BITCOIN-an innovative payment network

Shailaja Sampat (131046) Rajvi Trivedi (131039)

What is BITCOIN ?

Bitcoin is a payment gateway with digital wallet. Bitcoin Foundation standardizes, protects and promotes the Bitcoin cryptographic currency worldwide. Bitcoin is an open source software. This source can be reviewed by anyone. Bitcoin is decentralized electronic cash system.

Payment gateway : e-commerce service provider Cryptography : Process of analyzing protocols necessary for information security.

About BITCOIN

The original Bitcoin software was developed by Satoshi Nakamoto-a Japanese programmer. It was founded by Bitcoin core developers in 2008. Bitcoin is first decentralized digital currency . It is useful for transaction of money in any country because it provides money transfer system in Dollars, Euros, Yens, Rupees etc.

How to use BITCOIN ?

We can use this software by downloading BITCOIN Miner application on our mobile phone or computer. We can use bitcoins got form application stored in your digital wallet. We can purchase video games , gifts ,books and can transfer money to anyone.

Governance of BITCOIN
Bitcoin's governance structure is splitted by class. The Board is currently structured with five seats. 1. Two seats by Individual member class. 2. Two seats by Corporate member class. 3. One seat by Founding member class. Governance committee members are selected by general elections. Board seats are held for a two-year term.

Objectives of BITCOIN
There are three main objectives : 1. Instant peer-topeer transactions 2. Worldwide payments 3. Zero or low processing fees

Missions of Bitcoin

Inform users to protect them from common mistakes. Give an accurate description of Bitcoin properties, potential uses and limitations. Display transparent alerts and events regarding the Bitcoin network. Invite talented people to develop Bitcoin at many levels. Provide visibility to Bitcoin ecosystem. Improve Bitcoin worldwide accessibility. Aim to advance standards and security To remain strong advocates of the liberating power of decentralized money

Workflow of Bitcoin

The block chain contains shared public transaction log. Transactions are verified that spending bitcoins are actually owned by the spender.

block chain

A transaction is a transfer of amount between Bitcoin addresses that gets included in block chain. It contains a secret private key as a proof of addressee. Transactions are broadcast

Transaction

Processing mining

Benefits of Bitcoin
Payment without going to bank Free acceptance No fee No charge-backs Simple form for transaction Digital signature , verification Transactions can be received at any time, regardless of whether your computer is turned on or off. The first neutral global currency

Disadvantages of Bitcoin
Volatile price Payments are irreversible Non anonymous system (All transactions are

stored publicly and permanently on the network, so anyone can see transactions of any Bitcoin address.)

Less secure transactions Taxes are applicable

References

https://www.google.co.in/search?hl=en&site=imghp &tbm=isch&source=hp&biw=1366&bih=633&q=bitc oin&oq=bitcoin&gs_l=img.3..0.2749.7911.0.8438.3 0.15.0.4.4.4.122.1033.8j6.14.0....0...1ac.1.26.img.. 16.14.653.vQUPLzT4DI8 https://bitcoinfoundation.org/about/governance https://bitcoinfoundation.org/about/ http://en.wikipedia.org/wiki/Bitcoin https://bitcoinfoundation.org/ https://www.mtgox.com/ https://en.bitcoin.it/wiki/Main_Page

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