Communicating with It Report 2022

Running Head: IT Write Up
0
Communicating with
IT
Crypto currencies as a method for
payment
(Student Details: )
9/28/2019

IT Write Up
1
Contents
ISY10212 Contemporary Issues in IT........................................................................................2
Introduction................................................................................................................................2
Crypto currencies as a method for payment...............................................................................2
Crypto-currency and technology associated with it...............................................................2
Crypto-currencies...................................................................................................................3
Crypto currencies as a method for payment: Evolution of payment technology...................3
Key features of CC like Bitcoin.............................................................................................4
Production mechanism.......................................................................................................4
Maximum Supply...............................................................................................................4
Concentration of resource..................................................................................................5
Storage................................................................................................................................5
Trade Unit..........................................................................................................................5
Price volatility....................................................................................................................5
Licensing needs for production..........................................................................................5
Environmental impact of the production procedure...........................................................5
Decentralization.....................................................................................................................5
Disruption of Traditional Payments Systems by CC.............................................................5
Key issues of crypto-currency....................................................................................................6
Lack of price uniformity........................................................................................................6
Credibility..............................................................................................................................6
Transparency..........................................................................................................................6
Security..................................................................................................................................6
Transaction delays..................................................................................................................7
Cybercriminals activities........................................................................................................7
Dump and Pump ICO Schemes..............................................................................................7
Price Manipulation.................................................................................................................7
Trading fees............................................................................................................................7
Public Policy Implications of Crypto-currencies...................................................................8
The Future of Crypto-currency..................................................................................................8
Conclusion..................................................................................................................................9
References................................................................................................................................10

IT Write Up
2
ISY10212 Contemporary Issues in IT
Introduction
This report is based on highlighting contemporary issues in modern information technology
(IT). To do so, a specific domain of IT has been chosen as crypto-currency (CC). In this
context, by identifying, researching and exploring contemporary issues in IT, the world can
sustain into this competitive edge. In general, crypto-currencies (CCs) are modern era’s
digital tokens (Martin, 2018). In other words, CCs can also be seen as a type of digital
currency which allows world to make payments directly to each other with the help of an
online system. It has been researched that CCs are having no intrinsic or legislated value, but
they simply worth what public is willing to pay in the market. Besides, so many types of
crypto-currencies exist in this world, out of which the most well-known is Bitcoin (Infosec,
2012). In this report, the concept of CC will be explained while including how they work, and
what is the utilisation. Most importantly, the major issues related to CCs will be highlighted,
recognized, explained, and explored. In this way, CC as a payment method will be the main
area of research for this research report. While discussing the evolution of payment
technology for identifying the issues which can be raised, different technological innovations
in the context of digital currencies will be discussed. In this way, all contemporary issues in
CC while considering it as a major payment method will be summarized in the later section
of this report.
Crypto currencies as a method for payment
Crypto-currency and technology associated with it
It is well-aware that block-chain is the technology behind the CC. In this context, blockchain
is a specific kind or subset of distributed ledger technology (DLT) (Yao, 2018). It has been
found that DLT can be used to record as well as share data all across the data stores or
ledgers. Thus, block-chain can be referred as a mechanism that uses an encryption
methodology which is often known as cryptography. This method uses a specific set of
mathematical algorithms for creating and verifying a constantly growing data structure (Pay,
2018).

IT Write Up
3
Crypto-currencies
Being a part of block-chain, CCs refers to a broad array of technological developments which
actually use a cryptography technique. In other words, cryptography as that technique that
protects info while transmitting or encrypting it (Infosec, 2012). This is usually done by
converting it into an unreadable format that can only be decrypted or deciphered by an
individual who is carrying a secret key. In this way, CCs like Bitcoin, are highly secure
through the cryptography technique while utilising an ingenious system containing private as
well as public digital keys.
Crypto currencies as a method for payment: Evolution of
payment technology
In this context, CCs can be used as a method for payment in this modern era with the help of
inventive payments systems like Skrill Quick as well as the Coinbase Debit Card. In addition
to that, some payments service providers who are currently leading the whole industry are
evolving CCs from being a trading commodity into the real world (Tiago & Verissimo,
2014). For example, Paysafe is providing such facilities to this world. It has been found that
CCs can be accepted online or in-store presently. In this context, being a payment innovation,
CCs are being driven by business and customers’ increasing appetite for transacting while
using CCs. Moreover, these CCs will continue to gain as well as evolve popularity in this IT-
enabled world (Wang et al., 2017).