UX14 - BitCoining Experience (Ranjeet Tayi)

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.

Transcript

1. BitCoining
   Experience
   Ranjeet Tayi
   Principal, User Experience - Informatica
   International Conference on
   User Experience Design – Bangalore , India.
   10th October 2014
   

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2. Before 600BC http://s.hswstatic.com/gif/bartering-4.jpg
   Bartering
   Livestock,
   Tools & Food
   

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3. Coins
   600 BC - Present
   

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4. 806 AD – Present
   Paper Money
   

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5. 331 BC – Present
   Cheque
   

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6. 1816 Present
   1900 1930
   Only few nations tie
   the value of currency
   to price of gold.
   US begins a world
   wide movement to
   end tying currency to
   gold
   The US adopts the
   gold standards
   England makes gold a
   benchmark of value
   of currency
   The Gold Standard
   

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7. US$ Real Goods / Services Virtual Goods / Services
   Closed
   Flow
   Hybrid Open
   Flow
   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
   

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8. 100 Coins
   =
   1 Life
   Closed Flow
   

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9. Semi Closed
   

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10. Chunk E Cheese Tokens and Tickets
    Hybrid System
    

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11. Hybrid / Open System
    

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12. http://g1.idg.pl/ftp/mac/secondlife.jpg
    

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13. 1996 2012
    1998 1999
    1990 1994 2006 2009
    Failed and Discontinued Currencies
    

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14. Crypto Currencies
    

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15. What is a bit coin?
    

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16. Bit Coins
    • Bit Coin is a peer-to-peer payment systems and a digital
    currency.
    • 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.
    1Mx3dNbiXLtYLiJq8F9BbriiLgRRhS34RA
    

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17. Bit Coin Bubble
    1 BTC = Rs.24702.49
    

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18. 40M$ +
    Transactions
    a day
    100000+
    Merchants
    

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19. Distribution of bitcoin. Source: State of Bitcoin 2014
    

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20. Centralized Network De Centralized Network
    

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22. Mining
    21 Million
    The maximum number of it Coins that can exists ever.
    2140
    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.
    

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23. Wallet
    • You can bring a Bitcoin wallet in your everyday life with your
    mobile or you can have a wallet only for online payments on
    your computer.
    • Wallets are computer files that holds bitcoins.
    • Each wallet has a unique address that distinguishes it from
    other wallets.
    • If you lose the address, that Bitcoin is lost forever.
    

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24. Transfer
    • Email
    • Bit Coin Address
    

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25. Block Chain
    The block chain is a shared public ledger on which the entire Bitcoin
    network relies. All confirmed transactions are included in the block
    chain.
    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.
    

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26. Bit Coin ATM
    

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27. 70+
    sites, bourses,
    and platforms
    from around
    the world
    Buy Bitcoins
    

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28. http://cointelegraph.com/news/112561/top-10-nations-in-bitcoin-merchant-adoption
    

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29. 1,00,000+
    Merchants
    Accept Bit Coins
    

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31. Buying Bit Coins
    

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32. Payment
    

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33. https://squareup.com/help/en-us/article/5214-square-market-accepts-bitcoin
    

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36. Silk Road
    Silk Road is an underground website, sometimes it is
    also called as the AMAZON / eBAY of “illegal Drugs”
    9.5 M
    Collected Bitcoin in revenue
    FEB
    2011
    JULY
    2013
    $1.2 Billion worth of business
    

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37. 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
    technology.
    • 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.
    

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38. • There are 70+ “alt coins” (Alternative bitcoins - inspired ) with market caps over
    $1M USD.
    • 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
    

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40. What does LIKE mean in Facebook?
    

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42. Payment freedom
    Very low fees
    Fewer risks for merchants
    Security and control
    Transparent and neutral
    Micro transactions
    Global
    Can change the future
    Degree of acceptance
    Volatility
    Ongoing development – still in beta.
    Wallets can be lost
    Lack of price stability.
    No buyer protection
    Lack of regulations
    Advantages and Disadvantages
    

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45. http://revistadonna.clicrbs.com.br/porai/2013/01/12/vida-longa-ao-papel/
    UX Challenges
    • Difficult to Understand.
    • It is based on mathematics. Only top
    mathematicians and cryptographers
    understand the algorithms.
    • Long address, very difficult to remember
    1Mx3dNbiXLtYLiJq8F9BbriiLgRRhS34RA
    • Lack of trust on digital money.
    • Too many crypto currencies taking birth
    each month.
    • 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
    

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46. http://bitcoinmagazine.com/8274/the-psychology-of-decimals/
    

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47. • 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
    email now?
    • New demand for developers /UX designers who have crypto currency background.
    

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48. Ux’er. Ranjeet Tayi
    www.ranjeeth.com
    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.
    References
    https://bitcoin.org/
    https://www.iconfinder.com
    http://bitcoinmagazine.com/8274/the-psychology-of-decimals/
    http://www.slideshare.net/jamesgagliardi
    http://sapientnitroblog.com/post/63066867197/the-future-of-money
    1Mx3dNbiXLtYLiJq8F9BbriiLgRRhS34RA
    ranzeeth@gmail.com
    Thanks a TON!
    

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