here we prepared a presentation on digital currency.

digial currency.

1. JOGINPALLY B.R ENGINEERING COLLEGE DEPARTMENT OF INFORMATION TECHNOLOGY A TECHNICAL SEMINOR REVIEW ON DIGITAL CURRENCY UNDER THE GUIDENCE OF PRESENTED BY: M.SRIKANTH REDDY K.DILIP KUMAR ASSISTANT PROFESSOR ( 21J25A1201

2. Contents S. No. Topic Slide N0 1. Abstract 3 2. Introduction 4 3. What is Digital Currency? 5 4. What is Crypto currency? 6 5. What is the purpose of Crypto currency? 7 6. Characteristics of Crypto currency 8 7. Types of Cryptocurrency 9 8. Why should we Use Crypto currency ? 10 9. A pplications 12 10. Limitations 13 1 1. Advantages of Crypto currency 15 1 2. Disadvantage of Crypto currency 17 13. Risks 19 14. Example Bitcoin 20 15. Conclusion 21

3. 1.ABSTRACT A cryptocurrency is a digital or virtual currency, which is secured by cryptography that makes it impossible to double-spend on a distributed network. There are more than 1600 cryptocurrencies present in today's world that can be used for making payment transactions. Some cryptocurrencies like bitcoin, bitcoin cash, LTC, LINK, tether, etc. are based on decentralized networks like blockchain technology, which is a distributed ledger imposed by distinct nodes of the network.

4. 2.INTRODUCTION Digital currency, also known as cryptocurrency, represents a transformative innovation in the world of finance and economics. Unlike traditional forms of money, which are physical and issued and regulated by governments or central banks, digital currencies exist purely in digital form and are not under the direct control of any central authority.

5. 3.WHAT IS DIGITAL CURRENCY? Electronic money is money which exists only in banking computer systems and is not held in any physical form. Electronic money, or e-money, is the money balance recorded electronically on a stored-value card. It may refers to several systems which enable a buyer to pay electronically by transmitting a unique number (called digital certificate) similar to a banknote number.

6. 4.WHAT IS CRYPTO CURRENCY? A cryptocurrency (or crypto currency) is a medium of exchange using cryptography to secure the transactions and to control the creation of additional units of the currency. Cryptocurrencies are a subset of alternative currencies, or specifically of digital currencies. There were more than 8,848 cryptocurrencies available for trade in online markets as of November 2023.

7. 5.WHAT IS THE PURPOSE OF CRYPTO CURRENCY? A crypto-currency is a medium of exchange like normal currencies such as USD, but designed for the purpose of exchanging digital information through a process made possible by certain principles of cryptography. Cryptography is used to secure the transactions and to control the creation of  new coins.

8. 6.CHARACTERISTICS OF CRYPTO CURRENCY. Use a number of different algorithms Traded in different ways Main characteristics that should consider by the customer are: Market capitalization and Daily trading volume Verification Method Retailer acceptance

9. 7.TYPES OF CRYPTO CURRENCY As of November 2023, there are 10,748 cryptocurrencies in existence. Some of them are: Bitc oin Ethereum Ripple Litecoin Monero

10. 8.WHY SHOULD WE USE CRYPTO CURRENCY? Fast, Safe and cheap Easy of use and highly portable Untraceable (pseudo-anonymous transactions) Transparent and neutral Active involvement of users

11. 9.APPLICATIONS Digital Payments: Cryptocurrencies serve as a medium of exchange for online and in- person transactions, providing an alternative to traditional fiat currencies. • Example: Bitcoin, Litecoin, Dash. Decentralized Finance (DeFi): DeFi refers to the use of blockchain and cryptocurrency technologies to recreate and innovate traditional financial systems, including lending, borrowing, trading, and more, without relying on traditional intermediaries. Examples: Maker DAO, Compound, Uniswap.

12. Identity Verification: Blockchain technology can be used for secure and decentralized identity verification, enabling individuals to control access to their personal information. Examples: SelfKey, Civic. Supply Chain Management: Blockchain can be us track and verify the authenticity of products throughout the supply chain, ensuring transparency and reducing the risk of fraud. Examples: VeChain, Walton chain. Gaming and Virtual Assets: Cryptocurrencies and blockchain technology are utilized in the gaming industry to facilitate in-game transactions, ownership of virtual assets, and the creation of unique gaming experiences. Examples: Enjin Coin, Decentraland (MANA).

13. 10.LIMITATIONS Volatility: Cryptocurrencies are known for their price volatility. The value of a cryptocurrency can fluctuate significantly within a short period, making them less stable compared to traditional fiat currencies. Limited Acceptance: Despite growing acceptance, cryptocurrencies are not universally accepted as a means of payment. The lack of widespread adoption by merchants and businesses limits the practical use of cryptocurrencies for everyday transactions .

14. Security Concerns: Cryptocurrencies are susceptible to hacking and fraud. While the underlying blockchain technology is considered secure, vulnerabilities in exchanges, wallets, or smart contracts can be exploited. High-profile hacks and scams have occurred in the past, resulting in the loss of funds for users. Scalability Issues: Some blockchain networks, such as Bitcoin and Ethereum, face scalability challenges. As the number of users and transactions increases, these networks may experience slower transaction times and higher fees. Developers are actively working on solutions to address scalability issues (e.g., through upgrades or alternative scaling solutions).

15. 11.ADVANTAGES OF CRYPTO CURRENCY Decentralization: Cryptocurrencies operate on decentralized networks, typically based on blockchain technology. This means there is no central authority or intermediary controlling the currency, providing a more democratic and inclusive financial system. Global Accessibility: Cryptocurrencies can be accessed and used by anyone with an internet connection, irrespective of geographical location. This global accessibility is particularly beneficial for individuals in regions with limited access to traditional banking services Borderless Transactions: Cryptocurrencies facilitate fast and borderless transactions, enabling users to send and receive funds internationally without the need for traditional banking intermediaries .

16. Financial Privacy: While transactions on a blockchain are transparent, the identities of the parties involved can remain pseudonymous. Privacy-focused cryptocurrencies employ advanced cryptographic techniques to enhance user privacy. Reduced Transaction Costs: Cryptocurrency transactions often have lower fees compared to traditional financial systems, particularly for cross-border transactions. This is especially relevant for micropayments and remittances. Security: Cryptocurrencies use cryptographic techniques to secure transactions and control the creation of new units. Blockchain, the underlying technology, provides transparency, immutability, and resistance to fraud. 24/7 Accessibility: Cryptocurrency markets operate 24/7, allowing users to engage in transactions and trading at any time. This is in contrast to traditional financial markets with specific operating hours.

17. 12. DISADVANTAGES OF CRYPTOCURRENCY Price Volatility: This volatility can pose risks for investors and may hinder the adoption of Cryptocurrency prices are highly volatile, with significant fluctuations in short cryptocurrencies as stable mediums of exchange. Regulatory Uncertainty : Many countries have not established clear regulatory frameworks for cryptocurrencies, leading to uncertainty about their legal status and potential regulatory changes. Security Concerns: While blockchain technology is considered secure, individual users can be vulnerable to hacking, phishing attacks, and scams. Additionally, some cryptocurrency exchanges have experienced security breaches.

18. Lack of Consumer Protections: Unlike traditional bank accounts, cryptocurrency holdings are not insured or protected by government-backed institutions. Users may have limited recourse in the event of fraud or loss. Limited Acceptance: While the acceptance of cryptocurrencies is growing, they are still not universally accepted as a means of payment. Limited merchant adoption can hinder their use for everyday transactions. Scalability Issues: Certain blockchain networks face scalability challenges, leading to slower transaction processing times and higher fees during peak demand periods.

19. 13. RISKS Hackers: Cryptocurrencies are targets for highly sophisticated hackers, who have been able to breach advanced security systems. Cost: Cryptocurrencies can cost consumers much more to use than credit cards or even regular cash, often due to price volatility. Scams: Fraudsters are taking advantage of the hype surrounding virtual currencies to cheat people with fake opportunities.

20. 14.EXAMPLE: BITCOIN Ex Both a cryptocurrency and an electronic payment system Satoshi Nakamoto in 2008 First decentralized payment network System is peer-to-peer 21 million bitcoins Completely Open source 1BTC= $42,983.30

21. 15.CONCLUSION The future of cryptocurrency holds vast potential for disruption and innovation in the financial sector. While cryptocurrencies offer advantages such as decentralization, security, and accessibility, investors must know the market's volatility and associated risks.

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