BAFI 335 Quiz 3

When does NASDAQ composite occur?

1953-2002

altcoins

coins alternatives to Bitcoin, substitute like Litecoin

Bitcoin wallets

hardware(like a flash drive desktop custodians (coinbase, kraken)

when did Dow Jones industrial rise and fall occur?

industrial average, 1915-1942

what is SEC notice

need more settlements so institutions can develop and more investors are attracted

what is blockchain without bitcoin?

unnecessary, worthless pointless

What are some examples of custody and servicing

1. Bakkt 2. Fidelity Digital Assets 3. Coinbase

what is bitcoin the combination of

1. hashcash 2. public key cryptography (ex: 50 years) 3. distributed ledger-domain name database (ex: 25 years)

What percentage of institutional finance execs believe crypotocurrency will have place in fututre?

70%

Silos and trade-global GDP

80Trillion, bottom block is internet/data middle is blockchain and top is google Facebook amazon build on it

What is CME and CBSe

competes to futures contract (you will purchases a certain amount for price in future) on margin-allows for leveraged trading

is bitcoin centralized or decentralized

decentralized form of digital cash

what is bitcoin

digital currency you can use to send money directly to anyone with an internet connection, like email but for money it is like a replacement for venture capitalists (IPOS, equivalent, ICO, can't be controlled) peer-to peer electronic system

ICOS (initial coin offerings)

don't have to deal with SEC or venture capitalists, 1000s different types of ICOS, 70% of ICOS trade blow issue price, 80-90% fail , fraud, SEC Notice

what is software

encoding of human thoughst-AI can drive blockchain devlepment with centralized data-predictable lifestyle

What are other types of coins

ethereum, litecoin, CME CBOE

how is a hash founded

every 10 mins, new "block" is mined

what are network nodes

everything connected to internet

what is an example of popular source of crowdfunding

gofundme

What companies will push back on blockchain

google, fb, amazon...created products that are centralized, cheaper efficient, controls like non transparent and privacy goes away with blockchain

how does bitcoin get rid of centralization

has no security because each block has own identifier and is secure no data collection no need for control no need for security

what is crowdfunding

holding a public event where everyone can contribute certain sum of money to receive product you will make

ICO

initial coin offering, equivalent of stock market listing for software product using blockchain

what are bitcoins created as a reward for

mining, takes a lot of computing power, computer solving complicated math problems, verification process, proof of work, amount of bitcoin with reward

What is Bakkt

more infrastructure around cryptospace, trying to get ETF created with bitcoin

What did Andres Antonopoulos say?

need incentive aspect, it's all about "control"

What did Alex Rampell

need shared incentive network currency cannot be faked "no alchemy" record is real owner uniquely defined

what is decentralized

network that is run by people for the people with no central governing entity

what are crypotcurrencies

new assets that enable decentralized applications blockchain w/out crypotocurrency makes no sense

How many transactions needed for lightning network?

only 2 transactions (1 to open and 1 to close the channel)

bitcoin and blockchain succeed from open or closed form?

open form with closed, same stuff but slower

relational databases

oracle and SAP, centralized data, cheaper, more efficient

what are two 1980 relational databases

oracle and SAP...blockchain is next phase, Internet 2.0, not proven yet

crypototokens

other coins that are their own blockchains, closed network

why do we need bitcoins for bitcoin to work

participants who do the most work (miners) need incentives) bitcoin is scarce, never be more than 21 million bitcoins released over time with declining rate has no central issuing authority and is distributed

venture capitalist

process of collecting money from rich individuals or instituational investors in exchange for a share of your business

what is blockchain

public chronological log book where records are permanently stored across network, facts can be verified by anyone and no one can change records making system secure, trades in blockchain are stored in wallets

Where is bitcoin recorded

public distributed ledger called blockchain

What is the Howey Test

security, determine if ICO are security

what is lightning network?

small/everyday transactions that don't have to be associated with blockchain, small transactions hold off network, can reduce load on blockchain

what is mining

solving complicated math problems, guessing random sequence corresponding to something, verification of proof of work

bitcoin can what?

store value and brilliant shared incentive network our interests include to find new protocols that model can support

what is litecoin

test lab for bitcoin

what is hashcash

to prevent spam, email

formula for bitcoin/blockchain

trustees-middleman=bitcoin/blockchain

What is Fidelity Digital Assets

To service all digital assets for their 13000 institutional clients

why is bitcoin not taking over

VISA=24000 transactions per second bitcoin=7 transactions per second bitcoin cash=61 transactions per second

Fact example in bitcoin

A sends 2 BTC to B

what can blockchain be driven by

AI

When did the first bubble occur?

Gouda Tulip Bulbs in 1634-1637

what is bitcoin used for

Hard to transact for goods and servicesIllegal activitiesChina 90% to <1% 2018Remove the middle man

what is blockchain like early 70s-80s stock market

NYSE NASDAQ- American Philan Boston SFO goes from great production, to funding to selling data

Is Ethereum a seucurty according to the SEC?

No

what is cryptography

came from WW2 enigma, secure encryptions, code

why do we need bitcoin

cash doesn't work online credit cards are inconvenient transactions fees too high micropayments current systems require too much trust not all good customers are creditworthy underserved banking clients globalization

infrastructure is financially developing...

SEC getting involved, custodians are getting involved Fidelity, ETF, Yale promises will endow a fund for cryptocurrency

exchanges to trade cryptocurrenices

coinbase, close to 15000 exchanges! like Kraken, Mt. Gox binance =clunky infrastructure

Visa vs Bitcoin

Visa=4000 transactions per second Bitcoin=7 transactions per second

what univeristy wants to buy bitcoin

Yale got involved, wanted to catch up to Harvard

what is public distributed ledger

after every transaction, verified and permanently stored, located in all network nodes

what does decentralization allow for

all developers to come together with no one controlling where things are going

what is ethereum

another blockchain technology based application, scalability of ethereum: 30x more applicable

what is the middle man

banks, custodians, delivery.facilitators. accountants

what does the current generation bubble?

bitcoin, 2017 crash occurred, bitcoin ran up 60x it's value before coming down

what will ICOS be built on in the future

bitcoin, ethereum in future

What is the history of bitcoin

bitcoin,org registered August 2008 anuary 2009 Nakamoto mined first block of the chain, genesis block•Contained text "The Times 03/Jan/2009 Chancellor on brink of second bailout for banks."•First transaction 12 January 2009 when Nakmoto sent 10 bitcoins to Hall Finney a cypherpunk•Nakamoto is estimated to have mined 1 million bitcoins before disappearing in 2010•Gavin Andresen becomes lead developer at Bitcoin Foundation

how are bitcoin transactions verified

by network nodes through cryptography