IRJET- A Detailed Study on Cryptocurrency (original) (raw)
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A COMPREHENSIVE STUDY OF CRYPTOCURRENCY SYSTEMS
Cryptocurrencies have emerged as an important financial software system. These cryptocurrencies are generated by a process called mining. Mining is an integral process that not only creates the currency but also, adds records of past transactions to the distributed ledger known as blockchain. The use of blockchain and cryptography enables security in the environment and makes it robust in nature. Since, cryptocurrencies are designed using a peer-to-peer system, they aren't centrally owned by anyone. The peer-to-peer version allows the digital signature to be a part of the solution, this reduces the need for third-party authentication. For the mining of such digital currency,we have to rely on miners to validate the currency and its creation. For the proof of work each network timestamps the transactions that occur by hashing them into an ongoing chain of hash-based proof-of-work, forming a record that cannot be changed without re-doing the proof of work. The longest chain serves as proof of the fact that it came from the largest pool of CPU power. As long as a majority of the CPU power is controlled by nodes that do not co-operate with the attack network, it will generate a large chain that will space out all hackers and attackers. Here we discuss the different mining processes for a variety of cryptocurrencies. The importance of blockchain and its use in securing the environment, along with the various hardware issues that miners may face are discussed. The strengths and weaknesses of using various cryptocurrencies are outlined.
Security of Cryptocurrencies: A View on the State-of-the-Art Research and Current Developments
Sensors, 2023
The goal of security is to protect digital assets, devices, and services from being disrupted, exploited or stolen by unauthorized users. It is also about having reliable information available at the right time. [Motivation] Since the inception in 2009 of the first cryptocurrency, few studies have been undertaken to analyze and review the state-of-the-art research and current developments with respect to the security of cryptocurrencies. [Purpose] We aim to provide both theoretical and empirical insights into the security landscape, in particular focusing on both technical solutions and human-related facets. [Methodology] We used an integrative review which could help in building science and scholarly research, the basis for conceptual and empirical models. [Results] Successful defense against cyberattacks depends on technical measures on the one hand, as well as on self-education and training with the aim to develop competence, knowledge, skills and social abilities, on the other. [Contribution] Our findings provide a comprehensive review for the major achievements and developments of the recent progress on the security of cryptocurrencies. [Future research] Since there is increasing interest in adoption of the current solutions within the central bank digital currencies, the future research should explore the development and inception of effective measures against social engineering attacks, which still remain the main concern. Keywords: security; digital currency; cryptocurrency; wallet; architecture; data transmission method; social engineering attack; countermeasures
On the Vital Aspects and Characteristics of Cryptocurrency – A Survey
Cryptocurrencies acquire user confidence by making the whole creation and transaction history transparent to the public. In exchange, the transaction history accurately captures the complete range of user activities related to cryptocurrencies. In this paper, the use of data mining methods in Bitcoin transactions is analyzed and summarized. Cryptocurrencies, similar to the well-known Bitcoin, were targeted to ensure transaction security and privacy and overcome the drawbacks of traditional banking systems as well as other centralized systems. We also conduct a thorough analysis of the literature on the challenges and applications of electronic currencies. We outline the evolution of digital currency from electronic cash to cryptocurrencies and put the spotlight on the methods used to increase user privacy. We also highlight security threats in the existing cryptocurrency systems that jeopardize the privacy of Bitcoin users. Finally, we identify several research gaps and trends that...
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Security and privacy are two conditions that are closely linked to current trends in cryptocurrency, and this study offers a similar comprehensive review. Cryptocurrency adds security to transactions and controls the formation of additional currency units. Great growth for cryptocurrency market testing leads to the misuse of failures to benefit enemies. In this study, the review was designed to focus on safety and security standards of cryptocurrencies especially in Bitcoin. This study explains cryptocurrency agreements, their benefits, and communications within the framework
Bitcoin Cryptocurrency: A Review
Bitcoin, the term coined by a person or group pseudonymously called Satoshi Nakamoto, is considered the world’s first decentralized digital currency. Since its release in 2009, there has been tremendous growth in market value of Bitcoin, with anonymity and distributed nature removing the need for any central authority being the driving force for its popularity. The technology is relatively new and complex for a layman to understand. However, there has been enough hype about it which has drawn the attention of researchers and nemesis alike to expose vulnerabilities in the system as well as explore the future perspectives of this new concept. This paper analyses major components of Bitcoin and related concepts of Blockchain, highlighting a few security concerns/ motivation to explore the future perspectives of this technology which is being considered analogous to the Internet revolution.
A Crictal Review of Cryptocurrency Systems
Adoption of Cryptocurrency has grown significantly over the time and becoming more popular among young generation. People are calling it currency of new digital era. In this research work we are reviewing the dominant Cryptocurrency systems and its underlying disruptive Innovations and Technologies.
Issues and Risks of Cryptocurrencies -A Case of Bitcoin
2022
Bitcoin is electronic money that uses a public protocol to implement it in a completely decentralized fashion, eliminating the need for it to be managed by a central issuing institution. It has been demonstrated to be a modern payment system that has been utilized in some procedures frequently connected with money laundering or the trafficking of illegal substances of various kinds, although it is still under development. As a result, in this essay, we examine the characteristics that turn a cryptocurrency into a valuable tool for conducting any type of transaction outside of the supervision of any regulatory agency, as well as some of the domains in which its use can lead to new illegal activities.
Cryptocurrencies: Development, Features and Classification
Fìnansovo-kreditna dìâlʹnìstʹ: problemi teorìï ta praktiki, 2019
The advent of cryptocurrencies and rapid growth of crypto-networks heralded a new era in evolution of financial relations. The main goals achieved by introduction of cryptocurrencies included: a) removal of the third party (the government, banking and financial institutions) from transactions between the parties to a transfer; b) anonymity of the parties; c) transaction security. The governments of various countries of the world have a different stance as regards the use of cryptocurrencies, and in some cases, they consider this medium of exchange illegal. The transnational nature of transactions involving cryptocurrencies and the absence of physical borders for these transactions complicate legislative regulation of the circulation of cryptocurrencies in Ukraine. The use of cryptocurrencies has significant effect on the economies of Ukraine and other countries of the world due to easy dissemination and popularity of this technology and the growing capitalization of cryptocurrencies. The exchange of cryptocurrencies into fiduciary money and the possibility of gaining substantial profits on a cryptocurrency exchange due to high volatility of cryptocurrencies necessitate development, as soon as possible, of approaches to legislative regulation of both terminological apparatus related to circulation of cryptocurrencies and the exchange transaction procedures, profit taxation, etc. Considering the multisided nature of crypto-networks and the diversity of cryptocurrencies currently existing in the world (over 2000 variants as of today), classification of existing cryptocurrencies and definition of their features represents a contemporary task. This article characterizes development of blockchain technology that serves as the basis for the functioning of cryptocurrencies, defines their characteristic features, positive and innovative concepts implemented with their advent. Cryptocurrencies were classified based on various criteria (issue type, network decentralization, limitation on issue, controllability of cryptocurrency issue, etc.), and two groups of features typical either for all cryptocurrencies or for their certain variants were proposed. It was proposed to define a cryptocurrency as a variety of e-money used as an alternative additional currency and circulated within global computer networks on the basis of blockchain technology that envisages asymmetrical encryption and the use of various cryptographic protection methods.
A Critical Review of Cryptocurrency Systems
Texila International Journal of Academic Research, 2017
Adoption of Cryptocurrency has grown significantly over the time and becoming more popular among young generation. People are calling it currency of new digital era. In this research work we are reviewing the dominant Cryptocurrency systems and its underlying disruptive Innovations and Technologies.
IRJET- Security threats on Blockchain and its countermeasures
Blockchain, the foundation of Bitcoin, has become one of the most popular technologies to create and manage digital transactions recently. It serves as an immutable ledger which allows transactions take place in a decentralized manner. This expeditiously evolving technology has the potential to lead to a shift in thinking about digital transactions in multiple sectors including, Internet of Things, healthcare, energy, supply chain, manufacturing, cybersecurity, and principally financial services. However, this emerging technology is still in its early stage of development. Despite the huge opportunities blockchain offers, it suffers from challenges and limitation such as scalability, security, and privacy, compliance, and governance issues that have not yet been thoroughly explored and addressed. Although there are some studies on the security and privacy issues of the blockchain, they lack a systematic examination of the security of blockchain systems. This paper conducted a systematic survey of the security threats to the blockchain systems and reviewed the existing vulnerabilities in the Blockchain. These vulnerabilities lead to the execution of the various security threats to the normal functionality of the Blockchain platforms.