Cryptocurrency
Internet Money?
Understanding Cryptocurrency
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Definition of Cryptocurrency
Crypto Coin Wallets
Types of Crypto Wallets
History of Cryptocurrency
Decentralized Ledger
What is Cryptocurrency
Growing in Popularity
Using Public Address and Private Key
Uniqueness & Value
Quiz
Block Chain
David Chaum
1983-2008
Pre-Bitcoin
After reaching $1,000 for the first time, the value of bitcoin crashes the price plummeted almost $300. It takes two years to eclipse $1,000 again.Mt GoX was handling over 70% of all bitCoin Transaction worldwide.
2013
Bitcoin Crashes
2008
Satoshi Nakamoto Paper
Click on each date for more information.
2014
Scams & Theft Expand
The Ethereum Ether Coin is launchers. The new currency arrivals Bitcoin and gains early popularity. Using Initial Coin Offerings (ICOs) the new system offer investors the chance to trade what are often startup ventures, in the same manner that they can invest and trade cryptocurrencies.
2009
Bitcoin Launched
Bitcoin software is made available to the public for the first time. The process through which new Bitcoins are created and blockchain transactions are recorded and verified by miners.
2016
Bitcoins Greatest
2010
Rival Coins are Valued
2011
Bitcoin Rivals
As Bitcoin increases in popularity and the idea of decentralized encrypted currencies catch on. The first real rivals emerge which were deeemed AltCoins. Each tries to improve on the original Bitcoin design by offering greater speed, anonymity or some other advantage. Namecoin and Litecoin are released.
A paper called Bitcoin – A Peer to Peer Electronic currency system was posted to a mailing list . It was posted by someone calling themselves Satoshi Nakamoto, whose real identity remains a mystery to this day.
Although Bitcoin was the first established cryptocurrency in 2009, there had been previous attempts at creating cryptocurrencies based on an encrypted ledgers. In 1983, the American cryptographer David Chaum conceived an anonymous cryptographic electronic money called ecash. Later, 1998 two proposed crypto currencies were describe B-Money and Bit Gold, which were formulated but never fully developed.
As it had never been traded, only mined, it was impossible to assign a monetary value to the units of the emerging cryptocurrency. In 2010, someone decided to sell theirs for the first time – swapping 10,000 of them for two pizzas. Now worth more than $100 million. MtGoX is established to exchange cryptocurrencies.
Bitcoin becomes a target for criminals. The world’s largest Bitcoin exchange Mt.Gox goes belly up. The owners loss over 850,000 Bitcoins valued at over $450 million dollars that’s equivent$4.4 billion today. Gemini and Coinbase Exchanges are established to address the Mt Gox debacle.
Definiton of Cryptocurrency
Hardware wallets are USB devices. It stores the private keys. It can be plugged into any computer to perform the transaction. Can be used any where and any time.
Risks include losing the device, backups, viruses, USB loggers, losing passwords.
Click each wallet for more information.
Types of Crypto Wallets
Online wallets are stored in the cloud. It’s a service used to store your Public Account and Private Keys. It can be accessed any where and any time. The cloud service protects your keys, with backups and security to prevent viruses, key loggers, losing passwords.
Risks include you must request the service to perform your transactions. Also must ensure they will not lose your keys. It has happened!
Desktop Wallet is an application you store on your computer. Normally very secure, but the responsibility to secure it and possibility of losing it is up to the owner.
Risks include backups, viruses, key loggers, and losing passwords.
Mobile wallets are stored on smart phones and tables. It’s an application. Can be used any where and any time. Can also scan QR codes for payments.
Risks include losing the device, backups, viruses, key loggers, losing passwords. Can use finger print as keys.
A paper wallet is just a document with your Public Account Name and Private Keys.
Risks: Is secure from hacking but the document can be lost or stolen. Data must be entered manually to perform a transaction.
Journal page 1
$ 2,000
Jan. 4, 2013
23,000
Jan. 18, 2013
ACCOUNT: Cash
27,000
31,300
$ 25,000
Date
Journal page 2
$ -
26,300
Uniqueness and Value
Description
4,000
Uniqueness & Value
4,800
25,000
Debit
Jan. 8, 2013
Jan. 25, 2013
Jan. 28, 2013
Credit
500
5,000
Balance
26,500
Jan. 1, 2013
Balance forward
Decentralized Ledger
22
25
Alice
100
103
Bob
Block Chain
Centralized Framework
Decentralized Framework
Hsk487ah365hd4kJhjHj98K0l3JHjsh76hBadueJatkKjhay
3ksSar85kJHsnOh387jaijhFFat439505kjednbjrkfmfkUA
Private Key
Crypto Coin Wallets
1ASkleyuKkjagsyt67shstHar8GFF
UwKKa9457sjfkgHhat0lJ094kdije
Crypto Wallet
Public Address
Nah8437HhsLfmCUj4ksjh5d9stGsh
Private Key (usually hidden from screen)
Note: Private Key never shown **************
JsKaQAP437sajfas7kjaHAddaUjfVxKEfd8K9HAjhdfi9Naj
Using Public Address and Private Key