Bitcoin Mining by David Kopczyk

Roadmap What is Bitcoin? How does it work? Hashing/Encryption used in Bitcoin Benefits/Drawbacks

What is Bitcoin? First described in 1998 “Satoshi Nakamoto” developed original Bitcoin software Digital P2P currency Utilizes cryptography methods

How does it work? Public-key cryptography P2P networking Public key encrypts Private key decrypts P2P networking All nodes have records of all transactions Hashcash proof-of-work

Hashcash Start with a string with a number appended to it If the hash of that string starts with n zero bits, then continue Else increment number and rehash the string The “string” in bitcoin is the hash of the last record and timestamp

SHA256 Hash Start with 32 preset prime numbers Split message up into 64 32-bit chunks Perform bitwise operations on message chunks Then perform bitwise operations based upon the prime numbers AND computed message chunks Append resulting 8 32-bit chunks together to create hash

Bitcoin Mining Bounty CPU Mining CUDA/OpenCL Mining FPGA Mining ASIC Mining

Benefits/Drawbacks Anonymous Doesn’t need a central issuing authority Secure* Prevents double-spending

Sources https://en.bitcoin.it/wiki/How_bitcoin_works http://www.movable-type.co.uk/scripts/sha256.html http://bitcoin.org/bitcoin.pdf