A

RESEARCH PROJECT REPORT

ON

BINANCE
(CRYPTO CURRENCY)
Submitted for the partial fulfilment towards the awards of the degree in

Master of Business Administration

of

Dr. A.P.J Abdul Kalam Technical University, Lucknow

Under the Guidance of Submitted by:

DR. KAMAL GUPTA ANISHEK ANAND

Asst. Professor Roll No : 1902220700006

(Batch: 2019-2021)

ITS ENGINEERING COLLEGE

 A
RESEARCH PROJECT REPORT
ON
BINANCE
(CRYPTO CURRENCY)

BY

NAME OF THE STUDENT: ANISHEK ANAND

5
OBJECTIVE

During my research project report I found out many new things and learn about
new digital currency and its implication :

 Learn about the binance and how it become the worlds no1
crypto trading platform and its even further expanding




 Gain knowledge on crypto currency and why it is better than fiat currency




 Find’s out valuation of any crypto currency depends on many factor



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 Know the basics termology related to blockchain and crypto market




 Block chain technology use case and implication on various different
fields and how it evolving the old transaction mechanism




 Learn about disadvantage & risk related to the crypto currency




 Find out features and benefit of crypto currency and how its
moldeing the era of digital currency into more secure, fast & better

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  Learn about many coins and their potential growth for investment
purpose and can crypto coin can be used in day to day transacation or
not and finds out about many upcoming projects also




 Find out block chain technology and how it is secure




 Learn about market voladity and valuation of crypto currency changes
on daily basics




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
 How upcoming crypto currency project will enchance security and make
transcation process more smoothly and how it will be useful in various
other fields



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 Finds out the market valuation of crypto currency and other coins , learn
about bitcoin the no.1 crypto coin in market , risk and fraud related to
crypto market and how u can invest & withdraw money through binance
account and how much secure is binance

7
Topics Covered:

1. BINANCE :
History, features, how it better from competitor, staking

2. CRYPTO CURRENCY :
Definition, use case, benefits, risk, decentralized, investment purpose

3. MINING & TRADING :

Proof of work & proof of stake, various trading instruments, few popular miners

4. BLOCKCHAIN TECHNOLOGIES :
Future of transaction, how it work, uses in different field, benefits

5. CONVENTIONAL OR FIAT CURRENCY VS CRYPTO CURRENCY :

Use case, Reliable & fast, user friendly, better security

6. OUR TOP 10 PICK & VARIOUS COIN FEATURES AND PURPOSE :

Our top picks, NFT coins, privacy coin, DI-FI coin

7. UPCOMING PROJECTS & UPDATES :

REEF, THETA, TDROP, VERGE, NFT, TRC network, ERC network

8
9
 1. Binance :
History, features, how it better from
competitor, staking

Binance is a cryptocurrency exchange that provides a platform for

trading various cryptocurrencies. It was founded in 2017 and is
domiciled in the Cayman Islands. Binance is currently the largest
exchange in the world in terms of daily trading volume.

10
HISTORY

Before we go into a history of Binance, let’s learn more about its

creator. Binance’s founder, Changpeng Zhao, known as CZ, was born
in Jiangsu, China. After the government exiled his family for being part
of the intellectual class, the Zhao’s moved to Vancouver, Canada in
the 80s, when CZ was a teen.

CZ spent his pre-college years working at McDonald’s and doing

other odd jobs to help relieve his family’s financial woes. A few years
later, he graduated with a degree in computer science from
Montreal’s prestigious McGill University.

After college, CZ helped to build a system designed to match trade

orders on the Tokyo Stock Exchange. He followed this by creating
software for futures trading at Bloomberg’s Tradebook.

Finding the work unsatisfactory, CZ left the stock market space and
bounced around various crypto projects. He even worked as head
of development at Blockchain.info for 8 months.

A History of Binance Coin

In 2017, CZ noticed the sudden rise in coin offerings and decided to
make a coin of his own. On June 24, 2017, after raising $15 million,
CZ’s Binance Coin started its initial coin offering with 200 million
tokens. 11 days later, the Binance exchange opened.

At the opening of the exchange, the only cryptocurrencies available

on Binance were BNB, BTC, NEO, LTC, and ETH. Today, the
exchange supports over 120 different coins.

11
45 days after binance.com went live, the platform had
accumulated over 120,000 users with an average growth rate of
5,000 new registered users per day.

Although the company was originally headquartered in China, they soon

had to relocate to Japan following China’s ban on crypto trading. After
about 165 days of operation, Binance had become the world’s largest
cryptocurrency exchange with regards to traded value.

In mid-2017, Binance announced that they would be building their

global compliance center in Bermuda. They also announced that they
would donate $10 million toward tech-related educational programs
through their Binance Charity Foundation. They would then invest an
additional $5 million into blockchain startups.

Binance also announced that they would help the government

of Bermuda to develop a regulatory framework for blockchain
and cryptocurrencies.

In September of 2018, Binance teamed up with the Malta Stock

Exchange to enable trading of security tokens. Binance also purchased
a significant stake in Founders Bank, a Maltese financial institution.
Founders Bank works to help crypto and blockchain-related firms
secure financial services from traditional banks.

Continuing their island expansion, Binance opened Binance Jersey.

This would operate as a fiat-crypto exchange on the British island
of Jersey. Binance Jersey works as an independent entity from
binance.com, its parent company. The company then launched
Binance Uganda, with similar goals for the African continent.

12
SIMPLEX PARTNERSHIP

At the start of the year, Binance partnered with Simplex as a way

to get involved in the credit card space. Simplex is a FinTech
company that provides guaranteed fraudless payment processing.
The company operates out of Israel.

The Binance-Simplex partnership allows users to buy

cryptocurrencies on Binance’s site with their credit cards. Via
Simplex’s software, users can now buy cryptos like Bitcoin, Binance
Coin, and Ethereum with a Visa or Mastercard.

BINANCE COMPETITOR

The platform sees 1.2 billion trades every day on average. Over 1.4
million transactions happen every second on the site. Compare that
to Coinbase, which began in 2012 and falls way behind on those
metrics.
BINANCE TODAY

While there are several ways to invest in crypto, it is clear that using a
platform like Binance is one of the most effective ways to go about it.
Since its start in the summer of 2017, Binance has quickly established
itself as one of the largest and most powerful cryptocurrency
exchanges in the world

Currently, Binance has no official headquarters. They aim to keep the

locations for many of their properties a secret for security purposes.
Aside from the locations already mentioned – such as Jersy, Malta,

13
Bermuda, and Japan, many believe that they have offices and servers
in Hong Kong, Taiwan, and Korea.

Along with offering a high-quality exchange, Binance has expanded

into exploring other areas within the crypto space as well.

Top 11 Best Binance Features:

 Insurance protection to crypto traders

 Multi-level security
 Binance Academy gives you important knowledge along the way
 Easy options to buy Bitcoin and stablecoins
  Supports different types of orders

 Margin trading
 Binance is a powerhouse in terms of coin listings and
 trading volume
 Competitive fees
  Trade anytime and anywhere

 Decentralized crypto exchange platform
 Binance has an entire ecosystem for blockchain and
cryptocurrency development that makes it one of the
best crypto exchange platform

STAKING

Staking is the process of holding funds in a cryptocurrency wallet to

support the operations of a blockchain network. Users are rewarded
for simply depositing and holding coins on Binance.US, allowing for

14
more freedom and accessibility. This makes it easy to
participate in staking without giving up full liquidity

ABOUT BNB COIN

BNB, or the Binance Coin, is the token of the popular Binance

cryptocurrency exchange. Its main function is for paying fees, and
using it in this way results in a discount on exchange fees. The BNB
token also serves other purposes and will be crucial to the planned
Binance Chain launch.

CURRENT VALUE IS 313USD AND LAUNCHED AT A PRICE OF

0.1553USD

15
 2. CRYPTO CURRENCY :

Definition, use case, benefits, risk, decentralized,

investment purpose

DEFINATION

A cryptocurrency, crypto-currency, or crypto is a digital asset

designed to work as a medium of exchange wherein individual coin
ownership records are stored in a ledger existing in a form of a
computerized database using strong cryptography to secure
transaction records, to control the creation of additional coins, and to
verify the transfer of coin ownership.

16
10 Awesome Uses of Cryptocurrency

1. Low-cost money transfers

One of the most well-known uses of cryptocurrency is for sending and

receiving payments at low cost and high speed. For example, a recent
$99 million litecoin (LTC) transaction took only two and a half minutes
to process and cost the sender only $0.40 in transaction fees. If this
money transfer had gone through a financial intermediary the fees
would have been much, much higher and the transfer would have
taken several days, or longer if this was a cross-border transaction.

The low fees associated with transactions using digital currencies

such as litecoin (LTC), stellar (XLM) or bitcoin cash (BCH) make them
excellent payment systems for international money transfers.

2. Earn interest on Bitcoin and other cryptcurrencies with

'Yield Farming'

Successfully trading crypto for profits requires a lot of time,

experience and skill and instead many cryptocurrency owners are
holding their coins for long term gain. There are ways to earn steady
'interest' on crypto, though. Popular examples include DeFi lending
and crypto staking. With the interest rates offered by traditional bank
accounts at all time lows, lending your crypto to a reputable platform
is certainly an option - with 10% per annum being offered for highly
liquid cryptocurrencies like Tether. It is important to note, however,
that this type of lending is not risk free and is not insured by the FDIC
or similar government bodies in other countries.

17
3. A censorship-resistant alternative store of wealth

While you probably don’t think your bank account and assets could
be frozen, the reality is that this occurs more often than people
realise — especially in jurisdictions with dubious rule of law. All it can
take is for someone to be accused of financial misconduct or making
powerful enemies. When that happens, people can find themselves
with little to no access to cash, even if they’ve done nothing wrong.

This is where one of the most unique and powerful cryptocurrency

uses comes into play. Cryptocurrencies like bitcoin act as a
censorship-resistant alternative store of wealth that only the
individual with the private keys to the wallet has access to. Hence,
no personal bitcoin wallet can ever be frozen by authorities.

4. Invest in innovative early-stage startups

The emergence of digital token-based fundraising has allowed

anyone with an Internet connection to become an investor in
innovative early-stage tech startups, while at the same time
providing new startup ventures with much-needed seed capital.

Although a rarer event these days, Initial coin offerings (ICOs) and IPOs
are a form of fundraising that provides startups with the opportunity
to raise capital by selling a newly-created digital token to early backers
of the project in exchange for established cryptocurrencies such as
bitcoin (BTC) or ether (ETH). The price of the newly-issued token then
acts as proxy linked to the success or failure of said startup once it
starts to trade in the secondary market.

In the past, access to these deals would have only been available
to experienced venture capitalists, but the advent of
cryptocurrency has opened these opportunities up to a much
broader spectrum of investors.

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In some cases the digital tokens of the most successful ICOs have
increased in value by several thousand percent and cryptocurrency-
based fundraising has helped startups to raise over $12 billion in the
past two years.

5. Make private transactions

Privacy-centric digital currrencies such as Monero (XMR), Zcash (ZEC),

and PIVX (PIVX) enable users to make anonymous financial transactions.

That means individuals can make money transfers without having to

explain to a bank why they are sending a large sum of money, what the
sources of the funds are and who they are sending it to, which can
delay the transaction and involve unnecessarily bureaucratic processes.

6. Send non-cash remittances

Another powerful use case for cryptocurrencies is non-cash

remittances. Blockchain startup SureRemit, for example, enables its
users to send non-cash remittances from anywhere in the world to
selected African nations.

Diaspora Africans can purchase SureRemit’s native RMT tokens,

which are then used within the SureRemit app to make non-cash
remittances such as mobile data top-ups or utility bill payments for
their relatives in Africa.

7. Get paid to post content

The world’s first incentivized social media and blogging

platform, Steemit, enables publishers to receive financial rewards in the

19
form of cryptocurrency for posting content and for curating on
the network by upvoting high-quality content.

Steemit financially empowers its users by rewarding them for

contributing to the platform as opposed to taking its users data and
selling it to third-parties like Facebook does. For this reason, Steemit
has become particularly popular in emerging markets where it boasts
a high number of users.

8. Rent out your spare hard drive space to the cloud

Decentralized blockchain-based cloud storage solutions such

as Storj enable users to earn cryptocurrency in exchange for renting
out their hard drive storage space to those who need it on a peer-to-
peer basis.

“Storj can be faster, cheaper, and more secure than traditional cloud
storage platforms. Faster because multiple machines are serving you
your file simultaneously, cheaper because you are renting people's
spare hard-drive space instead of paying for a purpose-built data
center, and more secure because your file is both encrypted and
shredded. There is no need to trust a corporation, vulnerable servers,
or employees with your files. Storj completely removes trust from the
equation,” the company states on its website.

Storj and other decentralized cloud storage solutions, such as

Siacoin and Filecoin, not only provide a cheaper and more secure
alternative to existing corporate cloud storage platforms but also
provide users with a new revenue stream.

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9. Travel the world & beyond

Due to the explosive growth of the cryptocurrency ecosystem in the

past nine years, it is now possible to travel the world by spending
cryptocurrency.

Established travel agents such as CheapAir and Destinia accept bitcoin

as a payment method to book flights, car rentals, and hotels and for
those who prefer to stay in an apartment when traveling can book
accommodation using bitcoin (BTC) or ether (ETH) on CryptoCribs.

The growth of the bitcoin ATM market also means travelers are
now able to convert their cryptocurrency into local currency in
most major cities around the world.

If space is more your scene Richard Branson’s commercial space

travel company, Virgin Galactic, announced way back in November
2013 that is accepting bitcoin payments for space travel bookings.

While the California-based company has not yet managed to

successfully launch a commercial space flight, several future
astronauts have already paid for their tickets — worth $250,000 — in
bitcoin, including bitcoin advocates Cameron and Tyler Winklevoss.

10. Buy a lambo (or a Tesla)

Last but not least, you can also use your cryptocurrency to buy a
Lamborghini. The bitcoin luxury marketplace De Louvois enables the
“crypto rich” to purchase sports cars including the cryptocurrency
community’s favorite status symbol, the Lamborghini, using bitcoin.
The marketplace also offers a range of other luxury goods such as art,
fine wines, and real estate for those whose digital pockets are deep
enough. Also, Elon Musk says Tesla will be accepting crypto for its cars.

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Why use crypto currency :

  Fast, safe & cheap

  Ease to use and highly portable
  Untraceable
  Transparent and neutral
  Decentralized nature
  Active involvement of user
  Fewer risk for merchants
  Freedom to transact
 Low inflation ad collapse risk

22
Cryptocurrency Risks and Problems
So what is the main cryptocurrency risks and problems?

BUSINESS RISK

Confidence is lost in digital currencies due to currencies’ nascent

nature, thus subjecting currency to a high uncertainty level. Online
platforms have currently generated broad trading activity through
speculators seeking long or short-term profit holding the digital
currency. Cryptocurrency supported by the international or
national organization, central bank, assets, or any other credit.

Their values determine strictly by the value placed by the participants

in that market through participants’ transactions. This indicates that
confidence loss may cause trading activities to collapse and thus the
value to drop abruptly.

FRAUD OR CYBER RISK

Cryptocurrency has attracted a large set of community criminals

(cyber risk) because it deals with cash currency. These criminals break
into the crypto exchanges, drain the wallets of the and individually
infect with malware used to steal cryptocurrency. As internet
transaction takes place, hackers target the handling of the service, the
people, and the storage areas through such means as phishing or
spoofing and malware.

Investors have to rely on their computer securities’ strength systems

and systems of the third party’s protection to protect cryptocurrency
purchased from theft. Cryptocurrency highly depends upon

23
companies unregulated. Some of these companies may lack internal
control that is very appropriate. This makes it susceptible to theft and
fraud than regulated institutions of finances.

The software requires regular update suspecting at times.

Blockchain source of technology vendor results in exposing the third
party to significant risk. Minimal way of recovery provided. Stealing
the user the keys of the wallet leads to fair impersonation of the
original account owner. This allows access to the monies the original
owner has in the wallet. Once the bitcoins are transferred from the
account and the transaction be committed to the blockchain,
monies are forever lost from the one who owned it initially.

DANGERS OF CRYPTOCURRENCY
Let’s talk about the dangers of cryptocurrency:

Irreversibility
The transaction is not reversible after the confirmation, and thus
net is not safe.

Anonymous
Accounts and transactions not connected to the identities of the real
world. This indicates that internet access digitalizes everything.

Speed of the Globe

The network transactions are instant and confirmed in a few
minutes. They are very indifferent to your location physically. This is
because they happen in a computer’s network globally. Also, third
parties are not involved in validation and verification.

24
Security
For example, firm cryptography and the significant number’s
magic make the scheme impossible to be broken.

No Gatekeeper
Everybody can download this software for free. After installation, one
can either send or receive bitcoins or any other cryptocurrency.

Disadvantages of Cryptocurrency
Some disadvantages of cryptocurrency below:

Peer To Peer
For example, user controls their digital wallet other than using a
bank. Access loss of your wallet, however, can make you encounter
major challenges.

Access
Anyone having internet access and an account can freely use
cryptocurrency. This is because they unrestricted to a given country
and thus decentralized. Finally, they usually operate in twenty-four-
seven across the world.

Privacy and Security

Blockchain technology, in which most of the platform runs, has
proven to be entirely secure over time. Moreover, you can also
remain anonymous. It is minor if any government report is inolved in
making the aspects most controversial to cryptocurrencies.

25
Uncertainty
The pricing volatility of cryptocurrencies threatens and intimidates
acceptance of widespread. Also, a currency should be reliable and
stable to earn more trust and used widely.

Acceptance
Cryptocurrency can be widely used in the whole world in theory, like
bitcoin. Many vendors, however, are not ready to educate or accept
them because of their potential importance.

Decentralized Currency

A Cryptocurrency is a digital asset that is designed to work as a

medium of exchange that using cryptography to make transactions
more secure and to control the creation of additional units of the
currency. Cryptocurrencies were classified as a subset of new
digital currencies and also classified as a subset of other alternative
currencies.

Bitcoin became the first decentralized cryptocurrency in 2009. After

that other cryptocurrencies have been created and these are
frequently called altcoins, as a blend of bitcoin alternative. Bitcoin
and its derivatives use decentralized control as opposed to
centralized electronic money or centralized banking systems. The
decentralized control is related to the use of bitcoin’s blockchain
transaction database in the role of a distributed ledger.

A decentralized system doesn’t have one person that controls

everything. Instead of a government that prints money for itself,
everyone can mine Bitcoin. Instead of putting trust in a government
to back a currency and maintain its value, Bitcoin’s value comes from
the network of people using it. Every person in the network is
connected to every other member, so there’s no central point of

26
failure. If any one person, or a group of people, disappear
tomorrow the value of bitcoin will be unaffected by their absence.

Decentralized Exchanges

The advent and rise of blockchain technology and cryptocurrency

have created more opportunities to for decentralized markets to
operate. Through such technology and mediums, buyers and sellers
are afforded a sense of security and trust in transactions without the
need for a central clearing house to monitor and affirm the
transactions.

Decentralized exchanges are a popular way to trade Bitcoin and other

cryptocurrencies without the restrictions of larger centralized
platforms. They allow users to buy and sell cryptocoins from each
other without the involvement of a middleman or a third-party.

All decentralized cryptocurrency exchanges require users to register for

an account before they can trade; however, once they do, they can list
cryptocoins to sell, or buy someone else’s, almost immediately

27
 Benefits of Decentralized Currency
Faster Transaction Processing
Fraud Prevention
No Government Meddling
Increased Financial Efficiency

Centralized vs Decentralized Currency

Centralized Currency Decentralized Currency

Decentralized currency’s value is represented by the

The value of centralized currency is represented in physical currency’s “coin” – an encrypted piece of computer code
currency – paper bills, coins, bank transfers. that is difficult to reproduce, but easy to verify.

Slow transaction processing that are not available during Quick transaction processing regardless of holidays and
weekend and public holidays. weekends.

A decentralized currency is one that uses multiple

A centralized currency is one where the currency is entities to operate the coin, spreading the load of a
controlled by a singular entity (e.g. bank, government). blockchain across multiple nodes (computers).

Centralized (fiat) currency offers physical medium of

exchange. Cryptocurrency allows to exchange digitally.

Centralized currency can be generated by government

according to market requirements because there is not
limit decided. Creation of cryptocurrency is limited to certain extent.

Decentralized cryptocurrency is generated by using

computer in which extremely difficult mathematical
Centralized currency is generated by each country’s mint puzzles are being solved and the reward for the right
that is controlled by government of respective country. solution is digital coins.

This currency is used to fulfill almost all purposes within a

country and some powerful currencies like USD, Euro and Crypto can be used majorly for online operations to buy
Yen, are used globally to manage international contracts. or sell anything keeping internet as the base.

It is possible to counterfeit Centralized Currency because it But to counterfeit Decentralized cryptocurrency is next to
involves third party interference. impossible as it is being secured by cryptographic code.

Centralized platforms do not allow anonymous trading Decentralized cryptocurrency exchange platforms are all
accounts on their platforms. about anonymity.

28
Reasons why you should invest in cryptocurrency

As Bitcoin BTC, 0.52% grew in importance over the year, a $1000

investment in Bitcoin would be worth around $15,000 today, which
represents a return in the region close to 1500%. Not to be outdone,
an investment in Ethereum ETH, 4.67% would have resulted in even
more spectacular returns with the initial investment being worth
over $115,000.

There were massive gains to be had by investing in a number of the

more established coins. An investment in Litecoin LTC, 0.43% would
have grown by just under 5500% and left you with a nest egg of
$54,530, while putting the same amount into Monero XMR, 4.65%
would’ve left you with $31,000, investing in Dash DASH,
3.06% would have resulted in a return of over 10000%.
While these investments all resulted in extremely healthy returns
they were still outperformed by a number of other cryptocurrencies.

NEM XEM, 1.51% currency is one of the more overlooked coins in

the top 20 but would have left an investor with a figure of over
$500,000 to play with. The same investment in Stellar XLM, 1.00%
would have turned into $360,000. However, all of these investments
were outperformed by XRP XRP, 1.36% late increase in price that still
hasn't lost momentum.

Ripple had an extremely successful 2017 and rode a wave of

investment late on in the year to reach a price in excess of $2.00
(now over $3.00). For any investors that purchased $1000 worth of
XRP and held onto their investment for the entire year, they would
have been rewarded with a return just shy of $500,000.
These figures highlight the benefits of long-term investing and sticking
to the principles of buying and holding. In addition, it’s still not too
late for new investors to get involved and there are ways to build a
solid portfolio for approximately $500.

29
For investors who don’t have the time to continuously track the
market, there are also innovative projects such as Triaconta, which
provides the CombiCoin. CombiCoin is backed by the top 30
cryptocurrencies.

The coin diversifies the risk of investing in cryptocurrencies and

also allows investors the ability to benefit from any substantial
growth from the sector’s most established coins. When it comes to
diversifying, Iconomi has chosen a similar approach with their
numerous Digital Asset Arrays.
Going forward, the cryptocurrency market still has plenty of
opportunities for investors interested in the most successful projects.

30
 3.MINING & TRADING :

Proof of work & proof of stake, various trading instruments, few

popular miners

Mining

Cryptocurrency mining, or cryptomining, is a process in which

transactions for various forms of cryptocurrency are verified and
added to the blockchain digital ledger. Also known as cryptocoin
mining, altcoin mining, or Bitcoin mining (for the most popular form
of cryptocurrency, Bitcoin), cryptocurrency mining has increased
both as a topic of interest and an activity as cryptocurrency usage
itself has grown exponentially in the last decade

• Process of adding transaction records to public accounting book

of past transactions or block chain

• Bitcoin mining is the process of making computer hardware

do mathematical calculations for the Bitcoin network to
confirm transactions and increase security.

• The difficulty of the algorithm increases with the amount of

bitcoins and transfers, so that block cracking becomes more
difficult and requires a lot of resources. A single computer
may take three full years to crack a single block.

• Today there are at least a few dozen Bitcoin mining programs,

most of which allow users to connect to mining groups and
mine together block which worth 25 bitcoins.
31
HOW DOES CRYPTOCURRENCY MINING WORK?

During the cryptocurrency mining process, volunteer coders called

cryptominers compete with each other to solve complicated
mathematical problems using high-performance computers. Each
problem uses cryptographic hash functions that are associated with
a block containing a cryptocurrency transaction’s data.

The first miner to crack each code is rewarded by being able to

authorize the transaction, and in return for the service provided,
cryptominers earn small amounts of cryptocurrency of their own.
Once the cryptominer successfully completes the mathematical

32
problem and verifies the transaction information, they add the
data to the public blockchain ledger.

KEY TAKES

 By mining, you can earn cryptocurrency without having to put


down money for it.
 Bitcoin miners receive Bitcoin as a reward for
completing "blocks" of verified transactions, which are

added to the blockchain.
 Mining rewards are paid to the miner who discovers a solution
to a complex hashing puzzle first, and the probability that a
participant will be the one to discover the solution is related

to the portion of the total mining power on the network.
 You need either a GPU (graphics processing unit) or an
application-specific integrated circuit (ASIC) in order to set up a
mining rig.

33
What Are Coin Mining Pools?

Mining rewards are paid to the miner who discovers a solution to the
puzzle first, and the probability that a participant will be the one to
discover the solution is equal to the portion of the total mining power
on the network.

Participants with a small percentage of the mining power stand a

very small chance of discovering the next block on their own. For
instance, a mining card that one could purchase for a couple of
thousand dollars would represent less than 0.001% of the network's
mining power. With such a small chance at finding the next block, it
could be a long time before that miner finds a block, and the
difficulty going up makes things even worse. The miner may never
recoup their investment. The answer to this problem is mining pools.

Mining pools are operated by third parties and coordinate groups of

miners. By working together in a pool and sharing the payouts among
all participants, miners can get a steady flow of bitcoin starting the
day they activate their miners. Statistics on some of the mining pools
can be seen on Blockchain.info.

34
Popular miner
AvalonMiner 1246

Power draw: 3.43 kW

Hash rate power: 90TH/s
Price tag: $4,000 – $5,300

Chinese Canaan Creative is a well-established player in the crypto

mining arena. Some would say it is the first company to offer a
dedicated ASIC Bitcoin mining machine since its first model in 2013.
AvalonMiner 1246 is a heavy-duty mining machine, demonstrated by
its four integrated fans, which ramp up to a very uncomfortable noise
at 75dB.

This is considered very loud traffic noise, so be prepared to have a

dedicated mining space with noise isolation on the door.
Nonetheless, it boasts high efficiency at 38J/TH. Additionally, it comes
with a one year warranty and integrated AI microchip. As with most
ASIC miners, due to high demand.

35
AvalonMiner A1166 Pro

Power draw: 3.4 kW

Hash rate power: 81TH/s
Price tag: $2,200 – $2,850

Almost equal hash rate power and power draw at twice less the price,
AvalonMiner A1166 Pro is so highly sought after that it is even more
difficult to acquire. This Bitcoin machine has a hash rate efficiency at
42J/TH, 4 higher than the AvalonMiner 1246. Although it still costs as
much as a high-end PC, it’s a steal at that power efficiency.

Unfortunately, it appears that Canaan cut some corners to make it

this affordable, as it only comes with 180 days warranty. Also, if
you are buying it directly from the manufacturer, you will have to
get a minimum of 5 to get them shipped. All five would yield 405
TH/s, netting about $115 per day. It uses the same fans as the
previous model, so expect the noise to be equally bothersome.

36
WhatsMiner M32-62T

Power draw: 3.348 kW

Hash rate power: 62 TH/s
Price tag: $1,075 – $1,400

One of the newcomers to the mining arena launched last year, this
super-affordable Bitcoin mining machine uses Samsung’s 8nm
chipset. Unfortunately, the latest doesn’t mean the most efficient,
as you can tell from its power draw that is comparable to
AvalonMiner 1246, but 30% less efficient.

However, it is also 4 – 5 times less expensive than top of the line

ASIC miners, so it’s a solid investment if you intend to have your RoI
in less than four months. It offers 180 days warranty and comes
bundled with a power supply unit. The M32 series comes in three
versions, with the most expensive one yielding 66 TH/s.

37
WhatsMiner M30S++

Power draw: 3.472 kW

Hash rate power: 112 TH/s

Price tag: $9,900 – $14,000

Another model from Chinese MicroBT, the M30S++, is a Bitcoin

mining machine beast with the highest hash rate power available on
the retail market. Surprisingly, its power draw is quite low, which
means it is also one of the most efficient ASIC miners at 31 J/TH.
However, with a price tag at a minimum of $10k, you need to be
heavily committed to Bitcoin mining.

With a moderately priced electricity cost, you can expect an ROI

within 10 to 12 months, if the Bitcoin price doesn’t go under its
current range ($55k – $57k). Having been released just last
October, it too uses Samsung’s latest 8nm ASIC chipset.

38
Antminer S19 Pro

Power draw: 3.25 kW

Hash rate power: 110 TH/s
Price tag: ~$10,000 – $19,600

Going head-to-head with M30S++, this Bitmain ASIC miner offers 29.5
J/TH efficiency. Combined with a drastically improved boot time and
user experience thanks to the updated firmware, it can be considered
the best Bitcoin miner on the list. Unlike M30S++, it uses a 7nm TSMC
chipset, much like the latest generation of non-mining AMD Ryzen
CPUs.

39
Bitmain Antminer S5

Power draw: 0.56 kW

Hash rate power: 62 TH/s
Price tag: ~$500

Released all the way back in 2014, this model still holds up,
accounting for its low electricity consumption and hash rate
efficiency at 0.51 J /GH. Likewise, it is extremely compact at only
2.5kg, while its cooling is greatly helped with an open top design. It is
a perfect fit for those who live in smaller apartments, as it has a
maximum noise level at 65 dB

40
How Long Does It Take to Mine 1 Bitcoin?

At the current Bitcoin (BTC) price point of $55K, a single, medium-

ranged Bitcoin mining machine with 50 TH/s would be able to mine 1
BTC within one year. As you can see, we have long passed the
threshold where Bitcoin mining can be effectively done at such a
small scale.

Nonetheless, there is an alternative form of crypto mining in the

form of cloud mining. For example, StormGain offers a cloud mining
service with which you can mine up to 0.0318 BTC per day. This is a
legit way of mining without suspicious malware being installed on
your computer, or even having to have a mining rig. Otherwise,
StormGain wouldn’t be a member of the Blockchain Association of
the Financial Commission.

41
TRADING :

Crypto market vs. Stock market

The stock market has been around for a long time now, and there is a
bunch of literature on the topic. But, how different or similar is it
from or to the nascent cryptocurrency market?

Similarities between the crypto and stock market

Trading and investing tools are more or less the same. This is
especially true for technical traders using tools such as charts
to analyze the market. You can use the same tools to perform
TA (Technical Analysis) for trades on either market.

Assets denominated using fiat currencies. The crypto market may be

innovative and revolutionary with the assets designed to append the
current financial system. However, the denominations in the
marketplace are still valued compared to fiat currencies similar to
the stock market.

Trading and investing strategies are similar. In the stock market,

traders can choose to day trade, swing, or position trade. They can
also opt to buy and hold their assets for the long term. Similarly,
traders and investors in the crypto market can do the same things.

42
Similar market products. The stock market has been around for
generations, leading to innovative products such as derivatives and
techniques such as using leverage to inflate gains (and losses.) Those
same products and techniques have been ported over to the new age
cryptocurrency market. You can now trade Bitcoin futures, options,
and leveraged tokens. You can use leverage on most of your trades
on most leading cryptocurrency exchanges, such as Binance, Bitfinex,
or BitMEX.

Differences between the stock markets and crypto markets

Market volatility

Owing to its old age, the stock market is more stable and less
volatile. The crypto market, on the other hand, is accustomed to wild
price swings. It is pretty normal to see double-digit percentage swings
in a matter of hours.

Market maturity

43
Age is a significant factor in trading. The stock market has been
around for a long time, while the crypto market is only about a
decade old. This means that market value and trade volume in the
former is much larger compared to the latter. The younger age also
contributes to the wild volatility experienced in the crypto market.

Market assets

In the stock market, you invest in the publicly listed company

shares by buying their stocks. In the crypto market, you invest in
the idea, the technology, or the currency (or token), but not the
company (if any) behind the currency.

Regulations

Since the stock market has been around for ages, regulators have
had enough time to develop and implement rules and regulations
governing the market’s conduct. This contributes to the minimal
volatility we highlighted earlier. In the cryptocurrency market, this is
not the case. The regulators are still grappling with understanding
the emerging asset class, and this lack of (proper) regulations are
part of the reason for the market’s wild nature.

Benefits of cryptocurrency trading

24-hour trading

As opposed to the stock market that opens and closes at specified

times, there is no closing of the cryptocurrency market. You can trade

44
cryptocurrencies 24/7/365 or even use trading bots and let
your trades run all the time.

Market volatility

This may be seen as both a negative and a positive feature. In the

previous section, we focused on the negative, but let’s talk about the
positive. Traders (not investors) live off market volatility. The crypto
market has this in troves, and this means that as a trader, you will
get better trading opportunities with the cryptocurrency market as
opposed to the stock market.

Privacy and anonymity

If you’re big on your right to privacy, then you will love

cryptocurrency trading. With crypto trading, you have access to
decentralized cryptocurrency exchanges. These allow you to trade
with self-custody assets (when only you have possession of your
digital money) without the need to submit your identity online. Of
course, there are centralized trading platforms if you don’t mind
sharing your particulars and having another party storing your
digital assets.

The multitude of assets

Despite its relatively young age, the crypto market has advanced so
much so fast that traders now have access to similar stock market
products, including futures, options, leveraged tokens, swaps, CFDs
(contracts for difference). Whether you want to go long or short, ‘call’

45
it or ‘put’ it, look no further. Every kind of derivative currently
available on the stock market has already been ported over.

Easy account opening

In crypto, there is a shallow barrier to entry. You can easily create an

account in an exchange and start trading in a matter of minutes.
That’s how fast it is to jump on board.

PROOF-OF-STAKE (POS)

Proof of stake is a type of consensus mechanism used by blockchain

networks to achieve distributed consensus.

It requires users to stake their ETH to become a validator in the

network. Validators are responsible for the same thing as miners
in proof-of-work: ordering transactions and creating new blocks
so that all nodes can agree on the state of the network.

Proof-of-stake comes with a number of improvements to the proof-of-work

system:

better energy efficiency

you don't need to use lots of energy mining blocks

lower barriers to entry, reduced hardware requirements

you don't need elite hardware to stand a chance of creating

new blocks

46
stronger immunity to centralization

proof-of-stake should lead to more nodes in the network

stronger support for shard chains

A key upgrade in scaling the Ethereum network

PROS AND CONS

Pros

Staking makes it easier for you to run a node. It doesn't require huge
investments in hardware or energy, and if you don't have enough ETH
to stake, you can join staking pools

Staking is more decentralized. It allows for increased participation, and

more nodes doesn't mean increased % returns, like with mining.

Staking allows for secure sharding. Shard chains allow Ethereum to

create multiple blocks at the same time, increasing transaction
throughput. Sharding the network in a proof-of-work system
would simply lower the power needed to compromise a portion of
the network

Con

Proof-of-stake is still in its infancy, and less battle-tested,

compared to proof-of-work

47
Few popular coin based on proof of stake

BNB

FLOW TOKEN

AKT TOKEN

TEZOS

DASH

48
Proof of Work

Proof of Work is the algorithm that protects various cryptos, including

Bitcoin. It requires members (miners) to spend time and effort solving
mathematical puzzles to validate transactions.

Most currencies have a central institution or leader that keeps track

of all users and their balances. However, there is no such authority
in control of cryptocurrencies such as Bitcoin. Proof of Work is
required to make the digital money work without a firm or
government in charge.

Bitcoin is a decentralized virtual currency that provides peer-to-peer

value transfer without the use of a central intermediary. It runs on a
protocol known as the blockchain.

Why Do Cryptocurrencies Need Proof of Work?

Bitcoin transactions are encrypted in a data structure known as a

blockchain. Objectively, a chain of blocks makes the blockchain.
Blocks, which make up transactions, are generated roughly every
ten minutes.

Miners order transactions within blocks based on the optional fee a

user includes as a bonus. The higher the chance of retaining the
transaction, the higher the cost. Anyone can run a mining node since

49
mining is the process of creating a block. Each miner has a
duplicate of the same blockchain.

Blockchains, like cryptocurrency networks, require some method of

achieving both consensus and security because they are decentralized
and peer-to-peer by design. Proof of Work is one method that makes
attempting to overtake the network resource-intensive.

Other proof mechanisms, such as Proof of Stake (PoS) and Proof of

Burn (PoB), use less resource-intensive but have other disadvantages.

The network and the data stored on it would be vulnerable to attack if

there was no proof mechanism in place.

Limitations Of Proof of Work

There are two significant drawbacks to the proof of work system.

The first disadvantage is that they waste energy, which is harmful to
the environment.

Computers consume more electrical power to perform additional

computational work. It counts as a significant amount of extra
energy usage.

Nevertheless, bitcoin doesn’t seem to consume as much energy as we

are told or taught to believe; the statistics of what energy the Bitcoin

50
network consumes tell otherwise. According to a report on
cryptocurrency mining published in November 2018, around 80% of
the electricity used in mining is green energy. In some situations,
Bitcoin mining operations use surplus energy that a country’s power
grid would otherwise be unable to distribute.

The second major disadvantage of proof-of-work blockchains is

security. Proof of Work is only secure if there is a large network of
miners competing for block rewards. The 51% attack will occur if the
network is small. It means a hacker can gain most of the network’s
computational power if they can accumulate 51% of Bitcoin’s
mining hashrate.

That can allow them to flout the rules to double-spend coins and
block transactions. Manipulation of the Bitcoin blockchain is nearly
impossible in today’s circumstances. There are, however, thousands
of smaller proof-of-work blockchains that are still highly vulnerable
to 51% attacks.

Few popular coin based on proof of work

1. BTC

2. LTC

3. ETH

4. XMR

5. DGB

6. REEF

51
 4. BLOCK CHAIN TECHNOLOGIES :

Future of transaction, how it work, uses in different field,

benefits

Blockchain Technology

A decentralized network relies on a host of computers. As a result,

blockchain technology resides on a P2P network. It physically
cannot work with a single computer or point-of-connection.
Instead, it requires a slew of other computers to join in, in order to
complete a specific task on the network.

What is a blockchain, though? It’s a constantly growing chain of

ordered information (i.e. blocks). These blocks have a timestamp,
and a link to the previous block. The great thing about these blocks is
they’re built in such a way that they cannot be modified once they’ve
been recorded. What this means is that once information is there, it
stays there. You can’t go back in and manipulate it somehow, post
creation.

In this way, blockchains are secure by design. This is because the

information is not only timestamped, it’s also stored in such a way
that you’d have to get into every single computer at the same time, to
hack into the network.

52
Blockchain technology, and in turn decentralization, is an effective
way to work around the hacking weakness. So, storing information
on a peer-to-peer network is best in terms of security.

Blockchain is an especially promising and revolutionary

technology because it helps reduce risk, stamps out fraud and
brings transparency in a scaleable way for myriad uses.

53
History of Blockchain

Although blockchain is a new technology, it already boasts a rich and

interesting history. The following is a brief timeline of some of the
most important and notable events in the development of
blockchain.

2008
 Satoshi Nakamoto, a pseudonym for a person or group,
publishes “Bitcoin: A Peer to Peer Electronic Cash System."

2009
 The first successful Bitcoin (BTC) transaction occurs
between computer scientist Hal Finney and the mysterious
Satoshi Nakamoto.

2010
 Florida-based programmer Laszlo Hanycez completes the
first ever purchase using Bitcoin — two Papa John’s pizzas.
Hanycez transferred 10,000 BTC’s, worth about $60 at the
time. Today it's worth $80 million.
 The market cap of Bitcoin officially exceeds $1 million.
2011
 1 BTC = $1USD, giving the cryptocurrency parity with the

US dollar.
 Electronic Frontier Foundation, Wikileaks and other
organizations start accepting Bitcoin as donations.

2012
 Blockchain and cryptocurrency are mentioned in
popular television shows like The Good Wife, injecting

blockchain into pop culture.
 Bitcoin Magazine launched by early Bitcoin developer Vitalik
Buterin.

54
2013
  BTC market cap surpassed $1 billion.

 Bitcoin reached $100/BTC for first time.
 Buterin publishes “Ethereum Project" paper suggesting that
blockchain has other possibilities besides Bitcoin (e.g.,
smart contracts).

2014
 Gaming company Zynga, The D Las Vegas Hotel and
 Overstock.com all start accepting Bitcoin as payment.

 Buterin’s Ethereum Project is crowdfunded via an Initial Coin
Offering (ICO) raising over $18 million in BTC and opening

up new avenues for blockchain.
 R3, a group of over 200 blockchain firms, is formed
to discover new ways blockchain can be
 implemented in technology.
 PayPal announces Bitcoin integration.

2015

 Number of merchants accepting BTC exceeds 100,000.
 NASDAQ and San-Francisco blockchain company Chain
team up to test the technology for trading shares in private
companies.

2016
 Tech giant IBM announces a blockchain strategy for cloud-

based business solutions.
 Government of Japan recognizes the legitimacy
of blockchain and cryptocurrencies.

2017
 Bitcoin reaches $1,000/BTC for first time.
55

 Cryptocurrency market cap reaches $150 billion.
 JP Morgan CEO Jamie Dimon says he believes in
blockchain as a future technology, giving the ledger
 system a vote-of-confidence from Wall Street.

 Bitcoin reaches its all-time high at $19,783.21/BTC.
 Dubai announces its government will be
blockchain-powered by 2020.

2018
 Facebook commits to starting a blockchain group and also

hints at the possibility of creating its own cryptocurrency.
 IBM develops a blockchain-based banking platform
with large banks like Citi and Barclays signing on.

2019
 China’s President Ji Xinping publicly embraces blockchain
as China’s central bank announces it is working on its own

cryptocurrency
 Twitter & Square CEO Jack Dorsey announces that
Square will be hiring blockchain engineers to work on the

company’s future crypto plans
 The New York Stock Exchange (NYSE) announces the
creation of Bakkt - a digital wallet company that
includes crypto trading

2020

 Bitcoin almost reaches $30,000 by the end of 2020
 PayPal announces it will allow users to buy, sell and hold

cryptocurrencies
 The Bahamas becomes the world’s first country to launch
its central bank digital currency, fittingly known as the

“Sand Dollar”
 Blockchain becomes a key player in the fight against COVID-
19, mainly for securely storing medical research data and
patient information
56
How Does Blockchain Work?

The whole point of using a blockchain is to let people

— in particular, people who don't trust one another
— share valuable data in a secure, tamperproof way.

Blockchain consists of three important concepts: blocks, nodes

and miners.
Blocks

Every chain consists of multiple blocks and each block has three basic
elements:


 The data in the block.
 A 32-bit whole number called a nonce. The nonce is
randomly generated when a block is created, which

then generates a block header hash.
 The hash is a 256-bit number wedded to the nonce. It must
start with a huge number of zeroes (i.e., be extremely small).

When the first block of a chain is created, a nonce generates the

cryptographic hash. The data in the block is considered signed and
forever tied to the nonce and hash unless it is mined.

Miners

Miners create new blocks on the chain through a process

called mining.

In a blockchain every block has its own unique nonce and hash, but
also references the hash of the previous block in the chain, so
mining a block isn't easy, especially on large chains.

Miners use special software to solve the incredibly complex math

problem of finding a nonce that generates an accepted hash. Because
the nonce is only 32 bits and the hash is 256, there are roughly four
billion possible nonce-hash combinations that must be mined before

58
the right one is found. When that happens miners are said to have
found the "golden nonce" and their block is added to the chain.

Making a change to any block earlier in the chain requires re-mining

not just the block with the change, but all of the blocks that come
after. This is why it's extremely difficult to manipulate blockchain
technology. Think of it is as "safety in math" since finding golden
nonces requires an enormous amount of time and computing power.

When a block is successfully mined, the change is accepted by all

of the nodes on the network and the miner is rewarded financially.

Nodes

One of the most important concepts in blockchain technology is

decentralization. No one computer or organization can own the chain.
Instead, it is a distributed ledger via the nodes connected to the
chain. Nodes can be any kind of electronic device that maintains
copies of the blockchain and keeps the network functioning.

Every node has its own copy of the blockchain and the network must
algorithmically approve any newly mined block for the chain to be
updated, trusted and verified. Since blockchains are transparent,
every action in the ledger can be easily checked and viewed. Each
participant is given a unique alphanumeric identification number that
shows their transactions.

59
Combining public information with a system of checks-and-balances
helps the blockchain maintain integrity and creates trust among
users. Essentially, blockchains can be thought of as the scaleability
of trust via technology.

USES

Cryptocurrencies: The Beginning of Blockchain's

Technological Rise

Blockchain’s most well-known use (and maybe most controversial) is

in cryptocurrencies. Cryptocurrencies are digital currencies (or
tokens), like Bitcoin, Ethereum or Litecoin, that can be used to buy
goods and services. Just like a digital form of cash, crypto can be used
to buy everything from your lunch to your next home. Unlike cash,
crypto uses blockchain to act as both a public ledger and an
enhanced cryptographic security system, so online transactions are
always recorded and secured.

60
Ethereum Blockchain

Originally created as the ultra-transparent ledger system for Bitcoin to

operate on, blockchain has long been associated with cryptocurrency,
but the technology's transparency and security has seen growing
adoption in a number of areas, much of which can be traced back to
the development of the Ethereum blockchain.

In late 2013, Russian-Canadian developer Vitalik Buterin published

a white paper that proposed a platform combining traditional
blockchain functionality with one key difference: the execution of
computer code. Thus, the Ethereum Project was born.

Ethereum blockchain lets developers create sophisticated programs

that can communicate with one another on the blockchain.

Tokens

Ethereum programmers can create tokens to represent any kind

of digital asset, track its ownership and execute its functionality
according to a set of programming instructions.

Tokens can be music files, contracts, concert tickets or even a

patient's medical records. Most recently, Non-Fungible Tokens
(NFTs) have become all the rage. NFTs are unique blockchain-based
tokens that store digital media (like a video, music or art). Each NFT
has the ability to verify authenticity, past history and sole ownership
of the piece of digital media. NFTs have become wildly popular
because they offer a new wave of digital creators the ability to buy
and sell their creation, while getting proper credit and a fair share of
profits.
61
Newfound uses for blockchain have broadened the potential of the
ledger technology to permeate other sectors like media,
government and identity security. Thousands of companies are
currently researching and developing products and ecosystems that
run entirely on the burgeoning technology.

Blockchain is challenging the current status quo of innovation by

letting companies experiment with groundbreaking technology like
peer-to-peer energy distribution or decentralized forms for news
media. Much like the definition of blockchain, the uses for the
ledger system will only evolve as technology evolves.

62
Top 5 Blockchain Benefits for The Industry

Better Transparency

Transparency is one of the big issues in the current industry. To

improve transparency, organizations have tried to implement more
rules and regulations. But there is one thing that doesn’t make any
system 100% transparency, i.e., centralization.

With blockchain, an organization can go for a complete decentralized

network where there is no need for a centralized authority, improving
the system’s transparency.

A blockchain consists of peers who are responsible for carrying out

transactions and validating them. Not every peer takes part in the
consensus method, but they are free to choose if they want to
participate in the validation process. To provide validation through
decentralization, the consensus method is used. Once validated, each
node keeps a copy of the transaction record. This way, the blockchain
network handle transparency.

Transparency has bigger implications when it comes to organizations.

As mentioned earlier, governments can also utilize transparency in
building government processes or even conduct voting.

63
Enhanced Security

Blockchain technology utilizes advanced security compared to other

platforms or record-keeping systems. Any transactions that are ever
recorded needs to be agreed upon according to the consensus
method. Also, each transaction is encrypted and has a proper link to
the old transaction using a hashing method.

Security is also enhanced by the fact that each node holds a copy of
the transactions ever performed on the network. So, if any malicious
actor ever wanted to make changes in the transaction, he won’t be
able to do so as other nodes will reject his request to write
transactions to the network.

Blockchain networks are also immutable, which means the data, once
written, cannot be reverted by any means. This is also the right choice
for systems that thrive on immutable data, such as systems that
citizens age.
Reduced Costs

Right now, businesses spend a lot of money to improve to manage their

current system. That’s why they want to reduce cost and divert the
money into building something new or improving current processes.

By using blockchain, organizations can bring down a lot of costs

associated with 3rd party vendors. As blockchain has no inherited
centralized player, there is no need to pay for any vendor costs. On
top of that, there is less interaction needed when it comes to
validating a transaction, further removing the need to spend money
or time to do basic stuff.

64
True Traceability

With blockchain, companies can focus on creating a supply chain that

works with both vendors and suppliers. In the traditional supply chain,
it is hard to trace items that can lead to multiple problems, including
theft, counterfeit, and loss of goods.

With blockchain, the supply chain becomes more transparent than

ever. It enables every party to trace the goods and ensure that it is
not being replaced or misused during the supply chain process.
Organizations can also make the most out of blockchain traceability
by implementing it in-house.

Improved Speed and Highly Efficient

The last industrial benefit that blockchain brings is improved

efficiency and speed. Blockchain solves the time-consuming process
and automates them to maximize efficiency. It also eradicates human-
based errors with the help of automation.

The digital ledger makes everything this possible by providing a single

place to store transactions. The streamlining and automation of
processes also mean that everything becomes highly efficient and fast.

65
Use of Blockchain In Different Fields

You may think that the application of blockchain is only to improve

the financial services industry, but the fact is that it has plenty of use
beyond the financial sector. Currently, under Ethereum, 200
organizations and also the traditional banks are testing a version of
its blockchain technology. The varied uses of Blockchain that can
shape the future are as follows:

1. Transfer of Funds:

Blockchain is a means to expedite the transfer of funds between

parties. The validation process goes on 24 hours a day and 7 days a
week. The settlement of transactions processed over a blockchain
gets done instantly. In this case, the best real-world example is the
partnership between Ripple (CCY: XRP-USD), American Express
(NYSE: AXP) and Banco Santander (NYSE: SAN). The catch is Ripple’s
instantly settling cross-border payments with small transaction fees.

2. Copyright and Royalty:

Easy internet access has challenged the copyright and ownership of

music and other contents. The blockchain would make copyright
laws concerning digital content downloads more effective and would
help in providing transparent royalty distribution data to ensure the
fair share to the artist or creator of the content.

3. Digital Voting:

Blockchain technology creates the potentiality to vote digitally with

ease and also gives a transparent view to the regulators to track

66
changes on the network to avoid any fraudulent activity. The
immutability of blockchain helps make your vote truly count.

4. Digital ID’s:

Millions of people face identity challenges all over the world.

Microsoft (NASDAQ: MSFT) is attempting to create digital IDs within
its Authenticator app, and it would help users to control their digital
identities. Though the attempts made by Microsoft are in the early
stages, decentralized digital ID can bring a solution to future
identity challenges.

5. Digital Will:

You can use blockchain to create and store your digital will on a
blockchain network. This paperless digital will can be transparent and
legally binding. It would create no confusion when you pass away.

6. Equity Trading:

As because blockchain networks validate and settle transactions

very fast eliminating waiting time, it may replace existing equity
trading platforms of investors to buy or sell stocks.

7. Futures Trading and Compliance in the Energy Industry:

The use of blockchain will help energy companies to settle futures

trading considerably faster than they do currently and also logging
their resources and meeting regulatory compliance. E.g., BP(NYSE:

67
BP), the integrated oil and gas giant envisions using an
Ethereum’s blockchain version for futures trading.

8. Immutable Data Backup:

You can use blockchain as a backup source to back up any data and
for cloud data centers. There are cloud storage systems, but there is
a threat of hackers and infrastructure problems. E.g., Boeing is
considering blockchain for GPS receivers on its planes.

9. Medical Recordkeeping:

Blockchain offers more safety and convenience in paperless record

keeping in the medical sector. Other than storing patient records
and controlling digital access, it would strengthen the HIPAA laws
aiming to protect patient privacy.

10. Managing IoT networks:

Cisco Systems (NASDAQ: CSCO), the networking giant depends on the

blockchain-based application to monitor the Internet of Things (IoT)
networks. Here, the trustworthiness of devices on a network matters
most as in the case of smart cars or smartphones since these are
wireless devices that can send and receive data. E.g., HTC’s Blockchain
phone Exodus 1.

11. Retail Loyalty Rewards Programs:

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The creation of tokens and storing it with blockchain would
revolutionize the loyalty rewards programs in retail. It will
eliminate the paper-and card-based fraud from occurring in loyalty
rewards programs in the future.

12. The Right of Workers:

As per the ILO, 25 million people work in forced-labor conditions

worldwide. Blockchain can be put to use as a means of supporting the
workers around the world and their rights. Coca-Cola, along with the
U.S. State Dept. and other partners, is working on a blockchain
registry to enforce a digital contract between employer and
employee to improve labor policies.

13. Supply Chain Monitoring:

Blockchain would make it handy for the businesses to pinpoint the

problem area within the supply chain and also to monitor the
performance of the products from the quality-control perspective.

14. Sharing Data:

With the launch of the beta version by IOTA, blockchain could be

used as a data marketplace to share or sell or store unused data.
These are still in nascent stages, but more than 35 brand-name
participants of IOTA including Microsoft are offering their feedback.

15. Safety of Food:

You can use blockchain in tracing your food from its source to the
destination, and that is your plate. It is because the blockchain data is
69
immutable and you can even trace the source of contaminant
quickly in case of food-borne illness if any.

16. Secured Access to Belongings:

You could use blockchain to give access to service technicians to

your house, or allow access to a mechanic to your car to perform
repairs. But there is a digital key that you possess and without which
these service technicians would not gain access to your belongings.

17. Title Transfer in Land, Real Estate and Automobiles:

In case of purchasing or selling land, a house, or a car, all you need

is to transfer or receive a title. By removing paper-based trails,
blockchain stores titles on its network, giving a crystal clear view of
the transfer and legal ownership.

18. Tax Compliance:

Marijuana companies can use blockchain to record their sales and

ensuring the lawmakers that they’re abiding by the laws-local, state,
and/or federal and paying taxes, assuming they’re profitable.

19. Tracking Weapons:

Blockchain can create a transparent and unchanging registry network

to track gun or weapon ownership easily by the law enforcement

70
department and the federal government. It can also keep the
record of weapons sold privately.

20. Tracking Prescription Medicines:

Blockchain allows drug makers to track all their products based on

serial and/or batch numbers thereby ensuring that consumers are
getting the original deal when they buy medicine from the
pharmacy. Currently, Merck is testing such a system for tracking
prescription drug returns.

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5. CONVENTIONAL OR FIAT
CURRENCY VS CRYPTO CURRENCY :

Use case, Reliable & fast, user friendly, better security

Fiat money

Fiat money is a currency established as money, often by government

regulation. Fiat money does not have intrinsic value and does not
have use value. It has value only because a government maintains its
value, or because parties engaging in exchange agree on its value. It
was introduced as an alternative to commodity money and
representative money. Representative money is similar to fiat
money, but it represents a claim on a commodity.

72
ADVANTAGES

A primary advantage of fiat money is that it gives the government

control over the economy through its central bank. Remember that
this type of currency is a government-backed legal tender. Hence, the
central bank controls its production and circulation, thus controlling
the money supply and the banking system.

Remember that fiat money can directly

influence inflation and employment. During an economic recession,
a government can stimulate the economy by creating jobs. However,
employment requires payment. The workaround is to increase the
money supply by printing more currency at the expense of high
inflation rates.

Monetarists such as Milton Friedman have argued that variations in

money supply have significant influences on price levels over long
periods, as well as on economic output in the short run. Monetary
policy is essentially a macroeconomic tool used by governments
alongside a fiscal policy.

DISADVANTAGES

A primary disadvantage of fiat money is that it risks losing its value

due to inflation or become entirely worthless during
hyperinflation for the simplest reason that it is not backed up by
physical reserves, especially commodities such as gold and silver

The hyperinflation experienced by Zimbabwe demonstrated the

propensity of some governments to expand the money supply by
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overprinting money. Economists Mark. J. Ellyne and Michael R. Daily
mentioned that aside from rapidly growing central bank reserves to
lend to the government and state-owned enterprises, the Mugabe
administration deliberately increased the money supply to win the
favors of different political allies.

Printing money out of thin air is also a loose policy. In their paper for
the Cato Institute, Kevin Down, Martin Hutchinson, and Gordon Kerr
maintained that this loose policy that can artificially lower interest
rates and provides incentives for taking excessive risks has also
resulted to escalating solvency crisis characterized by damaging
asset price bubbles, unrepayable debt levels, an insolvent financial
system, and rising inflation.

CRYPTO CURRENCY :

A cryptocurrency, crypto-currency, or crypto is a digital asset

designed to work as a medium of exchange wherein individual coin
ownership records are stored in a ledger existing in a form of a
computerized database using strong cryptography to secure
transaction records, to control the creation of additional coins, and to
verify the transfer of coin ownership

Cryptocurrency does not exist in physical form (like paper money) and
is typically not issued by a central authority. Cryptocurrencies
typically use decentralized control as opposed to a central bank
digital currency (CBDC).

74
When a cryptocurrency is minted or created prior to issuance or
issued by a single issuer, it is generally considered centralized. When
implemented with decentralized control, each cryptocurrency works
through distributed ledger technology, typically a blockchain, that
serves as a public financial transaction database.

Crypto vs FIAT : Advantages of Cryptocurrencies Over Fiat Currencies

1. Cryptocurrency Offers More Security

After a cryptocurrency trade is authorized, it’s irreversible unlike in

charge-back transactions permitted by credit card companies. It
protects the user from the kind of fraud that may occur between a
buyer and a seller. Thanks to the distributed ledger and
implementation of smart contracts, people can exchange valuables

75
across continents with the click of a button without any risk of fraud.
Only authorized individuals will have access to transactions that are
made on a blockchain network. This doesn’t mean hackers can’t
hack a cryptocurrency wallet. However, there are many safety
measures users can employ to protect their cryptocurrencies that
may not be applicable with fiat money.

2. Cryptocurrency is More Accessible

Your traditional bank account can be frozen, but it is unlikely for your
cryptocurrency account to be frozen as they are not bounded by
most laws and regulations that give way for account freezing. Also,
anyone with internet access can buy cryptocurrencies without the
need for rigorous scrutiny by regulatory bodies. Those who do not
have access to traditional means of exchange can get involved in the
cryptocurrency industry.

3. Cryptocurrency Transactions Have Lower Transaction Fees

Processing transactions in traditional banks require processing

fees just like on the cryptocurrency industry. However, the costs
for cryptocurrency transactions are low and sometimes free for
transactions that are exchangeable over the network.

Every technology comes with advantages and disadvantages, and

cryptocurrency is not an exception. You need to weigh the benefits to
know if they are worth the disadvantages. As advantageous as
cryptocurrencies are, there are still many people, especially in
developing nations, who have no idea what cryptocurrency is.

76
6. OUR TOP 10 PICK & VARIOUS
COIN FEATURES AND PURPOSE :

Our top picks, NFT coins, privacy coin, DI-FI coin

Our coin picks

#1. Bitcoin

Bitcoin is the most widely used cryptocurrency to date. It is often

referred to as the king of cryptocurrencies, and its primary goal is to
act as global, peer to peer, digital cash.

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#2. Litecoin

Litecoin is one of the first cryptocurrencies to come after Bitcoin,

and one of the hottest cryptocurrencies of the last decade.

Using Bitcoin’s source-code, Litecoin is a fork of Bitcoin with some

technical changes to the code, making it much faster than Bitcoin.
Its mission is also to be a global, peer to peer currency.

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#3. Ethereum

Ethereum was the first major project to introduce smart contracts.

Smart contracts allow developers to launch mobile and

desktop decentralized applications (dApps) on top of the blockchain.

Thousands of tokens run on the Ethereum network, and these tokens

were what spurred the initial coin offering (ICO) movement.

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#4. Binance Coin (BNB)

Unlike Bitcoin and Litecoin, which aim to be used as currencies,

the Binance coin is a utility token.

This means its value comes from how useful it is (and how much
demand there is for its utility) within the Binance ecosystem.

#5. Monero (XMR)

Monero is a privacy-focused project. The coin utilizes

fancy cryptography and privacy logic to hide the
participants' identities.

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It is widely used on the dark web for this reason and is the
most popular privacy coin today.

#6. Cardano (ADA)

Cardano, which is competing with Ethereum and NEO, is touted to

be more scalable and easier for developers to use.

It aims to be more scalable by introducing two layers of technology:

one responsible for tracking balances of the ledger, and the other
for transferring value.

Cardano uses two programming languages called Haskell and Plutus.

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Haskell has been around since the 1980s, and is Cardano’s attempt
at making it easier for developers to create decentralized
applications. Plutus is the functional language built in-house by
Cardano’s development team.

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Privacy Coins

Verge is a privacy cryptocurrency focused on communication through

protocols like I2p and Tor which have supported integrations with
the platform with Android support as well.

Verge has 5 Proof-of-Work algorithms that run on its blockchain

including Scrypt, X17, Lyra2rev2, myr-groestl and blake2s. Each
algorithm has a 30-second block target block time. The difficulty is
influenced only by the algorithms hash rate. This allows improved
security and protection against 51% attacks.

Other noteworthy features include P2P transaction support for

Telegram and Discord which is currently in development and slated to
be released soon. With Telegram clocking 100 million users and
Discord with 40, there is quite an audience they will be in front of.
83
Finally, there is future development to incorporate Rootstock
(RSK): “RSK, is a two-way pegged sidechain that grafts smart contract
functionality onto the Verge network. It also introduces an off-chain
protocol for near-instant payments.

RSK is an independent blockchain that does not have its own token, it
instead relies on existing tokens (such as Verge). RSK is able to do this
by pegging (or matching) its smart token to Verge, so that the value
of an RSK token is exactly that of a Verge token. Users have the
capabilities to freely move their tokens back and forth between the
two chains.”

84
DeFi Coins

The decentralized finance (DeFi) market has received heightened

interest from crypto-enthusiasts in recent years – attracting investors
from all across the world. In its simplest form, DeFi is a term used for
financial applications built on blockchain technology – that aims to
democratize the economic landscape by replacing centralized
institutions.

Today, DeFi platforms can provide you with a full spectrum of

financial services – ranging from trading, borrowing, lending,
decentralized exchanges, asset management, and more.

The most popular DeFi platforms have designed their own native
tokens, as a means to facilitate their operations as well as incentivize
users. If you are interested in getting a piece of this innovative
marketplace early – investing in DeFi coins is one of the best ways to
go.

1. Uniswap (UNI)

Uniswap is a leading decentralized exchange that is currently

dominating the DeFi market. It employs an Automated Market Maker
system (AMM) to ensure that there is sufficient liquidity for the
ERC20 tokens traded on its site. The Uniswap protocol has attracted a
loyal following as per its crypto-asset solutions. It allows you to have
complete control over your private keys, integrates with external
wallets, and allows you to trade at low fees.

85
The UNI token was launched by the Uniswap protocol in September
2020 – as a means to reward its USERS. The DeFi coin entered the
market at a trading price of $2.94. Over the course of a few months
– the value of the coin has since skyrocketed to $35.80. The DeFi
coin can arguably be deemed one of the best-performing tokens in
the industry – with a surge of over 1,100% in a matter of just eight
months.

2. Chainlink (LINK)

Chainlink is arguably the most widely used decentralized oracle

network currently available in the DeFi market. It feeds real-world
data to smart contracts on the blockchain – serving as a link between
the unprecedented amount of information going back and forth
between crypto DApps. The provider has also released its own native
token LINK, which has several functional utilities on the platform.
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Thanks to the rising popularity of decentralized platforms,
Chainlink has experienced significant growth since its launch in
2019. It has evolved to a point at which it can fund other crypto
initiatives that can be of value to the Chainlink ecosystem

87
3. PancakeSwap (CAKE)

PancakeSwap is a decentralized exchange that allows you to swap

BEP20 tokens on the Binance Smart Chain, a convenient and
inexpensive alternative to Ethereum. Similar to Uniswap, this DEX also
employs an Automated Market Maker system to generate liquidity
pools. PancakeSwap launched its native token CAKE in September
2020. Users can stake CAKE on one of the many liquidity pools offered
in order to earn more tokens in return.

88
 7. UPCOMING PROJECTS &
UPDATES :

REEF, THETA, TDROP, VERGE, NFT, TRC network, ERC

network

TRC network

TRC-20 is a technical standard used for smart contracts on the

TRON blockchain for implementing tokens with the TRON Virtual
Machine (TVM). It is fully compatible with ERC-20.

What is a Token?

 Tokens can represent virtually anything in Ethereum




 reputation points in an online platform



 skills of a character in a game



 lottery tickets
89
  financial assets like a share in a company



 a fiat currency like USD



 an ounce of gold

What is ERC-20?

The ERC-20 introduces a standard for Fungible Tokens, in other

words, they have a property that makes each Token be exactly the
same (in type and value) of another Token. For example, an ERC-20
Token acts just like the ETH, meaning that 1 Token is and will
always be equal to all the other Tokens.

90
NFT (Non-fungible token)

A non-fungible token is a unit of data stored on a digital ledger,

called a blockchain, that certifies a digital asset to be unique and
therefore not interchangeable.

NFTs can be used to represent items such as photos, videos, audio,

and other types of digital files. Access to any copy of the original file,

91
however, is not restricted to the buyer of the NFT. While copies of
these digital items are available for anyone to obtain, NFTs are
tracked on blockchains to provide the owner with a proof of
ownership that is separate from copyright.

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What is Theta coin?

As well as the Theta Network, there is a Theta blockchain, which

basically runs in the background and helps establish a consensus
mechanism and, perhaps more importantly, to help pay out rewards.
The blockchain has two native currencies. There is TFUEL, which is
used to pay out rewards to the Edge Nodes, but the main one is
Theta coin. This went live in 2019.

The previous year, the company had held a private sale of 30% of the
one billion theta coins available. This raised around $20m and started
to generate interest in the theta token. Theta coin, which is really
a token, is used to allow people to stake a claim on voting rights and
to help validate transactions.

Theta coin’s price stayed around the $0.10 mark for the first couple
of years of its existence, but last year things started to move slowly. It
broke through the $0.20 barrier in May 2020 and started to rise,
slowly but surely, hitting $0.70 in early December. It rose above $1
for the first time on 22 December and, in 2021, it really started to kick
off.

It reached $2.13 on 5 January and on 14 Feb it hit $3.19. At the end of

February it stood at just under $3.10, but in March it really took off. It
ended March 31 at $12.21, an increase of more than 293%. It
reached an all time high of $15.08 on April 16.

While the price has dropped by nearly half since then, at least
partially because of the cryptocurrency crash of 19 May 2021, by 3

93
June 2021 it was worth $8.93, considerably more than it was at
the start of 2021.

Looking at the future, WalletInvestor says that it should reach

$20.925 in a year’s time and $78.97 in five years. DigitalCoinPrice is
a bit more cautious, saying it should get to $13.52 in June 2022 and
$31.19 in June 2026.

But any good theta coin review will tell you price predictions are
often wrong. Remember that cryptocurrencies can be highly volatile,
that the value of investments can go down as well as up, and that
you should never invest more money than you can afford to lose.

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Reef Finance

Reef Finance is a DeFi platform that enables trading with access

to liquidity from both CEXes and DEXes while offering smart
lending, borrowing, staking, mining through an AI-driven
personalized Reef Yield Engine.

Reef Finance is the first Polkadot project ever launched on Binance

Launchpool. Reef Finance was established in 2019 by CEO and
founder Denko Mancheski of crunchbase.com

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Airdrop
Cryptocurrency

An airdrop is a distribution of a cryptocurrency token or coin, usually

for free, to numerous wallet addresses. Airdrops are primarily
implemented as a way of gaining attention and new followers,
resulting in a larger user-base and a wider disbursement of coins

UPCOMING PROJECTS

1 .Artify (ART)
About the Project

The NFT scene is currently on the rise. The projects that surround
NFTs are mainly gaming and digital art. Artify is a project that
introduces social media to NFTs. It is a community-driven marketplace
that aims to unify the fragmented NFT marketplaces into one
ecosystem. They provide users many features such as a unique social
platform for sharing, commenting, discussing, and rating NFTs, a
timer-auction house governed by the $ART token, along with many
other characteristics.

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Base Reward Token (BRT)
About the Project

The DeFi space is surely a fragmented ecosystem. Many websites and

services reside on different scattered websites. Base Reward Token is a
project that aims to unify every DeFi offering in one single website.
What makes this project unique is that 60% of all the fees generated go
back to the BRT token holders. Additionally, the BRT supply is limited to
only 12 million. They currently provide a DEX exchange, debit/credit
card services, e-commerce services, and mobile gaming.

CoinSwap Space (CSS)

About the Project

Coinswap Space is a DeFi project that built a Decentralized Exchange

(DEX) integrated on the Binance Smart Chain (BSC). Users can swap
tokens at good rates, participate in yield farming pools, and stake
their CSS tokens to get…more CSS! What makes this DEX unique is
that they already partnered with many projects, and they’re giving
great rates, be it APR as high as 30% or 20x stake rewards.

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THINGS WHICH I FIND & LEARNED
THROUGH OUT THE RESEARCH PROJECT
REPORT :

 Importance’s of crypto currency




 Understand the risk & profit related to investing in
crypto currency



 Understand the difference between fiat & crypto
currency



 Various options facilated by binance to earn profit with
minimum risk


 Managing portfolio efficiently


 Learned about block chain technology




 Learned about block chain can replace or play vital role
in transaction process of digital money


 Understands crypto market vs stock market


 Learned about staking, savings, derivatives

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  understanding the valuation and pricing of any crypto
currency


 Understand the key concepts of crypto market


 Explained about rise of binance crypto platform



 Learned about why regulation is needed in
financial market and frauds related to it.



 Discussed the insider trading, and how competitors of
binance.


 Forwards and futures market


 Option market



 Need of block chain technology in banks and in
other fields.


 How block chain technology works


 No involvment of indian government in crypto



 Discussed future of block chain and crypto currency and
how it is better


 Role and use of alt coins

99
  Role of financial planners and advisors.



 Potential impact of future demographics on
economics and finance.



 Knowing some upcoming project and about minners
& how mining is done



 Learn about token, airdrop, hashrate and also learned
about few popular network

❖
Crypto market tells us about various aspect of financial product
and makes us familiar about different financial instrument which
is used by the expert

❖
This research reports shows how block chain technology can change
the future of transcation process. teaches about why it is good for
us to invest in crypto market and benefits and risk related to it

❖
Report shows what return we can expect from crypto market

and how binance become no.1 platform for crypto currency.

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CONCLUSION:

It is important that we should have a clear understanding of the type of

instrument and the market before making any investment decision. Investing
can give big returns in any market

This research project report consists of all important information which support
the statement regarding crypto currency and block chain technology is the
future”. This report also stated various scenario where block chain technology
can act as game changer. And also tells why crypto trading platform is better
than stock market trading platform. In crypto currency you can be totally
become anonymous. So, by explaning so many benefits of crypto I can say that
people can invest in crypto who are looking for long term growth over long
period. And block chain technology will be the future because it is fast, secure &
totally anonymous. This report will help the learners to gain knowledge on the
procedure for opening binance Account & the process of crypto trading, risk
management system, regulatory etc. This research report also helps us to know
about the impact of crypto currency on economy.

Anyone who is new to the crypto market and want to know the basics, then
this report is perfect for you!

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