CryptoCurrency

Table Of
Content Explaining about major
CryptoCurrency
What is CryptoCurrency? Litecoin,Ethereum, Ripple, Peercoin,
Dash, Namecoin etc.

REGULATION: PROPERTY OR
Major Crypto Currencies CURRENCY?

Explanation about Bitcoin and the mining

RISKS & FAILURES: POLICY
process
,
 What is Cryptocurrency ?
• Digital currency or digital money is an Internet-based medium of exchange
distinct from physical (such as banknotes and coins) that exhibits properties
similar to physical currencies but allows for instantaneous transactions and
borderless transfer-of-ownership.
• Cryptocurrency - A digital currency in which encryption techniques
(cryptography) are used to regulate the generation of units of currency and
verify the transfer of funds, operating independently of a central bank.
• The first cryptocurrency to be created was Bitcoin back in 2009. Today there
are hundreds of other cryptocurrencies, often referred to as Altcoins.
 Major Crypto-currencies
1. Bitcoin 11.Nxt
2. Litecoin 12.Novacoin
3. Peercoin 13.Freicoin
4. Namecoin 14.Anoncoin
5. Megacoin 15.Terracoin
6. Quarkcoin 16.CryptogenicBullion
7. Protoshares 17.Infinitecoin
8. Worldcoin 18.Zetacoin
9. Primecoin 19.BBQCoin
10. Feathercoin
20.Stablecoin
 What is Bitcoin ?
• First ‘decentralized’ digital currency. They are digital coins you can send through the internet.
• No one controls it. Bitcoins aren’t printed, like rupee or dollars – they’re produced by people, and
increasingly businesses, running computers all around the world, using software that solves
mathematical problems.

• An anonymous software developer called Satoshi Nakamoto

Nakamoto proposed bitcoin in 2009, which was an electronic payment system based on mathematical
proof. The idea was to produce a currency independent of any central authority, transferable
electronically, more or less instantly, with very low transaction fees.
• In simple words, bitcoin is an open source software to transfer money over the internet.
• Market cap - $63 billion
 Who prints it ?
• No one. This currency isn’t physically printed in the shadows by any bank. Instead, bitcoin is created
digitally, by a community of people that anyone can join. They are ‘mined’, using computing power in a
distributed network. And those who do this job are known as ‘miners’.
• Bitcoin is based on mathematics. Around the world, people are using software programs that follow a
mathematical formula to produce bitcoins. The mathematical formula is freely available so that anyone
can check it. The software is also open source, meaning that anyone can look at it to make sure that it
does what it is supposed to.

• The bitcoin protocol – the rules that make bitcoin work – say that only 30 million bitcoins can ever be
created by miners.
 Why should you use bitcoins ?
• Bitcoins are transferred directly from person to person via the net without going through a bank or
clearinghouse.

• It’s fast

• It’s cheap
• People can’t steal your payment information from merchants It isn’t inflationary
• It’s as private as you want it to be You don’t need to trust
anyone else You own it
You can create your own money – simply mine it !
Secured by collective compute power of miners. Very difficult to make changes but easy to verify.
The Currency of the future.
Billion Dollar Companies
Accept CryptoCurrencies
 Litecoin
• Based on the Bitcoin protocol
• Can be efficiently mined on consumer grade hardware
• Faster transaction confirmations (2.5min on average)
• Proof-of-stake in addition to proof-of-work
• Scheduled to produce 84 million currency units
• Current market cap - $867 million
• Click on the UFC logo for more information.
 Tron
Tron targets the entertainment market. By creating a blockchain, it wants to integrate all solutions into one
single marketplace of content. Industries that involve monetary relationships like video games, gambling,
and lifestyle can gain a lot from this integration.

Tron provides tools for everyone to create social communities on the blockchain. These communities match
traditional social networks like Facebook and Twitter but run in a decentralized way. Users can create
accounts and publicly share information. Users can also comment on other posts and send private messages.

Tron has smart contracts similar to Ethereum. To execute them, Tron provides a virtual machine as an
execution environment. Using Tron VM, smart contracts execute fast and consume little memory.

Tron plans to move gradually from centralized to decentralized consensus algorithm. The first stage is to
implement a fully centralized consensus algorithm. The second stage is to make a decentralized algorithm
based on Raft. Finally, the third stage is to implement a PoS algorithm.

Tron Strikes Deal with Major Blockchain and Gaming Groups – For full article click here
 Ethereum
Ethereum is an open source platform based on blockchain technology that runs smart contracts, applications
and programs that runs without a possibility of downtime, censorship, fraud or third-party interference.

The Ethereum computing platform allows anyone to create and run programs on the network using a
language named Solidity, in order to pay for the computing power used to execute these programs a
payment with a cryptocurrency Ether(ETH) is required.

Like trading stocks, Ethereum could also experience price rising and falling, and the Ether cryptocurrency can
lose value very quickly.

J.P. Morgan is using Ethereum to launch a ‘digital U.S. dollar’ – For the full article click here
 Ripple
The name Ripple refers to both, a Cryptocurrency XRP (decentralized digital currency) and an open payment
network (RippleNet) on which XRP is traded and transferred.

Ripple's goal is to connect banks, digital asset, payment providers, exchanges and corporates through
RippleNet to provide one frictionless experience to send & receive money globally.

The blockchain protocol of Ripple has gained recognition by a number of major financial institutions around
the world, according to this, Ripple has broken the barrier of virtual Cryptocurrency by finding a way to
integrate itself within the financial world.
It can be seem like a major breakthrough in the Cryptocurrencies industry.

xRapid connected various types of financial institutions in order to find an easier way of sending and
receiving money.

Since it’s beginning until now Ripple had signed contracts with over 200 financial institutions
Click here for more information
 Peercoin
• Increased security via Proof-of-work + proof-of-stake hybrid algorithm
• Energy efficiency - generating proof-of-stake blocks
• Current market cap - $116 million
 Dash
Dash (DASH) is a privacy-centric digital currency with instant transactions.
Based on the Bitcoin software, Dash unable to remain anonymous while you make
transactions, similar to cash, this Cryptocurrency does not leave digital traces on any server.
The main goal of Dash developers is to solve many of the Bitcoin's disadvantages by speeding
up transactions, offering enhanced financial privacy and developing a decentralized
governance and funding system.
 Monero
Launched in 2014, Monero (XMR) is an open-source, privacy-oriented cryptocurrency that is
built and operates on the blockchain concept. These blockchains, which form the underlying
technology behind digital currencies, are public ledgers of participants' activities that show
all the transactions on the network.

Monero's blockchain is intentionally configured to be opaque. It makes transaction details –

like the identity of senders and recipients, and the amount of every transaction - anonymous
by disguising the addresses used by participants.

Along with anonymity, the mining process for Monero is based on an egalitarian concept
- the principle that all people are equal and deserve equal opportunities. When launching
Monero, its developers did not keep any stake for themselves and banked on contributions
and community support to further develop the virtual currency.

If you want to know more about Monero and it’s deal with Fortnite click here!
 Namecoin - NMC
• Key/Value registration and transfer system • Use cases:
– Timestamping
• Based on Bitcoin technology – Bonds, shares
• Allows you to: – Voting / Web of Trust

– Securely register and transfer arbitrary names (keys) • Market cap - $62 million
– Attach value (data) to the names
– Trade and transact namecoins
 Other major
cryptocurrencies
• Feathercoin • Quark
– Market Cap - $15.9 million – Uses nine rounds of secure hashing from six
• Megacoin different algorithms
– Extra secure
– Restricted to 42 million
– Market cap - $30 million
– Market cap - $26 million
• Primecoin
– Cryptocurrency with Prime Number Proof-Of-
Work
– First currency to have non- hashcash proof-of-
work
– Market cap - $16.9 million
REGULATION: PROPERTY OR CURRENCY?
IRS
◦ Cryptocurrency is not “real” currency, but
◦ Cryptocurrency is property
◦ Taxable based on fair market value
◦ Capital gains/losses

Courts
◦ Bitcoin cases referred to it as “virtual currency”
◦ Seemingly treat it as variation on regular currency, rather than property
◦ E.g. “Bitcoin is a decentralized digital currency that may be used to purchase goods and
services online….” Securities and Exchange Commission vs. Shavers, E.D. Tex., No. 4:13-CV-
416 (Sept. 18, 2014)
 RISKS & FAILURES: POLICY
Money laundering
o

Methods such as “tumbling” can obscure the source of the

o
cryptocurrencies.

Purchase of illegal goods

o

Sites such as Silk Road offer many goods such as drugs and fake IDs
o

o
Silk Road gone, but many other DarkNet markets in its place

Supporting criminal activity

o

Cryptocurrencies can be used to anonymously purchase goods, launder

o
money from illegal activity, and purchase illegal services
 RISKS & FAILURES:
CONSUMER
• Hackers. Cryptocurrencies are targets for highly
sophisticated hackers, who have been able to breach
advanced security systems.
• Fewer protections. If you trust someone else to hold
your cryptocurrencies and something goes wrong,
that company may not offer you the kind of help you
expect from a bank or debit or credit card provider.
• Cost. Cryptocurrencies can cost consumers much more
to use than credit cards or even regular cash, often
due to price volatility.
 RISKS & FAILURES: CONSUMER (cont’d)

• Scams. Fraudsters are taking advantage of the hype

surrounding virtual currencies to cheat people with fake
opportunities.
• Lack of Transparency. The anonymous nature of
cryptocurrencies make transparency and
accountability difficult for consumers seeking to
ensure the safety of their investments.
If you are looking to expand your knowledge in the Cryptocurrencies field, we recommend you to
check
one of those websites for more information.