Economics times : April 10 2018.

Prepared and presented by…

 Abdur rahim
 Chandan kumar
 Manas maheshwari
 Nikita singh
 Nikhil mishra
 Sonam singh
 Sourabh mishra
 Sourav singh
What is Cryptocurrency ?
 Crypto – Crypto comes from the word
cryptography(Secret)
 Currency – A system of money used for legal tender.
 Examples of Cryptocurrency:- Bitcoin, Ethereum,
Monero etc.
Taking a better look !!!
Jan Lansky says cryptocurrency is system that meets six conditions.
 The system doesn't require a central authority.
 The system keeps an overview of cryptocurrency units and their
ownership.
 The system defines whether new cryptocurrency units can be created.
If new cryptocurrency units can be created, the system defines the
circumstances of their origin and how to determine the ownership of
these new units.
 Ownership of cryptocurrency units can be proved exclusively
cryptographically.
 The system allows transactions to be performed in which ownership of
the cryptographic units is changed.
 If two different instructions for changing the ownership of the same
cryptographic units are simultaneously entered, the system performs at
most one of them.
What is bitcoin.
 It’s a decentralized peer to peer cryptocurrency system
designed to allow users to process transitions through
digital units of exchange.
 Satoshi nakamoto is the name used by the unknown
person or people who developed bitcoin. They also
devised the first block chain database.
 There is no central authority to the bitcoin various
programmers donate there time developing the open
source bitcoin software and is subjected to approval of
the head developer Gavin Andresen.
Telescopic view of transaction
 Let’s say A user wants to buy some goods from the B user. A sends 1
bitcoin to B.
 A announces 1 bitcoin transfer to B’s wallet.
 This information(tx) is broadcasted to as many full nodes connected to
A.
 A full node is a special, transaction-relaying wallet which maintains a
current copy of the entire blockchain
 Full Nodes then check A’s spend against other pending transactions. If
there are no conflicts full nodes broadcast the transaction across the
Bitcoin network.
 Miners race each other to complete the work, which is to “package” the
current block so that it’s acceptable to the rest of the network
 Transactions can only be considered as complete and secure once it is
included in the block.
Benefits of bitcoin over bank.
• Bitcoin has • The ledger is
distributed ledger. public for all
access.

Decentralized
Public ledger
power

Immutable to No double
hacks spending

• Transactions are • Double spending

immutable thus are not allowed
can not be because of the
hacked. basic structure of
transactions
Advantages
 Freedom in payment.
 Saving of resources.
 Control and security.
 Transparency.
 Low transactional charges.
 Fewer risk for merchants.
 User anonymity.
 No third party interruption.
 Mobile payment.
Disadvantages.
 Lack of awareness and understanding.
 Risk and volatility.
 Still developing.
 Only 21 million bitcoin can be generated.
 Money laundering and black market.
 Lack of recourse.
 Deflationary.
 Bitcoin consumes as much electricity as Colombia do.
What is mining and who are miners
?
 Mining is process by which transactions are verified
and added to public ledger know as block chain .
 Miner s are those users who verify these transaction
and add these transactions to block chain .
 Any one with suitable hardware and internet can
participate in mining .
 Miners claim rewards on verifying transaction
correctly .
Why Should I Buy Bitcoin Instead of
Mining?
 A long time ago anyone could mine bitcoins on their
computer at home. Today, only specialized
computer(ASIC miner) hardware is powerful enough
to do this.
 Mining at your small system will give lower hash rate
and you will only be able to earn few penny per year.

 You should just buy some if you want coins without

trying to mine.
Block chain technology.
 It is a distributed ledger.
 It helps in keeping history of every transaction to every
individual.
 Every individual can verify that all the bit coins owned
by the person he is receiving is legal.
Continued….
Three key concepts of block chain technology.
1. Previous block hash code.
2. Complete hash detail of every transaction that is
taking place.
3. Value or proof of the work. This basically is a
mathematical solution that you attach with the block
to ensure that is a valid block.
Authorizing the sender

message message

Public key signature Private key

Continued…
 What are the chances of someone guessing your
private key.
 Every private key is associated with a unique public
key.
 Public key as name indicate are known to everyone
 The private key is used to decrypt the message and you
should keep it safe.
 Private keys are of 51 characters length consisting of
upper case, lower case and numbers. Hence very
difficult to guess it.
Impact of bitcoin on India and its
economy
PROS.
 Saving of resources.
 Control and security.
 Mobile payment.
CONS.
 Increase in cyber crime
 Massive opportunity for speculation
 Money politicization happens
 Money laundering possibilities
 Loss of overall control
Facts about bitcoin
 It’s a rumor that bitcoin was designed specially for
mafia’s around the world .
 Bitocin has increased 750% from its initial days
 In India , 0.1% of population knows about bitcoin.
 Looking at the number of downloads India has
moved to 16th position in world .
 Current of value of 1 Bitcoin is equal to 7740$ and
533711.70 rupee .
Value of Bitcoin .
20000
18000
16000
14000
12000
Series 1
10000
Column1
8000
Column2
6000
4000
2000
0
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Conclusion
 Its robust and highly risk free.
 It can replace the entire banking system with some
cons.
 It will take sometime to bitcoin to be money 2.0.
 Since blockchain is not only implemented in bitcoin
hence further improvement in blockchain will improve
the bitcoin system. Examples , retailers like Wal-Mart
Stores Inc. are experimenting with using blockchain
for ensuring food safety .
THANK YOU
Questions ?
 The more miners that mine the more secure the
network.
 Can everybody mine?
 51% attack.