Exploring Cryptography: Business Use, Advantages and Disadvantages

This essay explores the concept of cryptocurrency as a digital asset designed for use as a medium of exchange, employing cryptography for encryption and transaction security. It delves into the decentralized control system of cryptocurrencies, contrasting it with centralized electronic finance and banking systems, and highlights the role of blockchain technology as a public distributed ledger. The essay discusses the advantages of cryptocurrency, such as instant payments and the elimination of intermediaries, alongside its disadvantages, including security concerns and high energy consumption for mining. It also addresses the varying legal status of cryptocurrencies across different countries and their potential impact on future business markets, focusing on transaction fees and the use of timestamping structures. This document is available on Desklib, where students can find a wealth of academic resources, including past papers and solved assignments.

Running head:CRYPTOGRAPHY
Cryptography
Name of the Student
Name of the University
Author note

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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.

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Answer 3:
As of the regulation of the technology the legality of the technology still depends and
varies from country to country. Many of the currencies have declared the concept of the
cryptocurrency illegal because of the fact that the law and regulation department cannot properly
hold of it. In some of the country’s like the Russia, although it is legal to own the technology but
is illegal to exchange the money with other or buy something in exchange of it. IT may be said
that in the recent future maximum number of the countries will be legalizing the concept of the
technology.Cryptocurrencies are primarily used separate ofpresent banking and
legislativeorganizations and are deputize for over the Internet. Although these substitutes,
distributedmethods of exchange are in the early phases of growth, the technology have the
exceptionalimpending to challenge present systems of legal tender and payments. As of
April 2018 total market capitalization of cryptocurrencies were bigger than 278 billion USD and
record high daily volume is larger than 500 billion USD.
There have a numerous cases where the technology have been stolen. Also there are
various cases of the autonomous bots mining the cryptocurrencies illegally. The technology has
also been used by hackers of the wannacry malware that have hit the world in the 2017. The
hacker demanded ransom in the form of the bit coin, because of the factor that the police and the
crime agencies would not locate it in less time and accurately.
Answer 4:
The concept of the cryptocurrencies can help the future business market a lot. IN the
recent times it is seen that many of the agencies buys and sells products in exchanges of the
cryptocurrencies as it is lot easier and the use of the cash is totally avoided. Also the banks are
not needed for making huge amount of the transactions, all the user requires are the wallets of the

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supported platforms (Kim, 2016).Cryptocurrencies also uses various timestamping structures to
circumvent the requirement for a reliable third party to timestamp businesses added to the block
chain ledger. The transaction fees of the technology depends on the supply of the amount of the
coins or the currency and are very small as compared to the traditional transaction fee, making it
ideal for the business purpose.
Conclusion
The technology of the cryptocurrency is one of the most interesting thing coming up in
the recent future. The use of this is very much a question of use, that is who uses it and why.
Although it has been taking the market in the recent years, it cannot be said that it will remain the
same or the use will be gradually decreased.

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References
Buchmann, J. (2013). Introduction to cryptography. Springer Science & Business Media.
Kahate, A. (2013). Cryptography and network security. Tata McGraw-Hill Education.
Katz, J., & Lindell, Y. (2014). Introduction to modern cryptography. CRC press
Kim, T. H. (2016). A study of digital currency cryptography for business marketing and finance
security. Asia-pacific Journal of Multimedia Services Convergent with Art, Humanities,
and Sociology, 6(1), 365-376.
Kumar, S. N. (2015). Review on Network Security and Cryptography. International Transaction
of Electrical and Computer Engineers System, 3(1), 1-11
Van Tilborg, H. C., &Jajodia, S. (Eds.). (2014). Encyclopedia of cryptography and security.
Springer Science & Business Media.