digial currency.

1. JOGINPALLY B.R ENGINEERING COLLEGE
DEPARTMENT OF INFORMATION TECHNOLOGY
A TECHNICAL SEMINOR REVIEW ON
DIGITAL CURRENCY
UNDER THE GUIDENCE OF PRESENTED BY:
M.SRIKANTH REDDY K.DILIP KUMAR
ASSISTANT PROFESSOR (21J25A1201

2. Contents
S. No. Topic Slide N0
1. Abstract 3
2. Introduction 4
3. What is Digital Currency? 5
4. What is Crypto currency? 6
5. What is the purpose of Crypto currency? 7
6. Characteristics of Crypto currency 8
7. Types of Cryptocurrency 9
8. Why should we Use Crypto currency ? 10
9. Applications 12
10. Limitations 13
11. Advantages of Crypto currency 15
12. Disadvantage of Crypto currency 17
13. Risks 19
14. Example Bitcoin 20
15. Conclusion 21

3. 1.ABSTRACT
• A cryptocurrency is a digital or virtual currency, which is secured by
cryptography that makes it impossible to double-spend on a distributed
network.
• There are more than 1600 cryptocurrencies present in today's world
that can be used for making payment transactions.
• Some cryptocurrencies like bitcoin, bitcoin cash, LTC, LINK, tether,
etc. are based on decentralized networks like blockchain technology,
which is a distributed ledger imposed by distinct nodes of the network.

4. 2.INTRODUCTION
• Digital currency, also known as cryptocurrency, represents a
transformative innovation in the world of finance and economics.
• Unlike traditional forms of money, which are physical and issued and
regulated by governments or central banks, digital currencies exist
purely in digital form and are not under the direct control of any central
authority.

5. 3.WHAT IS DIGITAL CURRENCY?
• Electronic money is money which exists only in banking computer
systems and is not held in any physical form.
• Electronic money, or e-money, is the money balance recorded
electronically on a stored-value card.
• It may refers to several systems which enable a buyer to pay
electronically by transmitting a unique number (called digital
certificate) similar to a banknote number.

6. 4.WHAT IS CRYPTO CURRENCY?
• A cryptocurrency (or crypto currency) is a medium of exchange using
cryptography to secure the transactions and to control the creation of
additional units of the currency.
• Cryptocurrencies are a subset of alternative currencies, or specifically
of digital currencies.
• There were more than 8,848 cryptocurrencies available for trade in
online markets as of November 2023.

7. 5.WHAT IS THE PURPOSE OF CRYPTO
CURRENCY?
• A crypto-currency is a medium of exchange like normal currencies
such as USD, but designed for the purpose of exchanging digital
information through a process made possible by certain principles of
cryptography.
• Cryptography is used to secure the transactions and to control
the creation of new coins.

8. 6.CHARACTERISTICS OF CRYPTO
CURRENCY.
• Use a number of different algorithms
• Traded in different ways
• Main characteristics that should consider by the customer are:
Market capitalization and Daily trading volume
Verification Method
Retailer acceptance

9. 7.TYPES OF CRYPTO CURRENCY
• As of November 2023, there
are 10,748 cryptocurrencies in
existence.
• Some of them are:
• Bitcoin
• Ethereum
• Ripple
• Litecoin
• Monero

10. 8.WHY SHOULD WE USE CRYPTO
CURRENCY?
• Fast, Safe and cheap
• Easy of use and highly portable
• Untraceable (pseudo-anonymous transactions)
• Transparent and neutral
• Active involvement of users

11. 9.APPLICATIONS
• Digital Payments: Cryptocurrencies serve as a medium of exchange for online and in-
person transactions, providing an alternative to traditional fiat currencies. • Example:
Bitcoin, Litecoin, Dash.
• Decentralized Finance (DeFi): DeFi refers to the use of blockchain and cryptocurrency
technologies to recreate and innovate traditional financial systems, including lending,
borrowing, trading, and more, without relying on traditional intermediaries.
• Examples: Maker DAO, Compound, Uniswap.

12. • Identity Verification: Blockchain technology can be used for secure and
decentralized identity verification, enabling individuals to control access to their
personal information.
Examples: SelfKey, Civic.
• Supply Chain Management: Blockchain can be us track and verify the authenticity of
products throughout the supply chain, ensuring transparency and reducing the risk of fraud.
Examples: VeChain, Walton chain.
• Gaming and Virtual Assets: Cryptocurrencies and blockchain technology are utilized
in the gaming industry to facilitate in-game transactions, ownership of virtual assets, and the
creation of unique gaming experiences.
Examples: Enjin Coin, Decentraland (MANA).

13. 10.LIMITATIONS
• Volatility: Cryptocurrencies are known for their price volatility. The value of a
cryptocurrency can fluctuate significantly within a short period, making them less
stable compared to traditional fiat currencies.
• Limited Acceptance: Despite growing acceptance, cryptocurrencies are not
universally accepted as a means of payment. The lack of widespread adoption by
merchants and businesses limits the practical use of cryptocurrencies for everyday
transactions.

14. • Security Concerns: Cryptocurrencies are susceptible to hacking and fraud.
While the underlying blockchain technology is considered secure, vulnerabilities in
exchanges, wallets, or smart contracts can be exploited. High-profile hacks and scams
have occurred in the past, resulting in the loss of funds for users.
• Scalability Issues: Some blockchain networks, such as Bitcoin and Ethereum,
face scalability challenges. As the number of users and transactions increases, these
networks may experience slower transaction times and higher fees. Developers are
actively working on solutions to address scalability issues (e.g., through upgrades or
alternative scaling solutions).

15. 11.ADVANTAGES OF CRYPTO
CURRENCY
• Decentralization: Cryptocurrencies operate on decentralized networks,
typically based on blockchain technology. This means there is no central authority
or intermediary controlling the currency, providing a more democratic and inclusive
financial system.
• Global Accessibility: Cryptocurrencies can be accessed and used by anyone
with an internet connection, irrespective of geographical location. This global
accessibility is particularly beneficial for individuals in regions with limited access to
traditional banking services
• Borderless Transactions: Cryptocurrencies facilitate fast and borderless transactions,
enabling users to send and receive funds internationally without the need for traditional
banking intermediaries.

16. • Financial Privacy: While transactions on a blockchain are transparent, the
identities of the parties involved can remain pseudonymous. Privacy-focused
cryptocurrencies employ advanced cryptographic techniques to enhance user
privacy.
• Reduced Transaction Costs: Cryptocurrency transactions often have lower fees
compared to traditional financial systems, particularly for cross-border transactions. This is
especially relevant for micropayments and remittances.
• Security: Cryptocurrencies use cryptographic techniques to secure transactions and
control the creation of new units. Blockchain, the underlying technology, provides
transparency, immutability, and resistance to fraud.
• 24/7 Accessibility: Cryptocurrency markets operate 24/7, allowing users to engage
in transactions and trading at any time. This is in contrast to traditional financial markets
with specific operating hours.

17. 12. DISADVANTAGES OF CRYPTOCURRENCY
• Price Volatility: This volatility can pose risks for investors and may hinder the
adoption of Cryptocurrency prices are highly volatile, with significant fluctuations in
short cryptocurrencies as stable mediums of exchange.
• Regulatory Uncertainty: Many countries have not established clear regulatory
frameworks for cryptocurrencies, leading to uncertainty about their legal status
and potential regulatory changes.
• Security Concerns: While blockchain technology is considered secure,
individual users can be vulnerable to hacking, phishing attacks, and scams.
Additionally, some cryptocurrency exchanges have experienced security breaches.

18. • Lack of Consumer Protections: Unlike traditional bank accounts, cryptocurrency
holdings are not insured or protected by government-backed institutions. Users may have
limited recourse in the event of fraud or loss.
• Limited Acceptance: While the acceptance of cryptocurrencies is growing, they are
still not universally accepted as a means of payment. Limited merchant adoption can hinder
their use for everyday transactions.
• Scalability Issues: Certain blockchain networks face scalability challenges,
leading to slower transaction processing times and higher fees during peak demand periods.

19. 13. RISKS
• Hackers: Cryptocurrencies are targets for highly sophisticated hackers, who
have been able to breach advanced security systems.
• Cost: Cryptocurrencies can cost consumers much more to use than credit
cards or even regular cash, often due to price volatility.
• Scams: Fraudsters are taking advantage of the hype surrounding virtual
currencies to cheat people with fake opportunities.

20. 14.EXAMPLE:
BITCOIN
• Ex Both a cryptocurrency and an electronic payment system
• Satoshi Nakamoto in 2008
• First decentralized payment network
• System is peer-to-peer
• 21 million bitcoins
• Completely Open source
• 1BTC= $42,983.30

21. 15.CONCLUSION
• The future of cryptocurrency holds vast potential for disruption and
innovation in the financial sector.
• While cryptocurrencies offer advantages such as decentralization,
security, and accessibility, investors must know the market's volatility
and associated risks.

22. THANK YOU