1 / 15

Cryptocurrency: Characteristics of an Ideal Money System

Explore the attributes of an ideal form of money highlighted by Bitcoin, Rai Stone, and Bitgold. Learn about the strengths and weaknesses, mining process, and system security of cryptocurrencies. Dive into the world of electronic coins and blockchain technology.

jhubert
Download Presentation

Cryptocurrency: Characteristics of an Ideal Money System

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. BitCoin

  2. Attributes of “ideal” Money • 1. General Acceptability • 2. Portability • 3. Indestructibility or Durability • 4. Homogeneity • 5. Divisibility • 6. Malleability • 7. Cognizability • 8. Stability of Value

  3. Rai Stone

  4. bitgold 1. Solve puzzles to earn ‘gold’ 2. The solution is added to a public chain of ownership 3. This solution becomes part of the next puzzle Double Spending weakness

  5. bitcoin “We define an electronic coin as a chain of digital signatures. Each owner transfers the coin to the next by digitally signing a hash of the previous transaction and the public key of the next owner and adding these to the end of the coin. A payee can verify the signatures to verify the chain of ownership.”

  6. bitcoin • Chain of Transactions vs. Chain of Property • Mining=finding the hash of a block of transactions so the first x characters are 0 • Miners incentives

  7. bitcoin 0 1 2 3

  8. The system is secure as long as honest nodes collectively control more CPU power than any cooperating group of attacker nodes. As long as a majority of CPU power is controlled by nodes that are not cooperating to attack the network, they'll generate the longest chain and outpace attackers. To modify a past block, an attacker would have to redo the proof-of-work of the block and all blocks after it and then catch up with and surpass the work of the honest nodes. We will show later that the probability of a slower attacker catching up diminishes exponentially as subsequent blocks are added.

  9. Satashi Nakamoto- 44th Richest man on the planet ($19 Billion)

  10. sources http://www.economicsdiscussion.net/money/top-8-qualities-of-an-ideal-money-material/609 https://en.wikipedia.org/wiki/Rai_stones http://unenumerated.blogspot.com/2005/12/bit-gold.html Bitcoin: A Peer-to-Peer Electronic Cash System by Satoshi Nakamoto https://github.com/qubd/mini_ecdsa https://en.wikipedia.org/wiki/Satoshi_Nakamoto

More Related