Bitcoin as real currency Bitcoin

Phone: | Bitcoin? - decentralized, peer to peer no banks or 3 rd parties needed - secure system / everything with encryption - somehow anonymous... --> SO WHAT?

Phone: | why bitcoin for saving transaction fees? for purchasing goods? for staying anonymous? speculation? for drugs and money laundering? Well, all nice…But not enough. the difference is: It is YOUR MONEY!

Phone: | Problem 1: REGULATION

Bitcoin for Business – PITA

Individual User REGULATION AFFECTS BUSINESSES, NOT PRIVATE USERS! Usually no „license requirements“ Usually no VAT rules apply No money laundry rules apply Even if rules apply, hardly any enforcement No balance sheet / accounting requirements

„Private Business“ User

Phone: | Problem 1: REGULATION PROBLEM SOLVED!

Phone: | Problem 2: “CONTROL” OF BITCOINS

Phone: | Status Quo - Intermediary

Phone: | Status Quo - Intermediary

Phone: | Status Quo - Intermediary

Phone: | Status Quo - Intermediary

Phone: | Status Quo - Intermediary

Phone: | Problem solved? – Bitcoins - Centralized Service?? - Give up control over my coins?? - Security issues with hackers? - Sites close over night??? --> SAME PROBLEM AS BEFORE!

Phone: | Centralized services

Phone: | Centralized services

Phone: | Centralized services Money goes via a CENTRAL bank account Bitcoins go via central server

Phone: | Centralized services

Phone: | What if a service exists where you…. Get Bitcoins - DO NOT give up control over your coins - DO NOT allow even the administrators to access your coins - IS NOT possible that Hackers can steal coins, even when the server is compromised -DO NOT need to trust the trading party, as still an escrow is in place? EVEN when the site is closed?

Phone: | Decentralized services

Phone: | Decentralized services

Phone: | Decentralized services

Phone: | Trick: Multi-Signature wallets

Phone: | “Normal” Transaction How does it work?

Phone: | Part 1: Create multi-signature address Multi-Signature -Get two or more Bitcoin addressees. -Combine them using addmultisigaddress JSON-RPC command -As a result, you will get a special Bitcoin address starting with „3”. -The resulting Bitcoin address is fully functional and can receive coins. -You can create different combinations of M-of-N addresses. It means that you can specify how many private keys are needed to spend the coins.

Phone: | Part 2: Spending coins from multi-signature wallets Multi-Signature -Create a transaction draft using createrawtransaction JSON-RPC command -Sign the resulting transaction data with one of private keys, utilizing signrawtransaction command -provide it with correct details, which may include: public key and redeem script -Pass partially signed transaction data to other party, which repeats this process -Finally, you broadcast the transaction to the network (using sendrawtransaction or another means)

Phone: | Multi signature wallets

Phone: | Multi signature wallets

Phone: | Hackers and admins see encrypted wallets

Two-Factor authentication

Phone: | And the last resort: Dead Man’s Switch

Phone: | PROBLEM SOLVED! Problem 2: “CONTROL” OF BITCOINS

Phone: | Bottom line - It IS possible to create REAL NO TRUST Bitcoin services - Multi-Signature wallets, no one can ever access the bitcoins without your consent - Thanks to MePIN two factor authentication not even if your PC is compromised -With timed backup-transaction coins are even safe when service is closed down or server data is deleted

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