Cryptography: Pros, Cons, and Business Use of Cryptocurrency

Running head:CRYPTOGRAPHY
Cryptography
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Name of the University
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Introduction:
This paper is about one of the most interesting and developing concept of technology, the
Cryptocurrency’s. The cryptocurrencies are the digital assets that are designed to work as a
medium of exchange, it uses the concept of the cryptography to for encryption purpose while the
securing the transaction. This paper brings out the concept of the cryptocurrency, the business
use of the technology. The paper also introduces the various pros and cons that are involved with
crypto currency.
Answer 1:
The cryptocurrencies are the digital assets that are designed to work as a medium of
exchange, it uses the concept of the cryptography to for encryption purpose while the securing
the transaction. Cryptocurrencies are also known as the digital currencies or digital currencies.
Cryptocurrencies uses the concept of the decentralized control in oppose of the centralized
electronic finance control system and the central banking systems (Katz & Lindell, 2014). The
decentralized control system of cryptocurrency helps in the working process of the block chain
technology, which is a public distributed ledger. The first exchanges of the cryptocurrency was
first introduced in the year of the 2009 by the use of the bit coin, since then the technology have
significantly developed. There are developed numerous number of the alt coins.
The system does helps in the managing of ownership of the cyptociureencyes. The owner
ship of the cryptocurrencies can proved by using the block chain concept (Kahate, 2013). The
system also allows the transaction in which the ownership of the cryptocurrency. In case of the
maximum cryptocurrency’s are designed in such a way that it graduallydecreases the production
of the digital currencies placing a cap on the total amount of the currency that can be ever

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circulated in the market. As there is no solid form of this technology, tit becomes difficult for the
law agencies to seize the amount of the money. The cost of the technology is getting higher and
higher with the passing time. When the bitcoin was 1st introduced to the market the price were
just as low as 100$ but the current price of the coins are in millions.
Answer 2:
Pros:
The use of the crypto currency can be made for the making of the instant payment. With the use
of crypto currency, the payment can be made from any place and in any condition. The use of
crypto currency is made in order to make the payment instantly (Buchmann, 2013). Thus, this
helps in the avoiding of the use of the various resources or the use of the debit or the credit cards
for the making of the payment.
The other good side of the usage of the crypto currency is that the use of the crypto currency
concept will not involve the inclusion of any form of middle man for the carrying out the
transactions. Thus, the extra charges that are required to be provided to the middle man can be
avoided.
Cons
The issue with the crypto currency is with the security of the usage of the crypto currency
(Kumar, 2015). The use of the crypto currency may pose threat to the various forms of online
attack such as data theft or information stealing.
The power that is used in order to mine the crypto currency is high. The use of the high amount
of power is a disadvantage.