* Bitcoin Payment Processing































** Crypto currencies






























** Bitcoin specification

*** Based on a 2008 paper by a developer under the pseudonym "Satoshi Nakamoto"





























*** Core concepts

**** Decentralized
**** Secure
**** Auto-correcting
**** Irreversible

























** How it works

*** P2P network
*** Blockchain
**** Block headers
**** Transactions
*** Wallets
*** Miners
*** Pools
*** Exchanges






















** Mining

*** Get the current blockchain
*** Append new VALID transactions
*** sha256(sha256(nonce))
*** meets difficulty requirements
*** Append mining payout to new block
*** Share
























** Automatic Tuning

*** Difficulty adjusts at intervals automatically
*** Difficulty computed for 10 minute transaction processing
*** Block rewards decrease predictably
*** Transaction fees


























** Attacks

*** 50%
*** flooding




























** Pools

*** Predictability
*** Payout schemes
*** 50%?



























** Exchanges

*** Speculation
*** Currency conversion
*** Funding



























** Exchange alternatives

*** localbitcoins
*** sell services
*** physical bitcoins



























** The wallet

*** Blockchain sync
*** Blockchain validation
*** Transaction validation
*** Address generator
*** Transaction generator
*** Mining work generator
*** Miner























** Transaction flow

*** Receiver generates address and communicates it to sender
*** Sender generates transactions from existing addresses to destination
*** Sender broadcasts transaction
*** Block solved
*** Network confirms block
*** Receiver verifies address has funds
























** Managing a wallet

*** accounts
*** addresses
*** transactions
*** validated blockchain


























** Upsides to your own wallet

*** 0 fees
*** Privacy




























** Downsides to your own wallet

*** Security
*** Resources




























** Wallet alternatives

*** partial blockchain
*** 3rdparty wallet
*** Store in funded account



























** Bitcoin command line

*** getinfo
*** listaccounts
*** listtransactions



























** JSON API

*** getinfo
*** listaccounts
*** listtransactions



























** Perl modules

*** Finance::Bitcoin
*** Exchange APIs
*** Catalyst::Helper::Model::Bitcoin