A detailed review of blockchain and cryptocurrency

Nayak Bhatia Sanchit Bansal Smit Desai

Abstract – Cryptocurrency is something that we is linked to the previous filled block, forming a chain.
have all heard about recently, most likely preceded Hence, the name "Blockchain."
by bitcoin, and how much its prices have boomed Each block of the chain consists of three elements:
over the decade. These cryptocurrencies are actually • Relevant information
based on blockchain, a secure datatype, and recently • Hash
popular form of technology. This paper gives a • Hash of a preceding block
detailed review about the concept of blockchain and Every time there is a transaction, a hash is
its potential applications, especially elaborating on generated, and the hash is in the form of a string made
cryptocurrency, and it also contains a detailed case up of numbers and letters (e.g., 6U9P2).
study of “blockchain Dubai”. How hashing works?
Hash is a type of connection where its input
Keywords – Blockchain, cryptocurrency, (numbers and letters) is converted to the fixed length of
technology the encrypted output.
These hashes are dependent not only on the
I. INTRODUCTION transaction but also on previous transaction hashes, so
Blockchain Technology is a real-time ledger for if we try to change a little bit in any of the transactions,
recording financial transactions including but not a new hash will be generated. If someone tried to change
limited to physical assets, contracts, and much more. It any data in a blockchain, they would get caught quickly
is a purely decentralized system or network, meaning because of a massive change in the data. As a result, it
that there is no single person or organization in charge is regarded as a safe technology [3].
of the entire network or chain. One more important This blockchain is distributed across multiple
feature is that it is open for all, which means everyone computers, with each computer having a copy of the
within the network can see the details of the transactions blockchain. These machines are referred to as nodes.
[1]. Every single block in the network is secured using These nodes are in charge of checking the hashes to
the method of cryptography. This method involves a ensure that the transaction has not changed, and if the
transaction signature by a private key and then further majority of nodes approve the transaction, it is written
verified by a public key. If any data changes occur, the in the block.
key or that unique signature becomes invalid, resulting These nodes form the blockchain's
in that particular block's exclusion from the network or infrastructure, storing, spreading, and preserving its
chain. data. A complete node is a sort of computer equipment
Blockchain is also referred to as Distributed that copies the blockchain's transaction history. The
Ledger Technology (DLT), where the history of any most delicate part of the blockchain is that it updates
transaction is stored in the form of decentralized and itself every 10 minutes, which helps maintain its
immutable blocks [2safe]. It is a type of database where security.
the data can be recorded and distributed but not edited,
making it unalterable.
Stuart Haber and W Scott Stornetta first II. ADVANTAGES OF BLOCKCHAIN
described blockchain technology in the year 1991, but The term "blockchain" has become
its first real-world application came into existence in increasingly popular among the general public. The rise
2009 with the launch of the first cryptocurrency in bitcoin prices sparked its fame. However, according
‘Bitcoin.' to Google, it is currently leveling off. Blockchain has
Why is this technology described as “Blockchain”? become a vital aspect for various fields as it provides
A blockchain is essentially a type of chain that with:
accumulates data in the form of groups, commonly 1. Immutability:
referred to as blocks. Each block has a finite amount of The blockchain is unchangeable, allowing
storage and capacity, and due to that, when it is filled, it platforms requiring immutable features to make their
systems highly functional in a crowded market. Take, with no governing body, cryptocurrency has rapidly
for example, the supply chain. Immutability allows gained popularity. The transactions are generally
businesses to assure that the packages are not harmed in stored in a blockchain and translated by
transit. It is impossible to change the package cryptography.
information in any way without alerting the system and • NFTs
most likely rendering the data void. NFTs are Non-Fungible Tokens, i.e., they are
2. Transparency: unique and cannot be interchanged. They can be
Transparency is another critical factor that anything digital, ranging from music, art, or even
makes blockchain vital. Of the many different forms of drawings, to an AI. For example, a dollar note is
blockchain to exist, public blockchain gives more or less the same; trade one for another, and
transparency. It is pretty beneficial for a variety of one still has the same thing, both physically and
purposes in our current society, e.g., conducting monetarily. Whereas an NFT is unique, trade one
elections. Businesses can also utilize it to ensure that for another, and you get something entirely else.
end-users interact with processes in full or partial Most NFTs work on the Ethereum blockchain,
transparency. which is functional for a cryptocurrency (ETH), but
3. Efficiency: it also serves NFTs.
Increased efficiency is also one of the reasons Notably, some of the other blockchains have
for the significance of the blockchain. Society also implemented the use of NFTs. A few famous
nowadays relies more on efficiency than on cost- examples are "The Sandbox," priced at $595
million, "DigiByte," priced at $927 million, and
effectiveness, and the enhanced security, removal of
"Flow," priced at a whopping $1,212 million!
intermediaries, & better processes of blockchain make
it highly efficient. Transactions, especially • Banking and Finance
international, take seconds rather than weeks to Blockchain has the potential to revolutionize
complete. the banking and finance industries. When it comes
4. Security: to smart contracts, digital financial institutions
Blockchain adds an extra layer of protection to stand to benefit the most. Digital assets,
the data stored on the network by using cryptography, programmable money, and smart contracts provide
providing us with superior security compared to the the benefits. There are numerous applications in the
previous systems. Cryptography is a method of securing banking and financial industry, and in recent years,
data and systems on the blockchain network by trade finance blockchain has received much
employing complicated mathematical functions and interest.
formulae. • Healthcare

Furthermore, each block on the network has its Healthcare is another sector where blockchain
own hash, ensuring that no data can be falsified or will play an important role. Currently, healthcare is
altered by hostile forces or attackers. suffering from a lack of unity. Patients need to carry
Most importantly, blockchain is a decentralized their documents, and hospitals put records in
form of database, meaning that no person or separate silos, which takes time to be retrieved
organization has control over it. The ledgers are open when needed [4].
for all to view and add on to (considering the access and • COVID Vaccine model
permissions).
One in four of the COVID-19 vaccines were
initially being wasted because of poor distribution
III. APPLICATIONS AND POTENTIAL USES and proper packaging. The IBM blockchain
developed a COVID vaccine distribution model,
We should know that the blockchain has grown which would maintain and ensure a proper record
in importance in recent years, not only in the crypto of all the successful vaccinations, which helped in
market but also in various other fields like finance, proper distribution and real-time visibility &
banking & healthcare. Its most popular applications and enhanced ability to respond to problems.
potential uses are:
• Cryptocurrency IV. CRYPTOCURRENCY
Cryptocurrency, commonly abbreviated as Cryptocurrency is a virtual or digital currency.
crypto, is probably one of the most popular uses of The word “Cryptocurrency” came into existence or was
the blockchain. A decentralized form of currency invented in 2008 basically by an unknown group of
people using the pseudonym Satoshi Nakamoto.
Blockchain Technology and Cryptocurrency are VI. POPULAR CRYPTOCURRENCIES
interconnected as the method of Cryptography is used
to secure cryptocurrency, and the records of all Bitcoin
transactions are stored on blockchains. Bitcoin is a decentralized digital currency and
Cryptocurrencies work as a medium of is most known in the form of cryptocurrency. Bitcoin is
exchange wherein individual coin ownership records also the first cryptocurrency invented in 2009 by a
are stored in a ledger in the form of a database. By group of unknown people. It is a network that runs using
distributing its functions across a network, blockchain blockchain technology. Bitcoins are created as a reward
technology enables cryptocurrency to work without a for a process known as mining. Bitcoin Miners run or
central host or power. One crucial thing in solve complex puzzles to secure a group of transactions,
cryptocurrency that happens with the help of blockchain also known as blocks. On getting successful, these
is that the currency is decentralized, and it also gives secured blocks are added to the blockchain, and the
real-time access to people, which makes it more reliable miners are rewarded with a small number of bitcoins.
to the younger generations. Miners have become more advanced and sophisticated,
Cryptocurrency and blockchain technology using advanced machinery to increase the speed of
together form an innovative and promising technology mining. Cryptocurrencies, including Bitcoin, have a
as it reduces risk, eliminates financial fraud, thereby negative impact on the environment. More and more
increasing the transparency of a system as a whole. mining activities lead to additional energy consumed by
Bitcoin, Ethereum, Dogecoin, etc., are famous computers as they produce heat and need to be kept
examples from over 5000 different cryptocurrencies. cool.
Currently, China holds a monopoly over cryptocurrency Bitcoin has the highest market share among all
mining. the cryptocurrencies, to be precise, 44%. It is also first
based on market cap among all the cryptocurrencies.
1 BTC = 40,46,407.74 INR
V. POPULARITY GAIN Total units of BTC = 21 billion
Current market capitalization = $632.7 billion
Cryptocurrency has always been very volatile Dogecoin
in terms of money. The total cryptocurrency market Dogecoin is a cryptocurrency invented or
capitalization peaked in 2021 at about $2.4 trillion, up created by engineers Billy Markus and Jackson Palmer
from around $200 billion in previous years. Due to initially created as a payment system, now a legitimate
cryptocurrency being backed by many influential investment prospect. Dogecoin works on the principle
people like Elon Musk, Snoop Dogg, Bill Gates, and of blockchain technology similarly to bitcoin and
Indian rapper, Raftaar. Ethereum. Dogecoin's blockchain network uses
Cryptocurrency is becoming a much more cryptography to keep transactions safe and secure.
reliable option as compared to centralized currencies in Dogecoin, when compared to bitcoin, is easier to get for
the long run. To understand this, we need to study the miners. Currently, the market capitalization of
history of money. Dogecoin represents about 1.4% of total crypto market
Before rupees and dollars, gold used to be the capitalization.
currency. Since it was heavy to carry around, and a huge 1 DOGE = 16.87 INR
safety risk, one man started a safe depositing place for Total units of DOGE = 131.4 billion
the gold and gave out receipts. Now, instead of going to Current market capitalization = $30.58 billion
the safe place before any transaction, the people Ethereum
realized it was easier to trade the receipts, and that is Ethereum is a decentralized, open-source
how the currencies were born. These safe places (banks) blockchain with smart functionality [5]. It comes
now started lending the receipts and soon lent second to bitcoin in terms of market capitalization.
substantially more than the gold they actually had with Ethereum has its own associated cryptocurrency, also
them. Once the population caught on, the banks ran known as ETH. The users of this network can create,
away and were then bailed out by the government. Since publish, and monetize the use of applications. Ethereum
then, this has been the simulation; every time the bank has established itself as a programmable blockchain
is in trouble, the government (central controller of the wherein people can go through financial services, play
currency) comes to its rescue. games, and use paid apps using Ethereum
Cryptocurrencies do not have such cryptocurrency. This is also beneficial as it prevents
shortcomings, as they are decentralized, and no one financial fraud and thefts. Ethereum has the second-
person has control over it. highest market share of 14% after bitcoin.
1 ETH = 2,69,891.99 INR
Total units of ETH = 96 million
Current market capitalization = $500 billion
Litecoin globally. While blockchain cannot connect to external
Litecoin is an open-source, peer-to-peer applications, chainlink's decentralized Oracle can.
cryptocurrency invented in 2011 by Litecoin Core 1 LINK = 2,265.21 INR
Development Team. Litecoin is very similar to bitcoin Total units of LINK = 1 billion
when it comes to the technical part of the network. Current market capitalization = $13.5 billion
Charlie Lee, the core member of the development team, TETHER (USDT)
also stated that Litecoin is the "lite version of bitcoin." Tether was the first cryptocurrency to create a
Unlike other cryptocurrencies, the total supply of stable coin group. Coins were created with the goal of
Litecoin is definite. There will never be more than 84 reducing market volatility, and we all know how
million Litecoin in circulation [6]. There are rewards for volatile the cryptocurrency market is; even the major
mining Litecoin. Each time a miner successfully gets a players like bitcoin have an extremely volatile and
block or verifies it, they are rewarded with 12.5 unpredictable market. Tether and other stable
Litecoin, and the Litecoin awarded for this task will currencies were created to help level out the market's
reduce with time. Litecoin stands at 15th rank based on excessive price volatility.
market cap John Betts was the creator of this
1 LTC = 13,442.00 INR cryptocurrency, which was introduced in 2014. Tether
Total units of LTC = 2.3 million is now the 5th biggest cryptocurrency by market
Current market capitalization = $8.77 billion capitalization as of September 2021. The Tether is
Binance directly tied with the US dollar
Binance is the largest cryptocurrency exchange 1 USDT = 75.15 INR
in terms of the daily trading volume of cryptos [7]. It Total units of USDT = 69.3 billion
was founded in 2017 in Hong Kong. The name Binance Current market capitalization = $68.3 billion
is basically a combination of "Bitcoin" and "finance," Cardona (ADA)
which assures the exchange of cryptocurrencies Cardona is another decentralized
providing a safe and secure platform. Binance provides cryptocurrency that allows for peer-to-peer
a platform for users to store their electronic funds. transactions. Cardona was established in 2015 by
Binance has its own blockchain-based coin, also called Charles Hoskinson, who was also a founding member
a Binance coin. of the Ethereum project. However, he quit that team
Binance also offers many other services like owing to a disagreement on Ethereum’s orientation and
Binance LaunchPad, Binance smart pool, Binance Visa eventually formed the Cardona.
Card, etc. After researching and testing with numerous
1 BNB = 32,075.86 Indian Rupees research papers, the Cardona team was able to build the
Total units of BNB = 200 million blockchain. Cardona was made feasible by a team of
Current market capitalization = $72.2 billion scholars that combed through more than 90 publications
Ripple (XRP) on the blockchain issue and its various subtopics.
Ripple is a cryptocurrency and also a digital 1 ADA = Rs 187.83
payment system for financial transactions, released in Total units of ADA = 45 billion
2012. Ripple is the name of the blockchain network and Current market capitalization = $71 billion
company, whereas XRP is a cryptocurrency token [8]. Monero (XMR)
Ripple uses less energy compared to bitcoin, and the Monero is an open-source cryptocurrency
transactions are also less compared to bitcoin. Ripple founded back in April 2014, and the person who
(XRP) ranks sixth based on market capitalization. It is founded this currency was Nicolas van Saberhagen.
open-source software and allows easy transfer and After the launch of the currency, it soon became popular
exchange of currencies, including Euros, Dollars, Yen, among crypto aficionados and its community member.
and cryptocurrencies like bitcoin. The current market The main reason for its popularity was its anonymity as
share of ripple is at 2.1%. it provides complete privacy, which makes it
1 XRP = 40,46,407.74 INR untraceable, which means a transaction cannot be traced
Total units of XRP = 45,404 billion because of its exceptional security mechanisms [9].
Current market capitalization = $10 billion As a result, it has a negative image since it has
Chainlink (LINK) been tied to various illegal acts worldwide. The
It is a decentralized Oracle network, first technique used to provide privacy to the coin is " Ring
announced in 2017 and implemented on the Ethereum signatures."
blockchain in 2019. Sergey Nazarov and Steve Ellis 1 XMR = 21,134.27 INR
were the first to create or invent it. Total units of XMR = 18.4 million
Chainlink is a blockchain abstraction that Current market capitalization = $245 million
allows connected smart contracts to be operated
 include ownership of the vehicles, their sale, and also
its accident history. This provides a good ownership
experience which leads to customer satisfaction.

VIII. CONCLUSION
Blockchain is a relatively new and growing
technology, with many possible applications, ranging
from cybersecurity & banking, to medical tracking. The
most popular application, cryptocurrency, the
decentralized money is the path to our future, if utilized
properly.
*The prices of BTC and ETH have been purposefully
omitted so as not to deviate the graph drastically. IX. REFERENCES
VII. CASE STUDY – BLOCKCHAIN DUBAI 1. [Link]
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tutorial/why-is-blockchain-important
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