Understanding Bitcoin and Its Protocols

Understanding Bitcoin and Its Protocols

• 1. By Ethan Herdrich Experiential Learning Specialist Bitcoin and Cryptocurrency

• 2.

• 3. What is Bitcoin? Well it is two things.

• 4. Bitcoin the Token • The digital currency itself • a snippet of code that represents ownership of a digital concept

• 5. Bitcoin the Protocol • a distributed network that maintains a ledger of balances of bitcoin-the-token. • Otherwise known as the Block Chain

• 6. • A publicly accessible Ledger • Ordered chronologically in blocks • Unchangeable • Verified by a decentralized network of miners The Block Chain

• 7. Block Chain

• 8. • Verifying Transactions • By solving computational puzzles • Miners compete to win Bitcoin similar to a lottery • Awarded transaction fees as well as new bitcoin • High overhead with power consumption • Uses high end GPUs • Has lead to a Graphics Card Shortage Mining Mining Infographic

• 9. • created in 2009 by an unknown person using the alias Satoshi Nakamoto • Silk Road launches in 2011, uses bitcoin as it’s currency, as bitcoin can be pseudoanonymous Origins and the Deep Web

• 10. • No personal info is required to use bitcoin • Transactions are verified by the network, making it hard to trace • However the block chain is a permanent and public ledger • The easiest way to buy and sell requires bank account info I thought it was anonymous?

• 11. • Lite Coin • Bitcoin Cash • Ethereum • Atari Token • Zcash • Dash Other Cryptocurrencies

• 12. Volatility

• 13. • Requires a Bitcoin Wallet • Many wallets are tied to an Exchange • Coinbase is the leading Exchange • Buy and Sell based on the current exchange value Buying and Selling

• 14. • Overstock.com • Expedia • eGifter • Newegg • Dish Network • Intuit, a paywithbitcoin service for small businesses • Microsoft • Reeds Jewelers • Green Man Gaming Accepts Bitcoins As Payment? List of Companies | 99Bitcoins Paying with Bitcoin

• 15. Want a copy of this presentation? Visit www.skokielibrary.info/handouts where this presentation will be available for four weeks. Thank You