Cryptocurrency

• Cryptocurrency


  A type of digital currency based on cryptography, thus being able to convert plaintext to ciphertext
• Cryptocurrency


  • It was crypto algorithms where it is a one-way crypto meaning going back is impossible
• Differences between real currency and cryptocurrency

  • Type
  • Intermediates
  • Portability
  • Durable
  • Acceptance
  • Secure (cannot be counterfeited)
  • Scarce (Predictable supply)
  • Sovereign (government issued)
  • Decentralized
  • Smart (programmable)
• Pros of cryptocurrency


  • Decentralized
  • Fast, safe, and cheap
  • Ease of use & highly portable
  • Untraceable
• Cons of cryptocurrency


  • Transaction security
  • Transaction verification in the absence of a centralized authority
  • Illegal activities
  • Transparent and neutral
  • Lost (and never found)
  • Active involvement of users
  • Fever risks for merchants
  • Freedom to transact
  • Low inflation and collapse risk
  • Tax evasive
• Types of cryptocurrency


  • Bitcoin
  • Namecoin
  • Megacoin
  • Litecoin
  • Novacoin
  • Infinitecoin
  • XRP
  • USDC
  • USDT
  • UST
  • Peercoin
  • Featherin
  • Ether
  • DAI
  • Busp
  • Hilroy
• Price of a Cryptocurrency

  Directly proportional to demand and inversely proportional to supply of Coin
• Factors determining price of a Cryptocurrency

  • Supply
  • Demand
• How to buy a Cryptocurrency

  1. Can be bought with online vendors

  2. CEX (Centralized Exchange, ex: Coinbase, Kraken, Gemini, Binance)

  3. DEX (Decentralized Exchange, ex: Uniswap, Sushiswap)
• Workflow when obtaining Bitcoins

  1. Bitcoins remain in the worker account

  2. Then will be transferred to the Individual wallet
• Information required to conduct a cryptocurrency transaction

  • Input (Address of sender)
  • Amount
  • Output (Address of recipient)
• Mining Bitcoins


  1. A user can mine bitcoins from an online server

  2. To process transactions for a cryptocurrency blockchain in order to gain profit

  3. Requires lots of power which is why miners may create a pool
• Blockchain


  • A series of blocks (transaction pools) connected with a chain (hash pointers)
  • A chain is basically a pointer of the last block's pointer, a combination of the data & location