (1,087x)