Bitcoin introduction at Bizcamp Ghent June 11th 2011 (http://bizcamp.be/). •I have tried to explain bitcoin with the following metaphors: –a cash register copied over the hard drives of all participants –public/private keys as coloured pens: a transaction is only valid if it is written in the color of the pen that is writing the transaction in the register (unlimited number of colours, none is the same) –bitcoin blocks as pages in the cash register –the node that first solves a sudoku puzzle made up of all the transactions in the page (and with the puzzle on the previous page), gets 50 bitcoins as a prize (as a metaphor for mining, this one turned out the most difficult to grasp) –the transaction history can't be falsified because that would require solving sudoku puzzles faster than the combined rest of the world –economic value generated by mining is the stability of the system as a whole (transaction history not falsifiable) •Rest of the screenshots: –how the client works –discussion of (relative) "anonymity” –driver behind current speculation: expectation that a sizeable amount of the underground economy will move into bitcoin –Bitcoin mining hardware and business –risks and challenges for bitcoin

Bitcoin: what is Bitcoin and why did it become a hype?

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My presentation at Bizcamp Ghent June 11th 2011 (http://bizcamp.be/). I tried to explain bitcoin with the following metaphors: - a cash register copied over the hard drives of all participants - public/private keys as coloured pens: a transaction is only valid if it is written in the color of the pen that is writing the transaction in the register (unlimited number of colours, none is the same) - bitcoin blocks as pages in the cash register - the node that first solves a sudoku puzzle made up of all the transactions in the page (and with the puzzle on the previous page), gets 50 bitcoins as a prize (as a metaphor for mining, this one turned out the most difficult to grasp) - the transaction history can't be falsified because that would require solving sudoku puzzles faster than the combined rest of the world - economic value generated by mining is the stability of the system as a whole (transaction history not falsifiable) Rest of the screenshots: - how the client works - discussion of (relative) "anonymity" - driver behind current speculation: expectation that a sizeable amount of the underground economy will move into bitcoin - mining hardware and business - risks and challenges for bitcoin

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Page 1: Bitcoin: what is Bitcoin and why did it become a hype?

Bitcoin introduction at Bizcamp Ghent June 11th 2011 (http://bizcamp.be/).

• I have tried to explain bitcoin with the following metaphors:– a cash register copied over the hard drives of all participants– public/private keys as coloured pens: a transaction is only valid if it is written in the color of the

pen that is writing the transaction in the register (unlimited number of colours, none is the same) – bitcoin blocks as pages in the cash register– the node that first solves a sudoku puzzle made up of all the transactions in the page (and with the

puzzle on the previous page), gets 50 bitcoins as a prize (as a metaphor for mining, this one turned out the most difficult to grasp)

– the transaction history can't be falsified because that would require solving sudoku puzzles faster than the combined rest of the world

– economic value generated by mining is the stability of the system as a whole (transaction history not falsifiable)

• Rest of the screenshots:– how the client works– discussion of (relative) "anonymity”– driver behind current speculation: expectation that a sizeable amount of the underground

economy will move into bitcoin– Bitcoin mining hardware and business– risks and challenges for bitcoin