International Research Journal of Engineering and Technology (IRJET)
e-ISSN: 2395-0056
Volume: 09 Issue: 05 | May 2022
p-ISSN: 2395-0072
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Cryptocurrency: Evolution in Finance Aditya Mane1, Shrihari Magar2, Satvika Patil3 , Prathamesh Pandit4, Shraddha Ovale5 Dept. of Computer Engineering, PCCOE, Pune, Maharashtra, India. Assistant Professor, Dept. of Computer Engineering, PCCOE, Pune, Maharashtra, India. ---------------------------------------------------------------------***--------------------------------------------------------------------1,2,3,4
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Abstract : Cryptocurrency is introduced to overcome
drawbacks in conventional payment methods. It is nothing but digital currency. Cryptocurrency is nothing but a hidden form of money. It is not centralized. Cryptocurrency is potentially stable and secure. Nowadays the growth rate of crypto networks is very high. Cryptocurrency is based on blockchain technology in which transaction history is stored in the form of blocks. A cryptocurrency exchange allowed for hundreds of millions of citizens to become part of the crypto economy. Key Words: Bitcoin, Decentralized, Digital currency, Finance
1. INTRODUCTION Cryptocurrency is based on three principles: decentralization, pseudo-anonymity and transparency. In 2009 by pseudonymous developer Satoshi Nakamoto was created the first cryptocurrency and bitcoin. Main object of cryptocurrency is to substitute the existing printed currency to give a peer to peer medium of exchange.
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1.3 Bitcoin: Bitcoin is a digital currency, where the records of all transactions are in a decentralized system. Its transactions are peer to peer,instant and anonymous. There are many other cryptocurrencies like bitcoin, which have different protocols and different prices. Supply of cryptocurrencies is limited. The price of crypto depends on the market i.e demands and supply.
1.1 Cryptocurrency Cryptocurrency operates a peer-to-peer blockchain network .In which information of their transaction gets stored in each block.Every transaction block is protected by hash method so the hash in each block is linked to the block which is previous to it. Because of the nation-wide defense mechanism, any threat may need to involve every parental block, which are hard to detect.By that way Cryptocurrency is often more secure than conventional financial transactions. Also, there are different servers to try and make transactions and all members are considered equal.
There are bitcoin nodes, which share new blocks and transactions among themselves through computers in order to keep every node updated. All bitcoin transactions get announced to all nodes every ten minutes. Every computer gets a challenging mathematical problem to solve, the nodes that solve the problem first, get bitcoin as reward. The computer works as miners(generating new bitcoin).
1.2 Blockchain: A blockchain may be a digital record of transactions.Blockchain technology acts as a static spreadsheet that keeps transactions in a long series of hashconnected blockchains[1].The blockchain contains total information about addresses and balances of the block of every first transaction ever executed to the recently completed block. For example, you can see your own wallet address to see all the transactions from which you receive the first bitcoin.
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