Cryptocurrency Valuation

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CRYPTOCURRENCY VALUATION
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Executive summary
This research-based study on Cryptocurrencies. The aim of the study is to find out what
cryptocurrencies are, and what they entail. It touches on the history of the formation of such
cryptocurrencies and the important landmarks that have made them evolve to where they are
now. The study focuses majorly on Bitcoin and other cryptocurrencies. It also explains the
working behind the blockchain and the lightning network. This research study employed
different methodologies of obtaining data, involving both qualitative and quantitative
methods. This was done in order to emphasize data collection exercise. The findings of this
paper were well recorded in subsections, for instance, the bitcoin and other cryptocurrencies,

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the white paper, and the blockchain the lightning network. These subheadings further explain
what happens in the upcoming sections as well.
Contents
Executive summary....................................................................................................................2
Introduction................................................................................................................................3
Methodology..............................................................................................................................4
Findings......................................................................................................................................4
The Bitcoin and Ethereum.....................................................................................................6
The white paper Concept.......................................................................................................7
The Blockchain concept.........................................................................................................7
The bitcoin and Ethereum lightning Network........................................................................9
How to use the lightning network?......................................................................................10
Conclusion................................................................................................................................10
Reference..................................................................................................................................12

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Introduction
The notion of digital money has been there since the establishment of global financial
systems. Moreover, they are currently considered to be novel features in the present
economy. There is a considerable group of cryptocurrencies in the world. All these
collections are all considered to be an improved channel of exchange, as they have become
successful in drawing much people's attention and mind. Cryptocurrencies are a
computerized form of currency that makes use of cryptography, which is a process of
converting standard and plain text into incomprehensible texts and vice versa for security.
Due to this reason, chances of forging cryptocurrencies are reduced to almost nil. One
distinguishing characteristic of cryptocurrencies, which is noticeably the most fascinating, is
its insusceptibility to government obtrusion. This study aims to focus on such
cryptocurrencies, knowing why they are significant, trends, what their relation to Blockchain
technology is and what is the lighting network with a particular interest in the Bitcoin and
other cryptocurrencies. Cryptocurrencies are schemes which enhance safe disbursements as
well as transactions online. The term ‘crypto' implies the uses of complex algorithms are
involved. Cryptocurrencies date way back in the 1980s when David Chaum perceived the
first cryptocurrencies, the e-cash. The developments then enrooted all the way to 2009, when
the bitcoin and other cryptocurrencies was developed.
Methodology
Problem statement: The main focus of this paper is to provide a study on cryptocurrencies,
their significance, trends, relationship with blockchain technology, the lighting network, and
The Bitcoin and other crypto coins.
Approach: In the study, both qualitative and quantitative methods of data collection were
employed for overall effectiveness. The primary focus was mainly on the quantitative
approach.