Introduction of Bitcoin

-by Rajani Bansari

Outline

• Introduction• History• Transactions• Legal issues and status• Conclusion

• Bitcoin is an experimental, decentralized digital currency that enables instant payments to anyone, anywhere in the world.

• Bitcoins are sent easily through the Internet, without needing to trust any third party.

• It is type of crypto currency.

History

• First mentioned in a 2008 paper published under the pseudonym “Satoshi Nakamoto", Bitcoin became operational in early 2009 with the release of the first open source client or wallet, Bitcoin-Qt, and the issuance of the first bitcoins.

Transaction

• Software• Wallets• Block chain• Buying and selling bitcoins

Software

• Bitcoin wallet software, sometimes called a Bitcoin client, allows a user to transact bitcoins.

• The most basic a wallet program generates and stores private keys, and communicates with peers on the Bitcoin network.

Wallets

• A collection of keys is called a wallet. Note that sometimes this term is used to mean the software itself in the sense of digital wallet.

Block chain

• Bitcoin is a public database and sequential record of all transactions, known as the block chain, that records current bitcoin ownership as well as at all points in the past.

• By keeping a record of all transactions, the block chain prevents double-spending.

• Those who maintain the block chain are called miners and are rewarded with newly created bitcoins as well as transaction fees.

Buying and selling bitcoin

• The fastest way to obtain bitcoins is to purchase them in person for cash. Participants in online exchanges offer bitcoin buy and sell bids.

• Bitcoin ATMs

Legal issues and status

• Online gun dealers• Online purchase of drugs• one half of all transactions made using Bitcoin

were bets placed at a single online gaming website.

Black market

• normal earned income rules apply to Bitcoin.

Criminal activity

Legal status

Advantages

• Mobile payments made easy• Security and control over your money• Works anywhere, anytime• Fast international payments• Protect your identity

• The essence of Bitcoin security is protection of private keys.