4. Before the first acknowledged cryptocurrency got created (Bitcoin) there
were a couple of attempts to create a digital currency. It all started in
1980 in the Netherlands but the first attempts had no real influence to
our world today. Even Paypal can be considered as a cryptocurrency but
one major difference to cryptocurrencies like Bitcoin is that Paypal
doesn´t work based on the blockchain technology.
After the Global economic crisis in 2008 the first ever cryptocurrency
got introduced in 2009 by the unknown Satoshi Nakamoto (it is still
unclear whether this is an individual or a group of people because the
identity is yet to be confirmed). He released a white paper explaining
the technology, concept and source code for the implementation of
blockchain. This was the birth of the now worlds most famous
cryptocurrency Bitcoin. (It´s funny because the first ever secured
chain of blocks first was described in 1991 by Stuart Haber and W.
Scott Stornetta. So Blockchain existed way before Bitcoin got
created).
6. Nixon Ends Convertibility of US Dollars
to Gold and Announces Wage/Price
Controls
August 1971
With inflation on the rise and a gold run
looming, President Richard Nixon's
team enacted a plan that ended dollar
convertibility to gold and implemented
wage and price controls, which soon
brought an end to the Bretton Woods
System.
9. ?
A distributed ledger (also called a shared ledger, or digital
ledger)Is a database that is consensually shared and
synchronized across network spread across multiple sites,
institutions or geographies. It allows transactions to have
public "witnesses," thereby making a cyberattack more
difficult.
10. DECENTRALIZATION
That is the real beauty of the blockchain and also the most
important revolutionary aspect of the technology. The blockchain
is unhackable.
11. POINTS OF FAILURE / MAINTENANCE : CENTRALIZED SYSTEMS ARE EASY TO MAINTAIN
AS THERE IS ONLY A SINGLE POINT OF FAILURE. DECENTRALIZED HAVE MORE BUT STILL
FINITE. DISTRIBUTED SYSTEMS ARE THE MOST DIFFICULT TO MAINTAIN.
FAULT TOLERANCE / STABILITY : CENTRALIZED CAN BE HIGHLY UNSTABLE. KILL THE
LEADER AND THERE WILL BE CHAOS. KILL THE LEADER FOR A DECENTRALIZED SYSTEM
AND YOU WILL HAVE MANY DECENTRALIZED SYSTEMS. DISTRIBUTED SYSTEMS ARE
VERY STABLE AND A SINGLE FAILURE DOESN’T DO MUCH HARM.
SCALABILITY / MAX POPULATION : CENTRALIZED — LOW SCALABILITY,
DECENTRALIZED — MODERATE, DISTRIBUTED — INFINITE.
EASE OF DEVELOPMENT / CREATION : CENTRALIZED SYSTEMS CAN BE CREATED REALLY
FAST, YOU PICK UP A FRAMEWORK AND APPLY IT EVERYWHERE. FOR DECENTRALIZED
AND DISTRIBUTED, YOU HAVE TO FIRST WORK OUT THE LOWER LEVEL DETAILS LIKE
RESOURCE SHARING (TRADE) AND COMMUNICATIONS (TRANSPORT).
EVOLUTION / DIVERSITY : SINCE CENTRALIZED SYSTEMS FOLLOW A SINGLE
FRAMEWORK, THEY DON’T HAVE DIVERSITY AND EVOLVE SLOWLY. BUT FOR
DECENTRALIZED AND DISTRIBUTED SYSTEMS, ONCE THE BASIC INFRASTRUCTURE IS IN
PLACE, EVOLUTION IS TREMENDOUS.
12. THINK OF EVERY TRANSACTION (OR
CONTRACT) AS AN UN-EDITABLE
DOCUMENT
13. Why is an inalterable ledger important?
it creates a permanent record of
a valuable exchange between two
people, like a bitcoin transfer, so neither
party can make false claims of an
exchange. Also, in theory, the shared
nature of blockchain makes it un-
hackable—in part because there’s no
central storage that can be tampered
with, and also because there’s no
central authority controlling the
information exchange.
14.
15. To verify the transactions in blockchain, users known as “miners” use
computers to solve complex mathematical problems and when they
do, they earn a cryptocurrency reward like Bitcoin, or one of the
newer currencies like Ether, Lite Coin, Ripple, PotCoin, or
even TrumpCoin. (Yes—weed and Donald Trump themed digital
money are a thing. People even tried to make a Kanye West
inspired CoinyeCoin, but West sued for trademark infringement.)
17. Where do bitcoins come from? With non digital money,
a government decides when to print and also when to
distribute the money. Because Bitcoin does not have a
central government the Bitcoins must come
elsewhere: With Bitcoin, miners use special software
to solve mathematic problems and are rewarded with
a certain number of bitcoins in exchange. This
provides a smart way to solves issues of the currency
and also creates a motivation for more people to mine.
To mine cryptocurrencies you need a powerful
hardware as well as software combination, because
your computer needs a lot of computing power in
order to solve those complicated math problems.
18. $100,000,000 FOR 2 PIZZAS!
At first a Bitcoin wasn´t even worth a single dollar.. But in 2010
someone purchased two pizzas for 10,000 bitcoin (was worth
$67 then)
19. WHY THE BLOCK IS
HOT!
• Every 10 minutes, all the transactions that occur are verified,
cleared, and stored in a block that is linked to the following
block, creating a chain. Each block must be assigned to the
following block to be valid. This structure permanently creates
time-stamps and stores information, preventing anyone from
changing the database. If you wanted to hack the blockchain
system, you must hack the entire database. That means you
must hack every existing computer on this planet that is
connected to the blockchain and also the entire history of
20. SO WHAT’S THIS HAVE TO DO WITH REAL
ESTATE?
One of the first bitcoin home sale transactions took place in Lake
Tahoe circa 2014 for 2,739 bitcoins, (it was just land) or $1.6
million. (today 2,739 Bitcoins is over $27,000,000 and at the
peak of bitcoin in December of 2017 that was over $52,000,000)
21. I’M PRETTY SURE WE ALL MISSED THE BOAT ON
THAT ONE OR WE WOULDN’T BE IN THIS ROOM
TODAY… BUT!
23. THERE ARE OVER 23,943 ADDRESSES
HOLDING AT LEAST A MILLION DOLLARS
WORTH OF BITCOINS
That means the pool of potential home buyers has increased they
now have access to down payments and can even pay cash for a
home!!
24. • The U.S. government recognizes bitcoin as property and
officially under the new tax law that started Jan. 1, 2018,
anyone trading cryptocurrency will trigger a capital gains tax.
25.
26. Volatility is a derivative product of an underlying financial instrument and it
can be traded via options. Options are products that pay when a
certain price condition is met (for example when the price of the underlying
product hits an upper barrier). Options are used for speculation (you expect
Bitcoin price to drop under 950 USD and want to trade it) or hedging (you are
paying your employees in Bitcoin but earn in USD, so want to set the limit of
the conversion rate). Currently there are only a few places where you can
trade with options on Bitcoin. If you trade with options, you might have
recognized something called the implied volatility. Implied volatility is a
parameter calculated (implied) from the option pricing equation (Black-
Scholes). Although it is also called volatility, it is different from the volatility we
calculated above (from now we call it the realized volatility).
It is important to watch out for this parameter, as it shows the market
sentiment of the underlying product.
31. Until relatively recently, building
blockchain applications has
required a complex background in
coding, cryptography,
mathematics as well as significant
resources. But times have
changed. Previously unimagined
applications, from electronic
voting & digitally recorded
property assets to regulatory
compliance & trading are now
actively being developed and
deployed faster than ever before.
By providing developers with the
tools to build decentralized
applications, Ethereum is making
all of this possible.
32. IF YOU WANT TO KNOW MORE ABOUT ETHEREUM
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