CRYPTOCURRENCY Bitcoin,Ether & Beyond.

What is a cryptocurrency? If you take away all the noise around cryptocurrencies and reduce it to a simple definition, you find it to be just limited entries in a database no one can change without fulfilling specific conditions. Bitcoin & Ether

Three Axis of Cryptocurrency TECHNOLOGICAL AXIS PHILOSOPHICAL AXIS FINANCIAL AXIS

The Technology The technology of the cryptocurrency means the underline principle through which the transactions take place. Blockchain is the backbone of Bitcoin Ethereum is the backbone of Ether

The Blockchain Blockchain is the decentralized technology that enables transfer of bitcoin from one individual to another Bitcoin =! Blockchain Blockchain solves the conventional problem of Money Transfer

Conventional Way of Transferring Money THIRD TRUSTED PARTY $5 $4.9 B

How blockchain is better than conventional way Blockchain removes the 3rd party Blockchain removes the fee of transfer Blockchain does it way quicker

Distributed Open Ledger in Blockchain

Distributed Open Ledger in Blockchain $5 A = $10 A B A->B = $5 A->B = $5 A = $10 A = $10 D C A->B = $5 A->B = $5

Distributed Open Ledger in Blockchain $5 A = $10 A B A->B = $5 A->B = $5 $15 A = $10 A = $10 D C A->B = $5 A->B = $5

Miners in Bitcoin Miners are special nodes in the blockchain They Compete against each other to Validate Find the key to complete the transactions Miners get financially rewarded

One way encryption One way hash encryption is used in cryptocurrency (SHA -256) 0110…01 => e131nd21 A fixed size output is produced Even one bit change would lead to entirely different output

Merle Tree A Key B Key C D E

Blockchain is a huge Mertle Tree Root Root Root Transaction Transaction

Ethereum Blockchain Ethereum uses turing complete(Solidity) as a programming language Smart Contracts Transactions in Etherum can be programmed Solidity has loops Ethereum has fees for each operation solving the spam problem Ethereum is a platform for decentralized application Microsoft is investing heavily in Ethereum

Ethereum vs Ethereum Classic The battle of the both is a philosophical battle The DAO aka the Decentralized Autonomous Organization was a complex smart contract which was going to revolutionize Ethereum forever. The way it worked was pretty straightforward. If you wanted to have any say in the direction  that would get funded, then you would have to buy “DAO Tokens” for a certain amount of Ether. A group of hackers found a loophole and took out 50 million dollars worth of ether

Rate of Bitcoin 167107.64 Indian Rupee This rate was 82000 ruppes in my last presentation

Rate of ETH ₹17,471 On 21st June the price of Ether dropped to 10 cents Stop losses were executed Ether doesn’t have circuit breaker

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