Bitcoin is a digital currency that functions without a central authority through the use of cryptography and a peer-to-peer network. It was introduced in 2008 by the pseudonymous Satoshi Nakamoto. Bitcoin uses cryptography through asymmetric public/private keys to verify transactions between users, and a distributed blockchain ledger records all transactions that have occurred. New bitcoins are generated through a process called "mining" where users lend their computing power to verify transactions and are rewarded with new bitcoins for successfully adding new blocks to the blockchain.

1. Bitcoin
Crypto Currency
by: M@

2. Bitcoin is a distributed, peer-to-peer digital currency
that functions without the intermediation of any
central authority. The concept was introduced in a
2008 paper by a pseudonymous developer known
only as "Satoshi Nakamoto".
Wikipedia, 2013

3. Virtual Currency vs. Gold
Gold
Bitcoin
Scarce (21m^3)
Spend Once
Supply
Portable
Scarce (21 mil)
Spend Once
Supply
Portable
+++

4. Dependant Technologies
Cryptography: Asymmetric Keys (Pub/Priv)
Hash Functions
Peer to Peer networking
Open Source Software

5. Exchanging Bitcoins
Bob -> Alice
Bob includes his public key and Alice’s public
key plus an amount of bitcoin and signs with
Bob’s private key
Broadcast into block chain into network
Verifiable by anyone (i.e. Bob & Alice)
Problem: Stop Bob from respending same
bitcoin

6. Blocks
● A collection of accepted transactions
● Chained to all previous blocks by including the hash of
the previous block
● Jan 3, 2009 : The Anchor/Genesis Block created
● New nodes are aware of the complete history
● Creating a new block == Cha Ching

7. Mining
New bitcoins are
generated when a
node finds the
solution to a hard
problem, finding a
hash for the current
block chain block

8. Probability of Generating a Coin
Your CPU Power
Total Network CPU Power
BitCoinX.com/profit

9. How to Get Bitcoins
Buy from someone: LocalBitcoins.com
Mt. Gox Exchange: MtGox.com
Work for them: reddit.com/r/Jobs4Bitcoins

10. Related/Similar Projects
Mt. Gox : Currency Exchange
NameCoin : DotBit
BitVegas.net: MineCraft Based Gambling
Silk Road
BitcoinSwearJar.COM

11. References
The original Paper: bitcoin.org/bitcoin.pdf
Security Now Podcast: www.grc.com/sn/sn-287.htm
BitCoin Wallet for Android: Author Andreas Schildbach
Wiki + More : BitCoin.org
Reddit: reddit.com/r/BitCoin