Download to read offline
![n1
21
Developing Countries.
Source: https://www.cryptocoinsnews.com/opinion-venezuela-proves-bitcoin-future-money/
[Bitcoin] roars (…) above it
all, for it is the people’s
voice. The people who are
taking back their rights
and imposing what is
obviously good – the true
value of market prices,
free from any
manipulation, guaranteed
by code, governed by us
all.’ (Andrew Quentson)](https://image.slidesharecdn.com/n1-bitcoin-intro-171206091454/75/net1-digital-Bitcoin-Blockchain-Intro-Network-based-money-21-2048.jpg)
![n1
21
Developing Countries.
Source: https://www.cryptocoinsnews.com/opinion-venezuela-proves-bitcoin-future-money/
[Bitcoin] roars (…) above it
all, for it is the people’s
voice. The people who are
taking back their rights
and imposing what is
obviously good – the true
value of market prices,
free from any
manipulation, guaranteed
by code, governed by us
all.’ (Andrew Quentson)](https://crownmelresort.com/image.slidesharecdn.com/n1-bitcoin-intro-171206091454/75/net1-digital-Bitcoin-Blockchain-Intro-Network-based-money-21-2048.jpg)
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net1.digital - Bitcoin & Blockchain Intro - Network-based money
- 1. n1 Intro Bitcoin &Blockchain. NOVEMBER 2017 @BorisReinhard #AskAboutDigital@net1_digital From institution-based money to network-based money. PLEASE NOTE: THIS IN NO INVESTMENT ADVICE
- 2. n1 2 BORIS REINHARD Profile: Boris. “I AM NOT A TYPICAL CONSULTANT. ★ Dipl.-Ing. & M.Sc. ★ History: E-Business & UX, EAM, Digital ★ Topics Digital, Bitcoin & Blockchain ★ My mission is to coach and guide companies, ventures and startups through the digital shift and through blockchain projects ★ Curator for 'Blockchain & Crypto' with Scope ★ Focus on business value, not features ★ Initiator EAM Community CH, Digital Community CH ★ Member of D_BREAK ★ Certified Bitcoin Professional (CBP) , ID 2f7220
- 3. n1 3 The Blockchain (andshared ledger respectively) are extremely promising technologies. It has the potential to change almost every industry. We help you to identify a viable and sustainable business model around the technology and guide you through your Blockchain journey. BLOCKCHAIN – USE CASES Our passion is to guide companies through the digital shift, drive their innovation and leverage new technologies as well as customer-centricity. We make digital strategies, identify digital opportunities and initiate transformations. And we guide you in planning, managing and implementing digital initiatives, ventures and start-ups. DIGITAL TRANSFORMATION – BUT HOW? net1.digital - What’s hot? There are some hot topics, which are currently high on the agenda of companies. Some introducing words regarding these focus topics:
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- 7. n1 Bitcoin & SatoshiNakamoto. n1 Source: calvinayre.com 7
- 8. n1 URL: https://youtu.be/Gc2en3nHxA4 What isBitcoin – Video. 8
- 9. n1 9 The death ofthe Intermediary? Picture: http://bit.ly/2v1pT7H (Deloitte/dupress.com) Text: http://bit.ly/2vvJaRV Bitcoins can be owned by any individual, without permission from any bank or government. They can be sent to anybody else in the world who knows how to operate a ‘Bitcoin wallet’. It is this principle of ‘censorship resistance’ that captures Bitcoin’s essential breakthrough — and which explains early concerns by lawmakers and regulators. Banks are losing control... n1
- 10. n1 10 Bitcoin & Ethereum. BITCOIN(BTC & BCH) THE TWO LEADING DIGITAL CURRENCIES Source: http://bit.ly/2tyld7F ETHEREUM (ETH, NOT ETC) ★ The Bitcoin Blockchain is an example of a public blockchain and is so called because it is the blockchain on which the digital currency Bitcoin rides. Gartner calls it “the only proven blockchain.” ★ Part of what makes Bitcoin valuable is that there is a nite supply. Supply is limited by virtue of the way it is “mined” and by the fact that Satoshi Nakamoto capped the number of Bitcoin at 21 million to counteract inflationary pressure. ★ Ethereum is another public blockchain with its own digital currency, Ether. ★ Ethereum is a powerful development platform on which innovators can build a diverse array of applications due to its core innovation, the Ethereum Virtual Machine. ★ Ethereum pioneered the concept of “smart contracts,” programmable conditions that run automatically, without censorship, fraud or third-party
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- 12. n1 12Source: https://cointelegraph.com/news/vc-expert-gurley-bitcoin-is-incredible-store-of-value Store of Value. "Ithink of it as an incredible store of value in the rest of the world. I don't think it's irrational.” (Bill Gurley)
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- 14. n1 … like anIBAN … like your E-Banking-Login Please note: Never share your private keys! Bitcoin: Public Address & Private Key. 14 Be your own bank. n1
- 15. n1n1 Source: https://jaxx.io/images/3Incontrol.png +https://cdn3.geckoandfly.com/wp-content/uploads/2016/12/530-bitcoin-wallet-1.jpg + http://www.coinpurveyor.com/wp-content/uploads/2017/08/coinomi-bitcoin-cash-7.jpg App-Wallet as Keyholder (online, “hot”). 15
- 16. n1 Source: NZZ.ch +https://i.ytimg.com/vi/a47rrYBWjWQ/maxresdefault.jpg Paper/Plastic as Keyholder (offline, ‘cold’). 16
- 17. n1 Source: http://www.pcgameshardware.de/screenshots/original/2013/11/Bitcoin-162-pcgh.jpg +http://object2212.com/wp-content/uploads/2017/05/Denarium_brass_rev.jpg ‘Real’ Coins as Keyholder. 17
- 18. n1 Source: https://www.sbb.ch/en/station-services/services/further-services/bitcoin.html +https://www.bitpanda.com Buy Bitcoin (SBB, Exchanges). 18 SBB CFF FSS Exchanges like Bitpanda, Bitstamp, etc. Warning: Do not use kraken Bitcoin Exchange (www.kraken.com)
- 19. n1n1 19 Example: Bitcoin PriceIndex (USD). Source: http://www.finanzen.ch/devisen/chart/bitcoin-franken-kurs - shirt: https://teespring.com/shop/make-america-a_copy_24#pid=2&cid=2397&sid=front 28 November 2017: 10’000 USD = 1 BTC CHF Source: visualcapitalist.com 28 Nov. 2017
- 20. n1n1 Transaction Summary Source: http://bit.ly/2tyld7F seconds,max. minutes Example: BTC/ETH
- 21. n1 21 Developing Countries. Source: https://www.cryptocoinsnews.com/opinion-venezuela-proves-bitcoin-future-money/ [Bitcoin]roars (…) above it all, for it is the people’s voice. The people who are taking back their rights and imposing what is obviously good – the true value of market prices, free from any manipulation, guaranteed by code, governed by us all.’ (Andrew Quentson)
- 22. n1n1 22 Smart Contracts Platform. Source:http://bit.ly/2wFNPwJ An option contact between parties is written as code into the blockchain. The parties involved are anonymous, but the contact is the public ledger. A triggering event like an expiration date and strike price is hit and the contract executes itself according to the coded terms. The data comes from oracles. Regulators can use the blockchain to understand the activity in the market while maintaining the privacy of individual actors’ positions.
- 23. n1n1 23 Smart Contracts Platform. Source:https://www.draglet.com/blockchain-applications/smart-contracts/use-cases The current problem with insurance policies is that the claims process can take weeks or even months to be paid. The process is still very manual and requires a large degree of human action. This adds up to a lot of administrative costs, which result in higher premiums for customers. Insurance companies can automate insurance policies by writing them into a smart contract. When the input conditions of the smart contract change in an insured event, for example in the event of a catastrophic natural disaster, then the claims process is triggered immediately. Smart contracts in insurance policies
- 24. n1 Use Cases. 24 DIGITAL IDENTITY- CRYPTO-VALLEY (ZUG) Zug, Switzerland, aka Crypto-valley, is now often compared to Silicon Valley, as it is home to many crypto-related companies and gets its name from the type of businesses it attracts to the area: crypto. Furthermore, according to the announcement, Zug is now becoming the first community in the world to offer all citizens the opportunity to get a digital identity based on the Ethereum blockchain. Residents can register their identity by themselves using a special app that secures personal information using blockchain technology and associates it with a crypto address. Subsequently, the identity is verified by the identity control of the city of Zug. Zug will gather more experience with blockchain in the third quarter in a bid to hold a non-binding e-referendum in spring of 2018. The software has come to be seen as a potential technology to revolutionize the Swiss voting system, which today still relies on ballot papers and hand counted results. Source: http://bit.ly/2eR2TEn + https://twitter.com/wef/status/904733670673666050
- 25. n1 Use Cases. 25 DIGITAL PASSPORTFOR DIAMONDS (EVERLEDGER) The diamond industry is beginning to implement a system called Everledger, based on block chain technology, which establishes a digital ‘passport’ for each diamond. This records its provenance, travel, and transactions with a unique cryptographic ‘fingerprint’. This system has three stages: ★ Establish an e-ID (electronic identity) for each diamond, by digitising its attributes and a laser-inscribed serial number onto an authoritative block chain ledger ★ Assign a digital passport to the diamond to record its travel, transaction history and provenance ★ Detect and guard against illegal activities or fraudulent behaviour Source: http://bit.ly/2vvJaRV
- 26. n1 Use Cases. 26 DECENTRALISED INSURANCEAPPLICATIONS (ETHERISC) Etherisc's mission is to build decentralized insurance applications, making the purchase and sale of insurance more efficient, enable lower operational costs, provide greater transparency into the industry of insurance compared to traditional operations, and democratize access to reinsurance investments. They present a token model which enables investors to buy and trade the “long-tail” risks of a decentralized insurance portfolio and to gain exposure to its revenue as an income stream. Together with a consumer-facing insurance application, this shows how a decentralized insurance system could work on the blockchain. Example: ★ Flight Delay Dapp (Issues policies and pays out valid claims completely autonomously) Source: http://bit.ly/2tOVRXm
- 27. n1 Use Cases. 27 Peer-to-Peer Electricity(Brooklyn Microgrid / LO3 Energy) A community microgrid in Boerum Hill, Gowanus and Park Slope in support of Governor Cuomo’s goal of creating local energy networks with the ability to separate from the larger electric grid during extreme weather events or other emergencies. The community microgrid will create a local energy network with a focus on: ★ Working with community leaders, utilities and technology partners to identify the best fit for distributed energy resources and critical infrastructure upgrades ★ Developing locally generated energy that provide resiliency for emergency needs of local communities ★ Reducing customer costs and promoting clean, renewable electricity, energy efficiency and energy storage options within my community ★ Managing these distributed energy resources for times of power outages and emergencies to protect my community and local economy ★ Identify and create new financial incentives and business models to drive community involvement and jobs, boosting the local economy Source: https://suncontract.org/res/whitepaper.pdf
- 28. n1 28 n1 Blockchain - Bitcoin& Ether Wallet. Public Address Private Key 1LepvSQ5cvQ5hDiWErtGPhzKHJ6poV16YF L4CArzTZBqubj3Pph4p4184Lu2Yx1nDkxpTrShY1QxtCWeUejzp3 1743rp1NPRJkVWjxDiw9FQM2EC9vP8P9oZ L2ZAB7Jsh5s1bSs6ZGoZ3UxBYtZWpiqFkMvfE5k9X9FWtUtpGNs7 1PT2b4Noji9tjBs2R8Q1g9t3pLAaGwW64G L2nayfGjXp1XfRwPPVoy3pCmi8iDkR5RYQHbP6i4nHPGSTtJhe5Y 1Km3tjQ1iY5kSXuPVZzNCqqj1hZVqEMeSA L4g8TYpXtpU1YYKpuxEu7fvyqau54Yi5wjSrUYu5cbkJnaJgmFak 1QFYAQtsinqwUh8h7zUHYhJH46vo9Z51eo L4i4auw3zw3xhFsqxC8uJZKZXipt9fc5C5rTWtFVB2KE3YdSE2Pi 1Kx1hN2nsUjWSyoVTXRnbL1JhQ2PczevPL L1ETpbxCPKGBrCX34D413ZJ72GpeZLMfbCZnEvb25oLGL6x86koh 113JUsKYbgxcCgKCNqf2esMKWJC4TgvEQ3 KzKGXaZ1jpC71P72XG8krEG6KSPrRMs6fzYC838deuBZB36uTiS8 1HTgiccKmHrQkJ2tCZrnzExsxJT4HV71HR L4VPSa36e39JzQeyaXL3kFpCJS6AJKzG3xwJ78Eqpg4Cc8nf3agy … … ‘Masterseed’ Pleasenote:Nevershareyourprivatekeys!
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- 30. n1 30 n1 Do you wantmore information? CRYPTO LETTER CRYPTO PODCAST CRYPTO MAGAZINE
- 31. n1 31 n1 Do you wantto trade? ★ NOTHING is more important than security, and the best way to secure your bitcoin longterm is with this Ledger hardware wallet: http://bit.ly/get-ledger ★ Next, set up VPN: https://bitvpn.org/. Buy their basic service, and encrypt your internet connection. ★ Then get https://malwarebytes.com and https://AVG.com for free! ★ Download https://authy.com/ on your mobile device and set up 2FA with everything. ★ Quality trading happens on https://bittrex.com - Get a free account, set up 2FA, and whitelist your your withdrawal addresses to only withdraw onto your Ledger Wallet. ★ Buy low, sell high, and store your profits with the utmost care. ON YOUR OWN RESPONSIBILITY… PLEASE NOTE: THIS IN NO INVESTMENT ADVICE
- 32. n1 net1.digital GmbH Rütistrasse 14 CH-8952Schlieren (ZH) +41 44 500 25 66 contact@net1.digital www.net1.digital @net1_digital Dipl.-Ing. & M.Sc. Digital Entrepreneur, CEO +41 79 813 95 59 boris.reinhard@net1.digital @borisreinhard Contact. Boris Reinhard #AskAboutDigital www.askabout.digital n1 17mFTRdNXA75s8vNYb5sbDGCs4UjDgQ43X
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Editor's Notes
- #2 Hello Together Thanks a lot for joining us in this SkillShare Breakfast about Bitcoin & Blockchain. Today – as mentioned in the title of this breakfast - we will give you a short introduction to Bitcoin and Blockchain. First of all, we will introduce you Bitcoin and blockchain and Then, we will have a practical training. In the exercise, you will learn how to setup a bitcoin wallet on your smartphone And how to send and receive bitcoins. Please do not hesitate to ask us for any questions. even during our presentation.
- #3 But before we start, some words about us. My name is Boris Reinhard and I do not see me as a typical consultant. Why? I have worked in several areas such as E-Business, Enterprise Architecture and Digital Transformation. My passion is to support companies during the digital transformation and with challenges regarding blockchain technology. My focus is on business value and not on technical features. I have founded and established 3 companies, among others net1.digital earlier this year. Beside, I am responsible for the digital community switzerland. MY PASSION IS TO GUIDE COMPANIES THROUGH THE DIGITAL SHIFT, DRIVE THEIR INNOVATION AND LEVERAGE NEW TECHNOLOGIES AS WELL AS CUSTOMER-CENTRICITY. I IDENTIFY, PLAN AND EXECUTE DIGITAL STRATEGIES AND TRANSFORMATION, LEVERAGE NEW TECHNOLOGIES AND CUSTOMER-CENTRICITY. AND I GUIDE YOU IN PLANNING, MANAGING AND IMPLEMENTING DIGITAL INITIATIVES, VENTURES AND START-UPS. LESS TALK, MORE ACTION
- #4 Currently, there are two hot topics in my new company Blockchain (and Bitcoin respectively) and The digital transformation Still, most companies do not know how to start and how to Benefit from digital technologies. That’s where we come into play.
- #5 Let’s start with our main topic, Bitcoin
- #6 We all know what 2008 happened. The financial crisis damaged the trust of the people in the classical, established banking system and banks in general. Just when the financial crisis happened, A person or group with the pseudonymous SATOSHI NAKAMOTO introduced a white paper about bitcoin.
- #7 In fact, nobody knows who Satoshi is Newsweek announced in 2014 that they have found him But, the person they found was not the real Satoshi and did not know anything about bitcoin In the white paper, bitcoin and the underlying bitcoin-blockchain, is explained Based on this document, bitcoin was introduced at the beginning of 2009 Meanwhile, the American NSA has announced that they know who Satoshi is But they remain silent on the fact who this person is. As mentioned before, the first bitcoin transaction happened in January 2009
- #8 An Australian called Dr. Craig Wright claims that he is SATOSHI. But there is no proof yet
- #9 Meanwhile, nearly everybody knows about bitcoin, and blockchain. Even the world economic forum WEF sees a big potential in blockchain At this point we will watch a short film ‘bout Bitcoin, created by „We Use Coins“ to get a better overiew!
- #10 What is this great thing in the bitcoin-blockchain. Isn’t Bitcoin just a digital currency? Since the 90ies, people tried to develop a digital currency, but all of the experiments failed. Bitcoin is the first digital currency that really works. In addition, You do not need any intermediaries such as banks or payment providers Nobody can censor the bitcoin blockchain Everybody who holds bitcoins, is able to send bitcoin to everybody who has a bitcoin address. On the one hand, bitcoin causes headaches for bankers. But on the other hand, this new system has a lot of potential, even for banks.
- #11 Well, as most of us know, bitcoin is not the only crypocurrency The most important blockchains in the cryptocurrency area are currently Bitcoin and Ethereum Bitcoin As already mentioned, Bitcoin was the first digital currency That works Ethereum Is not just a digital currency with the coin “ether” Ethereum is a platform, On which business logic can be developed In the form of smart contracts and Decentralised apps
- #12 Who knows what Bitcoin Cash is? Since the transaction volume and the fees in Bitcoin have increased, A part of the bitcoin community switched to bitcoin cash, where the fees are lower.
- #13 Hence - It’s not surprising that Bitcoin is used as a store of value. AND
- #14 Hence - It’s not surprising that Bitcoin Cash is more often used for micropayments As you can see in ‘Roger Ver’s tweet here.
- #15 /// In our exercise, we will use Bitcoin wallets, more precisely „paper wallets“ A bitcoin wallet has 2 components The public key This is your payment and wallet address, analogous to an IBAN for banking payments The other component is the private key This is your key to your bitcoins It should be handled with care And the private key should not be lost The person who has the key, has full control over the bitcoins in the wallet Please be aware that you have the full control over your wallet You are your own bank Nobody can block or steel your bitcoins online given that your private key is offline on a paper wallet And please watch for cameras.... ;)
- #16 How can you transact your bitcoins On the wallets, your private keys and public addresses are „stored“ One type of a wallet is an app wallet This app manages your keys and addresses Usually, depending on your wallet, the private key can be exported For example, if you want to backup your wallet or so An app wallet is the most comfortable way to manage you bitcoins Even though it is a not secure way to store bitcoins
- #17 A more secure option are offline wallets Especially wallets you have made yourself For example you can download a script on bitaddress.org, go offline and print a paper wallet via usb I recommend to store bitcoins on an offline paper wallet
- #18 In addition, there are some other ways to store bitcoins You can buy real coins with the address and key on it The key is usually hidden behind a holographic sticker The coin itself has just the value of the raw materials
- #19 Where can you buy bitcoins? One comfortable way is to buy bitcoins at an sbb ticket machine Or at a special bitcoin machine, for example at Kafi Schoffel in the Niederdorf or at SBB Hardbrücke in the Ernst & Young branch office next to the reception Another way to buy and sell bitcoins are crypto exchanges like kraken or bitfinex, in the internet But, you have to identify yourself there due to regulatory standards
- #20 What else is important The amount of bitcoins is limited to 21 million Every 10 minutes, 12.5 BTC are mined The last bitcoin will be mined around 2140 Hence, the value of bitcoin is increasing continuously Bitcoins can be divided down to 8 decimals (a one hundred millionth of a single bitcoin = satoshi) Decreasing exchange rates are largely a temporary phenomenon..
- #21 Just a few words about how a transaction works
- #22 If you think about developing countries and countries with hyperinflation The people there do have nothing to lose There money is almost worthless They do not ask for risks regarding bitcoin, e.g. a loss of value They just use bitcoin to store value… This is possible since everybody can download a wallet And store bitcoin in the wallet Without identification Without banks Just within minutes
- #23 Just to give you a quick insight how smart contracts work… Unterschiede zu klassischen Verträgen: Vertragspartner können anonym bleiben, Gegenpartei muss also nicht bekannt sein oder durch eine Drittinstanz geprüft werden Der Vertrag wird in einer Computersprache erfasst Wird vollautomatisch ausgeführt Geringe Kosten und Effizienz Sofortige Ausführung bei einem Event Somit auch für Mikrotransaktionen interessant (z.B. Kaffee kaufen)
- #24 A practical example could be insurance policies Nehmen wir eine Versicherung Auf Basis des Smart Contracts wird eine Police vollautomatisch abgeschlossen Event-basiert wird die Schadensfallabwicklung vollautomatisch angestossen Die Auszahung erfolgt auch vollautomatisch
- #25 /// Auch Zug schläft nicht. Zug ist sozusagen neben dem Silicon Valley die zweite Hautptstadt der Crypto Szene Hier sind über 180 Unternehmensideen in den Startlöchern Die Stadt ZG hat die digitale ID für seine Bürger eingeführt, Die Behördengänge und – prozesse stark vereinfacht und automatisiert
- #26 /// Spiegel zu zwei verschiedenen Zeiten … Was ist dran and diesen plakativen Aussagen? Gibt es seit 1978 wirklich weniger Arbeitsplätze? Tatsächlich ist die Arbeitslosigkeit Anfang 2017 in der Schweiz im Vergleich zum Vorjahr gesunken... (bei ca. 3% kann man da von Arbeitslosigkeit sprechen?)
- #27 /// Neu in Zug ist Etherisc Hier lassen sich bereits heute kleine Versicherungen ad hoc abschliessen z.B. für verspätete und ausgefallene Flüge Das ist nur der Anfang
- #28 /// In Brooklyn entsteht ein privates Stromnetz Wo Kunden sich selbst gegenseitig mit Energie versorgen Hintergrund ist auch, dass man Unabhängig sein möchte Und sich die Einspeisung von Solarstrom ins Netz derzeit nicht lohnt
- #29 https://iancoleman.io/bip39/
- #30 So let’s start with our exercise…