1.

Cryptocurrency
2. How cryptocurrency works?
3. Cryptocurrency market share.
4. Blockchain Technology
5. Is blockchain secure?
CONTENTS 6. Advantages of blockchain
7. The three pillars of blockchain
8. Mystery of bitcoin
9. Bitcoin
10. Miscellanies
11. Resources
 What is cryptocurrency: 21st-century unicorn – or the money of the future?
• Today cryptocurrencies have become a global phenomenon known to most people. While still
somehow geeky and not understood by most people, banks, governments and many companies
but they are aware of its importance.

• Few people know that

cryptocurrencies emerged
as a side product of another
invention. Satoshi
Nakamoto , the unknown
inventor of Bitcoin, the first
and still most important
cryptocurrency, never
intended to invent a
currency.
 WHAT IS BLOCKCHAIN, REALLY?
• Blockchain is literally just a chain of blocks, but not in the traditional sense of those words. When we say the words
“block” and “chain” in this context, we are actually talking about digital information (the “block”) stored in a public
database (the “chain”).
• “Blocks” on the blockchain are made up of digital pieces of information. Specifically, they have three parts:
1. Blocks store information about transactions, say the date, time, and dollar amount of your most recent
purchase.
2. Blocks store information about who is participating in transactions. Like if you are purchasing something from
amazon it will store amazon.com and your username not like actual username it will be like unique digital
signature.
3. Blocks store information that distinguishes them from other blocks. Much like you and I have names to
distinguish us from one another, each block stores a unique code called a “hash” that allows us to tell it apart
from every other block.

• A single block on the blockchain can actually store up to 1 MB of data. Depending on the size of the transactions, that
means a single block can house a few thousand transactions.
IS BLOCKCHAIN SECURE?
• Blockchain technology accounts for the issues of security and trust in several ways. First, new blocks are always
stored linearly and chronologically. That is, they are always added to the “end” of the blockchain.

• If you take a look at Bitcoin’s blockchain, you’ll see that each block has a position on the chain, called a
“height.” As of February 2019, the block’s height had topped 562,000.

• After a block has been added to the end of the blockchain, it is very difficult to go back and alter the contents of
the block. That’s because each block contains its own hash, along with the hash of the block before it.

• Let’s say a hacker attempts to edit your transaction from Amazon so that you actually have to pay for your
purchase twice. As soon as they edit the dollar amount of your transaction, the block’s hash will change. The
next block in the chain will still contain the old hash, and the hacker would need to update that block in order to
cover their tracks. However, doing so would change that block’s hash. And the next, and so on.

• So, according to the blockchain news site BlockExplorer, the odds of solving one of these problems on the
Bitcoin network were about 1 in 5.8 trillion in February 2019. (41,12,78,00,00,00,000.00 Indian Rupee)
 ADVANTAGES OF BLOCKCHAIN

The reason why the blockchain has gained so much admiration is that:
• It is not owned by a single entity, hence it is decentralized
• The data is cryptographically stored inside
• The blockchain is immutable, so no one can tamper with the data that is inside the blockchain
• The blockchain is transparent so one can track the data if they want to
THE THREE PILLARS OF BLOCKCHAIN
TECHNOLOGY
Pillar #1: Decentralization
• Before Bitcoin and BitTorrent came along, we were more used to centralized services. The
idea is very simple. You have a centralized entity which stored all the data and you’d have to
interact solely with this entity to get whatever information you required.

• Another example of a centralized system is banks. They store all your money, and the only
way that you can pay someone is by going through the bank.
Pillar #2: Transparency
• One of the most interesting and misunderstood concepts in the blockchain technology is “transparency.”
Some people say that blockchain gives you privacy while some say that it is transparent. Why do you
think that happens?

• Well… a person’s identity is hidden via complex cryptography and represented only by their public
address. So, if you were to look up a person’s transaction history, you will not see “Bob sent 1 BTC”
instead you will see “1MF1bhsFLkBzzz9vpFYEmvwT2TbyCt7NZJ sent 1 BTC”.
Pillar #3: Immutability
• Immutability, in the context of the blockchain, means that once something has been entered into the
blockchain, it cannot be tampered with.

• The reason why the blockchain gets this property is that of cryptographic hash function.

• In simple terms, hashing means taking an input string of any length and giving out an output of a fixed
length. In the context of cryptocurrencies like bitcoin, the transactions are taken as an input and run
through a hashing algorithm (bitcoin uses SHA-256) which gives an output of a fixed length.
“AVALANCHE EFFECT”
What does that mean?

• Even if you make a small change in your input, the changes that will be reflected in the hash
will be huge.

• Let’s see it out using SHA-256:

 ORIGIN OF BITCOIN
&
MYSTERY OF SATOSHI NAKAMOTO
• The Bitcoin whitepaper was published in 2008 by a
pseudo-anonymous author named Satoshi Nakamoto. It
was the first time ever that somebody put together the
ideas of a digital currency and blockchain technology.

• People have been speculating about the true identity of

Nakamoto ever since. Satoshi Nakamoto was last heard
from way back in early 2011. Many have tried to find him
since, but to no avail thus far. Even while Nakamoto’s real
identity remains a mystery, his creation lives on.
 BITCOIN
• Bitcoin pioneers wanted to put the seller in charge, eliminate the middleman, cancel interest fees, and
make transactions transparent, to hack corruption and cut fees. They created a decentralized system,
where you could control your funds and know what was going on.
• Bitcoin has come far in a relatively short time. All over the world, companies, from REEDS Jewelers, a
large jewelry chain in the US, to a private hospital in Warsaw, Poland, accept its currency. Billion dollar
businesses such as Dell, Expedia, PayPal, and Microsoft do, too.
• The short answer is that Bitcoin is a cryptocurrency or digital asset made secure by cryptography.
Bitcoin and most (but not all) other cryptocurrencies use blockchain technology.
• Bitcoin has been called “digital gold,” and for a good reason. To date, the total value of the currency is
close to $191 billion US.
• In his announcement of Bitcoin in late 2008, Satoshi said he developed “A Peer-to-Peer Electronic
Cash System”. His goal was to invent something; many people failed to create before digital cash.

• The single most important part of Satoshi‘s invention was that he found a way to build a
decentralized digital cash system. In the nineties, there have been many attempts to create digital
money, but they all failed.

• After seeing all the centralized attempts fail, Satoshi tried to build a digital cash system without a
central entity. Like a Peer-to-Peer network for file sharing. This decision became the birth of
cryptocurrency. They are the missing piece Satoshi found to realize digital cash.
 Miscellanies
 1 bitcoin value in India is ₹2,62,515 . 91.
 1 bitcoin can contain 525,000 blocks means 525000 Mb can be
stored.
 Some popular bitcoin sellers in India is :
• Unocoin
• Coinmama
• Local Bitcoin
• Bitcoins ATMs
 1. www.blockgeeks.com
2. www.telegraph.co.uk
3. www.investopedia.com
4. www.google.com
Resources 5. www.buybitcoinworldwide.com
 Thank You
KAMAKHYA SINGH