Cryptocurrency and Blockchain Technology
Prof. Dr. Ali Makki Sagheer
Dean of Al-Qalam University College
The Concept of the Presentation
-
Digital Currency
-
Cryptocurrency
-
Blockchain Technology
-
The Properties of Blockchain
-
Blockchain Applications
-
The Benefit of Blockchain
Digital Currency
Digital currency (digital money, electronic money, or electronic currency) is a type of currency available in digital form (in contrast to physicals, such as banknotes and coins).
It exhibits properties similar to physical currencies but can allow for instantaneous transactions and borderless transfer of ownership.
Classification:
-
Centralized: MasterCard, Keycard, Visa Card, PayPal
-
Decentralized: Cryptocurrency
Its purest form is a peer-to-peer version of electronic cash.
It allows online payments to be sent directly from one party to another without going through a financial institution.
Cryptocurrency
Cryptocurrency is based heavily on Blockchain Technology.
The Blockchain (1991)
Technically, Blockchain is a brilliant amalgamation of concepts from:
-
Cryptography
-
Game Theory
-
Computer Science Engineering
The Blockchain Development
It is a massively replicated database of all transactions in the Bitcoin network.
It uses a consensus mechanism called Proof-of-Work (PoW), which prevents double-spending in the network.
It works on a peer-to-peer (P2P) network based on consensus protocol.
Simple Data Structure of Blockchain
-
How to Add a Block to the Blockchain
-
Mining Operation
Types of Blockchain
-
Private: Closed to a selected group of authorized users (e.g., group of banks)
-
Public: Open to everyone to view or access
-
Hybrid: The private access can see all data, while the public can see only selected information
The Benefits of Blockchain
-
Borderless participation
-
Lower cost
-
Saves time
-
No tampering
-
Fraud protection
-
Cybercrime resistance
Blockchain and Trust
-
Trust in Central Authority ↔ Trust in Computational Work
-
Main Ideas:
-
Digital Signature
-
The Ledger is the Currency
-
Decentralization
-
Proof of Work
-
Policy Questions in Blockchain
-
Governance
-
International Laws
-
Security
-
Economics