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A brief article by Bernadeta Dadonaite, Imperial College. London - May 21, 2019. - highlighting 10 questions which provide an overview of blockchain. https://phys.org/news/2019-05-blockchain.html
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A brief article by Bernadeta Dadonaite, Imperial College. London - May 21, 2019. - highlighting 10 questions which provide an overview of blockchain.
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A brief article by Bernadeta Dadonaite, Imperial College. London - May 21, 2019. - highlighting 10 questions which provide an overview of blockchain.
https://phys.org/news/2019-05-blockchain.html
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This document provides an overview of cryptocurrency, including its history and key concepts. It discusses how cryptocurrency was invented in 1983 as an electronic cash system and the first decentralized cryptocurrency, Bitcoin, was created in 2009. The document also describes how cryptocurrency mining works by solving complex math problems to uncover coins and how transactions are recorded on the blockchain to prevent double spending. It provides examples of major cryptocurrencies and e-wallets for storing coins.
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Cryptocurrency is a digital currency in which cryptography techniques are used to regulate the generation of units of currency and verify the transfer of funds.
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- The supply of money is regulated by software and the agreement of users of the system.
- Trust based on peer to peer consensus.
- Transactions are irreversible.
Overview-
1. What is cryptocurrency?
2. The Difference
The tabular comparison between Fiat or conventional currency and Cryptocurrency on parameters like durability, portability, type, security etc.
3. Why use cryptocurrency?
Fast and cheap.
Easy to use.
Free to transfer and hold.
Decentralized control- users are the only owner of cryptocurrency.
Central government can’t take it away and there are no chargebacks.
Privacy and Security – Anonymous payments
Due to no intermediary (such as Bank or Credit Card Company) users have freedom to transact.
Transparency is maintained through public ledger system.
Reduced Fraud – eliminates cases of credit card frauds.
4. Evolution of cryptocurrency
Evolution of cryptocurrency from 2009 to 2015. Major Cryptocurrencies include are Bitcoin, Namecoin, Litecoin, Peercoin, Monero and Capricoin.
5. Categories of cryptocurrency
Cryptocurrencies are divide into various categories based on what type of algorithm used, type of community, investor involved, according to usage and on speed of transaction.
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Fast, Safe and cheap
Ease of use and highly portable
Untraceable (pseudo-anonymous transactions)
Transparent and neutral
Decentralized nature
Active involvement of users
Fewer risks for merchants
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Low inflation and collapse risk
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- Problems in implementation- Hardware restrictions (Computational inefficiency), Instability, Deflation, Lack of Replicability and Growing centrality.
- Risk and failure in policy- Money Laundering, Purchase of illegal goods
- Supporting criminal activity- BTC Theft, Malware, Scams
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- Cryptocurrency operates independent of any central authority or individual.
- The supply of money is regulated by software and the agreement of users of the system.
- Trust based on peer to peer consensus.
- Transactions are irreversible.
Overview-
1. What is cryptocurrency?
2. The Difference
The tabular comparison between Fiat or conventional currency and Cryptocurrency on parameters like durability, portability, type, security etc.
3. Why use cryptocurrency?
Fast and cheap.
Easy to use.
Free to transfer and hold.
Decentralized control- users are the only owner of cryptocurrency.
Central government can’t take it away and there are no chargebacks.
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Due to no intermediary (such as Bank or Credit Card Company) users have freedom to transact.
Transparency is maintained through public ledger system.
Reduced Fraud – eliminates cases of credit card frauds.
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- Risk and failure in policy- Money Laundering, Purchase of illegal goods
- Supporting criminal activity- BTC Theft, Malware, Scams
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