Bitcoin - Nathan's Portfolio

wallbroadSecurity

Dec 3, 2013 (3 years and 9 months ago)

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Bitcoin

Nathan Kistler

CST300L Fall 2012

What is Bitcoin?


Digital Currency


Anonymous


Secure

The purpose of Bitcoin


Provide a currency free from centralized
control


Facilitate online commerce


Allow for anonymous transactions

History of digital currency


Credit card transactions require third party
management and reveal a customer's
identity


Cypherpunks

o
Affect political change using cryptography

o
Jim Bell
-

Assassination Politics


History of digital currency


b
-
money

o
Noncommercial prototype


Bitgold

o
Scarce digital resources can have value


DigiCash

o
Prevent counterfeiting by using a trusted central authority


WoW Gold, Linden Dollars

o
Digital currency to buy digital goods


History of Bitcoin


Proposed 1998 in paper by an individual
using the pseudonym Satoshi Nakamoto


Spawned from the cypherpunk movement


First version available in 2009

How Bitcoin works


Uses publically viewable leger to verify
transactions


Peer to Peer network

o
Eliminates centralized control

o
Peers verify transaction chain by reaching
consensus


Use of cryptography

o
Keep users anonymous

o
Prevent counterfeiting


Open source

o
Users demand transparency

How Bitcoin works


Bitcoin Miner generates new currency at the
same rate as a geometric series


Total amount of currency is capped


Users have Bitcoin "wallet"


Each Bitcoin has a unique address and
associated denomination

How Bitcoin works


Bitcoin Miner generates new currency at the same rate
as a geometric series


Total amount of currency is capped


Users have Bitcoin "wallet"


Each Bitcoin has a unique address and associated
denomination


About Bitcoin

Potential issues


Security vulnerabilities


Lack of acceptance


Theft


What Bitcoin could do


Reduce the power of government authority

o
Difficult to collect taxes

o
Bypass laws and regulations

o
Allow interest groups to act without interference

o
Replace government issued currencies


Make targeted advertising more difficult

o
Disrupt business plans for many websites


Exchange Bitcoins for other types of
currency

References

bitcoin.org
staff (November 2012). About Bitcoin. Retrieved from
http://
bitcoin.org/about.html


blockchain.info (December 2012). Bitcoin Block Explorer. Retrieved from http://blockchain.info


Jim Bell (February 1996). Assassination Politics. Retrieved from http://
www.outpost
-
of
-
freedom.com/jimbellap.htm


mtgox.com (December 2012). Bitcoin Exchange. Retrieved from https://mtgox.com/


Satoshi Nakamoto (2008). Bitcoin: A Peer
-
to
-
Peer Electronic Cash System. Retrieved from
http://
bitcoin.org/bitcoin.pdf


paysius.com staff (November 2012). How it Works. Retrieved from
https://
paysius.com/how
-
it
-
works


Morgen E. Peck (June 2012). Bitcoin: The Cryptoanarchist's Answer to Cash. Retrieved from http://spectrum.ieee.org/computing/
sof
tware/bitcoin
-
the
-
cryptoanarchists
-
answer
-
to
-
cash/0


Morgen E. Peck (October 2011). The World's First Bitcoin Conference.
Retrieved from http://spectrum.ieee.org/computing/networks/the
-
worlds
-
first
-
bitcoin
-
conference


Benjamin Wallace (November 23, 2011). The Rise and Fall of Bitcoin. Retrieved from http://
www.wired.com/magazine/2011/11/mf_bitcoin/all/1


weusecoins.com staff (May 22, 2011). What is Bitcoin? Retrieved from http://www.youtube.com/watch?v=Um63OQz3bjo


weusecoins.com staff (December 2012). Top Questions. Retrieved from http://www.weusecoins.com/questions.php