Research Paper
Research Paper
Research Paper
Cryptocurrencies
Abstract:
Cryptocurrencies have emerged as the most successful digital asset in history. It
has been a hot topic over the last few years, with hundreds of alternative coins in
existence attracting attention from investors.
Currently, digital currency schemes are not widely used or accepted, and they
face series of challenges that could limit their future growth. In this we are going
to describe these challenges and benefits.
Introduction:
A cryptocurrency is a digital asset designed to work as a medium of exchange that
uses cryptography to secure its transaction, to control the creation of additional
units and to verify the transfer of assets. Cryptocurrencies use decentralized
control as opposed to centralized electronic money and central banking system.
The decentralized control of each cryptocurrency works through a blockchain,
which is a public transaction database, functioning as a distributed ledger.
Evolution:
While Bitcoin was first created by Satoshi Nakamoto in 2009, there are numerous
types of competing cryptocurrencies like PPCoin, Litecoin, Ethereum, Zcash, Dash,
Ripple, and Monero.
These digital currencies are assets with their value determined by supply and
demand, similar in concept to commodities such as gold. However, in contrast to
commodities, they have zero intrinsic value. Unlike traditional e-money, they are
not liability of any individual or institution, nor are they backed by any authority.
As a result, their value relies only on the belief that they might be exchanged for
other goods or services, or a certain amount of sovereign currency, at a later
point in time.
Intern Id: 170002 Intern Name: Sumit Kumar
Cryptocurrency Mining:
So, Satoshi set the rule that the miners need to invest some work of their
computers to qualify for this task. In fact, they have to find a hash – a product of a
cryptographic function – that connects the new block with its predecessor. This is
called the Proof-of-Work.
Cryptocurrencies are digital gold. Sound money that is secure from political
influence. Money that promises to preserve and increase its value over time.
Cryptocurrencies are also a fast and comfortable means of payment with a
worldwide scope, and they are private and anonymous enough to serve as a
means of payment for black markets and any other outlawed economic activity.
Future of Cryptocurrencies:
The future of cryptocurrency looks increasingly better every year since 2013. On
one hand, the entire global financial system is becoming increasingly digitized; on
another, minting paper and coins is an expensive process that may one day
become obsolete. Also, people are using the internet more and more for retail
purchasing and someone has to provide the ways of transferring the money.
Overall, cryptocurrencies have a long way to go before they can replace credit
cards and traditional currencies as a tool for global commerce. Many people are
still unaware of cryptocurrency and need to be educated about it to be able to
apply it to their lives. Businesses need to start accepting it. They need to make it
easier to sign up and get started.