http://idcee.org/p/martin-albert/ Martin is a full-time Bitcoin enthusiast from the very beginning of the cryptocurrency era. As a voluntarist, he thinks that statism is a crime and thinks about how to make the Bitcoin world a better place. For him, the most exiting thing is its political aspect - you and only you control your wealth. Having lost quite some Bitcoins in the past, Martin understood that centralized exchanges are in no way different than normal banks, where you give up control over your money. This inspires him to create a service for the Bitcoin world where the Bitcoins are always safe and in control of the users. Pic's are here: http://www.flickr.com/photos/idcee/sets/ More @ http://idcee.org Follow us on: YouTube: http://www.youtube.com/user/OfficialIDCEEChannel Facebook: https://www.facebook.com/IDCEE Linkedin: http://www.linkedin.com/groups/IDCEE-3940138 Twitter: https://twitter.com/idcee_eu Google+: http://gplus.to/idcee Flickr: http://www.flickr.com/photos/idcee/collections/

1. Sophisticated
multi-signature
solutions
Bitcoin

2. about me
background
•Martin Albert, 33 years old
•Diploma in Chemistry, Diploma in Business Economics
•Business Consultant in the field of chemicals legislation
•EU bureaucrat
•2011 Discovered Bitcoin, early adopter
•2012 Full time Bitcoin enthusiast
•2013 Investor, CEO at Bitalo AG
www.bitalo.com
Phone: +49 6322 9419292 | e-mail: martin@bitalo.com

3. Now more about bitcoin
lets see…
A system to transfer “value” from person to person
Inventor: 2009 – “Satoshi Nakamoto”
As White Paper
Open Source project
www.bitalo.com
Phone: +49 6322 9419292 | e-mail: martin@bitalo.com

4. a story about an apple
www.bitalo.com
Phone: +49 6322 9419292 | e-mail: martin@bitalo.com

5. But now a virtual apple
www.bitalo.com
Phone: +49 6322 9419292 | e-mail: martin@bitalo.com

6. Now you require a ledger
www.bitalo.com
Phone: +49 6322 9419292 | e-mail: martin@bitalo.com

7. Basis is the P2P Network
Like Skype or Bit-torrent
Download client, install, start
When connected you can tell your
computer to confirm transactions
Computer will confirm Bitcoin transactions
Reward for confirmations in Bitcoins
www.bitalo.com
Phone: +49 6322 9419292 | e-mail: martin@bitalo.com

8. Bitcoin?
- decentralized, peer to peer....
- no banks or 3rd parties needed
- secure system / everything with encryption
- somehow anonymous...
--> SO WHAT?
www.bitalo.com
Phone: +49 6322 9419292 | e-mail: martin@bitalo.com

9. Transaction in Detail
General principle:
I take a certain amount of bitcoins
I take my public key as sender
I take public key of recipient
Transaction is signed with my private key to prove that I am
sender
Transactions are public and sent to the bitcoin network.
Network checks if transaction is valid and “confirms”
www.bitalo.com
Phone: +49 6322 9419292 | e-mail: martin@bitalo.com

10. Normal Bank Transaction
Normal Bank account:
Person and Account are connected
Only Sender, Receiver (and Bank)
Know about the transaction
Bitcoin:
Transaction is PUBLIC,
But it is NOT known who is behind the account (unless known)
One person can have unlimited bank accounts
www.bitalo.com
Phone: +49 6322 9419292 | e-mail: martin@bitalo.com

11. Status Quo - Intermediary
www.bitalo.com
Phone: +49 6322 9419292 | e-mail: martin@bitalo.com

12. Status Quo - Intermediary
www.bitalo.com
Phone: +49 6322 9419292 | e-mail: martin@bitalo.com

13. Status Quo - Intermediary
www.bitalo.com
Phone: +49 6322 9419292 | e-mail: martin@bitalo.com

14. Status Quo - Intermediary
www.bitalo.com
Phone: +49 6322 9419292 | e-mail: martin@bitalo.com

15. Status Quo - Intermediary
www.bitalo.com
Phone: +49 6322 9419292 | e-mail: martin@bitalo.com

16. Problem solved? – Bitcoins
- Centralized Service??
- Give up control over my coins??
- Security issues with hackers?
- Sites close over night???
--> SAME PROBLEM AS BEFORE!
www.bitalo.com
Phone: +49 6322 9419292 | e-mail: martin@bitalo.com

17. so…where should I store my Bitcoins
www.bitalo.com
Phone: +49 6322 9419292 | e-mail: martin@bitalo.com

18. Get Bitcoins
What if a service exists where you….
- DO NOT give up control over your coins
- DO NOT allow even the administrators to
access your coins
- IS NOT possible that Hackers can steal
coins, even when the server is compromised
-DO NOT need to trust the trading party, as
still an escrow is in place? EVEN when the site
is closed?
www.bitalo.com
Phone: +49 6322 9419292 | e-mail: martin@bitalo.com

19. Trick: Multi-Signature wallets
www.bitalo.com
Phone: +49 6322 9419292 | e-mail: martin@bitalo.com

20. “Normal” Transaction
How does it work?
www.bitalo.com
Phone: +49 6322 9419292 | e-mail: martin@bitalo.com

21. Multi-Signature
Part 1: Create multi-signature address
-Get two or more Bitcoin addressees.
-Combine them using addmultisigaddress JSON-RPC command
-As a result, you will get a special Bitcoin address starting with „3”.
-The resulting Bitcoin address is fully functional and can receive coins.
-You can create different combinations of M-of-N addresses. It means that
you can specify how many private keys are needed to spend the coins.
www.bitalo.com
Phone: +49 6322 9419292 | e-mail: martin@bitalo.com

22. Multi-Signature
Part 2: Spending coins from multi-signature wallets
-Create a transaction draft using createrawtransaction JSON-RPC command
-Sign the resulting transaction data with one of private keys, utilizing
signrawtransaction command
-provide it with correct details, which may include: public key and redeem script
-Pass partially signed transaction data to other party, which repeats this process
-Finally, you broadcast the transaction to the network (using sendrawtransaction
or another means)
www.bitalo.com
Phone: +49 6322 9419292 | e-mail: martin@bitalo.com

23. Multi signature wallets
www.bitalo.com
Phone: +49 6322 9419292 | e-mail: martin@bitalo.com

24. Multi signature wallets
www.bitalo.com
Phone: +49 6322 9419292 | e-mail: martin@bitalo.com

25. Hackers and admins see encrypted wallets
www.bitalo.com
Phone: +49 6322 9419292 | e-mail: martin@bitalo.com

26. Two-Factor authentication

27. And the last resort: Dead Man’s Switch
www.bitalo.com
Phone: +49 6322 9419292 | e-mail: martin@bitalo.com

28. Bottom line
- It IS possible to create REAL NO TRUST Bitcoin
services
- Multi-Signature wallets, no one can ever access
the bitcoins without your consent
- Thanks to MePIN two factor authentication not
even if your PC is compromised
-With timed backup-transaction coins are even
safe when service is closed down or server data
is deleted
www.bitalo.com
Phone: +49 6322 9419292 | e-mail: martin@bitalo.com

29. THANK
YOU
FOR watching