Presentation on theme: "Nathan Krussel. What is a Crypto Currency Purpose of Crypto Currency What is Bitcoin How does Bitcoin work Mining BTC How people perceive."— Presentation transcript:
What is a Crypto Currency Purpose of Crypto Currency What is Bitcoin How does Bitcoin work Mining BTC How people perceive Bitcoin Current Uses for BTC Future of BTC
A digital medium used in exchanges. Cryptographically secure Distributed Peer-to-Peer Decentralized Mutual distrust “Anonymous”
Remaining Anonymous Deregulation of Currency Secure Money Transactions Public Ledger of Currency and Exchanges Speedy Transactions World Wide Use No exchanges to worry about No freezing of ones account Reliable and Immutable
Also known at BTC Much like the U.S. Dollar is known as USD The most commonly known Crypto Currency, and the pioneer that brought it to farm Not the first electronic cryptographic currency Most successful Crypto Currency to date When most people think of a Crypto Currency they think of Bitcoin Completely Digital Currency, nothing is on paper and isn’t backed by anything else other than its self. http://www.youtube.com/watch?v=Um63OQz3bjo http://www.youtube.com/watch?v=Um63OQz3bjo
Created in 2009 by Satoshi Nakamoto Uses double SHA-256 SHA-256 of a SHA-256 Governed by the Block-Chain This is distributed amongst the nodes, so no one person can modify it Has the record of every transaction ever made Roughly 13.5 GB as of 1/22/2014 281988 blocks have been created Can be broken up into 8 decimal places. USD is 2 decimal places. This can be expanded in the future if the value of BTC increases dramatically
Based off a public ledger known as the block- chain Everything about the transactions (from, to, how much, when) is all public knowledge This creates an open nature. Aims to create a new block every 10 minutes Does this by adjusting the difficulty Difficulty changes ever 2016 blocks To “solve a block” one must compute the correct hash There is a target number, that the hashed value must be equal to or lesser than.
Not a linear chain, but one that has forks and self heals. Forks occur when two blocks are presented as solved within a few seconds of each other. The “correct” chain is the one with the longest path back to the genesis block. The fork that is the incorrect, now all those blocks in that fork become invalidated. The faster the hashing rate of the network as a whole, the more secure the block chain is The chain will guarantee a block is validated after 100 blocks are attached onto the end of the chain.
Difficulty changes every 2016 blocks to ensure it takes about 10 minutes a block. Dynamically adjusted by the entire network. Difficulty is calculated as follows Difficulty = Difficulty_1_target/current target Target is what the sha256 block header must be equal to or less than The lower the target, the more difficult this is to solve. August 5 th 2013 Difficulty: 31,256,960.73 Jan 23 rd 2014 Difficulty: 1,789,546,951
To solve a block the SHA-256 of the block header must be equal to or less than the target Every bitcoin client compares the actual time it took to solve the 2016 blocks to the two week goal. The modifies the target by the percentage difference. A single retarget never chances the target by more than a factor of 4, so there aren’t large spikes in difficulty.
CPU Was the original way to do it, was initially solo mining (not pooled) and you got all of the block or none of it (50 BTC) Slow compared to today’s standards. Core i5 2500 about 20.6 megahash/s
GPGPU Somebody wrote a program that would use the GPU’s within PC’s to mine, this was discovered to be more energy efficient per hash, and gave you an advantage in higher hash rates. AMD/ATI GPU’s were much faster and more efficient per megahash using OpenCL AMD 6870 (3 year old card as of now purchase price about 150 USD) ~300 megahash/s
Specialty hardware/ASIC These have been recently released, and are designed specifically just to mine for BTC Much more expensive then GPU’s, but exponentially faster. Bitforce 60 about 2500 purchase price, 60 gigahash/s Newer models will cost 12,000 but produce 3 terahash/s or faster.
Many people see it as a way to do nefarious activity and that’s all the use they can see for it. Others see it as a way to “stick it to the man” Some who are just mining see it as a way to cash out and make some money Certain Individuals see this as just a different currency that you are in complete control of.
Some retailers take BTC Overstock is the newest one, newegg has hinted at it. Sacramento Kings now accept BTC A few smaller online retailers take BTC Many miner producing companies accept BTC Use an exchange to trade BTC out for your currency of choice. Bitcoin is still in its infancy of adoption, so the list of people who accept it grows everday
More retailers will begin to accept BTC Used in international trading to avoid currency exchanges Become as common place as credit cards Less volatility in hard currency value (USD) Nefarious uses Currency Flops and becomes worthless