Presented by Jeff Garzik

1. The Next Frontier of Bitcoin
Jeff Garzik
CEO @ Dunvegan Space Systems
Bitcoin Core Developer @ BitPay
JGarzik@DSS.co / @jgarzik

2. “2015 will be a make-or-break year
for Bitcoin”
- Timothy Lee, Vox.com
No — it is just the beginning.
- Me

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Bitcoin is a startup currency
Investment category: high risk

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Motivation
Universal money - The unbanked - My
discovery

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Bitcoin: today
Warning: Technobabble ahead

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Bitcoin: Do it yourself?
Not the smartest move - use BitPay

7. Bitcoin: monetary snapshot
In circulation: 14,368,050 BTC
Market cap: $4.0B @ $285/BTC
Transactions: 200,000/day
Value transferred: 1.7M BTC/day (~$480M/day)
Hash power: 4.5M PetaFLOPS - 77000 x Tianhe-2
Market trading (USD): $55M/day

8. Bitcoin:community snapshot
Venture cap: $2M > $95M > $349M > $357M YTD
AngelList count: 512
Wallet count: 2M (coinbase), 3M (blockchain.info)
Reddit subscribers: 160,000
Developer repositories: 5,000+
P2P network nodes: 6,000

9. Bitcoin Core 0.10:
What’s new?
Headers first synchronization
Smart transaction fees
Unlimited P2SH script flexibility
HTTP REST API
Watch-only wallets
Consensus library

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Bitcoin: tomorrow

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The Bitcoin Pyramid - At the lowest layer today

13. The Goal
• Holy grail:
Instant, secure
payments
• Payment channels
• Open protocol
• Layer 2. Bitcoin base
• “Lightning network”,
“Impulse protocol”

14. Payment channel analysis
Trustless + multi-sig. Example use case:
Customer makes instant, secure payment to Lyft
Customer is secure against BitPay stealing funds
Lyft & BitPay are secure against Customer clawback
BitPay does not hold funds; funds go straight to Lyft.
Wallet software updates required

15. More Layer-2 services
BIP65 “CLTV” - Funds locked on-chain for X days
Semi-trusted escrow (2-of-3) - no funds held
“Internet of Chains” - side chains and more
Deploy new bitcoin features rapidly
Non-currency chains
Smart property: transfer ownership of stocks, cars, …

16. Identity & Smart Contracts
In a decentralized world, “identity” becomes key
nexus
Decentralized markets demand [anonymous] identity,
reputation.
Smart contracts: Digitize every fact, then trigger
action
ID+SC: Completes the decentralized landscape

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Bitcoin: the not-so-near
future

18. BitSat: bitcoins in space
Cloud computing
Blockchain on board
BTC oracles in space
Worldwide broadcast
No “Great Firewall”
Space banks, corps

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Supply chains
Real-time optimization, reconfiguration

21. TradeNet (credit: Mike Hearn)

22. Twitter: @jgarzik
Email:
JGarzik@DSS.co
JGarzik@BitPay.com
FINI