Crypto Currency

SHIROYA AVISH D.
SEAT NO: 3952 SEM:6
Content

Introduction How do crypto currencies work?

What is Crypto currency? Examples of Crypto currency
History of Crypto currency Application of Crypto currency
What is Bitcoin? Difference Between Crypto currency
Blockchain Technology and Fiat money

What is the purpose of Crypto currency? Advantages of cryptocurrency

Characteristics of Crypto currencies Benefits of Crypto Currency
Types of Crypto currency Disadvantage of Crypto Currency
Risk of Crypto currency Conclusion
Properties of Crypto currency References
Introduction
Cryptocurrency means the word ‘crypto’ comes from the ancient greek word, ‘kryptós’,
which means hidden or private. A digital currency that is created and used by private individuals
or groups has multiple benefits.

Simply A crypto currency is a digital currency.

A medium of exchange like normal currencies.

Crypto currencies are classified as a subset of digital

currencies and are also classified as a subset of alternative
currencies and virtual currencies.

The first decentralized cryptocurrency was Bitcoin, which was

first released as open-source software in 2009. As of March
2022, there were more than 9,000 other cryptocurrencies in the
marketplace, of which more than 70 had a market capitalization
exceeding $1 billion.
What is Crypto currency?
Crypto currency is a digital money or virtual money. That is money is not available physically and
it is very secure.
In simple words we can say cryptocurrency is a money exchange process.
Most popular example for cryptocurrency is Bitcoin. It is the first ever introduced cryptocurrency.
Some other examples for cryptocurrencies are Ethereum, XRP.
It is not possible to counterfeit or double spend because it is secured by cryptography.
It is an decentralised process hence they are not controlled by anyone.
Crypto currencies are tax free and they are not insured too.
Government or banks are not responsible for cryptocurrency.

Even many countries have banned

cryptocurrency.
History of Crypto currency
1983 American cryptographer David Chaum conceived of a type of cryptographic
electronic money called e-cash.

1996 The National Security Agency published a paper entitled How to Make a Mint: the
Cryptography of Anonymous Electronic Cash, describing a cryptocurrency system.

1997 The paper was first published in an MIT mailing list in The American Law Review.

1998 Wei Dai described "b-money", an anonymous, distributed electronic cash system. Shortly
thereafter, Nick Szabo described bit gold. Like Bitcoin and other cryptocurrencies that would
follow it, bit gold was described as an electronic currency system which required users to
complete a proof of work function with solutions being cryptographically put together and
published.

2009 The first decentralized cryptocurrency was Bitcoin.In January 2009, Bitcoin was created by
pseudonymous developer Satoshi Nakamoto. It used SHA-256, a cryptographic hash
function, in its proof-of-work scheme.
2010 It was the only cryptocurrency in the market. Back then, its price was just a few cents.
History of Crypto currency
History of Crypto currency
2011 In April 2011, Name coin was created as an attempt at forming a decentralized DNS.
In October 2011, Litecoin was released which used scrypt as its hash function instead
of SHA-256.

2012 Peercoin, created in August 2012, used a hybrid of proof-of-work and proof-of-stake.

2014 On 6 August 2014, the UK announced its Treasury had commissioned a study of
cryptocurrencies, and what role, if any, they could play in the UK economy. The study was also
to report on whether regulation should be considered.

2021 In June 2021, El Salvador became the first country to accept Bitcoin as legal tender, after the
Legislative Assembly had voted 62–22 to pass a bill submitted by President Nayib Bukele
classifying the cryptocurrency a. August 2021, Cuba followed with Resolution 215 to recognize
and regulate cryptocurrencies for Bitcoin. InSeptember 2021, the government of China.

2022 As of March 2022, there were more than 9,000 other cryptocurrencies in the marketplace.
On 15 September 2022, , Ethereum transitioned its consensus mechanism from proof-of-work
(PoW) to proof-of-stake (PoS) in an upgrade process known as "the Merge".
What is Bitcoin?
Bitcoin (BTC) is a cryptocurrency, a virtual currency designed to act as money and a form of
payment outside the control of any one person, group, or entity, thus removing the need for third-
party involvement in financial transactions. It is rewarded to blockchain miners for the work done
to verify transactions and can be purchased on several exchanges.

Bitcoin was introduced to the public in 2009 by an

anonymous developer or group of developers using the
name Satoshi Nakamoto.

It has since become the most well-known cryptocurrency

in the world. Its popularity has inspired the development of
many other cryptocurrencies. These competitors either
attempt to replace it as a payment system or are used as
utility or security tokens in other blockchains and emerging
financial technologies.
Blockchain Technology

Blockchain is a system of recording information

in a way that makes it difficult or impossible to
change, hack, or cheat the system.

A blockchain is essentially a digital ledger of

transactions that is duplicated and distributed
across the entire network of computer systems on
the blockchain.
What is the purpose of Crypto currency?
A crypto-currency is medium of exchange like normal currencies such as USD , but designed for
the purpose of exchanging digital information through a process made possible by certain
principles of cryptography.
Cryptography is used to secure the transactions and to control the creation of new coins.
The main purpose of cryptocurrency is to reduce the risk involved in traditional currency.
It is very easy to use. We can access it anywhere and anytime. All we need is a smart
phone and a good net connection.
In cryptocurrency the power and the responsibilities are in hands of the currency holder.
They help in solving real world problems.
Characteristics of Crypto currencies

Use a number of different algorithms.

Traded in different ways.

Main characteristics that should consider by the customer are:

Market capitalization and daily trading volume

Verification method – Retailer acceptance

Types of Crypto currency

Utility Tokens Security Tokens Payment Tokens

Ex-change Tokens Non-fungible Tokens DeFi Tokens

Stable coins Asset-backed Tokens Privacy tokens

Risk of Crypto currency
Spoofing of payment
information

Buying of Faking of payment

insecure ICOs gateways

Using incorrect Phishing of

user address websites
Properties of Crypto currency
PROPERTIES OF
CRYPTO CURRENCY

Transactional Monetary

Irreversible Controlled supply

Pseudonymous No debt but bearer

Fast and global

Secure

Permissionless
How do crypto currencies work?

Cryptocurrencies run on a distributed public ledger called blockchain, a record of all transactions
updated and held by currency holders.

Units of cryptocurrency are created through a process called mining,

which involves using computer power to solve complicated
mathematical problems that generate coins. Users can also buy the
currencies from brokers, then store and spend them using
cryptographic wallets.

If you own cryptocurrency, you don’t own anything tangible.

What you own is a key that allows you to move a record or a unit
of measure from one person to another without a trusted third
party.
Examples of Crypto currency

Bitcoin (BTC) – Market cap:$429 billion

Ethereum (ETH) – Market cap:$190 billion

Binance Coin (BNB) – Market cap:$8 billion

Tether (USDT) – Market cap:$72 billion

Solana (SOL) – Market cap:$8 billion

XRP (XRP) – Market cap:$19 billion

Cardano (ADA) – Market cap:$11 billion

Polka Dot(DOT) – Market cap:$7 billion

USD Coin (USDC) – Market cap:$44 billion

Dogecoin (DOGE) – Market cap:$9 billion

Application of Crypto currency

Pionex

Coin Smart Webull

Aqru Coinbase

Gemini Binance
Difference Between Crypto currency and Fiat money
Benefits of Crypto Currency or
Advantages of crypto currency

No Fraud Incredible Security

Immediate Settlement Exponential Industry Growth

Lower Fees Transaction Speed

No Identity Theft More Private Transactions

Access to Everyone Security

Decentralization Transparency

Easy Transactions Self-governed and Managed

DisAdvantages of crypto currency

Illegal Transactions

High Consumption of Energy

Risk of Data Loss

Price volatility

No Refund or Cancellation
Conclusion

As you can see, any crypto-currency until now is not perfect.

It have many advantages; however, it also has its disadvantages.

This is mostly due to the fact that it is still a relatively young and new currency.

People are just beginning to become more aware of it.

In order for Crypto-currency to succeed, more people need to understand what it is.
References

https://www.slideshare.net/SanjayKumar2562/introduction-to-cryptocurrency

https://www.slideshare.net/SubhamPritam/cryptocurrency-a-brief-history

https://corporatefinanceinstitute.com/resources/cryptocurrency/types-of-cryptocurrency/

https://en.m.wikipedia.org/wiki/Cryptocurrency
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