Eric Scrivner (@etscrivner)
With lots of help from
Andrew Len (@FwdSlashEarl)
Brief History of Bitcoin
Go Over The Paper
Why A Decentralized Digital Cryptocurrency?
1997 - Adam Back's Hashcash - introduces the idea of "hard to create easy to verify" proof of work as a way to fight spam.
1998 - Wei Dai's b-money proposal - a protean form of the ideas in bitcoin - namely proof of work as a means of creating digital money. Implementation described is unworkable as it requires an unjammable channel.
2008 Bitcoin Paper Released
2009 Bitcoin Client Released, First Bitcoins Mined
May 22, 2010 - Programmer Pays 10,000 BTC for 2 Papa John's Pizzas
2011 - Satoshi Nakamoto "moves on to other things"
2011 - 2014 - The Bubble Years
July 2011 - Peaked at $31
Nov 2013 to Jan 2014 - Peaked at $1000 then crashed
2014 - Present - Price Drop, High Volatility, Protocol Needs Work - Bitcoin Forked
Current State - The Honeymoon Is Over
The devil is in the details, and there's a lot of work to be done.
A Concept Of Identity
A Means Of Telling Who Owns Which Coins
Bits are trivial to reproduce so...
What's To Stop The Owner From Transferring Ownership Of The Same Coin To Many People?
"The only way to confirm the absence of a transaction is to be aware of all transactions...To accomplish this without a trusted party, transactions must be publicly announced , and we need a system for participants to agree on a single history of the order in which they were received"
Collectively construct multiple histories of all the transactions that have ever occurred. The winning history (at any moment) is the one with the most cryptographic proof behind it.
We simply accept the longest valid proof-of-work chain.
Because a proof-of-work chain is insanely hard to forge so long as the network contains mostly honest miners.