Understanding Bitcoin and Its Protocols - Jaunt

Understanding Bitcoin and Its Protocols

By Ethan Herdrich
Experiential Learning Specialist
Bitcoin and Cryptocurrency

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Understanding Bitcoin and Its Protocols - Page 2

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What is Bitcoin?
Well it is two things.

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

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

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

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Block Chain

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• 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

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• 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

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• 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?

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

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Volatility

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• 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

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• 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

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

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Understanding Bitcoin and Its Protocols

1. By Ethan Herdrich Experiential Learning Specialist Bitcoin and Cryptocurrency

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