Gives the through idea about the crypto-currency network and its working. BItcoins,namecoins .. other type of cryptocurrency with flowchart

1. Cryptocurrency
BY :
SHIKHAR JYOTI DUTTA

2. What is cryptocurrency ?
A cryptocurrency is a digital or virtual currency that uses
cryptography for security. A cryptocurrency is difficult to
counterfeit because of this security feature. A defining
feature of a cryptocurrency, and arguably its most
endearing allure, is its organic nature; it is not issued by
any central authority, rendering it theoretically immune
to government interference or manipulation.

3. Breaking down ‘CRYPTOCURRENCY’
The anonymous nature of crypto currency transactions
makes them well-suited for a host of nefarious activities,
such as money laundering and tax evasion.
The first cryptocurrency to capture the public imagination
was BITCOIN, which was launched in 2009 by an
individual or group known under the pseudonym Satoshi
Nakamoto. As of September 2015, there were over 14.6
million bitcoins in circulation with a total market value of
$3.4 billion. Bitcoin's success has spawned a number of
competing cryptocurrencies, such as LITECOIN,
NAMECOIN and PPCoin.

4. Bitcoin - BTC
• Peer–to-Peer technology and no central authority or
banks
Transaction fees are lower
• Managing transactions and issuing of bitcoins is
carried out collectively by the network
• Open-Source, design is public, nobody owns of controls
Bitcoin
• 21 million Bitcoins to be issued
• Currently the dominant cryptocurrency by far
• Market cap - $12 billion

6. Bitcoin anonymity
• Bitcoin is pseudonymous, not anonymous, and
bitcoins cant just disappear
• It works because every transaction is public and visible
to each and every other person using bitcoin network
• A person is only as anonymous as their link to their
wallet

7. BITCOIN Exchange
A bitcoin exchange is a digital marketplace where traders
can buy and sell bitcoins using different fiat
currencies or altcoins. A bitcoin currency exchange is an
online platform that acts as an intermediary between
buyers and sellers of the cryptocurrency.
The currency ticker used for bitcoin is either BTC or XBT.

8. Breaking down ‘BITCOIN Exchange ’
Bitcoin exchange platforms match buyers with sellers. Like
a traditional stock exchange, traders can opt to buy and
sell bitcoin by inputting either a market order or a limit
order.

9. Major Crypto-currencies
1. Bitcoin
2. Litecoin
3. Peercoin
4. Namecoin
5. Megacoin
6. Quarkcoin
7. Protoshares
8. Worldcoin
9. Primecoin
10. Feathercoin
11.Nxt
12.Novacoin
13.Freicoin
14.Anoncoin
15.Terracoin
16.CryptogenicBullion
17.Infinitecoin
18.Zetacoin
19.BBQCoin
20.Stablecoin

10. Differentation

11. Litecoin
• Based on Bitcoin protocol
• Can be efficiently mined on consumer grade
hardware
• Faster transaction confirmations (2.5min on
average)
• Proof-of-stake in addition to proof-of-work
• Scheduled to produce 84 million currency
units
• Current market cap - $867 million

12. Peercoin
• Increased security via Proof-of-work + proof-of-
stake hybrid algorithm
• Energy efficiency - generating proof-of-stake
blocks
• Current market cap - $116 million

13. Namecoin - NMC
• Key/Value registration
and transfer system
• Based on Bitcoin
technology
• Allows you to:
– Securely register and
transfer arbitrary names
(keys)
– Attach value (data) to the
names
– Trade and transact
namecoins
• Use cases:
– Timestamping
– Bonds, shares
– Voting / Web of Trust
• Market cap - $62 million

14. WorldCoin
• Faster transaction time – 30 sec (over 20 x faster that Bitcoin)
• 1% reward reduction weekly, encouraging quicker adoption
• 1 hour, maximum 10% difficulty retargeting to prevent
pool abuse
• Market cap - $24.5 million

15. Other major cryptocurrencies
• Quark
– Uses nine rounds of secure
hashing from six different
algorithms
– Extra secure
– Market cap - $30 million
• Primecoin
– Cryptocurrency with Prime
Number Proof-Of-Work
– First currency to have non-
hashcash proof-of-work
– Market cap - $16.9 million
• Feathercoin
– Market Cap - $15.9 million
• Megacoin
– Restricted to 42 million
– Market cap - $26 million

16. Tumbling
• A couple of reddit users realised that the sheer size of
the heist makes “tumbling” the coins - the normal
method of laundering bitcoins - impossible, as long as
they kept on their toes.
• Someone with bitcoin can send some to a tumbler like
bitcoinfog, where it will be split into smaller subdivisions
and mixed with other bitcoins from other places,
recombining and splitting again several times over until
the whole amount eventually comes out the other end,
theoretically in such a way that it’s impossible to track.
• Silk Road’s in-built tumbler successfully foiled the FBI,
allegedly.

17. Cryptocurrency Benefits
1. Cryptocurrencies make it easier to transfer funds
between two parties in a transaction; these transfers are
facilitated through the use of public and private keys for
security purposes. These fund transfers are done with
minimal processing fees, allowing users to avoid the
steep fees charged by most banks and financial
institutions for wire transfers.
2. Central to the genius of Bitcoin is the block chain it
uses to store an online ledger of all the transactions that
have ever been conducted using bitcoins, providing a
data structure for this ledger that is exposed to a limited
threat from hackers and can be copied across all
computers running Bitcoin software.

18. Drawbacks
1. However, because cryptocurrencies are virtual and do not have
a central repository, a digital cryptocurrency balance can be
wiped out by a computer crash if a backup copy of
the holdings does not exist. Since prices are based on supply
and demand, the rate at which a cryptocurrency can be
exchanged for another currency can fluctuate widely.
2. Cryptocurrencies are not immune to the threat of hacking.
In Bitcoin's short history, the company has been subject to over
40 thefts, including a few that exceeded $1 million in value. Still,
many observers look at cryptocurrencies as hope that a currency
can exist that preserves value, facilitates exchange, is more
transportable than hard metals, and is outside the influence of
central banks and governments..

19. Conclusion
The emergence of Bitcoin has sparked a debate about its
future and that of other cryptocurrencies. Despite Bitcoin’s
recent issues, its success since its 2009 launch has
inspired the creation of alternative cryptocurrencies such
as Litecoin, Ripple and MintChip. A cryptocurrency that
aspires to become part of the mainstream financial system
would have to satisfy very divergent criteria. While that
possibility looks remote, there is little doubt that Bitcoin’s
success or failure in dealing with the challenges it faces
may determine the fortunes of other cryptocurrencies in the
years ahead.