Nchinda Nchinda
MIT grad, ethereum developer, bitcoin user
Bitcoin and the Blockchain
let's get you caught up
Bitcoin and the Blockchain
BTC Club - Undergrad Course 6 - Ethereum Application Developer
by Nchinda
2
@Firescar96
Outline
- Why you should care, today
- Bitcoin Origins and History
- What is mining?
- What is the blockchain?
- Consensus
- Pseudonymity
- Bitcoin and the Blockchain
Bitcoin vs bitcoin
Why you should care, today.
| Rai Stones | Gold | Dollar | Bitcoin | |
|---|---|---|---|---|
| fungibility | ||||
| transport | ||||
| anonymity | ||||
| acceptance | ||||
| stability ($) |
1BvBMSEYstWetqTFn5Au4m4GFg7xJaNVN2
Strengths
- it works. today. right now.
- global reach
- objective inference
- inexpensive and swift
- irreversible transactions
- consensus and security
- psuedonymous
Weaknesses
- ¯\_(ツ)_/¯
A cypherpunk is an activist who uses software, protocol, and most importantly cryptography to invoke social and political change.
Bitcoin Origins
https://bitcoin.org/bitcoin.pdf
10000 BTC = 2 pizzas
Then 2013 Happened
- it works. today. right now.
- global reach
- objective inference
- inexpensive and swift
- irreversible transactions
- consensus and security
- psuedonymous
What's the Blockchain
- it works. today. right now.
- global reach
- objective inference
- inexpensive and swift
- irreversible transactions
- consensus and security
- psuedonymous
What is mining?
It's like Sudoku
- it works. today. right now.
- global reach
- objective inference
- inexpensive and swift
- irreversible transactions
- consensus and security
- psuedonymous
But...what is the blockchain?
header
Alice -> Bob
1 BTC
.0001 fee
Reward: 25BTC
header
Alice -> Charlie
5 BTC
.00005 fee
Reward: 25BTC
header
Bob -> Alice
1 BTC
.000678 fee
Reward: 25BTC
- previous block hash
time
Miner Process
- no double spends
- sources
- destinations
- values
- miner fees
- miner rewards
header
Alice -> Bob
1 BTC
.0001 fee
Reward: 25BTC
header
Alice -> Charlie
5 BTC
.00005 fee
Reward: 25BTC
header
Bob -> Alice
1 BTC
.000678 fee
Reward: 25BTC
time
Wallets do not hold your bitcoin
- it works. today. right now.
- global reach
- objective inference
- inexpensive and swift
- irreversible transactions
- consensus and security
- psuedonymous
Consensus
The Nash Equilibrium
| Stag | Rabbit | |
| Stag | A:4 B:4 | A:1 B:3 |
| Rabbit | A:3 B:1 | A:2 B:2 |
Alice
Bob
A Hunting Game
| Defend | Attack | |
| Defend | A:12 B:12 C:∅ | A:∅ B:25 C:∅ |
| Attack | A:25 B:∅ C:∅ | A:∅ B:∅ C:∅ |
Alice
Bob
| Defend | Attack | |
| Defend | A:8 B:8 C:8 | A:∅ B:12 C:12 |
| Attack | A:12 B:∅ C:12 | A:∅ B:∅ C:25 |
Alice
Bob
Charlie
Defend
Attack
numbers: order, stable system
∅: chaos, separate networks
- it works. today. right now.
- global reach
- objective inference
- inexpensive and swift
- irreversible transactions
- consensus and security
- psuedonymous
Pseudonymity
Almost anonymous
not like http://zerocash-project.org
- it works. today. right now.
- global reach
- objective inference
- inexpensive and swift
- irreversible transactions
- consensus and security
- psuedonymous
But Bitcoin is just a distraction from the blockchain...
Wrong. Wrong. Wrong.
Tokens - kotoken
Marketplaces - firecracker
Tokens - hotelblockchain
Identity - YubiID
Applications
^this is a very very small set^
Prediction Markets - Augur, GroupGnosis
Gambling - SatoshiDice
Identity - Airbitz Edge Security
MicroTransactions - ChangeTip
Gift Cards - Gyft
Amazon - Purse.io
Marketplaces - OpenBazaar
Media - Ujo Music
Marketplaces - Safemarket
My projects
In development
In use today
Bitcoin and the Blockchain 101
By Nchinda Nchinda
