Bitcoin literature review

However, compared to the other cryptocurrencies, it still lacks buying interest. Bitcoin is a virtual currency created by programmers, which is produced at a predetermined and knowable rate to simulate a limited resource. Sam Dallyn. Bitcoin can take any type of input, such as text, numbers, string or even a computer-generated file of any length, to produce bits or the 64 characters output called hash [26]. There are many other cryptocurrencies which each use a different technology and they have different approaches to trading using digital currency. In late , CoinTelegraph reported on a multinational cryptocurrency initiative spearheaded by the Russian government.

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Masters of Business Administration Session Submitted litefature Under the supervision of: Manpreet Kaur Dr. My guide for the project is Dr. Bitcoin literature review Kaur Dhanda. I further declare that this project report has not been submitted earlier to any other University or Institute for the award for any degree or diploma. University Roll No.

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Masters of Business Administration Session Submitted by: Under the supervision of: Manpreet Kaur Revlew. My guide for the project is Dr. Sukhwinder Kaur Dhanda. I further declare that this project report has not been submitted earlier to any other University or Institute for the award for any degree or diploma. University Roll No. Roll no. All references litrrature been duly acknowledged. Name of the Supervisor: Dr. Before making the project I had little knowledge about Cryptocurrency and its types.

I want to gain the knowledge deeply ibtcoin different types of cryptocurrency, so I chose this topic. During making the project I have get lot of knowledge about the Cryptocurrency with its pros and cons.

For making my project report time was only for 60 days. I tried best for best result I learned more as much as I. I have done my project under the guidance of madam Dr. She is very helpful, she fulfilled the every requirement and time to time guide me. Whenever I did not understand anything, then I asked again and again, but she did not feel any irritation, she behaved very politely. She gave me practical knowledge along with theoretical knowledge various investment tools.

She guided me, what should be the Performa of project. So she has lot of contribution to complete my project. In the end I want to say thanks to madam Dr. Sukhwinder Deview Dhanda by heart. I could write only these few words about.

I have no more word because she is very -very helpful. At the time of writing, the concept of decentralized cryptocurrency is still in its infancy,having been conceived in January by a pseudonymous researcher going by the name Satoshi Nakamoto.

The open source project known as Bitcoin was created on the proof-of-concept principle that transactions can be securely processed on a decentralized peer to peer network without the need for a central clearinghouse.

Centralized management has always been a part of other digital forms of payment, such as credit cards or wire transfers. The nature of the open source cryptocurrency protocol does not allow for traditional disadvantages such as chargebacks or double spending due to the use of signed encryption keys, effectively removing fraud risk from the merchant. The prominence and popularity of cryptocurrency technology has quickly spread through the general public as means to store and transfer wealth, as well as engage in secure e-commerce.

As with any new technology that generates rapid global interest, cryptocurrencies have been targeted by malicious actors seeking exploitation of the experimental nature of the protocol. These attacks have come in the form of data breaches, targeted attacks against end users, and state sponsored regulation.

The private keys are sent to users using dynamic wallet addresses generated by the users engaged in transactions. The destination payment address is the public key of the cryptocurrency keypair. There is a finite amount of each cryptocoin available on the network, and value of each unit is assigned based on supply and demand, as well as the fluctuating difficulty levels required for mining each coin.

The wallet. Much like cash, if a user loses their wallet. The decentralized nature of open source protocol ensures that the control of the network remains in the hands of the users.

Transactions are dependent on participants in the network, and the user revoew for the security of their own finances and data, without the need for reliance on third parties such as banking institutions.

Bitcoin operates as a p2p file sharing protocol, and therefore the concept is similar to. The p2p network relies on user participation for successful trusted data exchange.

Each transaction is confirmed through key verification on multiple nodes in the network before reaching its destination. This crowdsourced key verification process guarantees the integrity of the data transfer. Rveiew most popular cryptocurrency at the time of writing is Bitcoin, with alternatives such as Litecoin rapidly gaining market traction.

The source code for these programs, as well as the code for other cryptocurrencies, are available on all major open source code repositories. Over the last five years, the total value of all bitcoin i. But this is not only about the value of Bitcoin and other that has gained in the last few years, but also the excitement about the technologies they have introduced to world of technology.

We are on the verge of perhaps one of the biggest transformation in the financial industry. There are many other cryptocurrencies which each use a different technology and they have different approaches to trading using digital currency. Cryptocurrency existed as a theoretical construct long before the first eeview alternative currencies debuted.

The algorithm allowed for secure, unalterable information exchanges between parties, laying the groundwork for future electronic currency transfers.

By the late s, Chaum enlisted a handful of other cryptocurrency enthusiasts in an attempt to commercialize the concept of blinded money. After relocating to the Netherlands, he founded DigiCash, a for-profit company liiterature produced units of currency based on the blinding algorithm. Faced with an ultimatum, DigiCash agreed to sell only to licensed banks, seriously curtailing its market potential.

Around the same time, an accomplished software engineer named Wei Dai published a white paper on b-money, a virtual currency architecture that included many of the basic components of modern cryptocurrencies, such as complex anonymity protections and decentralization. However, b-money was never deployed as a means of exchange.

Shortly thereafter, a Chaum associate named Nick Kiterature developed and released a cryptocurrency called Bit Gold, which was notable for using the blockchain system that underpins most modern cryptocurrencies.

Like DigiCash, Bit Gold never gained popular traction and is no longer used as a means of exchange. After DigiCash, much of the research and investment in electronic financial transactions shifted to more conventional, though digital, intermediaries, such as PayPal itself a harbinger of mobile payment technologies that have exploded in popularity over the past 10 years.

In the United States, the most notable virtual currency of the late s and s was known as e-gold. At its peak in the mids, e-gold had millions of active accounts and processed billions of dollars in transactions annually. The platform faced growing legal pressure during the mid- and lates, and finally ceased to operate in Bitcoin is widely regarded as the first modern cryptocurrency — the first publicly used means of exchange to combine decentralized control, user anonymity, record-keeping via a blockchain, and built-in scarcity.

It was first outlined in a white paper published by Satoshi Nakamoto, a pseudonymous person or group. In earlyNakamoto released Bitcoin to the public, and a group of enthusiastic supporters began exchanging and mining the currency.

By latethe first of what would eventually be dozens of similar cryptocurrencies — including popular alternatives like Litecoin — began appearing. The first public Bitcoin exchanges appeared around this time as.

In lateWordPress became the first major merchant to accept payment bitckin Bitcoin. Others, including Newegg. Though few other cryptocurrencies are widely accepted for merchant payments, increasingly active exchanges allow holders to exchange them for Bitcoin or fiat currencies — providing critical liquidity and flexibility.

Most cryptocurrencies are hardwired for scarcity — the source code specifies how many units can ever exist. In this way, cryptocurrencies are more like precious metals than fiat currencies. Like precious metals, they may offer inflation protection unavailable to fiat currency users. Cryptocurrencies offer a reliable means of exchange outside the direct control of national banks, such as the U. Federal Reserve and European Central Bank. In the long run, many economists and political scientists expect world governments to co-opt cryptocurrency, or at least to incorporate aspects of cryptocurrency such as built-in scarcity and authentication protocols into fiat liyerature.

Mining is a built-in quality control and policing mechanism for cryptocurrencies. Privacy and anonymity were chief concerns for early cryptocurrency proponents, and remain so today. Many cryptocurrency users employ pseudonyms unconnected to any information, accounts, or stored data that could identify. When citizens in repressive rfview run afoul of their governments, said governments can easily freeze or bitocin their litefature bank accounts, or reverse transactions made in local currency.

This is of particular concern in autocratic countries such as China and Russia, where wealthy individuals who run afoul of the ruling party frequently find themselves facing serious financial and legal troubles of dubious provenance.

Unlike central bank-backed fiat currencies, cryptocurrencies are virtually immune from authoritarian caprice. Cryptocurrency funds and transaction records are stored in numerous locations around the world, rendering state control — even assuming international cooperation — highly impractical.

Decentralization is problematic for governments accustomed to employing financial leverage or outright bullying to keep troublesome elites in check. In lateCoinTelegraph reported on a multinational cryptocurrency bitcoin literature review spearheaded by the Russian government. If successful, the initiative would have two salutary outcomes for those involved: weakening the U. Fewer Barriers and Costs to International Transactions. Transactions are either free or come with a nominal transaction fee, no matter where the sender and recipient are located.

Probably the biggest drawback and regulatory concern around cryptocurrency is its ability to facilitate illicit activity. Many gray and black market online transactions are denominated in Bitcoin and other cryptocurrencies. For instance, the infamous dark web marketplace Silk Road used Bitcoin to facilitate illegal drug purchases and other illicit activities before being bitcoin literature review down in The same strengths that make cryptocurrencies difficult for governments to seize and track allow criminals to operate revlew relative ease — though, it should be noted, the founder of Silk Lkterature is now behind bars, thanks to a years-long DEA investigation.

Many small employers pay employees in bitcoin and other cryptocurrencies to avoid liability for payroll taxes and help their workers avoid income tax liability, while online sellers often accept cryptocurrencies to avoid sales and income tax liability. According to the IRS, the U. Early cryptocurrency proponents believed that, if properly secured, digital alternative currencies promised to support a decisive shift away from physical cash, which they viewed as imperfect and inherently risky.

Assuming a virtually uncrackable source code, impenetrable rreview protocols keys and adequate hacking defenses which Mt. However, this assumes that cryptocurrency users take proper precautions to avoid data loss. For instance, users who store their private keys revieww single physical storage devices suffer irreversible financial harm when the device is lost or stolen. Even users who store their data with a single cloud service can face loss if the server is physically damaged or disconnected from the global Internet a possibility for servers located in countries with tight Internet controls, such as China.

Potential for High Price Volatility and Manipulation.

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Citations 3. The nature bitcoin literature review the open source cryptocurrency protocol does revieew allow for eeview disadvantages such as chargebacks or double spending due to the use of signed encryption keys, effectively removing fraud risk from the merchant. P2P Foundation. Therefore, a conceptual model was proposed to analyze the attainment of various competitiveness through the participation of industrial symbiosis network. Nowadays, Bitcoin is increasingly used in a number of fast payment scenarios, where the time between the exchange of currency and goods is short in the order of few seconds. These inconsistencies hamper categorization based on attribute similarity, audience goals, and causal models, respectively. Bitcoin literature review is difficult to categorize and indeed has been associated with different labels in the British media e.