The Bitcoin Protocol for Humans
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Bitcoin Block Chain Basics
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A visual, and easy to undertsand outline of the Bitcoin Protocol. In this talk, I explain the 'legend' of Satoshi Nakamoto, and the protocol that he conceived. The specific aspects covered are Wallets, Addresses, Trasactions, The Block Chain, Mining and currency Issuance. The intention is to help a general audience understand HOW Bitcoin achieves a decentralized peer to peer currency. Armed with this understanding, groups are better equipped to have a critical discussion about the economic, social and political impacts of this technology. The outline, and visual presentation seem to be effective for the purpose, so the content belongs to the creative commons. I ask that you credit me for the work, but you are free to copy and revise as you wish. You can find the original content here (you'll have to copy the file to your own Google Drive in order to edit it): http://bit.ly/1gyJmx2
Transcript of The Bitcoin Protocol for Humans
BitcoinBlock Chain Basics
Agenda● Satoshi● Wallets● Addresses● Transactions● Block Chain● Mining● Issuance
Satoshi NakamotoAn internet creation myth
WalletsThe Bitcoin software
Wallet
Addresses & Transactions
This is a Bitcoin address:
1Kaxcsyj3wUCkffNhfd9pLYB7hmQrFa2iq
This is a Bitcoin address:
1Kaxcsyj3wUCkffNhfd9pLYB7hmQrFa2iq
KyN6RvhWyAzfTtbHAfSrjZYXvsAYnNFa2C4N8n9ttQmrBZxTWP5p
This is its private key:
This is a transaction. Send 5 BTC from 1Fi57hAqyYYwaQVdA7a9qSKfiukBbt31G3 to 1NDpZ2wyFekVezssSXv2tmQgmxco
5.2894 BTC
1Fi57hAqyYYwaQVdA7a9qSKfiukBbt31G3
12t55VJvphiUEGKqqwbd5bGGbnLkbygbV6
The BlockchainA distributed public ledger
This is a block.
A new block is created every
10 Minutes.
A block contains recent transactions.
Txn f5d8ee…
Txn a0347d...
Txn b73151…
Txn 552c91...
Txn 8cf0cd4…
Txn e541b3...
Block 293848
Hash: 0000000000000000a452d7cfbc3a7e62ec9f31bf2dcc50ed80c23e8422d9f656
This is the blockchain.~3
00,0
00
The flow of bitcoins is publicly visible.
1QHY …
Bg3
137y …
H3M
1aMS …
P3t1PxF…
23z
1PYh …
9NB
1LBE …
KHz
1JdE …
5eu
MiningReaching consensus
Mining
Hash( )
Block 293847
Hash: 000000000000000020cfe89a3… ...2f51a647fb79c766906b0eb4b2
Last hash + New Txns + Nonce
Block 293848
Hash: 0000000000000000a452d7cf...… ed80c23e8422d9f656
Network Hash Rate
Issuance
Bitcoin issuance is fixed.
2009 2041
50%
100%21
02014
(Mil
lio
ns o
f B
itco
ins)
0%
11.5
Thanks!
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