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Learn what Bitcoin and Blockchain is for beginners
- 2. ● Crypto digital asset to make digital transactions ● Should be secure ● Cryptocurrencies can be anonymous
- 3. I wish I had one
- 4. ● Satoshi Nakamoto is the inventor of Bitcoin -> just a name we don’t actually know who he is Bitcoin = cryptocurrency Blockchain = distributed database (recording things) They have never confessed who they are yet
- 5. Blockchain ● Electronic database that records bitcoin transactions ● No central source for a hacker to go after ● Blockchain is very secure ● You know each and every individual transaction(personally, I dislike this) ● Blockchain rules change over time ● There is no authoritative centralized source ● Without the cloud, blockchain wouldn’t run and when has the cloud ever gone down?
- 7. Blockchain Decentralized ledger It gives peer to peer transactions without the need for a third party To do a transaction you need a private and public key Public key = address to receive funds Private key is like the bank card pin number To keep track of our crypto currency, blockchain uses a ledger which is a file that keeps track of all the transactions
- 9. Bitcoin mining ● Used with a software to solve math problems ● Bitcoins are given as a reward ● More minors = more security ● ASIC chips cause the problems to be solved faster ● What is really being mined? ● Blocks for the blockchain are being MINED ● When the first bitcoin was mined you would get 50 Bitcoins per block
- 10. Ethereum A platform with its own currency Developers can build their blockchain based programs Winner or loser would transfer from one player to another
- 12. What is a block in blockchain A blockchain is a list of linked blocks that are linked by cryptography. The blocks holds ● Transaction data ● A timestamp -> uses UNIX time ● Cryptographic hash that converts the previous block data into a fixed length of random data ->the generated hash key stores the data of the current block and the address of the next block-> Bitcoin uses SHA256 ● Nonce -> number used once, used in a proof of work blockchain, Bitcoin stores the value of a previous block as a hash value for the current block now one can change a block without modifying all other blocks in the chain ● Mining is when a miner tries to guess the correct nonce when calculating a block hash and then they receive rewards
- 13. Genesis Block ● The first block on a blockchain ● The next block will have the hash of the genesis block ● Modern versions of bitcoin call it block 0 ● It is the first block ever mined ● The first genesis block was created by satoshi nakamoto
- 14. SHA2 ● Designed by the united states national security agency NSA ● First published 2001 ● Creates hash values that are 224, 256, 384,512 bits ● SHA-1 and SHA-2 are secure hash algorithms required by law for use in certain U.S government applications
- 16. Double Spend ● What if you wanted to reverse a transaction ● Its immutable YOU CANNOT REVERSE ● Spending money more than once is also a problem -> oof ● If you paid for something and it wasn’t committed then that money could be spent again and blockchain will wonder how to resolve the issue…. ● With real money we do not have this problem ● A gap when something occurs and then there is a time gap ● They use a timestamp and give the money to the first person.
- 17. What type of encryption Cryptography is used to protect the privacy of transactions
- 18. Why the growth? ● Processes transaction faster since it is not a centralized system ● Allows user to raise a query on the transaction in real-time ● Helps create a digital identity, decentralized system will offer easy access to all information in the system to access the information from anywhere ● Helps data be real and unalterable ● 💬1 - When and Why to Use Blockchain Technology | Blockchain Council (blockchain-council.org) ● Open to the public ● Any user can view the entire blockchain, helps all users verify the data ● No central point to attack, no single point of entry for hackers ● No middleman which is expensive, time consuming Why Use Blockchain Technology? | Bernard Marr
- 19. Gathering data about Satoshi Began coding the first implementation of bitcoin in c++ 2007 Wrote the first bitcoin whitepaper In Jan 2009 he finally launches the bitcoin opensource code Over time the bitcoin began to grow they began contributing His code was great but it did have bugs