Crypto Mining Project Proposal by Slidesgo.pptx
- 2. 05 01 Table of contents What is Crypto Cryptograpy 04 Minning Process 03 Summary 06 Blockchain 02 Crypto Transfer
- 4. Introduction Crypto currency is a digital money or virtual money. That is money is not available physically and it is very secure. In simple words we can say cryptocurrency is a money exchange process. Most popular example for cryptocurrency is Bitcoin. It is the first ever introduced cryptocurrency. Some other examples for cryptocurrencies are Ethereum, XRP. It is not possible to counterfeit or double spend because it is secured by cryptography. It is an decentralized process hence they are not controlled by anyone. Cryptocurrencies are tax free and they are not insured too. Government or banks are not responsible for cryptocurrency. The main purpose of cryptocurrency is to reduce the risk involved in traditional currency. It is very easy to use. We can access it anywhere and anytime. All we need is a smart phone and a good net connection. In cryptocurrency the power and the responsibilities are in hands of the currency
- 5. How it Works It uses block chain technology. It is a very brilliant technology because both the buyer and seller details are viewable to each other and so no broker is needed. For example if we need to buy a share from a stock market we can do it easily with the help of a broker. We will confirm the exchange order and then we will receive the shares. We don’t need to contact the seller in person. The reason for choosing a broker is we don’t know if the seller has the stock or not. This is known as principle of novation. In cryptocurrency involvement of third person is not needed because all the transactions are stored in a common location and it is viewable. The identity of the person who made the
- 7. Definition Blockchain is a shared, immutable ledger that facilitates the process of recording transactions and tracking assets in a business network. An asset can be tangible (a house, car, cash, land) or intangible (intellectual property, patents, copyrights, branding). Virtually anything of value can be tracked and traded on a blockchain network, reducing risk and cutting costs for all involved.
- 8. How it Works Blockchain is a combination of three important technologies - cryptographic keys, a peer-to-peer network, and a digital ledger. The cryptographic keys are of two types - private key and public key. Each individual or node has both of these keys and they are used to create a digital signature. This digital signature is a unique and secure digital identity reference and the most important aspect of blockchain technology. Every transaction is authorized by the digital signature of the owner. A deal or transaction is authorized by a mathematical verification in a peer-to-peer network.
- 9. How it Works This peer-to-peer network is a large group of individuals who act as authorities to reach a consensus on transactions, among other things. All of these transactions are stored in a structure known as the digital ledger. In layman’s terms, the digital ledger works like a spreadsheet containing all the numerous nodes in a network and has the history of all purchases made by each node. The information contained in the digital ledger is highly secure and the digital signature safeguards it from being tampered with. The most interesting part about this ledger is that anyone can see the data, but no one is able to corrupt it.
- 10. How it Works
- 11. Key Elements Distributed ledger technology All network participants have access to the distributed ledger and its immutable record of transactions. With this shared ledger, transactions are recorded only once, eliminating the duplication of effort that’s typical of traditional business networks. Immutable records No participant can change or tamper with a transaction after it’s been recorded to the shared ledger. If a transaction record includes an error, a new transaction must be added to reverse the error, and both transactions are then visible. Smart contracts To speed transactions, a set of rules — called a smart contract — is stored on the blockchain and executed automatically. A smart contract can
- 13. Definition The simple way to think of cryptocurrency mining is that it’s a way to create new digital “coins.” But the simplicity ends there. To dig those coins up, you’ll need to solve complicated puzzles, validate cryptocurrency transactions on a blockchain network and add them to a distributed ledger. Because digital platforms can be easily manipulated, additional security measures are put into place. For example, only verified miners can update transactions on Bitcoin’s ledger, which helps prevent double-spending.
- 14. How it Works Crypto miners use their computers to solve complex mathematical equations, which basically means cracking codes. After you crack a code, you can authorize the transaction. In return, you earn cryptocurrency. When a miner successfully solves the math equation and verifies the transaction, they add the data to the public ledger, called the blockchain, which is secured by these many encryptions.
- 15. Cryptography 04
- 16. Definition The word “crypto” literally means concealed or secret. "Cryptography" means "secret writing"—the ability to exchange messages that can only be read by the intended recipient. Depending upon the configuration, cryptography technology can ensure pseudo- or full anonymity. In cryptocurrency, cryptography guarantees the security of the transactions and the participants, independence of operations from a central authority, and protection from double-spending. Key Points ● Bitcoin and other blockchain-based cryptocurrencies rely on cryptographic methods to maintain security and fidelity —putting the "crypto-" in the name. ● Cryptography is the mathematical and computational practice of encoding and decoding data. ● Bitcoin uses three different cryptographic methods including one dedicated to generating its public-private key
- 17. Public Keys The public key is used to send cryptocurrency into a wallet. The private key is used to verify transactions and prove ownership of a blockchain address. If someone sends you, say one bitcoin (BTC), a private key will be required to “unlock” that transaction and prove that you are now the owner of that bitcoin. Think of your public key as your mailing address. Anyone can look it up and send things, in this case cryptocurrency, to that address. It's similar to providing your checking account number and routing number to set up a direct deposit – you can tell that information to anyone, but it doesn't allow them to withdraw money or otherwise log in
- 18. Private Keys The private key on the other hand is for the wallet owner only. The private key functions as a password to your crypto wallet and should be kept secret. The thing you must understand is that if someone discovers your private key, they will have access to all the crypto in that wallet and can do whatever they want with it. Private keys are numerical codes – but you may never see your actual private key. To make things more user- friendly, many wallet providers often encode your private key in a way that you can more easily record and remember. Many wallets use a /"seed phrase," also known as a "secret recovery phrase," to unlock your wallet. If you open a crypto wallet with MetaMask, you will be assigned a string of random words that you use to unlock your funds. Your private key is hidden inside
- 20. Sending Crypto 1. First, you need a wallet that contains cryptocurrency. This can be a mobile wallet, an exchange wallet, or a desktop wallet. You’ll be given the choice to select Send or Receive. Select Send. 2. If your wallet has multiple cryptocurrencies, you’ll need to select which one you plan to send. (For some wallets, steps 1 and 2 are reversed. You’ll select the cryptocurrency first and then select Send.) 3. You need the public key or public address of your recipient. This can be a QR Code or a long series of random letters and numbers. Scan the QR code or copy and paste the public address into the recipient field in your wallet. It’s recommended to use a QR code if available.
- 21. Sending Crypto 4. Type in the amount you wish to send. You will usually be given the option to denominate this value in either a cryptocurrency or fiat (dollar) amount, so be aware of this distinction. There’s a big difference between $3.50 USD and 3.5 bitcoin. Sometimes a scanned QR code will already include a requested amount, so you won’t need to manually input an amount to send. Just check to be sure the designated amount is correct. 5. Prior to sending, be sure to double- or triple-check the recipient’s address, especially if you’re copying and pasting an address. Make sure you trust the source from which you got the address to ensure the address you are sending to is actually associated with your intended recipient. These transactions are irreversible. 6. Simply click or swipe Send — and your transaction is on
- 22. Receiving Crypto In order to receive crypto, you must: 1. Open your wallet and select Receive. 2. Share your public key or address. This can be a QR code or a string of numbers and letters. You can send your QR code as a picture or allow someone to scan it in person. Now, anyone with your public address can send you cryptocurrency. A sender may sometimes give you the transaction ID as a courtesy. This allows you to look up the transaction using a block explorer.
- 23. Comparison
- 24. Summary 06
- 25. Video Summary
- 26. Pakistan Countries like Algeria, morocco, Nepal, Pakistan and Vietnam have banned it. Thanks! Crypto is legal in some of the most developed countries like U.S Japan and U.K; even in India