 Yeah, so I'll be talking about Bitcoin and blockchain. Can we do a quick show of hands of how many people here know about or at least have heard about Bitcoin Okay, quite a few. So it's a payment conference. So yeah, that's good. So To start with let's go. What is Bitcoin? That's the first question everyone asks most of the places Bitcoin is basically a new currency. It's an independent currency It's completely digital and it is 100% guaranteed by the means of cryptography and other security Features and code basically it's guaranteed by math. Nothing else It was invented the paper initially was published in 2008 by anonymous figure named Satoshi Nakamoto and After that a lot of people began to review his code and the code was actually published on open source platform in 2009 and ever since then it's been like growing So Satoshi Nakamoto was anonymous person Till date his identity is not known Although the technology in itself are a lot of well-known developers and key people in the industry are Contributing to this Bitcoin technology Bitcoin basically lets you send money over the internet that is what it is in true a sense It's a digital currency and every digital currency or be it any kind of asset It basically has to the value comes when it is able to transfer from point eight to point B So that is how it works It's like you have an email address where you have a sender's address and a recipient address You basically send information via email. Similarly in a Bitcoin world What happens is you have a Bitcoin address for the sender and receiver both and the sender basically sends Bad bitcoins from one address to another address It is a limited currency like I said the supply is limited It's similar to exactly similar to gold gold is also the when gold was created initially when the earth was formed It was limited and the Bitcoin as well the protocol has been set such that only 21 million bitcoins can ever be in existence Out of which already 16 million bitcoins have already been mined by a lot of computational resources that are being put into the network And how do you get a Bitcoin and gold? It's a pretty much similar concept You basically if you want to get gold either you mine it or you buy it from exchange or there is jewelries or you kind of like Give some services to others and in exchange you get paid in gold or similarly Bitcoin In terms of where Bitcoin is being used the first transaction that happened was way back in 2009 And that was like seven or eight years ago and two pizzas were bought for 10,000 bitcoins Which was worth nothing at that point But in today's worth it's roughly about 10 million US dollars close to about 70 crore INR Tesla was also bought with Bitcoin recently Now if you will always ask this question where exactly is Bitcoin and where exactly do you need it? You might think you don't really need Bitcoin, but that is only until the point you actually do a International transaction or encounter any kind of international transaction So if you have ever done any international transactions or try to understand why this transfers take time Or if you have ever tried to use a credit card or debit card for an international transaction Or let's say you went for a foreign trip and returned back You just have a little bit of change and banks refuse to take coins or smaller denominations in exchange for INR So you are left with a lot of foreign currencies and you basically can't exchange them as well So that's another problem and hyperinflation Zimbabwe is the best example You have a hundred trillion dollar note being used as one rupee and two rupee coins And yeah, so also in places where there is a lot of unbanked population, Bitcoin also is very useful in those scenarios Yeah, perhaps when your country basically depending on the different where places where people transact in international Currents requirement for international remittances or unbanked population This basically is Bitcoin potential market index and you can see that there are a lot of countries who are already like Having a high potential for Bitcoin And Bitcoin is definitely going to help a lot of people in the world If not here, maybe someone else or someone who is yet to like discover something out of it And Bitcoin honestly is just not about payments The underlying technology beneath it is a lot more than just payments or transferring money from here to there And that is where a blockchain comes into picture Now the question is what is blockchain? I just spoke about what Bitcoin is Now if you ask me about blockchain, blockchain in true essence is basically a ledger It's a distributed decentralized ledger What it does is it stores records of every transaction that happens It might be information and also when it happened and who made it So it is a permanent record, immutable record It cannot be erased, it cannot be tampered Now what is the difference? Bitcoin basically is a way to transfer digital money from one place to another It's a transfer of assets or ownership of digital assets And blockchain in true essence is a database that records ownership with a time-stamped continuous database You can see that there's a database and it basically has some records And every database has some kind of access control who accesses the database There's a limitation to it Now imagine all of these databases in the world which are connected to each other There's Google, there's Yahoo and so many data centers which are connected to each other As long as all the database is in sync with each other You know that if some value is being or some data is being moved from here to there The exact copy is also, the database reflects that the copy is also moved in other places as well Within the network or outside the network And let's say one of this network fails The other networks can also be affected But in a Bitcoin or blockchain-driven scenario, it is not the case If one of the servers or the data centers is compromised The underlying data in itself is never compromised Only the infrastructure would get, in terms of security as such, would get a bit compromised But the actual user data is never destroyed And you have access control, like an individual can have a single key Or an individual can assign multiple keys to different parties And ensure that different people are given access based on their requirements on the blockchain network It's pretty much similar to a database And all of these ingredients, one is the decentralized nature The second is the cryptographic security that it underneath implies And also the immutable time stamping So it's like 1, 2, 3, 4 Every record goes in a continuous time So all of this form the perfect ingredients to what is called the blockchain technology Again the same points, this is the same thing again Transactions are synchronized to the network So every time a transaction happens, it's always synchronized with the whole network What it means is, if you are connected to the blockchain network or the bitcoin network Either of, which is actually the same The transactions happening in one place will always be synchronized With the transactions happening in other part of the world And a new block is created every 10 minutes It's basically like every 10 minutes a sector is added to the database And this sector is 100% validated by all of the other nodes in the bitcoin or the blockchain network And here you can see that So basically what was there was The first transaction that ever happened in the blockchain world Was on 3rd January 2009 And we are almost 8 years from that point And the first transaction in the bitcoin network happened in the same month of this month And also another thing is As in when the transactions are added In real time you can actually see Hi Manu again Could you quickly expand on that Times are synchronized across the network on the blockchain Like how would one computer sort of If there's a transaction, if there's two different transactions What's with the time synchronization? How does that work? In terms of a database, it can be like UTC It's basically based on UTC or epoch time as such What happens is when you add, let's say there are two databases And when they are connected to the internet Every file that you add is always time stamped On a UTC based time formatting So when you upload something to one database here It basically means on the whole network In terms of peer-to-peer network, let's say for example BitTorrents Or a similar network When you're uploading a file from here Or sharing a file at any place in the world The same file is retrieved or received at the other side as well And it gets added to the file So in that way what happens is a time stamp is maintained And it is synchronized Does that answer the question? You don't need GPS, it's like a computer or protocols That is based on the ledger So in a ledger basically what happens is every time a transaction happens It leaves a chain behind Every previous transaction, I will explain that in the next slides Every previous transaction is always linked with a previous transaction to that So when a current transaction is being added It always has a bit of information of the previous transaction So it leaves a chain That way you are able to know if this transaction, the set of transactions Happened before it or after it Is there like one more? Yes Does anyone else have questions? Yeah, but any windows or anything works If you can just give me a... This is Sugandha Desai Yeah, tell me Yeah, so you told that there is a lot of potential of using Bitcoin For the unbanked population Yeah So can you please elaborate on some use cases Or organization which are making use of it? To start with there is an organization called BitGiv It is a charity NGO kind of organization For people from Brazil and other parts of the world Where banking is not yet made feasible So these guys basically go to every individual And just give them a Bitcoin wallet Wallet can be of different types It can just be a software application that is installed in your mobile phone Or it can also be just your mobile number Which can be linked with some service provider Like there is this thing called BitPesa BitPesa is a mobile based Bitcoin wallet provider Which runs on SMS based technology Internally what they do is they create a Bitcoin wallet For every user with a mobile phone And they basically create wallets So it's a mobile based wallet solution The beauty of this is Unlike other wallets or Digital payment modes which are already existing in the market With Bitcoin it's an instantaneous setup So it's seamless, it can get started right away It can work on mobile to non-mobile kind of a situation as well It can even work on phone calls So just give your call up a number and dial your pin It depends on the service provider So all of this can be made possible But the service provider in the back end The technology which is being used Is compatible with every other payment mode Because it is all digital It's just APIs and a digital currency You can seamlessly transfer Bitcoins From one part of the world to another part of the world And it gives rise to global payments scenarios Not as of now But there are a lot of companies Which are actually looking at blockchain To kind of like get started with the rural And get the unbanked population on board And basically it's not just dependent on any organization Or company as such Individuals can just get started right away So all you would require is a mobile app And you instantly have access to a new kind of payment mode Which is global as well as digital And it is compatible with every other digital currency Out there in the market That seamless compatibility can be achieved with Bitcoin Yeah I'll just change it manually No problem That's not working as well Can you just click here I'm Ashwath from CGTEL So what does coin secure do? Do you use Bitcoin technology to do Secure transaction transfer? We are basically at coin secure We are a Bitcoin exchange in India We enable Indian users to get on board This technology Like I said, the mining process Different ways of acquiring Bitcoin Now if you look at gold Gold is a physical asset You go to a gold shop Or you go to a gold mining company And gold reserve basically And you get your gold bars from there Now with Bitcoin As long as there is Bitcoin being mined And people are generating these Bitcoins There is always a requirement to sell these Bitcoins And eventually get the profits out Or the mining cost or equipment as such People actually sell it Or there are traders as well Who just do trading for arbitrage And try to get a lot of profits Because of the market speculations That go around in Bitcoin So we are basically an exchange We enable users to buy and sell We are a real time open exchange The beauty is we are Completely open All our order books are transparent People can view the real exchange in real time Orders are placed You are free to choose your own rates And also we allow users To see the entire history of transactions That happened on our exchange So it basically means You can study the market The way the prices are moving And profit from it It's a fair model So say if I have some money in my bank How do I set up coin secure How do I set up Wallet on coin secure How do I set up my account on coin secure You basically go sign up on coin secure Submit your KYC KYC is a mandatory norm that everyone has to follow So we are fully KYC compliant company So you basically go sign up Submit your KYC documents once the verification Is done from the compliance team You immediately do an NMP Regular banking transfer to our accounts And we kind of like update your balances And with that you basically can just go And put a buy order Or a sell order if you already have it On the use case And you can just instantly buy bitcoins And because we are a real time exchange Completely automated As soon as you buy your bitcoins You can withdraw it the next second So that is the beauty of the bitcoin technology Bitcoin in itself was made To enable real time fast payments So that is About it Hi I am Sherry from Paymatrix Yeah So how is the bitcoin rate Exchange determined Bitcoin rate Exchange rates right So how is it determined It is a demand supply model similar to Gold or any other commodity Or digital as good Right, it is based on demand supply model If there is a huge demand The prices are based on the demand And also the supply If the supply there is a shortage of supply Prices go up And because Bitcoin in itself like for example Gold in itself has an inherent value Because it is shiny metal and a lot of other parameters Bitcoin has its Value from its technology Its security and the underlying technology That ensures This, that is where the value For bitcoin comes from And bitcoin's value from a technologies Perspective Or a guy from the tech background I would say its value basically lies And the way it simplifies the infrastructure So the technology in itself Brings a lot of value and its value Is pretty much this priceless Going back to the presentation Yeah, every 10 minutes Like I said every 10 minutes a block is created In terms of security again coming back to that Where the value comes How do we ensure that the transactions Are basically safely recorded The main problem The biggest problem here is organizations Are centralized And companies like JP Morgan Or even other companies when the databases Get hacked or entities get Compromised by internal or external Parties depends on the situation varies From a lot of things This is the main reason Such things happen And with money it becomes a huge Risk And its expensive to secure and you need to Trust a single person who is in charge Of one particular department Or a wing within the organization Things can go wrong within the organization And people can go corrupt The solution basically Is a decentralized network Where all of the computers in the world Are connected to it and the databases Continuously every transaction that happens On the blockchain network can be viewed Or audited by anyone in the world So that's a decentralized network It brings down the cost of security And also there's a fixed set of rules It's only math that you need to trust Not a single individual So basically nobody can actually Run away with your money or decide I just want to wipe your accounts and take your money And go away and do something with it So that is not possible in this kind of a technology To verify the transactions every block They basically add the transactions to every block So you can see that transaction Is being added and these are the blocks So that happens And every block has a timestamp It's not visible though So the transactions are linked To the previous records Imagine this to be one of these blocks To be a transaction Every transaction is always having a bit of information From the previous block And when you go to the previous block You can retrieve which previous block That was linked to So there is always a chain And that is why it's called the blockchain And if in case Let's say a person goes and changes A bit of code in one of these chains What happens is A different change is created The network detects that this is not A right Cryptographically speaking It is not a right change in code The hashes vary And the system is able to detect That this transaction that is coming in Is from a corrupted bitcoin node And what would happen is the person Whoever has actually done it Will can continue to actually Grow the blockchain database Which is a corrupted database He can continue to grow it But to actually catch up with the world Rest of the world's database Which is growing at 10 MB per A minute as such It becomes a huge cost For the attacker himself And which is literally not feasible To any present day situation And the network is almost 20 times Stronger than the top 500 Supercomputers combined in the world So that is what the power of bitcoins Existing infrastructure is as on date People decide What they want to do with the computers And people literally own the ecosystem The vast majority of network Only if the vast majority of the network Agrees for the code change Only then people the network Will actually change the code Because you need to download the software and run it If something is changing in the software As long as you download it and the whole network Comes to a mutual agreement That they want to run this software And they are fully in acceptance With the code changes that has been done Only then things can be changed But you can always ask everything Things can go wrong But to be very honest This is an open network And it's an invite kind of thing For all the biggest attackers in the world Every day 50 million transactions happen on this network And it's not like some hidden bank Or some kind of a database Which is stored behind the security walls Of a lot of companies It's completely public And it's still trying to break into the network But so far it's not been possible Although entities which involve In bitcoin based solutions Or solution providers Have been compromised And in the bitcoin network What happens is although attacker Let's say imagine attacker tries to hack Your accounts and get some bitcoins Out of your ecosystem Or your wallets or your accounts What would happen is it would still leave Immutable trail behind A lot of coins move from one place to another It always leaves a continuous record So it's basically pointless for an attacker To actually hack into the network Steal your coins and move it From one place to another It will not be able to run away with it There's always a record left behind And makes it more difficult for criminals There were a lot of skeptics Who were not very much supportive Of bitcoin, cryptographers And security researchers as well Including guys from the financial industry But now things have changed It has put on the testimony of time And it's continuously growing So what does all of this technical stuff Mean for you guys? It basically means You can send and receive money That is what bitcoin is all about There is a huge thing that financial innovations Will help back due to rules and regulations But in bitcoin's world Or the blockchain world as such It's completely based on open source technology And anyone is always free to contribute Ever since the start of bitcoin technology The code was open source The number of commits have been done To the GitHub and other platforms as well There are a lot of spin-offs of bitcoin technology Which became like the blockchain technology And today blockchain technology is one of the Even bigger Looked into sectors It's the same force driving the internet innovation We live in the internet era So there's been a lot of innovation Like Facebook, Google or whichever company you name it This is all the information Innovations that have happened over the past few years Now we are going to see Innovations happening in the blockchain based System which is the innovation For financial and digital Assets storage and stuff like that Record management etc And money is just The tip of the iceberg The bitcoin in itself, the technology Is just one of the flavors Of the underneath blockchain technology And it holds a lot more to this technology And there's going to be a lot more New developments that are going to happen in the coming years Blockchain could literally disrupt everything Like I said, internet again The era from text to images To programs to HD videos Similarly, blockchain is just Started off with money and smart contracts And there's patents and assets And a lot more It's going to get added Now talking about blockchain Again, there's a lot of confusion about Different types of blockchains So there are basically a lot of types Of blockchain, private blockchains, public blockchains And all of these jargons What does this imply for developers So as a developer You would require to secure your Data in your applications Decentralize your users data In order to ensure that your users data is better protected And it is never compromised In case your app got hacked Or let's say there was some exploit in your app And also learn more about blockchain And decentralized technologies Right smart contracts basically enable you To put your code on A completely decentralized network You don't have to run your own servers You can use all of the network that's already existing And just put your code in the network And it always stays there Rethink the ownership Of your identity ownership of your customers Defining again, like I said Public blockchain, enterprise blockchain And there is this thing called hybrid blockchains In public blockchain what happens Is the entire blockchain data is public Anyone can audit it Anyone can access it, anyone can write to it Anyone can transact within the Public blockchain In an enterprise blockchain what would happen is Only trusted entities, let's say if I am IBM Only people that IBM gives access to this Blockchain, although it's the same technology But only people with authorized Access to connect to the network Will be able to use it Again, like the internet Internet thing, concept here So public blockchains basically become the internet And enterprise blockchains become More like the internet in the Blockchain world Private blockchains are more like Dropbox being built on The internet itself Although both will have their own Use cases and benefits In the longer run, the public blockchain Is the one which will create the most value Because as long as it is transparent And other people are able to audit it It brings in a lot more trust And it's more secure Because there's a lot more people Who can basically contribute to the network Blockchain again can be classified The different layers There's a platform layer and the software layer Platforms basically are like Public platforms like Ethereum and Bitcoin These are the most widely popularized Platforms of the blockchain technology And the software platforms like Hyperledger And Aries and Digital Assets Which are basically like companies providing Software solutions for developers and other people Enterprise guys to build on It Again the same thing Ethereum is basically one of the Data verification applications built on Top of blockchain network You can basically put your data on the Bitcoin blockchain network And verify that the data was Uploaded at fixed time And stuff. The hash of the file can be saved And Aries is an Ethereum based Application which is built Basically to prevent fraud In the diamond industry Used pretty much widely In the current day scenarios Software development platforms And Hyperledger, Ripple Like there's some APIs and stuff So Multi-Chain is one of like Recently Come out platform It's kind of like similar to Ethereum But it's more like a private enterprise solution Now Hyperledger Model what happens is there is a permission issuer As you can see like Everything else is same pretty much similar to the Bitcoin network There are peers and there is Validating entities which connect to the network And verify that transaction has happened But the only difference in this situation Is there is a permission issuer And the issuer basically creates A contract and defines the set of rules It defines that what are the rules That can happen within the organization If let's say X individual can transfer Only this much amount of money Within this much period of time there are set of rules And it's a permission blockchain And what happens is people basically set the limits And the end user can always use it In a similar fashion like the public blockchain But the permission The entity with the permission is always free To go back and edit or Make changes at his will Smart contracts again You have a contract and with Ethereum's Thing that is the solidity Language that is built basically to Program smart contracts It becomes a smart contract So that's a difference from a regular contract To a smart contract powered by Ethereum This is basically a code which is basically In solidity, solidity like I said is the language For smart contracts And let's say there's a conference app DApp is a decentralized application built Using solidity To buy tickets or refund a ticket Everything can be built within a few minutes Of seconds And there are a lot of applications Being built like DApps It's a decentralized application There is a flight delay insurance as well So in case if your flight is delayed Technology and you pay for a flight And let's say if your flight is delayed You are always free to ask for a refund Or cancellation or immediate refund And settlements can be made instantaneously Because the APIs will already have The data if the flight is delayed or not And so on and so forth And there are a lot of applications This is just one of the few applications You can always visit this website It's like a lot of applications that are already there Built on the Ethereum blockchain Applications again Digital currency smart contracts Securities and record keeping Like a lot of sectors where Bitcoin's blockchain or the blockchain technology In itself can be implemented And it's being already used Financial use cases like I said There are currency exchangers Like coin secure or other companies like Bitstamp, BitPay etc So they allow people to exchange Good volumes of Bitcoin And peer to peer transfers There is payroll and insurance as well So payrolls Let's say imagine a use case with international payrolls For example recently Airbnb And Uber recently partnered with a payroll company Bitwage Now most of the guys in India can start accepting Their earnings Let's say from foreigners or other players Airbnb is mostly like for an international audience They can accept their payments In Bitcoin So it's like a payroll kind of Settlement kind of a system And there are also compliance companies That are spring off from the financial use case Companies are able to verify If a person's identity Or let's say a person has X amount of value and based on that They can Issue a bigger volume insurance Cover policy and stuff like that Gaming industry also has a huge platform With gaming what happens is let's say If you are a user of Crush Candy Or any kind of Facebook driven applications Once you put in the money Out it's a closed loop system Basically you spend a lot of money On Facebook application or any other Gaming multiplayer Gaming application and you earn a lot of money You are like a hardcore gamer Although they have options to incentivize the gamer You are not able to instantaneously Use it It's like you either have to go for a gift coupon Or something like that With Bitcoins technology being implemented Or the blockchain technology being implemented There can be seamless cryptocurrencies Which can be built for every individual game And conversion from Transfer from one digital currency to another Digital currency becomes really easy And seamless Non-financial use cases There is a lot of documents, record storage Authenticity Authenticity and authorization platforms Digital identity like KYC And also Aadhar If Aadhar were to implement blockchain It would be a huge boon for India And marketplaces, smart contracts Again real estate Now there are a lot of countries which have come forward And decided to map all of the Properties that individual owns On the blockchain network for internal As well as public auditing It becomes really easy for governance Diamonds like I said Avalaja is already working on that sector IoT as well With machines doing payments within each other Let's say you have your fridge Or any other appliance wants to Do payment within Itself, within the network Now what happens is if you build a technology Let's say as a developer, if you are building a technology here And if you want the same technology to work in US Here you are linked with SBI And if you go to US, the technology You would have to link it with another bank In the US, it becomes like another challenge Need to spend a lot of time in development as well But with Bitcoin As a blockchain based Solution for machine based payments It becomes seamless It can be like instantly done MIT labs There is like certificates being issued On the blockchain network Slock it basically is a smart lock Built on top of the Ethereum Contract So basically you can decide If and only when the guest Basically or the Person pays for it The door opens, otherwise the door doesn't open So the person never gets access to the house For the rent or other purposes Healthcare as well There is a lot of scope that has gone into healthcare Philips has invested hugely In healthcare company And MedRecords is a MIT project again Used for enterprise medical record management 16% of healthcare companies Are already in this year 2017 as per IBM's records As per IBM's recent white paper 16% of Biggest healthcare companies are already Working on blockchain technology And will be rolling out with Working Solutions This year Estonia Is one country where basically they have gone One step forward than any other Countries in the world They have basically taken 1 million citizen healthcare records On the blockchain network Where are one of the blockchain technology partners So this is something that is really good And this picture basically symbolizes That there is Doctor and let's say the person is connected to the blockchain network Me as an individual will become A living key For my data It can be like my sensors Or my heart rate patterns that can be studied My retinas can Fingerprints can all together Because fingerprint again is not a It's a point of failure again There are chances where fingerprints have been leaked again And there is a lot of possibilities So you as an individual The whole pattern is studied And you become a living key For you chips can be implanted And stuff can be done In healthcare clinical data processing claims Like if a person dies Insurance can be like the claims can be Instantaneously issued Don't have to wait for any entity to approve it Pharmaceutical supply chains Supply chains is a huge industry again There is a lot of fake drugs in the market The blockchain technology were to be implemented Anyone let's say I am a foreigner And I come to India and I go and try to buy Medicine from a pharmacy shop What happens is I basically get the drug I don't know what are the standards being practiced here And how do I verify That this drug was actually manufactured In an authorized center To do that If the information was put on the blockchain network The whole supply chain From where the Supply came for the industry And from where The drug was manufactured And from which center It's moved And finally it comes to the chemist shop At your nearby place So all of that can be verified There is a huge shortage of developers For the blockchain industry As of now there are only 5000 hardcore committed Developers working on this technology And estimated another 20,000 developers Who are working In and out with not full amount of Dedication to this technology Yeah, I mean any questions I have a quick demo If you have time you can actually show a smart contract demo You can Oh Is that laptop going to come on Questions in the meanwhile Questions, what Raise their hands, I think unoperman Yeah One second Switch it from this to that Switch it off Connect this one This is not my laptop Okay No Yeah Okay Can we Can we encash bitcoins Or is it just in the network I didn't get your question Can we encash bitcoins Yeah, that's where coin secure comes in Coin secure are other exchangers as such Which are there in the ecosystem We enable users to get on the bitcoin network Because not everyone in the network Can mine bitcoins Like I said it's actually comparable to gold Now not everyone in the world Goes and mines their own gold, right You can't mine gold, there is a lot of Resources that needs to be put in And you need to go really deep into the earth To get that gold out In a similar fashion there are this group of miners Which actually contribute to the infrastructure And build the whole Mining ecosystem for bitcoin That is where bitcoins are generated That is how bitcoins The 21 million bitcoins which are in existence Like I said already 16 million bitcoins Have already been mined Now where did this bitcoins come from It was based on MAC and every time a miner Or some amount of computing power is contributed They are rewarded with x amount of bitcoins And miners are free To sell their bitcoins And get some profit out of it And individuals like me or you If they want to use bitcoins They come to exchange or other kind of platforms Or you can offer your services Let's say I am a developer I can always charge my clients in bitcoins That is one way to actually acquire Bitcoins Here one question Hi my name is Anupam from the Takshila Institution I just want to ask about The 1MB block size Limits and is that a real Is that a real debatable topic Let me just explain There is a lot of Different groups of people saying That 1MB limit is not sufficient Because the amount of transactions that are going into the network Is getting Higher day by day Because a lot of people are getting onto the network now Because of its huge potential Now the challenge is The limit 1MB was basically said Keeping in mind that bitcoin should be Decentralized In the essence what it means is Every individual A person living in India With a 512 kbbs internet speed Or even lower Should be able to connect to the network And download the data 1MB limit was initially kept So that every individual No matter what his internet speeds are Is able to download the data And there was a lot of debate And finally developers agreed to double To 2MB for now For the time being With the current evolution of the internet In itself from what speeds that we grew up With let's say 56 kbbs To the current 100 mbps That we live in It's just a matter of time When this kind of high speed internet Will actually reach, especially Geo Big thanks to them for making that internet Speed just go wild in India With this kind of things You don't see a scalability issue at all Personally I don't think it will be a problem It's just a matter of internet infrastructure In itself growing And the network in itself can always be improvised What I do see Is in case bitcoins network Is becoming too crowded What would happen is developers will change Some code in the bitcoins network And if all of the community agrees Everyone decides to switch to the newer code There will be much more Better storage mechanism It might be optimized If it doesn't work out What will happen is there will be smaller coins Like litecoin and other oil coins There are so many coins these days Ethereum also has become a coin now So all of these other coins Will be used for smaller transactions But because they are under the Using the same cryptocurrency technology Transferring From one coin to another coin becomes seamless So you just run a website Or let's say a piece of smart contract On the Ethereum network That basically says I want to transfer Bitcoins to this specific account And you just convert it to Ethereum And send me Ethereum coins And nobody comes in between There is no third party that you need to That has to look after this It's just a smart contract, it's a computer And everything, the coins itself are digital So it becomes like seamless conversion Thank you I've had a question there You have mentioned that Peer-to-peer transaction It can be applicable to cash For cash transactions For cash transactions You can't tell you because it's a physical thing But let's say I decide to take cash Like this person One of these ladies basically asked me How do you convert exchange Bitcoins for cash What I'm asking is There is no intermediary When you transact from peer-to-peer There is no intermediary between the Peer-to-peer transaction No, it's like cash When you assume cash there is no intermediary Are you asking If cash can be put on Bitcoin network Or are you like... Blockchain technology, the cash can be put into Blockchain technology, is there a possibility? If all of the notes Like the wildly popularized Thing that happened Every note has a satellite trackable chip Or any other kind of a scenario Where each of the notes that are being Printed by the RBI Or any other Financial institution What they can do is Let's say if every note had a Secure hash that was printed And it ensured that an equal amount of Value was a digital copy Of that was created and maintained in the Blockchain ecosystem Notes can easily be tracked So what it basically means is Now in the current scenario what would happen is One note can be filled into Another note, a replica of the note can be made Now how will you know If this note is fake or not You go to a bank and Then later on it gets detected Otherwise you use a note scanning Instrument which again Can be like prone to flaws Now if the same note A hash was implemented And the hash was actually printed on the Note or in a secure manner Or in an encrypted manner What would happen is Any individual in any part of the world Can always have a mobile application Which is connected to the blockchain network And just scan the hash and verify if this note Is actually legitimate or not So that's a possibility I have a slightly more basic question Can I today have a stack of notes Can I buy like bitcoin through Such notes Such currency through such You mean like buying bitcoins with cash As of now in India Most of the companies Like coin secure or other players Are there in the market Most of the other companies in India Which enable Indian users To get on board bitcoin technology They don't do any transactions in cash So it's a completely There was a report by India today Or something that companies in India Are doing bitcoin and cash And a lot of money laundering and stuff Is happening in the bitcoin network In two ways I would like to clarify this At least in India or other parts of the places Most of the companies or people like Bitcoin are always Transacted from bank accounts People buy it in digital forms And every record is tracked So eventually you would know Where the bitcoins are coming from And who is buying them and where it is going So there is always a record that's being stored So it becomes more difficult If you do any kind of those activities And try to get away with it Got a question back there If any of you are interested To actually see a smart contract demo Let's just finish the questions And then we can get into it Go ahead Hello, this is Branesh from CIS I was just wondering about The fact that you Multiple times during your presentation Mentioned that bitcoin transactions Are instantaneous But from what I previously understood There needs to be A settlement process Which is not real time Because that actually I will clarify on that bit Now what happens is When a bitcoin transaction actually happens The transactions are immediately pushed On the bitcoin network Whenever, as soon as you are connected To the network, a transaction is pushed Now the complexity Because of the limits like the 1MB Limits that's being imposed And the amount of transactions that are being added On the network, there is a delay In all of the other nodes To actually verify or solve The cryptographic problem Which basically is the security factor of bitcoin To actually solve it And ensure that the transaction is 100% Legitimate verified And by the time it propagates to all of these Thousands of nodes all over in the world Different number of confirmations are required And that is where The time comes But if you are A hardcore bitcoin person Who knows the technology in and out Or let's say Let's push the transaction Although it shows that it's not been verified By anyone in the world You can rest assured that your transaction Is 100% secure And the money has actually moved from point A to point B Because it's visible already in the bitcoin world And it becomes It's just a matter of time That when it propagates to the network And other nodes basically verify it So with the scaling issues That are currently being faced in the bitcoin world Eventually we will be able to make it much more faster Or you can always use a faster coin Like Ethereum which I said Which is not much crowded So what you can do is for instantaneous conversions Until the point when bitcoin actually Fixes that issue It's not an issue It's because of scalability issue So what happens is you can use a smaller coin Which can be used Which can do much faster transactions for smaller volumes And the bigger volumes can always be done On the main bitcoin network And also There is a thing called a minus fee Now imagine All of these companies which are mining gold Right? If they are pumping in a lot of money And let's say you want You want to like get X amount of gold You can Today Excuse me If you want to get X amount of gold today You can always pay an additional fee And tell them just deliver the gold today Similarly in a bitcoin network The minus fee basically decides how fast Your transaction propagates to the network If you put a higher fee Which is not mandatory Bitcoins network allows you to put a fee Which is as minimal as one paisa Even for a billion or trillion dollar transaction Now this is the beauty of it No matter what the value that you are moving From one part to one account to another The fee can be one paisa Or less than a paisa It's the same technology It's just a matter of time That by when your transaction will be completed Propagating to the network Let's say if I decide I am doing a two billion dollar transaction And I don't want to wait that much time I want it to like get verified Within five minutes or within like one second I just decide to increase my mining fee I can like do something like maybe 100 rupees or let's say In current scenario to do an instantaneous Propagation within the network You would require to pay something like 50 to 100 bucks And if you are paying 50 to 100 bucks The transaction will instantaneously get verified Because miners put this transaction faster Because there is a reward for the miners Any other questions? Does that answer the question Tanish? I had more but I will follow up with you later One second There is a question here One second Oh this mic is coming It is also a question So if I understand it correctly Then with Bitcoin even if you Pay very high rewards on your transaction You still need to wait for at least The next block to be mined right? So even if you put a very high transaction fee You still need to wait on average ten minutes right? Yeah it is still fast And the beauty of this is Once your Bitcoin transaction gets Even one verification Bitcoin's network you are allowed to spend it As soon as you get one You don't need to require for the 100 or 1000 verifications like For all the nodes in the world to verify your transaction If this one or two nodes verify your transaction Basically solve the problem and say This transaction is a 100% legitimate transaction You are immediately allowed to transfer those Bitcoins again It's not like in your bank what happens is If money is being sent from one part of the world To another part of the world It takes one or two days and you need to wait And only then after you get the money finally Although you get a confirmation Let's say PayPal right You get a confirmation that the money has come in your account But you need to wait for a day or two or three For PayPal to actually transfer the money To your Indian bank account You can't really like use it until that point With Bitcoin what happens is The transaction as soon as it is made As soon as just one or two confirmations Are done on the network You can immediately transfer it to somewhere else And clear your payments or bills We have one question from Twitter So I am going to ask Kiran to just ask it Hello I seem to have lost this So someone is asking on Twitter Will blockchain remove middlemen in developed platforms That are not owned by corporates Yes totally It's already happening that the trend has already started There was a slide I kind of removed that slide So it basically meant all of this Banks and stuff that investing hugely In private blockchains But what I see personally or From a technology perspective As a trend is going I mentioned somewhere About public blockchains Enterprise blockchains and a middle thing In between that it's called the hybrid blockchains Now what happens is banks will basically continue Like Axis Bank is already using Ripple For its internal transactions that have just started off With a pilot So internally they can continue to use a Cryptocurrency based technology They just need to change the whole database system And map INR to some digital currency And banks will continue to use a blockchain based Solution within the enterprise Now outside the enterprise If they want to ensure that Let's say I am a bank and I want to ensure to my customers That all the transactions that are happening in my bank Or let's say a government body as such I want to ensure that all of these transactions are legitimate It's not being changed or it's not being tampered What I can do is Every time the blockchain The banks blockchain grows There is a sector that grows every new block And it is added There is a unique hash created for that specific block Which is timestamped Now this hash can be put on the public blockchain Now please try to follow What would happen is Although your database is private You are taking a cryptographic hash A checksum hash or anything like that For that particular file Which is added in the bank Or let's say for an entire day You take a whole database together The blockchain database And make a hash Generate a hash for that particular day As a whole And you can always push this hash On the bitcoin's public blockchain Now from an outsider perspective You will never know What all transactions happen within a bank Or the enterprise But If audits were to be done And if you want to Let's say there was a hack or something went wrong Or the government wanted to verify What all kind of transactions have happened The bank can The company which is using A private blockchain Can always Using the services of a Hybrid blockchain solution Can say that For this particular day All the transactions We have generated a hash And it is stored on the public blockchain Can always verify And we can be 100% They can prove that None of the transactions that happened on the day Were changed or manipulated in any way Because the hash is already put on the blockchain Public blockchain At its timestamp So you clearly have a 100% audit trail There are no further Oh sorry there is one last question And then we can play the Hi Vivek So really nice talk There were a few questions asked In this round of questions And I wanted a little clarification So your question was Can we buy a bitcoin with cash The answer is yes But Vivek is correct on the standpoint That there are no companies Registered companies in India Which are selling bitcoin for cash But I have bitcoins and you can buy them for cash It's more like a commodity per se So you can buy gold with cash You can buy any other thing It's completely butter It's like it's a free thing You can always exchange bitcoins for cash As an individual Or a peer to peer based model But in terms of companies and enterprises Which are out there in the market Currently they don't Second thing Time taken for a transaction So it's instantaneous as Vivek said The transactions are instantaneous That you would know that transaction is happening But 10 minutes of waiting time Is there for you to be certain That the transaction is verified And after every 10 minutes You are just more certain That the transaction has happened But again it's never 100% certainty That the transaction has happened Vivek please correct me if I am wrong here See from a bitcoin Like I said from a technological standpoint I know that I have the keys for the bitcoin Let's say if I own the bitcoin wallet If I am running my own bitcoin software On my laptop Which is synced 100% to the network Let's say the whole 65 GB As of date it's about 65 GB The bitcoin's blockchain If the whole database is on my system And I as an open source guy Who is able to actually dig into the details And see Now if I have my key And I push a transaction to the network I can be rest assured that No one else in the world has this key And once the transaction is broadcasted I can peacefully rest assured By the principles of MAC And the cryptographic algorithm That is in place That the transaction will happen Although it might take time But I can be rest assured For a common man It is a bit of a concern So when they are using third party providers Like third party wallets Or other kind of service providers So what these providers basically do is They implement some kind of a speed up mechanism So what it basically means is As soon as the transaction is done Right If the fee, a sufficient amount These companies basically add a suitable amount of fee There are different ways There are calculators available online Different websites are there Which basically calculate the amount of fees That were put already on the blockchain network Because the records are anyways public You can study how much amount of fees Are being put currently And how many pending transactions are there If in today's world what is happening Is in the bitcoins network At a given point of time A normal day About 4,000 to 5,000 transactions Are unconfirmed for every block There are about 4,000 to 5,000 transactions Being queued up to be added to the next block But in times of like Price speculations or if the prices go up and down When people actually move a lot of bitcoins We have seen transactions going up to 40,000, 50,000, 60,000 For a short amount of time And at that point of time the network gets clogged And you literally have to wait Maybe even if you put a small fee right Let's say like 1 paisa or something like Even less than that You would have to wait for at least 2 days Depends If you like put a really small fee Sometimes what happens is the transaction Doesn't go through But it will take its own time But it will get verified The trust is always there But it will get verified Okay so my question was I think we'll have to move on to the next talk We can discuss this later So I'll call upon Flood and please give a round of applause to Vivek Thank you guys