The document provides an overview of cryptocurrencies, outlining their purpose as decentralized currencies designed to empower individuals in managing their own money. It differentiates between coins, such as Bitcoin and Ethereum, and tokens, discussing their respective uses and the importance of cryptocurrency wallets for security. Additionally, it addresses the current and future exchange frameworks, investment options, and potential risks associated with cryptocurrencies.

1. CRYPTOCURRENCY 101
START OF THE BLOCKCHAIN NODE
Disclaimer:
This is independent research study to get you quickly understand cryptocurrency.
There are NO recommendations of any sort and information could change over the period of time

2. AGENDA
• Today’s Exchange Framework (Consumer | Bank | World Bank)
• CryptoCurrencies
• Coins (Altcoins) Vs. Tokens
• Virtual Exchanges and Investment Options
• CryptoCurrency Wallet (Security)
• Future Exchange Framework (Payment Gateway | Owner |
Trading)
• Local and International Economic Business Cases
• Overall Risks

3. TODAY’S EXCHANGE FRAMEWORK
World
Bank
Federa
l Bank
Consumer
Business
Financial Institutes
(Stocks/Funds/Bonds)
Reserv
e Bank
Bank2
Bank1 Bank2
Bank1
Consumer
Business
Payment Advice
Payment Advice
Payment Advice
International Payment
Settlement
National
Settlement
Financial Institutes
(Stocks/Funds/Bonds)

4. CRYPTO-CURRENCIES
• The main purpose of the creation of Crypto Currencies as a
decentralized currency was to give the masses the power to
control and manage their own money.
• There are 1300+ Cryptocurrency coins available as of Jan 2018

5. TOP CURRENCIES AND IT’S USAGE
• Bitcoin
• Bitcoin is the original cryptocurrency
• Trading other cryptocurrencies
• Accepted on major trading platforms
• Many businesses accept bitcoin as a
payment method
• Used for ICOs (Initial Coin Offering)
• Ethereum
• Used for ICOs for decentralized apps
• Few exchanges allow trading
• International Securities transactions
• Ripple
• Currency Exchange (is RTGS system)
• Ripple works with banks to transform
how they send money around the world

6. COINS (ALTCOINS) VS TOKENS
• A currency that uses its own platform and
operates independently
• Has own independent blockchain with
their native currency
• Alternative coins (ALTCOINS) uses the
original source code of bitcoin blockchain
with modifications (Ex: Red hat Linux vs
Oracle EL)
• Independent coins: Bitcoin, Ethereum
• Altcoin: Litecoin, Dogecoin
• Built on top of existing Blockchain or
Protocol
• Easier to create; Utility and Security
tokens
• Most tokens use Ethereum platform
• Utility Tokens:
• Not designed for investment
• Primarily use for transact, exchange, and access
product/services etc.
• Exempt from regular scrutiny under the law
• Security Tokens:
• Investable assets and subject to securities
regulations
• Tokens: EOS, Tron, Aeternity
• Ripple (XRP) is a securities token
Coins Tokens

7. VIRTUAL EXCHANGES
• Kraken (https://www.kraken.com/)
• Operate out of US (Canadian)
• Offer trading pairs for USD, EUR, GBP and JPY
• Coinbase (https://www.coinbase.com)
• SFO US based; Provides Wallets and Exchange services
• Trade BitStamp, Ethereum and Litecoin
• Bitstamp (https://www.bitstamp.net)
• Luxembourg-based (UK); serve European clients
• Binance (https://binancexchanges.com)
• Hongkong based; primary Japanese trading
• Currently have challenges for the location; moving operation to island of
Malta
Note: Watch out for high service fees

8. INVESTMENT OPTIONS
• FOREX trading
• Similar to foreign exchange trading
• Buy at low and exit at high tide
• No short sell available at this time
• Long hold
• Buy specific currency at its down
• Hold until appreciation (min. 2 to 5 years)
• Retirement option available (BITIRA)
• Crowd investment
• Build larger funds for trading and future use
Note: Tax impacts are unknown at this point

9. CRYPTOCURRENCY WALLET
• What is Crypto Wallet?
• Is a Virtual Bank: that stores your coins. It has public & private keys so
that one can send and receive coins over different
blockchains/Exchanges and also monitor balance
• Two type of wallets: Software and Hardware
• Why do we need one?
• Security; allows multi-signature
• Control on your currency
Note: Some wallets are specific to the coins; there are few available that can store most of the coins

10. CRYPTOCURRENCY WALLET
• Software Wallet:
• Browser and Mobile based wallet
• Blockchain.info, and Exodus
• Coinbase (less recommended lately)
• Hardware Wallet:
• Is an offline wallet and has cost associated
• More secure
• Nano S (more popular), TREZOR

11. FUTURE EXCHANGE FRAMEWORK
Consumer
Business
Financial Institutes
(Stocks/Funds/Bonds)
Consumer
Business
Blockchain Framework
L
e
d
g
e
r
Currency Miners

12. BUSINESS CASES - WORLDWIDE
• IRA (https://www.bitira.com)
• Convert to Bitcoin
• Government regulatory
• Shipment Transaction (https://medium.com/@300cubits/first-shipping-transaction-on-ethereum-blockchain-
dbe3a7135ec3)
• March 2018; Hong Kong trial shipment
• Ethereum blockchain
• Parties involved: Liners, Shippers, and Port Operations
• REQ – Payment System (https://request.network/#/)
• Online payment option; settlement with Bitcoin

13. REFERENCES

14. • Today’s Exchange Framework (Consumer | Bank | World Bank)
• CryptoCurrencies
• https://steemit.com/bitcoin/@allaboutcrycoins/top-20-cryptocurrencies-and-their-uses-purpose
• https://cryptocoincharts.info/coins/info
• https://www.finder.com.au/cryptocurrency-list-all
• Coins (Altcoins) Vs. Tokens
• https://cryptovest.com/news/coins-and-tokens-arent-the-same-difference-between-cryptocurrency-coins-and-
tokens/
• https://www.investinblockchain.com/top-ethereum-tokens/
• Virtual Exchanges and Trading
• https://blockonomi.com/cryptocurrency-exchanges-trading/
• Software and Hardware Wallet (Security)
• https://www.finder.com.au/cryptocurrency-list-all
• https://masterthecrypto.com/guide-to-cryptocurrency-wallets/
• https://cryptocurrencyfacts.com/what-is-a-cryptocurrency-wallet/
• https://coincentral.com/best-bitcoin-wallet-reviews/
• Future Exchange Framework (Payment Gateway | Owner | Trading)
• https://hackernoon.com/real-world-applications-of-cryptocurrencies-payment-systems-f69206586a7f
• https://www.bitira.com/digital-ira/how-it-works/
• Use cases (future)
• https://www.bitira.com/digital-ira/how-it-works/

15. Ajay Amberkar
Solutions Architect, Infosys Ltd.
ajayambe.aa@gmail.com