1. Timeline of cryptocurrency 2. Advantages and Disadvantages 3. How it works 4. Impact of cryptocurrency on banking sector 5. Rise of illegal activities

1. CRYPTOCURREN
CY
GROUP 3
1GROUP 3

2. WHAT IS CRYPTOCURRENCY?
A
DIGITAL
ASSET
Created in
2009
Uses
Cryptograp
hy to
secure its
transaction
s
Also known as
digital
currencies,
alternative
currencies or
virtual
currencies
USE DECENTRALISED
CONTROL
The
decentralized
control of each
cryptocurrency
works through
a blockchain,
which is a
public
transaction
database,
functioning as
a
Works as a
Medium of
Exchange
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3. HOW CRYPTOCURRENCY WORKS?
• The source codes and technical controls that support and secure cryptocurrencies
are highly complex. However, laypeople are more than capable of understanding
the basic concepts and becoming informed cryptocurrency users.
• Functionally, most cryptocurrencies are variations on Bitcoin, the first widely used
cryptocurrency. Like traditional currencies, cryptocurrencies’ express value in units
– for instance, you can say “I have 2.5 Bitcoin,” just as you’d say, “I have $2.50.”
3GROUP 3

4. ADVANTAGES OF
CRYPTOCURRENCY.
ONE STOP
SOLUTION
EASE OF
TRANSACTIO
N
SECURED
ONLINE
PLATFORM MAY
27th
Give Some Brief
Point To Explain
This
SELLING
BUYING
RTRANSFERRIN
GSTORING
OPEN
FINANCIAL
SYSTEM
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5. THE CRYPTOCURRENCY
BASICS
1 2 3
BLOCKCHAIN
• Provides the validity of
each crypto currency's
coin.
• Resistant to
modification of data.
• Efficiently records
transactions between
two parties in a
verifiable and
permanent manner.
MINING
• Process of adding
transactions to the
public ledger on their
confirmation.
• The miner solves a
complex mathematical
puzzle then adds it to
the ledger and ensures
that no alterations can
be made later to the
ledger.
• A minimum transaction
fee is charged to the
wallet of the miner.
CRYPTOCURRENCY
WALLET
• Wallet stores both
public and private keys
as well as addresses
which can be used to
send or receive
cryptocurrency.
• Entries can be made
with the help of a
private key and others
can send currency to
your wallet using the
public key.
5GROUP 3

6. Jan
2009
Bitcoin 0.1 released
(by- Satoshi Nakamoto)
July
2010
Bitcoin 0.3 was released
Jan,
2011
June,
2012
Coinbase, a bitcoin wallet was
founded in California
May, 2013
First Bitcoin ATM unveiled
in California
T I M E L I N E
25% of total Bitcoins generated
(5.25m)
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7. 4321
FEATURES
MATHEMATIC
AL PROOF
INSTANT
TRANSFERA
BI-LITY
LOW
TRANSACTIO
N FEES
INDEPENDE
NT FROM
CENTRAL
AUTHORITIE
S
7GROUP 3

8. MINING
What it is???
 Adding the transactions to the public ledger (block chain)-
validating the transactions
 Miners bring out the bitcoins from the protocol design.
How do they mine??
By solving complex mathematical puzzle
that is part of the bitcoin program, and including the answer in the block.
Reward?
Currently 12.5 bitcoins and this number decreases every 4 years to half of
the previous rate.
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9. Difficulty
Average of 10 min to process a block and this is necessary for steady and diminishing flow
of new coins.
Limited supply
The supply of bitcoins is limited to 21 million which is expected to reach by the year2040!!
How the validation process takes
place? The nodes of the miners will check that
•My wallet actually contains the bitcoins that I want to sell and
•I haven’t already sold this bitcoins to anyone
 wallet actually holds the bitcoin address- public key which keeps record
of all transactions and the balances.
 Public key will have corresponding private key
Transactions are signed with private key
 validating the transaction- private key should match with public key.
9GROUP 3

10. How can I buy bitcoin??
Buying online
 set up a wallet
 Open an account at an exchange
• Cryptocurrency exchanges will buy and sell bitcoin
on your behalf
• verified identification for account setup
• Largest bitcoin exchange- bitfinex
• exchanges accept payment via bank transfer or
credit card
• Once the payment is made the exchange will
purchase the bitcoins and deposit it in the auto-
generated wallet.
Buying with cash
 Choose a purchase method
• ‘LocalBitcoins’- to find out individuals
• Wallofcoins, Paxful and BitQuick- bank branch
• ATMs- by using QR code
• ‘Coinatmradar’ - to find ATMs
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11. How can I sell bitcoin??
All methods used to buy can also be used to
sell ‘except ATMs’
 All exchanges allow to sell as well as buy
GDAX and Gemini- large orders Coinbase,
Kraken, Bitstamp, Poloniex- retail clients
 exchange your bitcoin for other cryptoassets
like litecoin, XRP, Dash through ‘ShapeShift’
 Direct sale- through LocalBitcoins, BitQuick
where transactions are usually done via
deposits or wires
 Sell directly to friends and family
 Don't forget to declare any profit you make on
the sale to your relevant tax authority!
11GROUP 3

12. IMPACT OF
CRYPTOCURRENCY ON
BANKING SECTOR
1
2
3
4
5
6REDUCED
DEPENDANCY
RISE OF
CRYPTOCURRENC
Y IS SEEN AS A
THREAT
DECLINE IN
REVENUE
NEED TO UP
THEIR GAME
RELATING TO
CUSTOMER
SERVICE THREAT AS
WELL AS NEW
OPPORTUNITIES
OFFER LOANS
IN CRYPTO
CURRENCY
BNP
PARIBAS
“Has the potential
to transform the
world of finance.”
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13. BANKING SECTOR
10
7
8
9
USE DIGITAL
TRENDS TO
MITIGATE
THREAT
HELPING
CUSTOMER
EXCHANGE
CRYPTOS FOR
CASH
PROCESSING
PAYMENTS
PROVIDING
ESCROW
SERVICES
13GROUP 3

14. RISE OF ILLEGAL ACTIVITIES
USE OF
DARK WEB
FUNDING
TERRORISM
UNREGULAT
ED
SCAMS AND
FRAUDS
ANONYMOUS
TRANSACTIONS
NO ACTION IN
CASE OF
DEFAULT
14GROUP 3

15. Legalizing the
cryptocurrency
1
2
3
4
5
6Australia
AML application
and criminal
charges
Argentina
Official warnings
by central bank
Bangladesh
Punishable offense
Bolivia
Officially banned
Canada
Bitcoin legislation,
compliance with
AML and KYC
China
Withdrawing the
preferential
treatment
15GROUP 3

16. 10
7
8
9
South korea
Banned anonymous
virtual currency
and crack down on
exchanges
India
Official warnings
from central ban,
declared as not a
legal tender. Japan
First to declare it
as a legal tender
European union
Sector participants
involved in drafting
of rules
16GROUP 3

17. FUTURE OF
CRYPTOCURRENCIES
01
TECHNOLOGICA
L
DISADVANTAGE
S
Computer
crashes
02
HACKERS
Crack into
digital vaults
03
INCREASE
D
SCRUTINYDefeats the
basic
purpose of
cryptocurren
cies
05
NON USER
FRIENDLYThose who don’t
understand
technology may find
04
LIMITED
ACCEPTENCESlowly
increasing, but
still very low
17GROUP 3

18. T H A N K Y O U
18GROUP 3