Business?

Deep technical knowledge

Understanding of a law

&

Be stubborn

Every human decision is arbitrary

Only mathematical algorithm can maintain non arbitrariness

We depend on minds of other people to provide “justice”. However, “justice” as social term is strongly arbitrary and the meaning strongly depends on human emotional unpredictable ilogical opinion. Function of pure justice is to be as much non arbitrary system as possible. We create big institutions as states and higher and supreme courts to avoid arbitrariness. If you see big institutions like USA, EU, International tort court, European court for Human rights, it is because people don’t want to depend only on decision of one man. Every trust in dictatorship falls with instability and unpredictability of just one man mind. We call for higher authority. Thanks to technology the human kind solved problem of arbitrariness. Math have no values.

Who will judge your actions?

Who will judge your actions?

The Government

Who will judge your actions?

The Government

But, do you trust your government with your life and money?

Anonymity

Secure information transferring

&

Cryptography

Cryptography or cryptology (from Greek κρυπτός kryptós, "hidden, secret"; and γράφειν graphein, "writing", or -λογία -logia, "study", respectively) is the practice and study of techniques for secure communication in the presence of third parties called adversaries. More generally, cryptography is about constructing and analyzing protocols that prevent third parties or the public from reading private messages; various aspects in information security such as data confidentiality, data integrity, authentication, and non-repudiation are central to modern cryptography.

SHA256

The SHA-256 hash algorithm takes input blocks of 512 bits (i.e. 64 bytes), combines the data cryptographically, and generates a 256-bit (32 byte) output. The SHA-256 algorithm consists of a relatively simple round repeated 64 times. The diagram below shows one round, which takes eight 4-byte inputs, A through H, performs a few operations, and generates new values of A through H.

Why?

Because you can easily verify mathematical computations on your own laptop.

Bitcoin for user

Bitcoin for user

Private Key

L4wkPoXXZD69FbsdgTKGYVYdfG3zan63UzL1DVf2UShs6QLvzsK7

Bitcoin for user

Private Key

L4wkPoXXZD69FbsdgTKGYVYdfG3zan63UzL1DVf2UShs6QLvzsK7

Public Key

02810508dc4638fd9cdf639a5f683fc8b921dab326397d6a70035034dcd702925f

Bitcoin for user

Private Key

L4wkPoXXZD69FbsdgTKGYVYdfG3zan63UzL1DVf2UShs6QLvzsK7

Public Key

02810508dc4638fd9cdf639a5f683fc8b921dab326397d6a70035034dcd702925f

Address

1EjabP5YCviift1kR1CFjZK46CdToMZNE7

Custody of Bitcoins

easily get hacked

vs.

so strong that leads to lost all

recommendation: Trezor

You will be like "Why should I trust Bitcoin?"

You will be like "Why should I trust Bitcoin?"

Opensource

&

History

Always think like scammer do, to not be scammed

Abstract like quantum mechanics

Basic principles to understand functionality of cryptocurrency

1. Only firsts contract is valid

2. Timestamp

3. Who has right to make a timestamp?

compute!!!

proof of work

airplane comparison (mocking number of entities)

3. Who has right to make a timestamp?

Solves:

scarcity (uniqueness)

not a arbitrary decision

- check blockchain.info

4. Agreement between timestamp servers in chain

Blockchain

5. You have to have the right to make a transaction

input = output

6. Everybody has

the same copy

ledger

&

source code

Anonymity

Participants don't know:

who are they collaborators,

what they own,

when they sleep,

what they bought,

and they can cooperate even with these difficulties.

Pseudo-anonimity

use Monero instead

Questions to functionality?

Volatility

Regulation

difficult to make mathematical operations (torrents)

easy to stop exchange

Banning Bitcoin would be like banning HTTP protocol.

How bankers think

how could I sold a bank account for 2 $ per month?

Real limitations

AML

business secrets revealing

slow contracts enforcement

special taxation on bank accounts (Cyprus)

cost of transferring money to foreign countries

extensive regulation and taxation

2012–13 Cypriot

financial crisis

On 25 March 2013, a €10 billion international bailout by the Eurogroup, European Commission (EC), European Central Bank (ECB) and International Monetary Fund (IMF) was announced, in return for Cyprus agreeing to close the country's second-largest bank, the Cyprus Popular Bank (also known as Laiki Bank), imposing a one-time bank deposit levy on all uninsured deposits there, and possibly around 48% of uninsured deposits in the Bank of Cyprus (the island's largest commercial bank), many held by wealthy citizens of other countries (many of them from Russia) who were using Cyprus as a tax haven. No insured deposit of €100,000 or less would be affected.

2016 Indian banknote demonetisation

Prime Minister of India Narendra Modi announced the demonetisation in an unscheduled live televised address at 20:00 Indian Standard Time (IST) on 8 November. In the announcement, Modi declared that use of all ₹500 and ₹1000 banknotes of the Mahatma Gandhi Series would be invalid past midnight, and announced the issuance of new ₹500 and ₹2000 banknotes of the Mahatma Gandhi New Series in exchange for the old banknotes.

Meanwhile, Bitcoin crisis is about the upgrade of code.

Greek lawywer

When capital controls were imposed during the Greek financial crisis last year, Panos Giannissis helped clients to stay in business by converting some of their working capital to Bitcoin, the virtual currency.

He negotiated a deal with his clients’ suppliers from abroad to accept Bitcoin as collateral to back importation of supplies in case his clients would not be able to make payments in fiat money

Civil enforcement

10 550 000

834 000

cca 400 000

cca 145 000

< 4

 < 10

Property protection

Valuable property without value for others

as a future of wealth management

Decentralised businesses

reputation system

automated execution in smart contract

peer to peer unstoppable system

proof of existence

Law

different state, different law

• immaterial movable property
• no VAT, but income has to taxed
• not money even the purpose is the transfer of value