Cryptography is associated with the process of converting
ordinary plain text into unintelligible text and vice-versa.
It is a method of storing and transmitting data in a particular
form so that only those for whom it is intended can read and
Cryptography not only protects data from theft or alteration,
but can also be used for user authentication.
What Is Crypto Currency ?
Crypto currency means digital currency
A medium of exchange like normal currencies
Designed for the purpose of exchanging digital
Exchanging process made possible by certain principles
Why We Use Cryptocurrencies ?
Specially designed to take advantage of the
architecture of the internet
Transactions are checked or confirmed by the
computers of the users on the currency’s network
Computers that verify the transactions receive a
small amount of currency as a reward
Crypto currencies are created by a
software developer called “Satoshi
Nakamoto” In 2009
Since then numerous crypto
currencies have been created
Each unit of bit coin is called a
The idea was to produce a currency independent of
any central authority , transferable electronically more
or less instantly , with very low transaction fees
This currency isn’t physically printed in the shadows
by a central bank
These are created digitally , by a community of people
that any one can join
They are mined using computing power in a
It is completely based on software programs that
follow a mathematical formula
This software is an open source
The algorithms are SHA – 256 , Scrypt , Scrypt – N , X11
Like e-mail addresses , you can send BTC to person using
These addresses contain 27 – 34 alphanumeric characters
beginning with 1 or 3
Generated via public-key cryptography
Any user can generate multiple addresses
The blockchain is an
incorruptible digital ledger of
economic transactions that can
be programmed to record not
just financial transactions but
virtually everything of value.
Process of Mining
Mining can be called as “INVERSE HASHING”.
Bitcoin mining is the process by which transactions are verified and
added to the public ledger, known as the block chain.
Anyone with access to the internet and suitable hardware can
participate in mining.
The Bitcoin Mining Algorithm
Bitcoin makes heavy use of
the cryptographic hash
function SHA256, which
stands for Secure Hash
the SHA algorithms were
originally developed by the
Is Bitcoin Is Legal ?
Yes , depending on what you are doing with it
The RBI says that it has not given license/authorization to any
entity/company to operate such schemes with bit coin or any
On 13 august 2017 Nepal declared BTC as illegal
China prohibited financial institutions from handling Crypto
Bangladesh Outlawed Bitcoin
Benefits Of Cryptocurrency
No surprise fees or waiting periods
No one can steal your information
Difference Between Conventional
Conventional Currency Cryptocurrency
Type Real Virtual
Intermediates Yes No (peer to Peer)
Portability Yes (except Heavy Cash) High Portability
Durable Moderate High Durable
Acceptance National Global (Through Internet)
What Decides The Price Of A Bitcoin?
The value of a Bitcoin is simply determined by the “Laws of Supply
Risks And Failures
Purchase of illegal goods
Supports criminal activity
Potential loss / theft of private keys
The normal method laundering bitcoins is impossible .
Someone with bitcoin can send some to a tumbler like bitcoin fog ,
where it will be split into smaller subdivisions and mixed with other
bitcoins from other places , recombining and splitting again several times
over until the whole amount eventually comes out the other end ,
theoretically it is impossible to track the bitcoins .
Silk Road’s in-built tumbler successfully foiled the FBI .
Math's And Computer Science
The algorithms are published, the
software is open source, so anybody with
enough knowledge in mathematics and
computer science can check out
We don’t need any financial experts to
explain us things they don’t understand
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