Digital Currencies & Blockchain
History & Evolution of Digital Currencies
- Introduction to the Topic
- The emergence of Digital Currencies
- Main Principles and Definitions
What is Bitcoin anyway?
|Inflation Rate - 2019||3.8|
|Inflation Rate - 2020||1.8|
|Current Block Reward||6.25 BTC|
|Next Halving Date||May 2024|
|Next Block Reward||3.125 BTC|
|Total BTC Mined||18 600 000|
|Total BTC Mined (%)||89|
|Blocks per day||ca. 144|
|BTC Mined per day||ca. 900 BTC|
|Blockchain Size||350 GB|
|Total nodes||ca. 100 000|
- Looking for open, unstoppable, peer-to-peer payments, for reasons mentioned earlier.
- We need to agree about all transactions in the system –-> to reach a consensus about the state of the ledger.
- We need to get an agreement securely, expecting some participants to come and leave at any time, and expecting some will try to cheat. This can be achieved in basic form through proof-of-work, which is chaining blocks of transactions.
- Since proof-of-work is hard, it must be incentivized.
- Hence, Bitcoin and the concept of cryptocurrency is born.
So, why blockchain?
A tamper-proof, shared digital append-only ledger that records transactions grouped into blocks in a decentralized peer-to-peer network.
The permanent recording of transactions in the Blockchain stores permanently the history of asset exchanges that take place between the peers.
Updating the ledger (usually) requires solving Byzantine Agreements (hash) with economically incentivized participation, secured by cryptography
What is Blockchain?
1. New TX is broadcasted
2. Each Node collects TXs
3. Randomly selected node gains the right to canonize "the truth" in the block
4. Other nodes accept/reject the block based on its validity
5. Acceptance is expressed by including block's hash into the following blocks
Blockchain - synchronization
Proof of Work (Bitcoin)
Proof of Stake (PIVx)
Delegated Proof of Stake (NXT)
Practical Byzantine Fault Tolerance (Hyperledger)
Delegated Byzantine Fault Tolerance (NEO)
Proof of Importance (NEM)
Directed Acyclic Graph (IOTA, Hashgraph)
Non-fungible tokens (NFT)
What is this? And how could it be relevant?
Virtual Worlds on Blockchain
Key pre-Bitcoin Work:
UNI - L1
By David Stancel