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IFS Presentation[1] - Read-Only[1]

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12 views20 pages

IFS Presentation[1] - Read-Only[1]

Uploaded by

dhruvzobalia
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Introduction

Working
Blockchain Technology:
1. Decentralization: Unlike traditional currencies,
cryptocurrencies are decentralized and operate on a
technology called blockchain. This is a distributed ledger
that is maintained by a network of computers (nodes)
rather than a central authority like a government or bank.
2. Blocks and Transactions: Transactions are grouped
together in blocks and added to the blockchain in a
chronological order. Each block contains a reference to the
previous block, forming a chain.
Cryptographic Principles:
1. Public and Private Keys: Cryptocurrencies use
cryptographic keys for security. A user has a public key
(known to others) and a private key (known only to the
user). The private key is used to sign transactions, proving
ownership.
2. Digital Signatures: When a transaction is initiated, it
is signed with the private key. Others can verify the
Wallets:
1. Storage: Cryptocurrency wallets store the user's public and private
keys. They can be software-based (online, desktop, or mobile) or
hardware-based (physical devices).

Supply Control:
1. Limited Supply: Many cryptocurrencies, like Bitcoin, have a capped
supply, creating scarcity similar to precious metals like gold. This is
often done to control inflation.

Mining (Proof of Work):


1. Mining Process: In Proof of Work systems like Bitcoin, miners
compete to solve complex mathematical problems. The first one to
solve it gets the right to add a new block to the blockchain and is
rewarded with newly created cryptocurrency and transaction fees.
2. Security: Mining ensures the security of the network. As it requires
a significant amount of computational power to alter the blockchain, it
becomes economically infeasible for malicious actors to manipulate the
system.
History
Introduction to Cryptocurrency
(2009):
• Emerged with Bitcoin, created by an unknown
person or group using the pseudonym Satoshi
Nakamoto.
• Decentralized, peer-to-peer electronic cash
system.

Blockchain Technology:

• Foundation of cryptocurrencies.
• Distributed ledger ensuring transparency and
security.
Smart Contracts and Ethereum
(2015):
• Ethereum introduced smart contracts.
• Self-executing contracts with coded terms.

Market Growth and Adoption:


• Continued growth despite challenges.
• Increasing interest from major
financial institutions.
Rise
PROS AND CONS
PROS
1. Decentralization- Cryptocurrencies operate on
decentralized networks using blockchain
technology, reducing central authorities’ control
over financial transactions.
2. Security: Blockchain technology ensures a high
level of security. Transactions are secure,
transparent, and tamper-resistant.
3. Accessibility: Cryptocurrencies provide financial
services to unbanked or underbanked individuals,
offering financial inclusion for people who don't
have access to traditional banking systems.
4. Lower Transaction Costs: Cryptocurrency
transactions often have lower fees than traditional
financial systems, especially for cross-border
transactions.
CONS
1. Volatility: Cryptocurrencies are known for their
price volatility, which can result in significant
financial losses for investors.
2. Regulatory Uncertainty: The regulatory
environment for cryptocurrencies is often
uncertain and varies across countries. This can
create challenges for users and businesses
operating in the crypto space.
3. Security Concerns: While blockchain itself is
secure, wallets and exchanges, may be vulnerable
to hacking and fraud, leading to the loss of funds.
4. Limited Acceptance: Many merchants and service
providers do not accept cryptocurrencies as a form
of payment, limiting their practical use for
everyday transactions.
Future
Thank
You

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