Analysis of Blockchain Projects in Crypto Finance and Cryptocurrency

This report provides a comprehensive analysis of blockchain projects within the realm of crypto finance and cryptocurrencies. It begins with an introduction outlining the scope, which includes assessing the value brought by blockchain projects and evaluating the quality of information presented in white papers. The report then delves into the Polkadot blockchain project, evaluating its scalability and decentralization. The main body discusses the operational aspects of Polkadot, its function as a distributed database, and its role in connecting various blockchains. It explores how blockchain technology supports projects by enabling secure transactions, value exchange, and digital asset management. The report also examines the significance of white papers in providing project details and information to stakeholders. Furthermore, the report evaluates blockchain projects based on their scalability, decentralization, and security. The report then highlights the opportunities presented by blockchain technology, such as the increasing adoption of online transactions, as well as the risks, including the rapid pace of technological advancements and security threats. The conclusion summarizes the key findings, including the analysis of blockchain projects, the evaluation of Polkadot's scalability and decentralization, and the discussion of challenges and opportunities. The report references several books and journals to support its analysis.

CRYPTO FINANCE AND
CRYPTOCURRENCY

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................1

INTRODUCTION
The report will comprehensively analyse the blockchain projects and how they work by
bringing the value in projects. Also, the quality of information in white paper will be assessed.
Further, “Polkadot” block chain project will be taken and it's scalability and decentralization will
be evaluated. At last various opportunities, risks and challenges of blockchain project will be
illustrated.
MAIN BODY
A polka dot block chain project works by a distributed database which maintains
constantly growing list of ordered records which is called blocks. It is a next generation protocol
of block chain which unites an entire network of purpose built block chain it allows these to
operate seamlessly. These blocks are with other blocks using cryptography. Each of these block
contain the cryptographic hash which belongs to the previous block, transaction data and a time
stamp (Valdeolmillos and et.al., 2019). It is basically a distributed, decentralized and public
ledgers which is used to maintain the records across the computers and systems so that the record
can not be manipulated with the consensus of the network and alteration of the blocks which are
subsequent. Polka dot allows sharing of any type of data to between any type of block chain. It
has the current market cap of 7.29 billion USD, with the high volume of trading per second.
SORA network is an ecosystem helping the polka dot project to connect to other block chain like
Binance and Ethereum by building token bridges across the ecosystem (Scott, de Castro Neto
and Pinheiro, 2021).
A block chain technology supports the projects by enabling a network that verifies each
transaction which becomes a new block of data. And this data is added to the block chain which
is become available to all the users of the network. It is the infrastructure of the digital currency
and the process is known as cryptography that creates digital currency. It brings the value in a
project by enabling global per network, value exchange network, authentic online documents,
digital assets and contracts, parties stay anonymous (Joo, Nishikawa and Dandapani, 2019).
Also, it provides spreadsheet which can record transaction that are verified efficiently and
permanently. It creates value addition in terms of keeping the data in the safest formats where
alternation is not possible without dual or multiple authentication. It has generated the values by
keeping the digital assets which remains unhurt and name of the people remains undisclosed
which brings privacy in the highest form.

A white paper is basically a document which provides executive summary, introduction
and rest of the pages describe the problem, outlines the solution, put forward the result of
implementing the solution and at last a conclusion and benefits derived form the whole solution.
A white paper is supposed to ensure that the message is very precise and clear. As the
stakeholders of the project needs the crux of the solution and problem which is going to address
by the blockchain technology. White paper brings a representation of the various aspect of the
project which ultimately makes project understood to the intended audience. Everyone may not
have the understanding of the technology, yet they must know the problem which is addressed by
the project. The polka dot project has been evolved in a very structured manner ever since the
white paper has been published and is serving to solve many economic problems of
centralization and privacy breach. A white paper is different from IPO prospectus in the context
of sales. IPO prospectus are drafted from a sales perspective and tends to push the readers
towards sales and white paper is a detailed problem solving informational map of the project
which gives an insight of the to the readers. For making an information decision white paper is
helpful due to the sufficient information in it.
A block chain project needs to be evaluated on the basis of its scalability, decentralization
and security. As these makes the vital pillars of the block chain project. Decentralization checks
that the block chain system should not rely completely on the centre point of control (Gurtu and
Johny, 2019). Scalability checks systems capability to handle large amount of transaction
simultaneously so that the system does not crash. And security ensures that the blockchain
system operates optimum and it is able to defend itself from the various attacks, viruses and
bugs. These are basically using the cryptography and offering services to B2B and B2C clients.
It measures its scalability, security and decentralization to ensure the smooth operations.
Decentralization is the core element of the project evaluation in block chain as the clients offer
full control of their asset (Dutta and et.al., 2020). As ensures that the system is not gather around
one single point of control, in the worst case scenarios of a point breakdown there must not be
failure in the entire system. Hence, it states that dependency must not be entirely on the one
point. The full stake developers ensures the decentralization of the system. Next is scalability
which is very important as this project has millions of client who incurs multiple transaction on a
daily basis and platform may face heavy traffic of transaction which must be dealt in a smooth

flow. Various blocks are subsequently designed in such a way that point of control is different
and it is easy to hold in to the traffic for the transactions.
Block chain projects are getting high demands as people shifting towards online mode for
the savings, trading, real estate and asset maintenance. Which makes for an opportunity for the
blockchain technology to sooner needing the integration of block chain technology in various
sectors of the economy. Australian government as recently recognized the legitimacy of the
crypto currency which has gained further opportunity for the technology. Yet there are various
risks which are associated with the technology such as the fast growing IT sector which
generates technological advancement now and then. There is threat of new technologies which
can perform much better. Another such risk is the lack of evidential support from the government
as the name of the parties remain anonymous which makes even government deprived of the
ones information hence there is a risk (Albayati, Kim and Rho, 2020). Further challenges are
regarding the various security threats of cyber attacks, viruses, malware etc. which can breach
the privacy of the clients. Project teams and developers has to keep themselves updated with the
new technology and updates which can further make the blockchain technology more efficient
and advanced. Blockchain projects are sensitive to the instant traceability which makes the
project really efficient and hence the threat is to identify the constant bugs in the system which
can bring the block chain very useful aspects.
CONCLUSION
The above report has analysed the block chain projects and their practical working aspect
along with the white paper information. A project has been selected and its scalability and
decentralization has been evaluated. At last various challenges and opportunities of the
blockchain projects has been mentioned.

REFERENCES
Books and journals
Albayati, H., Kim, S. K. and Rho, J. J., 2020. Accepting financial transactions using blockchain
technology and cryptocurrency: A customer perspective approach. Technology in
Society. 62. p.101320.
Dutta, P. and et.al., 2020. Blockchain technology in supply chain operations: Applications,
challenges and research opportunities. Transportation research part e: Logistics and
transportation review. 142, p.102067.
Gurtu, A. and Johny, J., 2019. Potential of blockchain technology in supply chain management:
a literature review. International Journal of Physical Distribution & Logistics
Management.
Joo, M. H., Nishikawa, Y. and Dandapani, K., 2019. Cryptocurrency, a successful application of
blockchain technology. Managerial Finance.
Valdeolmillos, D. and et.al., 2019, June. Blockchain technology: a review of the current
challenges of cryptocurrency. In International Congress on Blockchain and Applications
(pp. 153-160). Springer, Cham.
Scott, I., de Castro Neto, M. and Pinheiro, F. L., 2021. Bringing trust and transparency to the
opaque world of waste management with blockchain: a Polkadot parathread application.
Available at SSRN 3825072.
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