Crypto currency and Block chain According to Scott

Running Head: CRYPTOCURRENCY & BLOCKCHAIN
Cryptocurrency and Blockchain
Name of the Student
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Author Note

CRYPTOCURRENCY & BLOCKCHAIN
1
Cryptocurrency and blockchain
According to Scott, 2016, the
international platform has acknowledged the rise
of Bitcoin ambivalently. Crypto-currency has
been an open-source to be connected in a single
network. This technology has brought
speculation in the market, it has been a
fundamental usage by the professionals in
today’s market. This is expected to drive a huge
amount of profit for the entrepreneurs. The
community that deals with the exchange of
bitcoin are preferably from developed countries.
The bitcoin is the electronic form of normal
money. The risks that the authors have discussed
is of safety and volatility. At the beginning of
the emergence of Bitcoin, it was subversive,
mysterious, mischievous and not directly a
system for commercial use in the normal market.
It has a locked-in currency and it fluctuates
greatly (Scott 2016). The volatility of the bitcoin
is risky because if a large audience gets engaged
then the prices get decreased. The possibility of
risks that prevails with the use of bitcoin is the
data breaches, the involvement of third-party,
chances of hacks in the computers, etc. Another
aspect of the crypto-currency is that the code for
creating the currency can be cloned to make
other currency of similar type but with different
characteristics.
The emergent technology like block-
chain has been flourishing in the field of
Information of technology for providing security
and privacy to several devices and applications.
The technology is secured with an extra layer by
changing its Public Key; this characteristic helps
in several applications to include this
technology. The two types of blockchain that the
author has discussed are the public and the
private. In private blockchain, it allows access to
the authorized parties only and keeps the
identification of user privacy. Whereas, the
public block-chain enables permission to the
users to write and read like in Bitcoin (Miraz
and Ali 2018). The technology of Block-chain
allows interacting peer- to- peer. One effective
feature of this technology is to provide a secure
transaction and keeps all the records intact. In
the environment of the Internet of Things, the
block-chain connects all the devices together to
track the operation throughout. The properties
that the block-chain is observed beyond the
facilities that Bitcoin receives by the virtue of
traceability, security, provenance, privacy, etc. It
also ensures the data to be redundant and survive
all the adverse conditions. An aspect of the
Internet of things the main catalyst to increase
the functionality of the devices in the
environment are through blockchain and its
properties of reliability, scalability, privacy and
security.
The author has defines the blockchain as
the management of data and transactions for
taking the technology ahead of cryptocurrency
and bitcoin’s success. The single block of a
blockchain consists of a binary hash tree, and it
is designed as the linked list such that the
address of the previous block is present in the
next block. All the block are connected in the
same manner (Tasatanattakool and
Techapanupreeda 2018). It is observed from the
paper that cryptocurrency is the first-ever
application that has the basis of blockchain,
followed by peer- to- peer network and
techniques of cryptography. The transaction in
the blockchain technology is about the
information stored in each block. Bitcoin is the
first-ever application of blockchain and the
second one is the ethereum. The second one
aims to have programs that does the smart
contracts on the online platform similar to the
paper contract (Garriga, Arias and De Renzis
2018). The various purposes of the blockchain
that have been discussed in this paper are service
of cloud for managing the services on the
platform, for privacy as it has the feature of
representing itself anonymously, help the e-
commerce with transparency, efficiency and
security, it enables the effective communication
and interaction between the other available
blockchains around it.
According to Vujičić, Jagodić and
Ranđić 2018, the field of information
technology is shaped by the introduction of
blockchain and bitcoin. The decentralization of
the currency is beneficial for several factors in
this emerging technological world. The