CRYPTOCURRENCY [Autosaved]

CRYPTOCURRENCY  B Y S A U R A B H S H R I V A S TA T A VA VA

 AG  A G E N D A 

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Definition

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History

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Introduction of block chain

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How does block chain technology works

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Timestamping network 

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Use of blockchain

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Everyday application of blockchain

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Ico

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Legal issues

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Impact

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Benefits

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Futures

CRYPTOCURRENCY  •

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A digital currency designed to ensure the anonymity and security of online money transactions. It uses cryptographic encryption to generate and to verify transactions. New currencies are created using a process called Extraction, while all transactions are recorded in a public registry, a transaction block chain.

HISTORY 

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In 1983 the American cryptographer David Chaum conceived an anonymous cryptographic electronic money called ecash Later, in 1995, he implemented Later, implem ented it through Digicash Digicash,,[101] an early form of cryptographic electronic payments which required user software in order to withdraw notes from a bank and designate specific encrypted keys before it can be sent to a recipient Later, in 1995, he implemented Later, implem ented it through Digicash Digicash,,[101] an early form of cryptographic electronic payments which required user software in order to withdraw notes from a bank and designate specific encrypted keys before it can be sent to a recipient. This allowed the digital currency to be untraceable by the issuing bank, the government, or a third party

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The blockchain is a digital ledger of online transactions that can keep records of not only just financial transactions but virtually every kind of data transaction. To simplify this, let us take an analogy of a database that is available across a network of computers, this network is designed to keep this data updated regularly. This idea of shared data available across a network is the basic concept behind blockchain. It was originally invented to create a database that will record Cryptocurrency Crypt ocurrency transactions. To manage transparency the transaction of cryptocurrency is managed by its peer to peer network, and not by just one central authority. This decentralization of data creates a robust shared peer to peer network.

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Blockchain technology is a public, distributed, and a cryptographically secure ledger that automatically records and verifies numerous digital transactions. Blockchain is a  decentralized  timestamping network 

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technology consists of a chain of blocks that carries valuable information. It is entirely open to anyone on this platform. Its interesting property doesn’t let the data modified once it is stored. Blockchain involves all parties involved in a business for safe and synchronized transactions. The blockchain ledger records each and every transaction and put it into a block.

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blocks are connected to the previous blocks holding the fingerprint of each block. Since the ledger is distributed, it works as a shared platform not giving access to one central administration. administratio n. As a result, it makes a tamper resistant and a nd highly secured.

TIMESTAMPING TIMEST AMPING NETWORK  •

The document you want to be timestamped, is hashed along with

1. the timestamp of the previous document that was timestamped, and 2. proof-of-work, and this hash is encrypted using a secret only known to the auditor (a.k.a miner) who discovered the proof-of-work. This encrypted hash is then broadcast to everyone to see. In blockchains like that of the bitcoin, the auditor (a.k.a the miner) is then rewarded rewarded in bitcoins for doing this labor. 

Proof-of-work is a way to prove to others that you did a lot of work using your computer before you do something else like timestamp a document. Proof-of-work is used to prevent auditors from making fraudulent claims without significant costs to themselves.

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bitcoin, the first blockchain, the proof-of-work is to find a number which when cryptographically hashed together with the transaction details gives another number less than a threshold. The bitcoins network uses blockchains to timestamp transactions so that ownership of bitcoins can be known without dispute, and giving the same coin to two people is impossible.

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The question is legit but there are many practical uses of this technology that will help you to sort your everyday life. For example, the finance sector is one of the strongest use cases for the technology. technol ogy.The World Bank estimated that over $430 billion US U S in money transfers were sent in 2015 and the blockchain will potentially cut out the middleman for these types of transactions making the transactions more cost-efficient. Today, personal computing is the inseparable part of our lives this became possible due to the invention of the Graphical User Interface (GUI), commonly known as “desktop”. The “wallet” applications are the GUI devised for the blockchain, which is used to do financial transactions using cryptocurrencies like Bitcoin and Ethereum. Transactions online are closely associated with the processes of identity verification for the security and safety purpose. These wallet apps will evolve in the near future to include other types of identity management.

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Smart contracts

The distributed ledgers enable the coding of self-executing contracts that will execute when specific conditions are are met. For instance, a payer will will only pay pay for a specific service once a service provider meets certain benchmark, using the blockchain technology technology and Cryptocurrency enabling the payout payout to be automated. •

File storage

files will be safe from hackers on a decentralized file storage network, this distribution of data throughout the network protects the database from getting hacked or lost. •

Data management

Blockchain will empower users users to manage and sell the data their online activity generates by easily distributing in small fractional amounts, Cryptocurrency will be used for this type of transaction.

MAJOR CRYPTO-CU CRYPTO-CURRENCIES RRENCIES  –  5/12/2013 1.Bitcoin

11. Nxt

2. Litecoin

12. Novacoin

3. Peercoin

13. Freicoin

4. Namecoin

14. Anoncoin

5. Megacoin

15. Terr errac acoin oin

6. Quarkcoin

16. CryptogenicBullion

7. Protoshares

17. Infinitecoin

8. World Worldcoin coin

18. Zetacoin

9. Primecoin

19. BBQCoin

10. Feathercoin

20.Stablecoin

ICO •

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ICOs (Initial Coin Offerings) are the vital lymph of cryptocurrency exchanges and for them to function well, there needs to be trust t rust in their legitimacy. ICOs provide a channel for fresh f resh fiat money into the Bitcoin world – which now has some 1300 cryptocurrencies, though only a dozen or so matter, chief among them, Bitcoin, Ethereum, Litecoin, Monero, Bitcoin Cash, Ripple. Without ICOs, the Bitcoin world would wither and die. Or at least find itself reduced to anonymous exchanges serving illegal activities in the dark Web. So ICOs are key: They provide the link with wit h the legal leg al world of fiat money money,, banks and capital. Unfortunately, in the absence of regulation and oversight from financial authorities, ICOs are also the Wild West. The regulatory regulator y panorama is i s a veritable smorgasbord of varying var ying (and no) regulations that ICO issuers take advantage of.

LEGAL ISSUES IN WORLD •

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The European Union has passed no specific legislation relative to the status of bitcoin as a currency, but has stated that VAT/GST is not applicable to the conversion between traditional (fiat) currency and bitcoin. VAT/GST and other taxes (such as income tax) still apply to transactions made using bitcoins for goods and services •

In October 2015, the Court of Justice of the European Union ruled that "The exchange of traditional currencies for units of the ‘bitcoin’ virtual currency c urrency is exempt from f rom VAT" and that "Member States must exempt, inter alia, transactions relating to t o ‘currency ‘currency,, bank notes not es and coins used as legal tender’", making bitcoin a currency as opposed to being a commodity "Internet-based payment services that allow third party funding from anonymous sources may face an increased risk of [money laundering/terrorist financing]." They concluded that this may "pose challenges to countries in [anti-money laundering/counter terrorist financing] regulation and supervision"

LEGAL ISSUES IN INDIA 

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On December 24, 2013, the Reserve Bank of India (RBI) cautioned the users, holders and traders of virtual currencies, including bitcoins, about the potential risks that they are exposed to. The RBI had stated five major risks of trading in bitcoins. On February 1, 2017, the central bank again reminded the users of risk involved in bitcoin trading. If any amount is earned by buying and selling of Bitcoins on a regular basis, the income would be charged under the head “Profits and Gains from Business and Profession”  If any amount is earned by investing in Bitcoins for a longer period of time, the income may be charges under the head “Income from Capital Gains” 

IMPACT OF CRYPTOCURRENCY  •

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Power to the Dark Web Web: Dark web is the place where you can find assassins, weapons weapons and a lot more illegal stuff. By using crypto currencies like Bitcoins people can make illegal transactions without giving any information about themselves. Cryptocurrencies like Bitcoins are a way to empower such transactions across the globe which will ultimately result in increased cyber crime Speculations: Due to the extreme highs and lows BitCoins prese present nt a massive possibility for speculation. Just like trading in shares, trading in Bitcoins is massive and seeing the rise in traction around cryptocurrencies it is likely to grow further.

Another reason accounting to this is the increasing cost of investing in the stock markets

IMPACT OF CRYPTOCURRENCY 

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Politicization of Money: Earlier all the monetary transactions were enabled through central banks (directly or indirectly). in directly). Now, with the evolution of Bitcoins, the scenario has changed. The power that was vested in the governments and central banks is shifting to the masses. This revolutionary change in transaction handling has the power to change the economic structure. To bring security and enable scrutiny, central banks and financial institutions maintain a record of all the transactions undertaken by the people. Now with digital currencies, this economic power can be challenged by people. This has led to the creation of a new autonomous body which can facilitate transactions. Ultimately if adopted on a large scale, Bitcoins can lead to the politicization of money.

IMPACT OF CRYPTOCURRENCY  •

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Apprehension among the Central Banks : There have been implications that Bitcoins can be used to secretly launder money outside the country. Central banks across the world have been wary of Bitcoins as an an uncontrollable and unpredictable form of currency currency.. Cryptocurrencies Cryptocurrencies are leading to loopholes in the current bank’ss data about the money transactions leading to inability to track economic activities. Crypto and bank’ Cyberspace has emerged as a power in itself thus bringing a check on the activities of the so powerful governments.

The Emergence of New Markets: Cryptocurrencies have led to the emergence of new markets Cyberspace will rise up as a s the managing body that will handle and maintain such disruptive markets.The near zero transaction cost (along with other characteristics) has made these currencies even superior to the traditional money we are accustomed to using. What can be surely stated is that it is just the beginning and the number of possibilities is endless.

BENEFITS OF CRYPTOCURRENCY 

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cryptocurrencies can offer to digitization:

 Real •

Estate

Immediate Settlement:

 Transaction  No Theft  They

Done at Fraction of a Unit

in Transac Transaction tion

are Global

FUTURES OF CRYPTOCURRENCY 

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Cryptocurrency is the future of financial around the globe. Reports shows that they have given remarkable returns on Investments. Talking about future in India, In my personal opinion GOI can legalise and can bring them to main stream. It will be regulated and can be traded as other stock and assets. Like other countries it will be eligible for capital gain taxes. Lets see what discussion is taken by GOI. If you want to invest in cryptos cr yptos its the right time. You can use u se CryptoniumX CryptoniumX.. They are releasing there alpha platform soon in August. This platform has all that is needed to safely trade or invest in cryptos and educates about cryptos at the same time.

THANK YOU!