...alemán Contenido Abstract ................................................................................................................................. 1 Introducción .......................................................................................................................... 3 El sistema bancario y su moneda........................................................................................ 3 El comercio electrónico ...................................................................................................... 4 Bitcoin: La revolución ........................................................................................................ 5 Metodología ........................................................................................................................... 6 Criptomonedas - Definición y alcance .............................................................................. 7 Bitcoin - Definición y alcance ............................................................................................ 7 Control y funcionamiento ............................................................................................... 8 Blockchain - Definición y alcance.................................................................................... 13 Registro de la propiedad Virtual ................................................................................... 16 Smart Contracts...
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...BitCoin the Future of Currency Currency is basically anything that is accepted as a medium for exchange. The common concept of currency is a physical note or coin of a certain denomination regulated and guaranteed by particular government or bank. Everyone around the world uses and depends on currency on a daily basis, hundreds of millions of transactions transacted by hundreds of millions of people whose individual wealth depends on the stability of their currency. The stability of any currency is dependent on many economic factors the most implicit being the stability of the issuing government. If the government who is backing the tender is unstable then the value of its money will directly be affected. Another huge factor in the value of a countries currency is inflation. Inflation is dependent on many factors, most of which are subsequent to the nature of an economic cycle. Some inflation is a by-product of the regulation, de-regulation and/or government monetary policy. What if there was a new currency that was not associated with a nation, government or bank? What if there was unified currency that allowed the wealth of one person to directly compare or exchange with to the wealth of another regardless of geographic location? This “new” currency has recently been developed and it is called the Bitcoin. The Bitcoin and its concept is extremely progressive and is not considered a savior currency that will solve any monetary problems; however, this paper will outline the...
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...BITCOINS: A VIRTUAL CURRENCY Submitted to- Professor Dilip Thosar Submitted by- Chidansh Choudhary Rashi Taneja Rashmi Khinvasara Ridhima Agarwal Sahitya Kalidindi Tejal Bhandari Date of submission: 24th December ‘13 EXECUTIVE SUMMARY: Virtual currencies are increasingly becoming a part of not only the virtual world but also in the real world. There are various problems associated with virtual currencies. Due to its similar nature to real currency, a lot of questions have risen regarding its acceptance among the people in the market, and the reliability factor. In the following paper, we have discussed the different types of virtual currencies based on their exchange factor. Bitcoins, a type 3 virtual currency is one of the most popular crypto currencies. We have discussed the characteristics and the process of transacting Bitcoins in detail, emphasizing on the pros and cons of its usage. We have also compared it with the ‘fiat’ money and mentioned its legal aspects. In the end we have mentioned a few areas for further research in relation to Bitcoins. TABLE OF CONTENTS: Sr no. | Content | Page no. | 1.2.3.4.5.6.7.8.9.10. 11. | IntroductionTypes of virtual currenciesIntroduction...
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...Bitcoin is a software-based online payment system described by Satoshi Nakamotoin 2008 and introduced as open-source software in 2009.Payments are recorded in a public ledger using its own unit of account,which is also called bitcoin.Payments work peer-to-peer without a central repository or single administrator, which has led the US Treasury to call bitcoin a decentralized virtual currency.Although its status as a currency is disputed, media reports often refer to bitcoin as a cryptocurrency or digital currency Bitcoins are created as a reward for payment processing work in which users offer their computing power to verify and record payments into the public ledger. Called mining, individuals or companies engage in this activity in exchange for transaction fees and newly created bitcoins.Besides mining, bitcoins can be obtained in exchange for fiat money, products, and services. Users can send and receive bitcoins electronically for an optional transaction fee using wallet software on a personal computer, mobile device, or a web application. Bitcoin as a form of payment for products and services has seen growth,and merchants have an incentive to accept the digital currency because fees are lower than the 2–3% typically imposed by credit card processors. The European Banking Authority has warned that bitcoin lacks consumer protections.Unlike credit cards, any fees are paid by the purchaser not the vendor. Bitcoins can be stolen and chargebacks are impossible. Commercial...
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...Agenda Understanding the workings of the new cyber currency. 1. The technology explained 1. What is Bitcoin? 2. Distributed Network 3. How the system secures itself 4. Bitcoin Mining 2. Implications of Bitcoin 1. Timeline & current situation 2. Is Bitcoin a bubble? 3. Famous opinions 4. Disruption potential 5. Issues of Bitcoin 6. The future of the Blockchain technology –1– What is Bitcoin? –2– Ledgers with all balances distributed on all nodes. –3– Keeping the system safe Can you spend someone else‘s money? Can you spend more than you own? Can you spend your money twice? –4– Verifying the source of a transaction digital signatures –5– Calculating account balances –6– Double spending fraud –7– Transaction chain vs. block chain –8– Creation of the block chain –9– Creation of the block chain – 10 – How does solving a block work? – 11 – Random guessing until hash is below threshold – 12 – Back to double spending – 13 – Double spending attack on Bitcoin – 14 – What is mining? – 15 – Mining pools – 16 – Recap Decentralized system of ledgers Transactions known by all nodes Transaction chain vs. block chain Solving blocks to confirm transactions Avoid double spending by computing power Mining pools for steady income – 17 – Recap Can you spend someone else‘s money? Can you spend more than you own? Digital Signature ...
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...Bitcoin Within the emerging world of digital technology, the amount of online transactions has increased steadily since they were created in 1979. In 2016 it is estimated that there will be upwards of three hundred ninety two billion dollars in total online transactions. With such a high demand for easy online payments, the utility of digital currencies is being recognized by more people every day. One of the newest forms of digital currency stands out greatly in terms of success in the business world. This form of currency is known as Bitcoin. Before I delve into the details regarding the utility of Bitcoin, I find it appropriate to give some background information and to explain the modus operandi of Bitcoin as it is understood by very few people, yet is extremely significant to understand both the utility and the apprehension felt by those who don’t approve of a solely digital currency. Bitcoin is a digital asset and a payment system that was invented in 2008 and released as an open-source (free usage) software. The novelty system behind bitcoin allows for direct transactions without an intermediary (such as a bank). Bitcoin also encrypts (codes) transferred data by sending the unrecognizable encrypted data through one path along the internet, then sends the decryption key (to decode the data) along another path. This assures financial security by preventing anyone along the network path from being able to intercept this data. Bitcoin currency is stored in a personal bitcoin...
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...Page 1: Invented in 2008, Bitcoin is not the first attempt at an all-digital, cryptographically based currency. Others have existed in one form or another for nearly fifty years, but have either failed to take off or dramatically crashed and burned. Bitcoin is the first cryptocurrency with the deep structure, wide adoption, and trading momentum to achieve escape velocity. In practice, Bitcoin blends credit cards' ease of digital transfer with the relative anonymity of a cash handoff. Like all currencies, the problems it poses are both practical and metaphysical; like cash or credit, Bitcoin is somehow both more and less real than the goods it is traded for. Until now, the most well-known of these goods have been illegal drugs, like those on Silk Road. But the drug marketplace's shutdown gives Bitcoin a chance to gain some much-needed legitimacy. Page2: Bitcoin's future potential was a hot topic last year at emTech, an MIT conference on emerging technologies. In a panel hosted by MIT Technology Review's Tom Simonite, MIT economist David Johnson and BitPay CEO Stephen Pair discussed Bitcoin's complex relationship with paper currencies, credit, and state authority. Johnson noted that buyers and sellers, banks and governments all care deeply about what money is used for. Money's use carries associations of value, which in turn helps establish whether a currency, a payment form, and a social model for transactions are legitimate. "It's hard to bring any of them on board if the money...
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...BITCOIN: UNA MONEDA CON CLAROSCUROS PERO CON MUCHO FUTURO. TRABAJO DE FIN DE GRADO Autor: Mikel Vallejo Moreno Director: Xabier Renteria Uriarte Escuela Universitaria de Estudios empresariales de Bilbao. 30 de Junio CERTIFICANTE DEL TUTOR INFORME DE VALORACION DEL DIRECTOR DEL TRABAJO FIN DE GRADO Director/a: Módulo: Alumno/a: Título: Xabier Renteria Uriarte Entorno Económico Mikel Vallejo Moreno Bitcoin: Una moneda con claroscuros pero con mucho futuro INFORME DE EVALUACIÓN DEL PROCESO DE ELABORACIÓN DEL TRABAJO FIN DE GRADO: Con sinceridad, puedo y debo calificar el trabajo de aptitudes del alumno en este tfg como de excepcional: - Es de resaltar su Compromiso, Responsabilidad y Ética profesional. - Ha mostrado un Liderazgo de Calidad, como con la encuesta en dos universidades. - El nivel de ‘Comunicación Escrita’ es de alta calidad, como muestra que se haya manejado con fuentes en inglés y el producto final es en un español de nivel alto. Su dominio del lenguaje del campo científico es muy aceptable para su edad y nivel académico. Con estos antecedentes, sobra -por obvias- explicitar con extensión sus aptitudes en el planteamiento de objetivos funcionales, recogida de información, y orientación del TFG, o en la coherencia de las conclusiones respecto a la estructura del trabajo. Creo también que ha identificado y respondido las cuestiones más significativas planteadas por los expertos, justificando plenamente...
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...BITCOINS (BTC) I. What are Bitcoins? • A currency that uses cryptographic techniques to allow money transfers directly between peers, rather than through a central authority like a bank. Bitcoin has been called a cryptocurrency because it is decentralized and uses cryptography to control transactions and prevent double-spending • Virtual currency designed for digital realm, generated using mining. • Mining means devoting computing resources to finding "blocks" of Bitcoins. Mining is very computationally intensive, to the point that any computer without a powerful graphics card is unlikely to mine any bitcoins in less than a few years. • “Gold for Nerds” II. Who created/invented Bitcoins? • Satoshi Nakamoto (alias) III. When did this Bitcoins created? • 2009 IV. What countries are investing in Bitcoins? • It seems like the majority of the activity comes from the US and China, with Australia, Japan, Europe and Brazil also regularly investing. (Nov. 18, 2013) V. Why did he created Bitcoins? • Satoshi Nakamoto wanted people to be able to exchange money electronically and securely without the need for a third party, such as a bank. He based Bitcoin on cryptographic techniques that allow you to be sure the money you receive is genuine, even if you don’t trust the sender. VI. How is it being created? • Through the used of complex computer algorithm and a software called “TOR” VII. How to mine Bitcoins? • To mine bitcoins, one must solve a 64-digit computer...
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...concerns about the anonymity and decentralized regulation of Bitcoin leading to an open door for the criminal element. While the reasoning behind the belief is sound, Bitcoin is not the criminal dream currency that naysayers would have you believe. All of the owners of a bitcoin wallet are only referred to by an 34 character alphanumeric address. However these address do not provide the anonymity you might expect. According to Jermey Kirk of PCWorld, “Using special algorithms, researchers were able to associate large numbers of seemingly anonymous bitcoins addresses with certain major services such as exchanges and payment processors.“ The FBI has also been successful in catching criminals who would use Bitcoin for malevolent purposes. Although the FBI wouldn’t reveal how they accomplished this feat, Forbes magazine did report the following: ‘The FBI official wouldn’t say how the agency had determined that the Bitcoin “wallet”–a collection of Bitcoins at a single address in the Bitcoin network–belonged to Ulbricht, but that it was sure they were his. “This is his wallet,” said the FBI official. “We seized this from DPR,” the official added, referring to the pseudonym “the Dread Pirate Roberts,” which prosecutors say Ulbricht allegedly used while running the Silk Road (Greenberg).’ The reason Bitcoin does not provide the anonymity you might expect is because of its very nature. The same features of Bitcoin that allow for it to be simultaneously secure and decentralized...
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...BITCOIN CASE STUDY CONTRABAND AND DRUG MONEY – NEGATIVE IMPACT UK BANKS WONT ACCEPT BITCOIN BUSINESS MODELS MORE PEOPLE ARE OPTING FOR BITCOIN POOR COUNTRIES – LARGE FX TRANSFERS CASE FACTS CHEAPER AND FASTER THAN CONVENTIONAL CURRENCY HAS RISKS AS NO SINGLE RESPONSIBLE ENTITY NO INTERNATIONAL STABILITY DIGITAL CURRENCY NEGATIVE POSITIVE Research about legislation regarding the Bitcoin and other crypto-currencies EUROPEAN COMMISION WILL CHECK BITCOIN FOR MONEY LAUNDERING AND FINANCING TERRORIST ORGANISATIONS AFTER MT GOX TRAGEDY JAPANESE GOVERNMENT WILL REGULATE BITCOIN ACTIVITY US FINCEN IS WORKING WITH IRS TO DEVELOP PROGRAMS FOR TAX EXAMINERS TAIWAN FINANCIAL SUPERVISORY COMMISSION WILL REMAIN NEUTRAL TOWARDS BITCOIN WASHINGTON STATE DEPARTMENT OF FINANCIAL REGULATIONS HAS ISSUED NEW WARNING TO POTENTIAL BUYERS OF DIGITAL CURRENCIES RUSSIA PLANS TO PENALISE THE CONVERSION OF DIGITAL CURRENCIES INTO THE ROUBLE Other new forms of virtual economy Digital currencies such as bitcoin are known as "decentralized digital currencies," meaning that there is no central point of control over the money supply. LITECOIN DARKCOIN PEERCOIN DOGECOIN PRIMECOIN The table below shows the market capitalization and price of the digital currencies NAME MARKETCAP PRICE BITCOIN $4,754,296,898 $349.81 LITECOIN $121,860,749 $3.53 DARKCOIN $20,112,825 $0.00 PEERCOIN $14,882,010 $0.68 DOGECOIN $11,066,538 $2.24 PRIMECOIN $961,543 $0.12 Would you accept to be paid in...
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... these so-‐called ‘cryptocurrencies,’ such as transaction anonymity and irreversibility of payments, have made them extremely attractive to cybercriminals, drug dealers, money launderers and those involved in global terrorist funding. The most popular crypto currency today is the bitcoin. In the medieval ages, the Silk Road was used by traders for commerce between the Oriental and European world. It was used by Marco Polo to discover Xanadu, the court of the Great Kublai Khan. In the modern era, a new ‘Silk Road’ had emerged, one that was used by traders of illicit substances to fund terrorist activities through the 'Deep Web' i.e. parts of the Internet one should never visit. The currency of their illegal trade is the Bitcoin. Though the Silk Road has been destroyed by the efforts of the U.S. Government, the Deep Web is still very much in...
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...Invented in January of 2009, Bitcoin is the world’s first online digital crypto-currency. Rather than relying on central authorities, Bitcoin uses cryptography to control its creation and management. In today’s day and age, cryptography is heavily based on mathematical theory, which Bitcoin creators used to create computational algorithms as a means of securing electronic Bitcoin transactions. From a globalization perspective, the dramatic rise of Bitcoins is of particular importance because of the threat it poses to the centralized global monetary system, as well as central banks of governments all over the world. For the basis of this report we will examine two reputable news sources, the British Broadcasting Corporation (BBC) and the Canadian Broadcasting Corporation (CBC), and review their coverage on Bitcoins, to produce an in depth analytical analysis of the global impact that this decentralised digital currency poses. Brief Introduction into the Background of Bitcoins In 2009 when Bitcoins were first unveiled to the global market, it was introduced as an alternative to the failing fiscal policy of the global monetary system, which was seen as a catalyst for guiding the world into the 2008 recession. Both news outlets recognized developer or developers, Satoshi Nakamoto, as the pseudonym for the creator of the Bitcoin protocol, which is based on “a fundamental critique of the world’s monetary system” (Mendoza, 2012, para. 4). Nakamoto expanded on this critique through...
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...Overview Society ismoving from a cash driven to a electronic payment system for the purchase or use of goods and services. The internet and mobile devices have become the market place of choice for transactions. Cash transactions are not possible through this election mercantile system. Bitcoin has risen to fill the need for electronic transactions. Bitcoin is a form ofdigital currency. Bitcoin has no government and no source of backed asset such as gold backing. The use of digital currency is being driven by several different issues. Such as the rise of rebellion of consumers who are seeking refuge from banks and taxation by governments. Consumers are losing faith due to the liquidation and taxation of the value of government back currencies. Bitcoin has become a currency that consumers can use like cash over the internet to avoid recording of the transaction. Another use is for payment of illegal activities anonymously. This report researches the rise and use of bitcoins and how it will challenge central government backed currencies. The Cyprus run on the banks George Kyprou, 62, born in Larnaca Cyprus, had worked most of his life as a chauffeur and driver in England, proudly buying his London council flat and scrimping to put aside money in Cyprus for when he returned for holidays and eventually to retire. "I'd put aside £50 here, £20 there, all my life," he said. Over decades, he had built up around €6,000 (£5,200) in a Larnaca account. "It was a state building society;...
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... MEMORANDOM TO: Paul Pascal, President FROM: Melanie Soto, Chief Technology Officer DATE: April 21, 2014 RE: Bitcoin Research Introduction: What is Bitcoin? First to answer that question, Bitcoin is another way the average consumer can sell and buy products. The way bitcoin is used is through any computer with Internet connection. As long as you have a computer you can purchase and sell items. A benefit that this has is that the accounts aren’t managed through third parties or banks therefore you can send and receive transactions with a click of a button. There are two ways that you can obtain bitcoins. One way is through mining. You have an electronic wallet on your desktop, laptop, iPad, etc. . This wallet keeps track of how many bitcoins you have and you can than start mining. Mining is when you allow you join a pool that links with other people who are mining to generate bitcoin money with the help of each other’s servers. The second way is to actually purchase a bitcoin. Problem: There are numerous ways that you can purchase Bitcoins but it all depends on which exchange process you use to purchase them. Overall bitcoin is very easy to maneuver but the actual value is not so stable. Since there is a certain amount of bitcoins that were made the value of the currency fluctuates. Meaning if the coins are in popular demands than they are going to be worth more because more people are trying to...
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