Bitcoins at Python for Quants NYC 2014

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Information about Bitcoins at Python for Quants NYC 2014
Finance

Published on March 20, 2014

Author: zpektral

Source: slideshare.net

Description

This was the presentation given by Dr Antonio Roldao at the first Python for Quants conference in New York.

itcoins Analytics & Statistics Python Libraries New Services Enabled Dr. Antonio Roldao March / 2014

About Me http://anton.io 2

Concerns - Ponzi Scheme / Tulip Mania 3

Concerns - Illicit Activities / Drugs 4

Concerns - Conspiracy Theories or should one say Dorian Nakamoto?! 5

Concerns - Legal Framework “The Federal Reserve simply does not have authority to supervise or regulate bitcoin in any way.” – Janet Yellen 6

Concerns - Others 7

Why Bitcoins?  Micro-payments  Payment freedom  Frictionless transactions  No central point of failure  Public and transparent ledger  Fast transactions across borders  No central point of manipulation  No risk of physical possession/loss  Well understood and mathematical  The gold standard in crypto-currencies  Very low fees, some times even zero fees  Anyone/Thing can open/close an account  Human2Human/Machine2H/H2M/M2M Business  … 8

Confusing Media Circus 9

How Does Bitcoin Work?

Key Concepts - Hashes  Hashing functions 11

Key Concepts – Digital Signature Algorithms 12

Key Concepts – Public Ledger Time Account Inputs Outputs Balance 1 addr1 20 - 20 2 addr2 100 - 100 3 addr1 - 10 10 4 addr1 20 - 30 5 addr2 - 100 0 6 addr2 2 - 2 7 addr3 5 - 5 8 addr3 2 4 3 9 addr1 5 - 35 … … … … … 13 All Transactions

Key Concepts – P2P Networks 14

Details - Transactions 15

Details - Storing Transactions 16

Details - Block 17

Details - Blockchain 18

Mining 19

Mining – Computing a Block Hash https://blockchain.info/block-height/288888 20

Mining - Pools 21

Mining – Pools Contribution source: https://blockchain.info/pools 22

Analytics & Statistics

Price Evolution 24

Discovering Bitcoin’s Fair Price? ?? $(Mining-kit + Energy) = $(BTCs mined + Fees) = ~Perception ?? ~Perception is subjective, so let the market decide!  How will diminishing coinbases affect fees?  Will mining make energy generation more efficient or more expensive for day-to-day use?  Will mining drive innovation for faster and cheaper electronics or make high-end chips more expensive? 25

Mining Efficiency CPU >1Mh/s ~5khps/W GPGPU >1Gh/s ~2Mhps/W FPGA >1Gh/s ~10Mhps/W ASIC >10Gh/s ~235Mhps/W 400x 5x 32x 64000x source: https://en.bitcoin.it/wiki/Mining_hardware_comparison 26

FPGA Spaghetti Monster source: http://www.bitcoinminingrigs.com/ 27

Hash Rates 28 0 5000000 10000000 15000000 20000000 25000000 30000000 35000000 40000000 Hash rate (Gh/s)

Difficulty Rates 29 0 50000000 1E+09 1.5E+09 2E+09 2.5E+09 3E+09 3.5E+09 4E+09 4.5E+09 Difficulty

Ledger Storage 30

Blockchain Browsers  Blockchain  Block Explorer  BTCLook 31  Biteasy  Blockr.io

Current Statistics (09.03.2014)  Total blocks  Time between blocks  Terahashs/s  PetaFLOPS  Average transactions/h  Average fees/h  Bitcoins mined  Market cap 289,702 8.37 (minutes) 29318.62 372346.47 (1st in top500 = 54.902) 2642.46 0.625 / 375 USD 12,492,575 BTCs (62%) 7,720,411,350 USD 5,621,658,750 EUR 4,859,611,675 GBP source: http://bitcoinwatch.com/ 32

Wallet Statistics 33

Python Libraries

Some Bitcoin Python Libs/Apps  Source code of reference Bitcoin client github/bitcoin/bitcoin  RPC-based library – not maintained anymore github/laanwj/bitcoin-python  Low-level library does follows the bitcoin core v0.9 github/petertodd/python-bitcoinlib  Alternative to main client - relies on original net stack github/etotheipi/BitcoinArmory  Out-dated but had great tools for dumping data out of db github/gavinandresen/bitcointools  Trading application with SMSs alerts (MtGox though!) github/skylarweaver/Bitcoin-Trader  Simple ticker that collects data from multiple exchanges github/rgho/bitcoin_prices_python  Blockchain explorer github/bitcoin-abe/bitcoin-abe  Automated arbitrage trading application github/maxme/bitcoin-arbitrage 35

Generating a Custom Address 36

New Services 37

New Services Enabled  Zero/Low commission betting (WinCoins)  Music made of transactions (Listen to Bitcoins)  Smart contracts (Etherium)  Time stamping (Btproof)  Micro-donations (Laybit)  Tracking places of tension (Fiatleak)  Virtual IPOs / Stock Market / Derivatives (mpex.co)  Arbitrage between fiat and crypto currencies (btcarb)  Machines that work for own profit/upgrades  e.g. self driving cars / delivery drones  … many many others … 38

Thank you Have a cryptic day!

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