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    S7 - BlockchainApplication Copy 2

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    Lorenzo Pennino
    Cryptocurrencies like Bitcoin are electronic currencies that use cryptography and decentralized networks instead of central authorities. They allow for peer-to-peer transactions, remittance systems, and cross-border payments. While cryptocurrencies provide benefits like open access and censorship resistance, they also experience high volatility and lack regulation. Blockchain technologies can provide timestamping of documents to prove existence at a point in time, allowing verification that information has not been altered, with pros being fraud resistance and immutable proofs, and cons including potential legal issues.

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    S7 - BlockchainApplication Copy 2

    Uploaded by

    Lorenzo Pennino
    22 views9 pages
    Cryptocurrencies like Bitcoin are electronic currencies that use cryptography and decentralized networks instead of central authorities. They allow for peer-to-peer transactions, remittance systems, and cross-border payments. While cryptocurrencies provide benefits like open access and censorship resistance, they also experience high volatility and lack regulation. Blockchain technologies can provide timestamping of documents to prove existence at a point in time, allowing verification that information has not been altered, with pros being fraud resistance and immutable proofs, and cons including potential legal issues.

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    S7_BlockchainApplication copy 2

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    Cryptocurrencies like Bitcoin are electronic currencies that use cryptography and decentralized networks instead of central authorities. They allow for peer-to-peer transactions, remittance systems, and cross-border payments. While cryptocurrencies provide benefits like open access and censorship resistance, they also experience high volatility and lack regulation. Blockchain technologies can provide timestamping of documents to prove existence at a point in time, allowing verification that information has not been altered, with pros being fraud resistance and immutable proofs, and cons including potential legal issues.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    22 views9 pages

    S7 - BlockchainApplication Copy 2

    Uploaded by

    Lorenzo Pennino
    Cryptocurrencies like Bitcoin are electronic currencies that use cryptography and decentralized networks instead of central authorities. They allow for peer-to-peer transactions, remittance systems, and cross-border payments. While cryptocurrencies provide benefits like open access and censorship resistance, they also experience high volatility and lack regulation. Blockchain technologies can provide timestamping of documents to prove existence at a point in time, allowing verification that information has not been altered, with pros being fraud resistance and immutable proofs, and cons including potential legal issues.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 9

    BITCOIN AND BLOCKCHAIN FUNDAMENTALS

    L7 – Blockchain Application – Part 1

    a.a. 2019-2020
    2

    1 | Cryptocurrencies - Definition
    Definition

    § Cryptocurrencies are any kind of electronic money exploiting


    advanced cryptography and decentralized networks in order to
    work.

    § Unlike fiat money, the issuance of cryptocurrencies is not regulated


    by a central entity, but by their own blockchain protocol.

    § They can be considered as the original and first-proven


    application of blockchain technologies.

    § Cryptocurrencies are almost always open-source algorithms, and


    anyone can verify the correctness of their source code and propose
    improvements for their inner-workings.
    3

    1 | Cryptocurrencies - Possible Applications

    Peer-to-Peer Remittance Cross-border


    Transactions Systems payments

    § A Peer-to-Peer (P2P) § A remittance is a § Cross-border


    system allows transfer of money by a payment refers to
    customers to foreign worker to an transactions involving
    transfer funds from individual in their settlement institutions
    their account to home country operating in at least
    another individual's two countries.
    account

    § Example: Bitcoin § Example: Abra § Example: Ripple


    4

    1 | Cryptocurrencies - Ecosystem
    Cryptocurrencies Protocols

    Exchanges

    Mining providers

    Wallet
    5

    1 | Cryptocurrencies - PROs and cons

    PROs CONs

    ü No central authorities ✗ High level of volatility


    ü Open access to everyone ✗ Lack of regulation
    ü Non country-specific ✗ Both anonymity and lack of
    ü High level of security anonymity might turn into a
    ü Censorship resistant problem
    ü Immediate settlement

    PRO
    6

    1 | Cryptocurrencies - The Bitcoin valley

    6
    7

    2 | Timestamping - Definition
    Definition

    § Timestamping data in an unalterable state, whilst maintaining


    confidentiality, is a possible solution to avoid scam actions.
    § Inserting a hash of any document into a blockchain means sharing
    with all the nodes the proof that it existed at the time when a
    particular block was created.
    § It could be possible to establish digital repositories of documents of
    various kinds, and save an hash of these documents directly in a
    blockchain.
    § In order to verify that information have not been tampered with,
    a user could calculate the hash of the information in the repository
    and check the presence of the corresponding hash previously
    recorded in the blockchain.
    8

    2 | Timestamping - PROs and cons

    PROs CONs

    ü Frauds/counterfeiting ✗ Certification authorities


    resistance might be required
    ü Immutable proofs ✗ Legal value is still unclear
    ü High level of security and ✗ Possible multiple-valid-
    transparency proofs creations

    PRO
    9

    2 | Timestamping - Opentimestamp

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