Presentation: Bitcoin & The Sharing Economy Presented by: Nikos Bentenitis, Chair, Education Committee, Bitcoin Foundation, and Founder, CoinSimple Bitcoin is a digital currency and payment network that has attracted significant attention recently. In his talk, Nikos will briefly describe Bitcoin and a few potential applications of the technology in financial services. The purpose of the talk is to provide you with a framework that you can use to think about the Bitcoin technology in your business. http://www.bdionline.com/

1. Bitcoin & The Sharing
Economy
Nikos Bentenitis, PhD
CoinSimple, Bitcoin Foundation

2. Bitcoin
Decentralized Applications
Contact

3. Bitcoin

4. What is Bitcoin?
An open-source computer program that
includes
▶ A peer-to-peer Internet protocol for the
exchange of messages (transactions)
▶ A de-centralized programming language
(transaction verification system)
▶ A de-centralized and public ledger for
transactions (the block chain) secured by a
de-centralized process (mining)

5. How can value be transfered with
Bitcoin?
▶ The block chain does not hold balances, only
transactions (check analogy)
▶ Transactions are denominated in Satoshis
▶ 1 bitcoin (BTC) = 100,000,000 Satoshis

6. Why do we need bitcoins for Bitcoin
to work?
▶ Participants who do the most work (miners)
need incentives
▶ Bitcoin
▶ is scarce: There will never be more than 21 million
bitcoins
▶ is released over time with declining rate
▶ has no central issuing authority and it is distributed
▶ is based on a computer code that is open,
transparent, tested and usable by anybody for any
reason
▶ provides financial privacy
▶ carries no counter-party risk
▶ allows complete ownership of money (storage and
transfer)

7. Application 1: Bitcoin as a currency
Bitcoin is like other currencies
▶ It can be divided and combined seamlessly
▶ It can be traded for national currencies
▶ It is scarce and useful as a means of exchange

8. Application 2: Bitcoin as a payment
network
Bitcoin transactions are
▶ International
▶ Irreversible
▶ Have very low fees (about 0.0001 bitcoin)
▶ Independent of
▶ Banks
▶ SWIFT, SEPA and other inter-bank funding
networks
▶ PayPal and other payment processors
▶ Western Union and other remitters

9. Decentralized Applications

10. Decentralized Applications are
1. Open-source computer programs
2. Autonomous, block chain-based
3. Self-sustaining
4. Consensus-based
5. Monetized with tokens

11. Growth of Decentralized
Applications
1. White paper
2. Initial token distribution
3. Development-token distribution
4. Wider acceptance

12. Classification of DAs
▶ Type I: Bitcoin (has its own block chain)
▶ Type II: Counterparty, Mastercoin (needs
Bitcoin for block chain)
▶ Type III: ComputeCoin (needs Counterparty or
Mastercoin for tokens)

13. Possibilities
▶ Digital assets
▶ Derivatives, such as contract for differences
▶ Multisignature escrows
▶ Saving accounts
▶ Peer-to-peer gambling
▶ Decentralized exchanges
▶ Decentralized data storage
▶ Decentralized identity and reputation
▶ Bounties for solutions to computational
problems.
▶ Autonomous agents

14. nikos@coinsimple.com
Nikos Bentenitis