Crypto for the Rest of Us

2. What is “Crypto” or “Cryptocurrency”? • Digital money used for transacting • Store of value, like gold • Decentralized - no central bank like the RBI, usually, no corporation • Based on math and cryptography • Transactions stored on a “Blockchain” Copyright 2017, Pankaj Jain

3. What is a “Blockchain” • A public ledger of all transactions • Everyone can see every transaction that occurs

4. • Transactions are transmitted to the network and then “miners” use sophisticated computers to solve a mathematical equation to verify the transaction. • A transaction is considered irreversible after 6 conﬁrmations are transmitted on the network. • A “Public Key” is your address • A “Private Key” is essentially your password to make a transaction • Typically, each transaction on a blockchain has a cost which is usually paid by the sender • Transactions are made from a wallet Copyright 2017, Pankaj Jain

6. Why is this a Big Deal? • Relatively quick transfers (as low as a few seconds to 10 minutes) • Removal of barriers to transact with anyone, anywhere, any time • Completely decentralized, do not need bank permission to transfer money or sell a security to another person, or check who owns a home, etc. • Every transaction is immutable and public • Transaction doesn’t have to be “money”, it can be the record of a marriage, divorce, purchase of a home, sale of a business, etc. • There will always be a record of the transaction as long as nodes are sharing the database Copyright 2017, Pankaj Jain

7. Bitcoin • Created by “Satoshi Nakamoto” in 2009 • Finite amount of “coins” can be mined - 21 million Bitcoins • Value is created by “mining” and good old fashioned economics - supply and demand • Bitcoins (BTC) can be transferred to any address, anywhere for low transaction fees • Bitcoin addresses start with a “1” or “3” • It operates almost as the reserve cryptocurrency • Market cap ~ $100 Billion Copyright 2017, Pankaj Jain

11. Ethereum • Created by Vitalik Buterin, Gavin Wood and others in 2014 • Similar to Bitcoin as it is based on Blockchain and cryptography. • Ether is the “currency” used to transact on the Ethereum blockchain • Enables creation of “tokens” using a programming language called “Solidity” • Tokens created on Ethereum beneﬁt from the development of the Ethereum Blockchain Copyright 2017, Pankaj Jain

12. Ethereum • Building blockchain apps on Ethereum has fueled a new generation of apps or “dApps” that use blockchain while hiding the complexity of blockchain • Examples of tokens on Ethereum are: • Basic Attention Token (BAT) +370% since ICO in May • Civic (CVC) +240% since ICO in July Copyright 2017, Pankaj Jain

13. ICOs • ICOs (Initial Coin Offerings) are crowdfunding campaigns to raise capital via cryptocurrencies by selling tokens • Many tokens are “ERC20” tokens which means they comply with a standard and usually operate on top of the Ethereum blockchain • ICOs have raised over $2.3 Billion this year alone • Many ICOs are utility tokens, others are securities (shares), many others are scams! • “If it looks too good to be true, it usually is.” Copyright 2017, Pankaj Jain

14. Resources • Some Indian Exchanges • ZebPay  http://zebpay.com • Coinsecure  http://coinsecure.in • Koinex  http://koinex.in • Coinome  http://coinome.com • Some Int’l Exchanges • Poloniex  https://poloniex.com • Bittrex  http://bittrex.com • Bitﬁnex  http://bitﬁnex.com • Cryptopia  http://cryptopia.co.nz Copyright 2017, Pankaj Jain

15. Resources • http://bitcoin.org • http://ethereum.org • http://litecoin.org • https://www.coindesk.com • https://coin.fyi • https://theethereum.wiki/ w/index.php/ ERC20_Token_Standard • Bitcoin Wallets - https:// bitcoin.org/en/choose- your-wallet • Ethereum Wallet - https://github.com/ ethereum/mist/releases Copyright 2017, Pankaj Jain

Crypto for the Rest of Us

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