1 / 18

Cryptocurrency

Cryptocurrency. Bitcoin. Dogecoin. Peter Carnesciali Marcus Rivera. Litecoin. Peercoin. What is Cryptocurrency?. A type of digital currency which relies on cryptography Uses SHA-256 hash functions or scrypt, a password based key derivation function Decentralized - no governing bank

tod
Download Presentation

Cryptocurrency

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Cryptocurrency Bitcoin Dogecoin Peter Carnesciali Marcus Rivera Litecoin Peercoin

  2. What is Cryptocurrency? • A type of digital currency which relies on cryptography • Uses SHA-256 hash functions or scrypt, a password based key derivation function • Decentralized - no governing bank • No physical coin. • Value by scarcity, supply and demand

  3. History • 2008 - Satoshi Nakamoto’s white paper • 2009 - Bitcoin was created • 2011 - Litecoin • 2011 to present - Many Cryptocurrencies

  4. Addresses: 27-34 alphanumeric chars

  5. How transactions work • Each address has a public key and private key • Sign the transaction, proving you are the owner of the address • Specify which address sending to, and how much

  6. Addresses • Generally disposable • Generate address for every transaction you receive • 2^160 possible addresses • 2^63 grains of sand on all beaches on earth • Wallet holds keys for every address you own • If you lose the private keys, you are screwed

  7. Traditional Bank Methods • Bank keeps a ledger • Account numbers and balances • Bank verifies all transactions • Transfers money between accounts

  8. Cryptocurrency Methods • Members of community (miners) keep a ledger • Addresses and balances • Verify transactions as they happen • Approve them if the balance exists • Transfer balance to other address • Issue Confirmation

  9. Majority Rules • If miners disagree about a balance, the majority rules, and all align to that. • Therefore, to commit fraud you would need >50% of mining power • All of Google's processing power not enough • More people mining, more secure

  10. Mining • Transactions grouped into blocks • Solve a "proof-of-work" problem for the block • Artificially difficult hash. • SHA-256 Hash of transactions has to meet certain criteria • Leading zeros, etc. • If you solve, you are rewarded with bitcoins

  11. Leading Zeros • If we need 4 leading zeros "Hello, world!0" => 1312af178c253f84028d480a6adc1e25e81caa44c749ec8197619... "Hello, world!1" => e9afc424b79e4f6ab42d99c81156d3a17228d6e1eef4139be78e9... "Hello, world!2" => ae37343a357a8297591625e7134cbea22f5928be8ca2a32aa475... ... "Hello, world!4248" => 6e110d98b388e77e9c6f042ac6b497cec46660deef75a55ebc... "Hello, world!4249" => c004190b822f1669cac8dc37e761cb73652e7832fb81456570... "Hello, world!4250" => 0000c3af42fc31103f1fdc0151fa747ff87349a4714df7cc52ea4... • Took 4251 tries to get 4 leading zeros

  12. Benefits • Anonymous • Instant (within few seconds) • For large transactions, wait 10 minutes to fully confirm • No (or very low) fees • (usually none, sometimes 0.0005 BTC) • Could send $100,000 for max fee of $0.23 • Transactions are permanent • No chargebacks like with credit cards/PayPal

  13. Struggles • Government trying to regulate • Price fluctuates a lot • Started at under 1 cent • Got above $1000 • Currently around $450 • Output Overflow Bug • August 15, 2010 • Only major security flaw found and exploited Bitcoin Price

  14. Dogecoin • One of the most popular altcoins • Based on the "doge" meme • Founded on the framework of Bitcoin • Sponsored Jamaican Bobsled team for Olympics • Sponsoring NASCAR driver this weekend

  15. Strange Donuts • In St. Louis • Accept Bitcoin and Dogecoin • Scan QR code for address • Send payment

  16. Questions?

  17. Sources "Cryptocurrency." Wikipedia. 28 Apr. 2014. Wikimedia Foundation. 29 Apr. 2014 <http://en.wikipedia.org/wiki/Cryptocurrency>. "History of Bitcoin." Wikipedia. 26 Apr. 2014. Wikimedia Foundation. 27 Apr. 2014 <http://en.wikipedia.org/wiki/History_of_Bitcoin>. Ingraham, Nathan. "Dogecoin has its day: The unlikely success of a joke cryptocurrency." The Verge. 29 Apr. 2014. 29 Apr. 2014 <http://www.theverge.com/2014/4/29/5665470/dogecoin-has-its-day-the-unlikely-success-of-a-joke-cryptocurrency>. "What's the History of Cryptocurrency?" Cryptocurrency. 30 Apr. 2014 <https://www.coinpursuit.com/articles/whats-the-history-of-cryptocurrency.140/>. "Quantitative Analysis of the Full Bitcoin Transaction Graph" The Weizmann Institute of Science, Israel. 1 May. 2014. <http://eprint.iacr.org/2012/584.pdf>

More Related