Bit Coins are one most disruptive technologies in recent times with an impact that may ultimately be as big as the internet. Bitcoin uses peer-to-peer technology to operate with no central authority or banks. Managing transactions and the issuing of bitcoins is carried out collectively within a network. Bitcoin is open-source; its design is public, nobody owns or controls Bitcoin and anyone can take part. Through many of its unique properties, Bitcoin allows exciting uses that could not be covered by any previous payment system. Bitcoin is a virtual currency and the Bitcoin user experience will be very important for widespread adoption and use. In my talk I am going to talk about the evolution of currency, crypto currencies and Bit Coins. I will also discuss Bitcoin experiences and the Bitcoin platform eco-system, Bit Coin facts, and the possible future of Bit Coins.
Principal, User Experience - Informatica
International Conference on
User Experience Design – Bangalore , India.
10th October 2014
Before 600BC http://s.hswstatic.com/gif/bartering-4.jpg
Tools & Food
600 BC - Present
806 AD – Present
331 BC – Present
Only few nations tie
the value of currency
to price of gold.
US begins a world
wide movement to
end tying currency to
The US adopts the
England makes gold a
benchmark of value
The Gold Standard
US$ Real Goods / Services Virtual Goods / Services
Virtual Currencies “An unregulated, digital money, which is issued and usually controlled by its developers, and used
and accepted among the members of a specific virtual community”- European Central Bank.
“A medium of exchange that operates like a currency in some environments, but does not have all the attributes of
real currency” - US Department of Treasury - Wikipedia
Next - Virtual Currency
Chunk E Cheese Tokens and Tickets
Hybrid / Open System
1990 1994 2006 2009
Failed and Discontinued Currencies
What is a bit coin?
• Bit Coin is a peer-to-peer payment systems and a digital
• BTC is a type of crypto currency. Crypto, because it uses
cryptography technology to work.
• It doesn't exist as physical object. Bit Coin has a form of a long
string that carries all of its information.
• “CASH” for the internet.
• Bitcoins can be stored electronically on computers and mobile
phones across the internet. It is also a means to circulate,
share and transact, just like PayPal or VISA.
Bit Coin Bubble
1 BTC = Rs.24702.49
Distribution of bitcoin. Source: State of Bitcoin 2014
Centralized Network De Centralized Network
The maximum number of it Coins that can exists ever.
The year the last remaining Bitcoins will be supposedly mined.
Mining is the process of spending computing power to process
transactions, secure the network, and keep everyone in the
system synchronized together. Miners are rewarded newly
generated bitcoins for verifying transactions.
• You can bring a Bitcoin wallet in your everyday life with your
mobile or you can have a wallet only for online payments on
• Wallets are computer files that holds bitcoins.
• Each wallet has a unique address that distinguishes it from
• If you lose the address, that Bitcoin is lost forever.
• Bit Coin Address
The block chain is a shared public ledger on which the entire Bitcoin
network relies. All confirmed transactions are included in the block
This way, Bitcoin wallets can calculate their spendable balance and
new transactions can be verified to be spending bitcoins that are
actually owned by the spender. The integrity and the chronological
order of the block chain are enforced with cryptography.
Bit Coin ATM
Accept Bit Coins
Buying Bit Coins
Silk Road is an underground website, sometimes it is
also called as the AMAZON / eBAY of “illegal Drugs”
Collected Bitcoin in revenue
$1.2 Billion worth of business
Lack of international acknowledgement
• Not all governments acknowledge BTC as a currency or as good.
• Some governments intervene:
• China and Thailand have forbidden any use of that
• USA and Canada have developed set of laws regulating
activity of firms that work with BTC.
• Germany imposed taxes on all income that comes in
the form of BTC for German citizens.
• There are 70+ “alt coins” (Alternative bitcoins - inspired ) with market caps over
• Each vary their technology based on offering different benefits and markets.
• Because the technology is open source anybody can launch a new type of “Coin”
• But the challenge is adoption and that is where Bitcoin is winning.
Other Crypto currencies
What does LIKE mean in Facebook?
Very low fees
Fewer risks for merchants
Security and control
Transparent and neutral
Can change the future
Degree of acceptance
Ongoing development – still in beta.
Wallets can be lost
Lack of price stability.
No buyer protection
Lack of regulations
Advantages and Disadvantages
• Difficult to Understand.
• It is based on mathematics. Only top
mathematicians and cryptographers
understand the algorithms.
• Long address, very difficult to remember
• Lack of trust on digital money.
• Too many crypto currencies taking birth
• There are many Bitcoin wallet’s and every
UI looks & behaves very different.
• Governments are unclear about BTC.
• Challenges with illegal usage.
• Not clear, what to do with Bitcoins?
• Still a newbie, can’t predict future.
• The psychology of decimals.
NEED TO UPDATE THE SLIDE
• It’s Bigger than what we can imagine.
• The rise of many new Bitcoin startups.
• Huge opportunity to innovate as Bit coin platform is open source.
• Government’s and banks will also innovate new policies, tax systems and regulations.
• This is still like the early stage of the internet… Can you imagine a person without an
• New demand for developers /UX designers who have crypto currency background.
Ux’er. Ranjeet Tayi
I ACCEPT BITCOINS
I believe Bitcoin is a great, recent innovation. I remain
neutral about bitcoin itself, but am very excited by the
mining methodology and use of bitcoins. Over time, the
technology will become more secure and governments
will develop policies and regulations that help create
secure transaction environments.
Thanks a TON!