Pravara Rural Education Society’s

SIR VISVEVSRAYA INSTITUTE OF TECHNOLOGY, NASHIK

DEPARTMENT OF INFORMATION TECHNOLOGY

Seminar On
How Blockchain An Mining Works in
Cryptocurrency?

Prepared By :Nishant Pawar (ROLL 54)

Guidance Of: Mr. Rishikesh S Bhalerao
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 What Is Cryptocurrency?
• These are currencies only available in a digital or electronic form, and not
in the physical form. 
• digital currency also serves as a means for legal exchange in the digital
world. It is a decentralized currency; hence it cannot be controlled by any
physical government
• A cryptocurrency, broadly defined, is virtual or digital money which takes
the form of tokens or “coins.”

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 How does a Cryptocurrency work?

• It uses block chain technology. It is a very brilliant technology

because both the buyer and seller details are viewable to each
other and so no broker is needed. PHP is a widely-used, open
source scripting language
• In cryptocurrency involvement of third person is not needed
because all the transactions are stored in a common location
and it is viewable. 
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 Benefits of Cryptocurrency
• Since cryptocurrency transfers are peer to peer, they need no centralized
server, and the transaction costs are minimal. Also, decentralized systems
do not charge currency conversion fees. The payments are instant, and the
risk of fraud is negligible. With blockchain technology, the transactions
are transparent, anonymous, and cannot be changed. 
• Cryptocurrency also provides access across the world; anyone can access
cryptocurrencies from anywhere in the world without any interference
from any central authority.
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 What is Blockchain Cryptocurrency? 

• A blockchain is a public ledger of all Bitcoin transactions. When new

transactions are made, “blocks” of transactions are added to the
sequential blockchain
• blockchain cryptocurrency runs on digital networks and is mostly used to
protect online financial transactions.
• Blockchain is an online transaction; the technology behind blockchain
essentially means that blockchains power the entire cryptocurrency
concept.
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 Why do People Use Peer-to-Peer Networks?

• A peer-to-peer (P2P) network is a decentralized communication model

between two peers also known as nodes, which can communicate with
each other without the need for a central server. Unlike the client/server
model in which a  client  makes the request and a server fulfills the request
• The he P2P network model allows each party to function as both a client
An server ..

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 m

Basis of Comparison Blockchain Cryptocurrency

Nature A technology that Tools used in virtual

records transactions exchanges

Use Record transactions Make payments,

investments, and
storage of wealth
Value Have monetary value Have no monetary
value
Mobility Can be transferred Can’t be transferred
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 Benefits of Blockchain Technology
• Blockchain Technology makes all the transactions transparent
and anonymous
• Blockchain transaction histories are distributed over a network
of computers, there can not be a single point of failure
• data is encrypted by cryptographic hashing

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 Cryptocurrency Mining
• Crypto mining is mainly thought of as a way of generating new
coins. That, however, is just one part of the larger equation.
• Crypto mining also includes the process of validating different
cryptocurrency transactions on Blockchain networks and then
appending them to the desired distributed ledger.
• cryptocurrency mining is essential for preventing the extra spending
of digital currency on a distributed network
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 Methods of Cryptocurrency Mining

• GPU mining is one of the ways to maximize computational

power.
• Cloud mining would allow crypto miners to benefit from the
power of major corporations and dedicated cryptocurrency
mining facilities without any hassles
• Using Cryptocurrency Mining Machine
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 Top digital currency

• Bitcoin(BTC) • Monero (XMR)

• Ethereum (ETH)
• Litecoin (LTC)
• Zcash
• Dash • NEO (NEO)
• Ripple (XRP)
• Cardano (ADA)

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 Problems in cryptocurrency

• Trustless immutable:
• Cryptocurrency is a trustless system, in the sense that, you can trust
the system without needing to trust the party you are in transaction
with. For instance, if you are to send some cash to someone, who
promises you a great reward after some time, you may not trust the
receiver, but you can trust the system, because if you are dissatisfied
with the outcome of the transaction, You Can’t Do Anything!!!
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 Privacy of asset ownership?

People face the threat of having their properties and saving being seized by
the government, especially when they live under autocratic rule where
properties can be confiscated. This is a general problem for most people
around the world. Most wealthy people now run offshore bank accounts to
secure their hard-earned wealth. Not everyone has access to the offshore
banking industry today. Cryptocurrencies provide a non-sovereign
censorship resistant store of value that is not possible with fiat currency.

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 How cryptocurrency is made ?

• Most of the cryptocurrencies are made using a process called

mining.
• Mining is nothing but an algorithm. It is the process of adding
transaction to the blockchain ledger.
• But not all cryptocurrencies are made by mining. Some
currencies are created using various other techniques

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  Blockchain protocol
• Blockchain protocol allows digital currencies to be created and used as viable forms
of money. That’s because it provides a framework for creating digital items that are:
1.  Unique and non-duplicable
2.  Non-repudiable and impossible to “double spend”
3.  Scarce and limited in supply
4.  Durable and immutable
5.  Divisible and uniform

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 Creating & Exchanging Digital Currency

• digital currency’s blockchain network is a public ledger of all

transactions of that currency that have ever occurred.
• New transactions are grouped into ‘blocks.’ Each block is
confirmed and validated by multiple users throughout the
network, before being added at the end of the chain. Every user
has their own copy of this public ledger, and it’s constantly
updated.
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 Storing Digital Currency: Wallets

• Wallets are simply pieces of software capable of housing digital

currencies securely for an indefinite period of time.
• . by obtaining a crypto wallet, you will have the ability to send and receive
Bitcoin and other cryptocurrencies

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 How Does a Cryptocurrency Wallet Work?

• Coins are not actually stored in a physical wallet, as cryptocurrencies do not

exist in a physical form. Instead, the blockchain consists of transactional
records that details
• In the world of cryptocurrency, if somebody wants to transfer your coins, you
simply give them your wallet address. 
• Bitcoin address looks like, here is the wallet address that is believed to belong
to the creator of Bitcoin, Satoshi Nakamoto!
• 1A1zP1eP5QGefi2DMPTfTL5SLmv7DivfNa
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 Conclusion!

• Blockchain Technology in cryptocurrency has the potential to

revolutionize numerous industries.
• There is a rise in careers in blockchain technology and
blockchain has tremendously changed the very face of the
technology industry forever.
• Cryptocurrency and Blockchain Technology are interconnected.
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Thank You !!!

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