Bitcoin: The Internet of Money Presentation
- 2. HISTORY OF MONEY Five major changes : • Barter exchange • Abstraction of value in form of Shells, feathers, beads, nuts and stones • Precious metals • Paper money • Plastic money • Network money.
- 3. INTERNET AND MONEY Today’s scenario of payments : • systems of money for small payments • systems of money for large payments. • systems of money for payments between individuals • systems of money for payments between companies, • systems of money for payments between governments. Internet of Money : • It creates a single network which can do a micro transaction to a giga transaction, in seconds anywhere in the world for any participant without permission.
- 5. • First ‘decentralized’ digital currency. Theyare digital coins you can send through the internet. • No one controls it. Bitcoins aren’t printed, like rupee or dollars – they’re produced by people, and increasingly businesses, running computers all around the world, using software that solves mathematical problems. • The internet of money was launched on January 3rd, 2009. It’s coming. It’s coming faster than you can imagine. It’s more sophisticated than you can immediately understand. It takes years of study just to see all of the implications, and it is a gift to the entire world, a technology that represents the 6th greatest innovation in the technology of money, the most ancient technology of our civilization.
- 6. BANKING AND MONEY CHANGED IN FIVE MINUTES Currently, we useFIATMoney. Trust the banks and central authorities with our money. Theyhave complete control over it asto what amount of money needs to be printed and circulated. Thesecentral authorities are the regulating bodies to whom we have given complete control of our money! Bitcoin is the way by which we can take that back power and control ofour own money and we cantransact in abetterway. It provides uswith acurrency and apayment network thatwe can control ourselves and we don’t have to rely on any single entity to create or help usto transact. Every single child born today will never have a bank account.
- 7. CHARACTERISTICS It's decentralized. It's easy to set up – set up a bitcoin wallet and you are good to go ! It's completely transparent - stored in public ledger knownas blockchain. Transaction fees are miniscule It’s fast and secure. It’s Permission less,
- 8. WHO PRINTS IT ? No one. Thiscurrency isn’t physically printed in the shadows byany bank. Instead, bitcoin is created digitally, by acommunity of people that anyone canjoin. Theyare ‘mined’, using computing power in a distributed network. And those who do this job are knownas ‘miners’. Bitcoin is based on hashing. Around the world, people areusing software programs that follow sha-256algorithm to produce bitcoins. Thesoftware used to mine it is open source, meaning that anyone can look at it to make sure that it does what it is supposed to.
- 9. HOW MANY BITCOINS? The supply of bitcoin is determined algorithmically based on a geometrically declining supply function: • In the beginning, every 10 minutes, 50 new bitcoin are created. So every block, the heart beats 10 minutes created 50 new bitcoin. • Every 4 years, it gets cut in half. 50 to 25 in November of 2012.And in the year 2016 in July, we had our second halving event, which was celebrated with birthday parties all over the world, and bitcoin’s reward went from 25 to 12.5 bitcoin. • In the year 2141, bitcoin is no longer issued. 21 million coins is the asymptotic cap. It will never reach 21 million coins.That is part of the protocol, it is an unchangeable part of the protocol and it is a rule enforced by every system that participates in the bitcoin network.
- 10. COMPONENTTECHNOLOGIES IN BITCOIN • Use of cryptographic hash functions, particularly sha-256. • Proof of Work : In 1997,Adam used sha 256 to create an anti spam system called hash cache. • Satoshi combined both of these technologies to a peer to peer network similar to Bit torrent.
- 17. BITCOIN AND ALT COINS • The building blocks of this platform and use them to construct other languages that communicate value. • Today there are over 1,000 digital currencies using the design pattern, the recipe of bitcoin. Most of them are junk, some of them are not and over the next decade we are going to see tens of thousands and then hundreds of thousands of coins. • The controlling key for a car that can be transferred from one owner to another, and five seconds later that owner can step into the car and drive away, because the car can validate the new standard of ownership.We cannot yet imagine what applications we’re going to build around this.
- 18. • Bitcoin isn’t money.The blockchain isn’t a system of currency. It is a platform of trust. • Do not underestimate this. Do not listen to the people who tell you that bitcoin is just for pornographers, terrorist, drug dealers and gamblers. Remember that they said the exact same thing about the internet.
- 19. The internet of money was launched on January 3rd, 2009. It’s coming. It’s coming faster than you can imagine. It’s deeper than you can fathom. It’s more sophisticated than you can immediately understand. It is a gift to the entire world, a technology that represents the 6th greatest innovation in the technology of money, the most ancient technology of our civilization.
- 20. THANK YOU