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Cryptocurrency & Blockchain - Assignment

Blockchains and cryptocurrencies are related but different. Blockchains are distributed ledgers that permanently and immutably record transactions in a secure way, while cryptocurrencies like Bitcoin are digital currencies secured through cryptography. The top five cryptocurrencies are Ethereum, Binance Coin, XRP, Cardano, and Avalanche. A crypto wallet stores the private keys used to access cryptocurrency and provides an interface to interact with blockchains. Cryptocurrency transactions are inherently secure due to the cryptography and decentralization of blockchain technology. Cryptocurrencies are called cryptocurrencies because transactions are verified and records maintained through cryptography in a decentralized way without a central authority.

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Debojyoti Dey Sarkar
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168 views

Cryptocurrency & Blockchain - Assignment

Blockchains and cryptocurrencies are related but different. Blockchains are distributed ledgers that permanently and immutably record transactions in a secure way, while cryptocurrencies like Bitcoin are digital currencies secured through cryptography. The top five cryptocurrencies are Ethereum, Binance Coin, XRP, Cardano, and Avalanche. A crypto wallet stores the private keys used to access cryptocurrency and provides an interface to interact with blockchains. Cryptocurrency transactions are inherently secure due to the cryptography and decentralization of blockchain technology. Cryptocurrencies are called cryptocurrencies because transactions are verified and records maintained through cryptography in a decentralized way without a central authority.

Uploaded by

Debojyoti Dey Sarkar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Name – Debojyoti Dey Sarkar

ID – 181004002040
BBA-MBA Integrated (Finance)

Cryptocurrencies and Blockchain


Assignment

1. Are Blockchains and Cryptocurrencies the same ?


Ans –
A blockchain is a constantly growing ledger which keeps a permanent record of all the
transactions that have taken place in a secure, chronological, and immutable way.

Cryptocurrency is a digital currency in which transactions are verified and records maintained
by a decentralized system using cryptography, rather than by a centralized authority. A
cryptocurrency is a digital or virtual currency that is secured by cryptography, which makes it
nearly impossible to counterfeit or double-spend.
Blockchain is the technology that enables the existence of cryptocurrency (among other
things). Bitcoin is the name of the best-known cryptocurrency, the one for which blockchain
technology was invented.

2. What are the top Cryptocurrencies ?


Ans-
The top five Crypto Currencies in the world are :
A. Ethereum:
Ethereum is, to date, the most successful and popular altcoin in the cryptocurrency
market. Its native token, Ether (ETH), has seen a steady and rapid rise in its valuation
ever since its creation. According to experts, Ethereum may grow in value by 400 per
cent this year.

B. Binance Coin:
The Binance Exchange platform is performance is directly linked to the performance
of Binance Coin (BNB). According to Analytics Insight, the BNB value might cross
US$610 by the end of 2023. This is a good choice if you want to invest and gain through
cryptocurrency in 2022.

C. XRP:
Ripple XRP is popular as it can process transactions in only a few seconds. This, too,
requires a low cost and minimal energy. Due to its consensus protocol, XRP has
become one of the most environmentally friendly cryptocurrencies, making it a better
option than Bitcoin.

D. Cardano:
Cardano uses Proof of Stake (PoS) instead of Proof of Work (PoW), which improves its
sustainability. Being a third-generation cryptocurrency, it combines the best features
of first and second-generation crypto coins like Bitcoin and Ethereum.

E. Avalanche:
Avalanche gives you the option of limitless interoperability with many blockchains. Its
operations and scaling procedures don’t sacrifice decentralisation.

3. What is a crypto wallet?


Ans –
A cryptocurrency wallet is an application that functions as a wallet for cryptocurrency. It is
called a wallet because it is used similarly to a wallet to put cash and cards in. Instead of
holding these physical items, it stores the passkeys which is used to sign for cryptocurrency
transactions and provides the interface that lets access to crypto.

4. How safe is cryptocurrency ?


Ans –
The blockchain technology backing cryptocurrency is inherently secure, thanks to the
decentralized — and public — nature of distributed ledger technology and the encryption
process every transaction undergoes.

5. Why it is called cryptocurrency ?


Ans –

Cryptocurrency is a digital currency in which transactions are verified and records maintained
by a decentralized system using cryptography, rather than by a centralized authority.
A cryptocurrency is a digital or virtual currency that is secured by cryptography, which makes
it nearly impossible to counterfeit or double-spend. Many cryptocurrencies are decentralized
networks based on blockchain technology—a distributed ledger enforced by a disparate
network of computers. A defining feature of cryptocurrencies is that they are generally not
issued by any central authority, rendering them theoretically immune to government
interference or manipulation.

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