Cryptocurrency Seminar on Crypto-Currency & Bitcoin

CRYPTOGRAPHY
(SEMINAR ON CRYPTO-CURRENCY & BITCOIN)
www.globalbtcrating.com | info@globalbtcrating.com

INSIDE WE WILL EXPLORE:
 Cryptography
 Importance of Cryptography
 Crypto-currency
 How Crypto-currency works
 Why we use Crypto-currency
 Understanding Terms Cryptology, Cipher text, Encryption & Decryption
 Crypto-currency Mining
 What is Bitcoin
 How Bitcoin Works
 Use and Characteristics of Bitcoin
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info@globalbtcrating.com

CRYPTOGRAPHY

Invention of Cryptography
 The first known use of a modern cipher was by Julius Caesar (100 BC to 44
BC)
 He did not trust his messengers when communicating with his governors
and officers.
 For this reason, he created a system in which each character in his
messages was replaced by a character three positions ahead of it in the
Roman alphabet

Understanding Cryptography
 Cryptography is a method of storing and transmitting data in a particular
form so that only those for whom it is intended can read and process it.
 The word is derived from the Greek kryptos, meaning hidden.

Need of Cryptography
 In recent times, cryptography has turned into a battleground of some of
the world's best mathematicians and computer scientists.
 The ability to securely store and transfer sensitive information has proved
a critical factor in success in war and business.

Cryptanalysis
 Cryptanalysis refers to the study of ciphers, cipher text, or cryptosystems
(that is, to secret code systems) with a view to finding weaknesses in them
that will permit retrieval of the plaintext from the cipher text, without
necessarily knowing the key or the algorithm.
 This is known as breaking the cipher, cipher text, or cryptosystem.

Cryptography & Cryptology
 Cryptography is closely related to the disciplines of cryptology and
cryptanalysis.
 Cryptology is the mathematics, such as number theory, and the application
of formulas

Cipher text, Plaintext & Encryption
 Cipher text is encrypted text. Plaintext is what you have before
encryption, and Cipher text is the encrypted result.
 The term cipher is sometimes used as a synonym for Cipher text , but it
more properly means the method of encryption rather than the result.

Encryption & Decryption

Key in Cryptography
 In cryptography, a key is a piece of information (a parameter) that
determines the functional output of a cryptographic message or cipher.
 Without a key, the message would produce no useful result.

Objectives of cryptography
Modern cryptography concerns itself with the following three objectives:
 1) Confidentiality (the information cannot be understood by anyone for
whom it was unintended)
 2) Integrity (the information cannot be altered in storage or transit
between sender and intended receiver without the alteration being
detected)
 3) Authentication (the sender and receiver can confirm each other’s
identity and the origin/destination of the information)

Where we use Cryptography
 ATM
 Emails
 Online Payments
 E-Voting
 Data Security

CRYPTO-CURRENCY

Crypto-currency
 A digital or virtual currency that uses cryptography for security.
 The first Crypto-currency to capture the public imagination was Bitcoin,
which was launched in 2009.
 Bitcoin's success has spawned a number of competing Crypto-currency
such as Litecoin, Namecoin and PPCoin.

Why Crypto-currency
 A Crypto-currency is difficult to counterfeit because of this security
feature.
 A defining feature of a Crypto-currency is that it is not issued by any
central authority, rendering it theoretically immune to government
interference or manipulation.
 Crypto-currency , then, means money that is made hidden and private—
and therefore secure—by means of encryption, or coding.

Blocks and Block-chain
 The block chain is a shared public ledger on which the entire Bitcoin
network relies.
 All confirmed transactions are included in the block chain.
 Each “coin” of Crypto-currency itself has its own code, and smaller
denominations have their own, as well, depending on what amount is
needed for a transaction.
 Finally, the transaction itself is identified with its own code. Layer upon
layer of encryption is one of the things that makes Crypto-currency
unique, secure and anonymous, if you so choose. And all that coding and
concealment is what gives Crypto-currency its apt name.

Focusing more on Blockchain

Value of Crypto-currency
 Prices of Crypto-currency Fluctuate as per demand and supply.
 Crypto-currency make it easier to transfer funds between two parties in
transactions; these transfers are facilitated through the use of keys for
security purposes.
 These fund transfers are done with minimal processing fees, enabling
users to avoid the steep fees charged by most banks and financial
institutions for wire transfers.

Crypto-currency Mining
 Crypto-currency mining is the processing of transactions in the digital
currency system.
 In this process the records of current Crypto-currency transactions,
known as a blocks, are added to the record of past transactions, known as
the block chain.

Few top listed Crypto-currencies
Symbol Name Mined Coins Price Volume Marketcap
BTC Bitcoin 15,293,200 1.00 BTC 137,090.86 BTC 6,371,605,916.00 USD
STR Stellar 100,076,310,226 0.01 mBTC 176.67 BTC 221,399,265.15 USD
LTC Litecoin 44,826,276 0.01 BTC 94,330.93 BTC 146,045,896.83 USD
UNIT GalaxyUnit 100,000,000,000 1.81 µBTC 0.13 BTC 75,410,030.00 USD
DOGE DogeCoin 97,102,803,758 0.52 µBTC 245.06 BTC 21,037,106.91 USD
DRK Darkcoin 4,598,760 0.01 BTC 1.58 BTC 19,930,037.67 USD
XEM NEM 8,999,999,999 3.82 µBTC 1,149.13 BTC 14,323,739.40 USD
PPC Peercoin 21,421,191 1.17 mBTC 66.89 BTC 10,450,996.90 USD
NXT Nxt 1,000,000,000 0.02 mBTC 183.21 BTC 9,161,693.70 USD
QRK Quarkcoin 248,250,110 0.02 mBTC 30.88 BTC 1,654,854.36 USD
EAC EarthCoin 9,346,468,332 0.42 µBTC 132.74 BTC 1,635,489.40 USD
AUR Auroracoin 13,186,189 0.25 mBTC 10.15 BTC 1,351,189.42 USD

BITCOIN

Understanding Bitcoin
 Bitcoin is a form of digital currency, created and held electronically.
 No one controls it.
 Bitcoins aren’t printed, like Rupees, dollars or euros.
 They’re produced by people, and increasingly businesses, running
computers all around the world, using software that solves mathematical
problems.
 Satoshi Nakamoto is the founder of Bitcoin, initial creator of the Original
Bitcoin client.
 He has been working on the Bitcoin project since 2007 and started in
2009.

Bitcoin Facts
 The computing power of the Bitcoin network is 7468 times higher than the
one of the cumulative 500 world supercomputers.
 The largest transaction ever made on the network: 194 993 BTC
https://blockchain.info/tx/1c12443203a48f42cdf7b1acee5b4b1c1fedc144cb9
09a3bf5edbffafb0cd204, It represents more than 114 million of dollars,
according to the effective rate on 07/31/2014.
Bitcoin operation is like:
 1 hash = 6.35K integer operations
 1 integer operation = 2 floating point operations
 1 hash = 12.7K floating point operations

What can be purchased by Bitcoin
 Microsoft:- US-based customers can now use bitcoin to add money to their
accounts, which can then be used to purchase content like apps, games
and videos from its Windows, Windows Phone and Xbox platforms.
 Dell: Gaming PCs Purchasing
 Overstock: became the first major retailer to accept bitcoin when it made
the announcement back in January 2014. The firm offers everything from
furniture to jewellery to electronics. Initially a US-only offering, the firm
opened up bitcoin purchases to over 100 countries
 Newegg, also a retail giant, is a Los Angeles-based company that recorded
$2.8bn in annual revenue in 2013. It specializes in computer hardware
and software, but also sells a variety of appliances and goods.

 Air Lituanica, another Eastern European airline, is now accepting bitcoin
for flight tickets as part of its ongoing bid to embrace new and innovative
methods of serving customers.
 CheapAir.com, the California-based online travel booking website, started
taking bitcoin in November 2013 and announced in July that it has
completed more than $1.5m in bitcoin sales on flights, around 200,000
hotels and Amtrak railway bookings via its platform.
 Physical stores that accept bitcoin
 diamondbtcREEDS Jewelers, a large jewelery chain in the US, is one of the
most notable merchants to accept bitcoin as a form of payment.

 Expedia has announced it will now accepts bitcoin for all hotel bookings,
making it the first major travel company to accept payments in
cryptocurrency
 Buying services with bitcoin
 US satellite service provider DISH Network announced that it will start
accepting bitcoin payments later this year.
 A property listings site in the US gives a discount to users who advertise on
the site and pay in bitcoin. The listings site, called RentHop.

 Orlando, Florida-based online interactive education specialist Treehouse
now accepts bitcoin for its subscription web design and web development
education services. The firm, which to date has raised $24.6m through six
funding rounds, boasts 70,000 students.
 OKCupid, the matchmaking site, began accepting bitcoin payment way in
April 2013
 Tipping, or donating bitcoin to a cause
 Many charities has started taking donation on bitcoin now as well

What are its characteristics? (1/3)
 It's decentralized- The Bitcoin network isn’t controlled by one central
authority.
 Every machine that mines Bitcoin and processes transactions makes up a
part of the network, and the machines work together.
 It's easy to set up- you can set up a Bitcoin address in seconds, no
questions asked, and with no fees payable.

 It's anonymous- Well, kind of. Users can hold multiple Bitcoin addresses,
and they aren’t linked to names, addresses, or other personally identifying
information.
 It's completely transparent- Bitcoin stores details of every single
transaction that ever happened in the network in a huge version of a
general ledger, called the block-chain. The block-chain tells all

 Transaction fees are extremely less- Your bank may charge you a Rs.500+
fee for international transfers. Bitcoin doesn’t.
 It’s fast- You can send money anywhere and it will arrive minutes later, as
soon as the Bitcoin network processes the payment.

Video to understand BitCoin

END OF SESSION
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Cryptocurrency Seminar on Crypto-Currency & Bitcoin

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