CRYPTOCURRENCY

Aniket Kumar (140303007)

Kaushik Kumar (140303036)
Shrabanti Saha(140303080)
Contents
• What is Crypto Currency?
• What is Block Chain & How it works ?
• Characteristics of Crypto Currency
• Why we use Crypto Currencies?
• Who prints it?
• Working flow of Bit Coin
• The top 10 Crypto Currencies
• Comparison between Conventional and Crypto Currency

• Application of Crypto Currency

• Advantages & Disadvantages of Crypto Currency

• Future Of Crypto Currency & Conclusion

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What is Crypto Currency ?
• Simply Crypto Currency means digital currency.
• An internet-based medium of exchange using cryptography to
secure transactions and to control the creation of new coins.
• Bit coin became the first decentralized crypto currency in 2009.
• Bit coin is peer-to-peer and transactions take place between
users directly , without an intermediary party.
• These transactions are verified by network nodes and recorded
in a public distributed ledger called the Blockchain which uses
bitcoin as its unit of account.
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What is Block Chain ?
• Process of adding transaction records to public ledger of past
transactions – Block Chain
• One block of blockchain includes many transactions that
considered to have happened at the same time
• The Block Chain serves to confirm transactions to the rest of the
network as having take place
• Use the Block Chain to distinguish legitimate transactions from
attempts to re-spend coins that have already been spent elsewhere

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How Block Chain works ?

1. James want to send money to Mary.

2. His order is joining others orders in a block

3. The order join the network to be analyzed by the various nodes

4. The block is time marked with a date and it’s added to a blockchain and
join the network.

5. Finally, Mary receive the money from James

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Characteristics of Crypto Currency
• Its decentralized means it has no connection with any state, government, it is
registered on online exchanges and are usually only traded within the crypto
community, except for the more mainstream ones like Bitcoin and Ether. Price
fluctuations are controlled by free market forces
• Use a number of different algorithms (SHA-256, X11 algorithm etc.)
• Traded in different ways
• Main characteristics that should consider by the customers are
• Verification Method
• Retailer Acceptance
• Transaction fees are miniscule
• It is fast
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Why we use Crypto Currencies ?
• It is Fast
• It is Cheap
• People can’t steal your payment information from Merchants
• It is private as you want it to be
• You don’t need to trust anyone else
• You own it
• You can create own money
• Currency of the future
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Who prints it ?
• No one. This currency is not physically printed in the shadow by
any bank. Instead, bitcoin is created digitally , by a community
of people that anyone can join.
• Bitcoin is based on mathematics. Around the world , people are
using software programs that follow a mathematical formula to
produce bitcoins. The mathematical formula is freely available,
so that anyone can check it.
• The bitcoin protocol – the rules that makes bitcoin work-say
that only 21 million bitcoins can ever be created by miners.

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Working Flow of Bit Coin :

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Price Chart

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Conventional Vs Digital Currency

Conventional Currency Cryptocurrency

Type Real Virtual

Intermediates Yes No (Peer-to-Peer)

Portability Yes (except heavy cash) Highly Portable

Durable Moderate Highly Durable

Global (throughout the

Acceptance National
internet)
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Conventional Vs Digital Currency

Conventional Currency Cryptocurrency

Secure Moderate High

Scarce Low High

Yes (Controlled by complex

Decentralized No (Central bank control)
math)

Smart
No Yes
(Programmable)

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Application of Crypto Currency
• Decentralized Cryptocurrencies like Bitcoin are more widely used than any previous e-
cash
• There are a growing number of businesses and individuals using Cryptocurrencies like
Bitcoin
Ex :- 1)WordPress.com – An online company that allows user to create free blogs
2)Subway – Eat fresh
3)Microsoft – Users can buy content with Bitcoin on Xbox and Windows store
4)Dell – American privately owned multinational computer technology company
5)Steam – Desktop gaming platform
6)The Internet Archive – web documentation company
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Advantages of Crypto Currency
• Easy Access :- Cryptocurrency is readily available to the general public.
It is decentralized operation and investors from all over
the world have easy access to them
• Quick and Easy Payments :- Making payment using Cryptocurrency
takes few seconds. It is very fast because
we don’t require to give many details like credit/debit card details, only
need is the address of the wallet of the person/enterprise to whom we
wish to make the payment
• Less Surprise Fees and Waiting Periods :- With Cryptocurrency
transaction fees are very
miniscule and we don’t need to wait a couple of days for our business to
receive the money
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Cont..
• Highly Secured :- All transactions will be secured using cryptography. It is
impossible for a person other than the owner of the wallet
to make any payment from the wallet, unless they were hacked
• Identify Theft :- Cryptocurrency is the protection of our online identity.
Nobody can steal personal information from merchants,
which ensures the privacy of sensitive data
• No third party :- We are the master of our own money. We can keep it in
our wallet and use it as per our wishes. There is no third
party involved like a bank on whom we need to trust
• International use

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Disadvantages of Crypto Currency
• Lack of Awareness :-
Many people are still unaware of crypto currency

• Lack of Understanding :-
People need to be educated about it to be able to apply it to their lives

• Lack of Security :-
There is no safety or perfect way to protect our bitcoins from human error(passwords),
technical glitches(hard driver failures, malware) or fraud

• High risk of loss

• Lack of Application
• Still Developing
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Future Uses
• More retailers will begin to accept Bit Coin
• Used in international trading to avoid currency exchanges
• Become as common place as credit cards
• Less volatility in hard currency value (USD)
• Currency flops and becomes worthless

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Conclusion
There are always pros and cons to any situation in life.
To be able to make to a good decision, we need to weigh the good and bad
thoroughly before finalizing our choice.
With Cryptocurrency, it’s more about mass acceptance than technology.
The technology is here. Only time will tell when the rest of the world
(Government, Citizens) will say ……. YES !

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