Chapter 2:

Cryptocurrency and
Blockchain
Was the
Bitcoin world
first digital
currency?
 List other
Digital
Currencies
earlier and
present to
Blockchain
Bitcoin was not first
digital currency, there
were many ,but they
couldn’t address
double spend problem
Double-spending problem
 Block chain solved Double-spending problem

Double spending is a potential flaw in a digital cash scheme in which

the same single digital token can be spent more than once.

This is possible because a digital token consists of a digital file that

can be duplicated or falsified.

This problem was prominent when trying to create a decentralized

currency but was solved by blockchain.

Blockchain solved this by putting transactions in a block, verifying

each transaction, then adding these blocks to the chain
Cryptocurrencies-characteristics

Durable Portable Divisible

Fungible Scarce Accepted

 Durable: Does this • Portable: Is this store
store of value persist of value easy to move
well through time? around and transfer?

• Divisible: Is this store

• Fungible: Is each unit
Cryptocurrencies of value easy to divide
into smaller sub-units
of this store of value
equal in value to any
-characteristics for small payments &
other unit?
transactions?

• Scarce(insufficient for • Accepted: How

the demand.): Is this widely accepted is this
store of value scarce store of value as a
enough to give it means of payment or
meaningful value? settling a debt?
Quiz