Cyrptography
Lionking
BitcoinPostppt.pptxCryptocurrency - Bitcoin and the Lightning Network
Team 1
Project Report
By
University of the Cumberlands
Cryptography
09/29/2019
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Table of Contents
BLOCKCHAIN
BITCOIN
ADVANTAGES & DISADVANTAGES
PROBLEMS OF BITCOIN
VOLATILITY
SCALABILITY
USABILITY
BITCOIN LIGHTNING NETWORK
TIMESTAMPING
SPECIFICATIONS AND IMPLEMENTATIONS
ADVANTAGES & DISADVANTAGES OF LIGHTNING NETWORK
CONCLUSION
Blockchain
A blockchain is a growing list of records, called blocks, that are linked using cryptography. Each block contains a cryptographic hash of the previous block, a timestamp, and transaction data.
Blockchain was invented by Satoshi Nakamoto in 2008.
Blockchain is considered as the most fundamental and most important aspect of Bitcoin. The blockchain is a distributed database of records of all transactions or digital event that have been executed and shared among participating parties which contains every single record of each transaction. Blockchain Technology first came to light when a person or Group of individuals name ‘Satoshi Nakamoto’ published a white paper on “BitCoin: A peer to peer electronic cash system in 2008. Blockchain Technology Records Transaction in Digital Ledger which is distributed over the Network thus making it incorruptible. Anything of value like Land Assets, Cars, etc. can be recorded on Blockchain as a Transaction.” (Gupta, 2019)
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Bitcoin
Bitcoin (₿) is a cryptocurrency. It is a decentralized digital currency without a central bank or single administrator that can be sent from user to user on the peer-to-peer bitcoin network without the need for intermediaries.
How it works?
Bitcoin (₿) is a type of cryptocurrency. It is a digital currency that is decentralized and works without a central repository (bank) or an administrator. Funds can be sent from one user to another on the peer-to-peer bitcoin network.
“Bitcoin uses peer-to-peer technology to operate with no central authority or banks; managing transactions and the issuing of bitcoins is carried out collectively by the network. Bitcoin is open-source; its design is public, nobody owns or controls Bitcoin and everyone can take part. Through many of its unique properties, Bitcoin allows exciting uses that could not be covered by any previous payment system.” (Bitcoin, 2019)
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Advantages
1. Greater Liquidity Relative to Other Cryptocurrencies
Bitcoin in the most popular cryptocurrency, that has greater liquidity than its peers. This allows users to retain most of its inherent value when converting to fiat currencies, such as the U.S. dollar and euro. On the other hand, most other cryptocurrencies either can’t be exchanged directly for fiat currencies or lose substantial value during such exchanges.
2. Increasingly Wide Acceptance as a Payment Method
Most of the merchants accept Bitcoin payments, it’s possible to buy virtually any physical item using Bitcoin units. Bitcoin’s growing mainstream acceptance is likely to be a big help, if you’re serious about reducing your exposure to fiat currencies.
3. International Transactions Easier Than Regular Currencies
Bitcoin transactions aren’t any international transaction fees or red tape to navigate, as is often the case with credit card payments, ATM cash withdrawals, and international money transfers. International credit card and ATM fees can range up to 3% of transaction value, and sometimes higher, while money transfer fees can be as high as 15%.
4. Generally Lower Transaction Fees
Credit cards and Paypal has high transaction fees like 2% - 3% whereas Bitcoin comes with lower transaction fees.
5. Anonymity and Privacy Relative to Traditional Currencies
Bitcoin’s built-in privacy protections allow users to completely separate their Bitcoin accounts from their public profile. While it’s possible to track Bitcoin flows between users, it’s very difficult to figure out who those users really are.
6. Independence from Political Agents and Creators
Bitcoin is also unbeholden to its creators, due to its completely decentralized nature, popularity, and liquidity. This allows the currencies’ creators to manipulate supply and, to an extent, value relative to other cryptocurrencies, negatively impacting other holders.
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Greater Liquidity Relative to Other Cryptocurrencies
Increasingly Wide Acceptance as a Payment Method
International Transactions Easier Than Regular Currencies
Anonymity and Privacy Relative to Traditional Currencies
Thank you!!!
