ABSTRACT
Online financial systems depend exclusively on third parties for handling transactions. While the framework performs well for most businesses, it has the disadvantages and shortcomings of traditional trust-based models. Cryptocurrency presents a new perspective of monetary exchange. It is digital money in which cryptography, in combination with blockchain, is used to control transactions and create additional units. Though the evolution of the concept of electronic cryptocurrency dates back to 1983, it became popular with the introduction of bitcoin in 2009. Blockchain is the threaded arrangement of permanent records of data information that encompasses a number of transactions in an encrypted form. These transactions form a distributed ledger in which each block is chained to the previous block by a hash value. “Miners” update the blockchain and are paid for their services in the form of the newly generated cryptocurrency. They process exchanges solving a complex problem along these lines, making the square and sending subtleties of the exchanges to different hubs, making the chain. Excavators utilize the idea of confirmation of work to process and approve exchanges on the system. Everyone on the network can see what each one has and also determine whether a particular transaction is valid or invalid. There are a number of sites that aid in cryptocurrency transactions. These sites are similar to stock markets and give the trend of each currency, the conversion rates, portals for exchange, etc. A cryptocurrency wallet stores the cryptographic keys and facilitates spending or receiving cryptocurrencies, monitoring the balance, and managing transaction details. Cryptocurrencies entering the market is on a steep rise and is attracting potential investors. In addition to offering a solution to the double-spending problem, decentralization, immutability, and security are some of the features that make cryptocurrency attractive. Like any other digital currency, it has its share of disadvantages: the prominent lack of knowledge, the complexity involved in usage, delayed acknowledgments, and strong volatility. All cryptocurrencies originate from unregulated companies, some of which are likely to be susceptible to fraud. Even with encryption to protect cryptocurrency, transactions have been hacked, resulting in substantial loss.
