Bitcoin 101

Ryan Milbourne

@RyanMilb

So Cal Code Camp

UCSD Extention 2017

Outline

Origins

Technicals

Problems it solves

MoneyStore of value

Medium of exchange

Unit of account

Origin

● Hash Cash, 1997- Dr. Adam Back

● Satoshi Nakamoto - Bitcoin white

paper, 2008

1.Private Key

2.Public Key

Elliptic Curve Cryptography

Stakeholders

Miners: Incentivized to validate transactions

and run the network

Developers: Maintain the software and

consensus rules

Users: Create transactions and give the

network value

Wallet Types

Hot vs cold

Web - Hosted

Hardware

Benefits of Bitcoin

Escape Capital Controls

Resistance to censorship (P2P)

Control over your money

For Merchants

Lower Fees

No Charge backs

Less fraudulent transactions*

Empower Billions

1 Billion with access to:International Markets

Banking services

More people have access to a cellphone than

sanitation (U.N. Study)

Gets around obstacles of obtaining

a bank account

Disadvantages

Volatility

51% attack

Scalability

Truly Decentralized?

Scalability

Visa 2,000 tps

Pay Pal 40-100 tps

Bitcoin 7 tps

Regulation

FEC Approved

IRS - property

CTFC - commodity

FINCEN - Money

BitLegal.io

Public vs Private

Open to innovation

Immutable*

Need proof of

work/stake for

security

Decentralized

Control supply

Editable

No need for proof of

work

Centralized

Blockchain?

More detailed blog post Why open matters -coincenter

The Future

Crypto 2.0

Services built on top of bitcoin

“Smart Contracts”

Decentralized marketplaces

The DAO

For more info:

www.bitcoin.org

Andreas Antonopoulos Video

@aantonop

www.coindesk.com

Letstalkbitcoin.com

Khan Academy Videos

RyanTMilbourne@gmail.com

@RyanMilb