CRYPTO CURRENCIES AND

THEIR IMPACT ON ECONOMY

AND BANKING SYSTEMS

[COMPANY NAME]  [Company address]

WP1: Project Proposal and impact statement
1. Research Analysis
During a last couple of years, Crypto currencies and now making trend in this
busy world. One of the famous crypto currencies is Bitcoin. However many of
these crypto currencies have only decentralized payment method. The purpose
of this work is do a research crypto currency having fast and severe effects on
global economy. Specifically Bitcoin has been a subject of many analytical study
in terms of economic properties. The purpose of my research is to highlight on
the view point of crypto currency utilization in today’s economy. I also have
hypothesis that it provides a unique advantage and benefits ti people that are
living in under developed countries mainly in south Asia. The decentralized
payment system carves a path for easy and secure transaction in the world. So it
is dire need of today’s era to consider economy effects of crypto currency. Many
of famous companies already owned crypto currencies like Microsoft, Tesla and
Amazon etc. Digital currency is fast and no permission is required to use it from
any bank. During a past when there is need of supply of money, the governments
usually print it and subject it to economy with various ways like bonds or
spending directly through various government programs. The American dollar
has vast effect on whole world economy and that is the reason that United State
has dominancy in World Bank having a high status of dollar. Therefore crypto
currency exchange rates has severe effects on American dollar and that has
directly effect on world economy. This result in creation of change in international
trade, international relations and diplomacy. During a present era of crypto
currency implementation there are highly chances that finance sector and other
service provide sectors can lose their jobs. There will be no need of professions
like bank, lawyers, and suppliers. The block chain now a days is creating new
jobs opportunities and every person can grab it. Later will discuss crypto
currency effects on economy with chats, data visualization and GANTT
diagrams.

2. Aims and Objectives

“In this project our aim is to highlight about crypto currency economic effects so
people may know that it is beneficial for using as a standard of their income
source or not. However we are also going to discuss about political issues
regarding this and its indirect effects on crypto currency mainly bitcoin. “
Crypto currency advocates claim that quality-related crypto currency can be
particularly valuable. Advantage over previous payment systems for international
transfers and payments. Sending money abroad generally involves mediation
relating to domestic transfers. In different countries, transfers between different
banks and donors generally measure needs and probably to exchange one local
currency for another. The organizers therefore say Crypto currencies can avoid
these specific costs due to crypto currency transactions on the web - which is
 already international and doesn't seem to be supported by legal government
currencies.
Media coverage of crypto currencies was widespread and many observers they
characterized crypto currencies as long-term financial and payment systems that
can replace government-backed currencies or infatuations with a very low real
value. When analyzing the general impact of crypto currencies on public order, it
is necessary to take into account what these currency area units have specifically
designed and should be: alternative electronic payment systems. However, the
purpose of this report is to evaluate and determine how crypto currencies do it
and then identify the benefits, challenges, risks and political issues that can be
achieved with crypto currencies. First, the main economic features and functions
of cash, standard systems for making money and old electronic money transfer
systems are verified

3. Impact statement
There is already a crypto currency mercantilism activity completely controlled by
institutions dedicated to the management of all digital currency exchanges all
over the world. The growth in the marketing of crypto currencies is exciting, and
this can be confirmed by the main users. The United Nations agency has had
long and localized financial growth opportunities. Bitcoin, the most notable of
these crypto currencies, has already allowed growth and prosperity for many
people and businesses, while many are satisfied with trading as a source of
money. The economy is slowly evolving to satisfy these desires and crypto
currencies have great potential to satisfy them.
Crypto currency, on the other hand, appears to contain the main section on
introducing new technologies. Motor vehicles also qualified this development.
Bitcoin has started to enter a market with separate segments that could mentally
facilitate the advancement of crypto currencies or the greatest clarification of his
failure. The square measurement of crypto currencies is still in its infancy and it is
difficult to verify whether they are able to detect a real presence of thoughts on
world markets. The Bitcoin community is committed to stimulating thought
through innovation and distinguishing problems from the past. Different types of
crypto currencies have already emerged and have gained their followers. All of
them are slightly different from Bitcoins and most likely are equally valid. Some
countries like Iceland have even started to produce their own national crypto
currencies. It is possible that a crypto currency space acts as a significant
breakdown of semi-permanent currencies and Bitcoin promotes the prosperity of
those currencies. Geo graphical and European region sq. geographically |
Region Geographic Area} explodes with Bitcoin transactions, which implies real
validity.
All the things to consider regarding the relevance of Bitcoin and crypto currency
are terribly different. Intensive studies should be conducted on the economic
effects of the effects of Bitcoin on the semi-permanent performance of the
 expected currencies. Therefore, the results should be compared with those of the
countries that measure the start of the introduction of EU-sponsored crypto
currencies. The ability of the crypto currency to carry out small transactions can
reduce the economic gap between Associates in Nursing that the old state-
sponsored currencies could not resolve. However, several market and economic
analyzes require a more thorough analysis. There has never been such a
successful time to do business as today with block chain technology and crypto
currencies that allow entrepreneurs to receive payments in additional currencies.
BitPesa is one of these companies that helps continental commercial property
owners to do business with European, Yankee and Asian companies. The goal is
to help small and medium-sized businesses around the world heal money and
release money to the rest of the world. By victimizing BitPesa and TenX's digital
notebook, entrepreneurs are measuring the ability to quickly convert alt coins into
redemption currencies that will later be used for business investments,
purchases and payments. The world is dynamic and fast dynamic. The speed
with which the square measure of usurped crypto currencies can be a clear
indicator that old financial institutions will not be able to bear the strength that the
different money people want for the square measure and that we want to face.
Likewise, the world faces a growing need to be forced to destroy borders in
search of full social and monetary inclusion: this block chain technology has
everything to solve these problems. It will only be a matter of time before these
crypto currencies come into play in our lives and model them taking into account
an economic process and inclusion for the highest. Due to the wonderful
prospects offered by crypto currencies, many people may be able to take a
position right now, send money across borders, save money and start a
business.
Wp2: Financial justification and Budget
More than an amount, we have seen some of the major online retailers start making
acceptable Bitcoin payments and also the surge solid aspect of choosing reliable
payment services combined with years of revolutionary returns for Bitcoin like
Currency e-commerce. This undeniable fact shows that we tend to see huge
investments in working capital Startups connected to Bitcoin, especially the pioneers
of the network, are looking for a bright future for Bitcoin. Investors love it Brandy
Andreessen, founder of Netscape, and Thomas Reid Hoffman, founder of LinkedIn
are investing $ 315 million in Bitcoin Projects in 2014 that tripled venture capital
investments in 2013, according to the digital currency information website Coin desk.
According to Coin base, a digital box supplier, investors recently invested $ 75
million in funds including the Big Apple Exchange and the risk arm of the large
Spanish bank Banco Bilbao Vizcaya Reserves of the Argentaria. Bit pay and Bit fury
were the two largest venture capital operations in the second quarter of 2014 for $
30 Million and 20 million dollars individually. In the start-ups of Bitcoin systems, there
was a surprising growth among service providers in 2014.
  Service providers
 Bitcoin exchange
 Payment process
 Monetary services
 Mining
Universal service provider offering all of the above services. Bitcoin's value is
currently on Yahoo Finance, Google Finance and Bloomberg. The merchants were
hesitant and didn't have to be the first. Society like Virgin Airlines and Ali Baba on Ali
Express have started accepting payments with Bitcoin. However with Companies
like Microsoft and PayPal are taking the lead, virtual currency is gaining ground and
is currently terrible very clear that bitcoin remains here. For example, in September
2014, PayPal announced that it has partnered with PayPal Bitcoin Coinbase, BitPay
and GoCoin processors allow their traders to easily accept digital crypto currency
Products like online games and downloadable songs. By the end of 2014,
approximately 63,000 merchants were acceptable bitcoins, most of the online
business. These include companies like Dish Network, Expedia and newegg.com

Figure 1: Bitcoin a new global economy

 Figure 2: This show the bitcoin prices in different years and their impact on USD

Cash Flow Diagram

C a s h flo w o f b it c o in a n d wo r ld u s d im p a c t o n g lo b a l
economy
Dollar Change Percentage
9000
8000
7000 7690
6000
5000
4000
3000 3583
2000
1000
0 0 0 0 0 0 0 0 0
0 489.3
Today
0.28 15.57
Last 7 Last28.7
30 Last5.55
6 52.28
Last 1 9.65
Last 2 Last 3 Last 5 Last 7
days days months year years years years years

Figure 3: Cash flow Diagram

"Electronic currency exchange" section, the previous one is various intermediaries

are involved in electronic payment systems, for example the central government
banks and personal money institutions. To conduct transactions, they manage
facilities and maintain intense electronic networks and alternative infrastructures,
employ personnel and Time to conclude transactions. In order to meet prices and
make profits, these institutions charge various commissions Users of their systems.
Crypto currency advocates hope for a localized payment system Operating on the
Internet is cheaper than standard payment systems and systems Infrastructure. 52
Proponents of crypto currency claim that crypto currency could give employees
particularly high value Advantage over the old payment systems for international
transfers and payments. Sending cash abroad generally involves further
intermediation than domestic transfers. As a rule, transfers between banks and other
donors in different countries are required and probably to exchange one local
currency for another. The organizers say so Crypto currencies could avoid these
explicit prices due to crypto currency transactions on the Internet - which is already
global - and is not covered by the government's legal currencies. However, it is
difficult to quantify the share of the value of old payment systems and some of these
prices are passed on to customers.

Figure 4: Percentage of Total Market Capitalization

Figure 5: Comparison of Bitcoin and other currencies

Work Break down Structure
Crypto Currency and its
effect
1

Initiation Planning Execution Control Closeout

1.1 1.2 1.3 1.4 1.5

Evaluation & Create Preliminary Scope

Project Kickoff Meeting Project Management Audit Procurement
Recommendations Statement
1.3.1 1.4.1 1.5.1
1.1.1 1.2.1

Verify & Validate User Document Lessons

Develop Project Charter Determine Project Team Project Status Meetings
Requirements Learned
1.1.2 1.2.2 1.4.2
1.3.2 1.5.2

Deliverable: Submit Project Team Kickoff

Design System Risk Management Update Files/ Records
Project Charter Meeting
1.3.3 1.4.3 1.5.3
1.1.3 1.2.3

Project Sponsor Reviews Procure Update Project

Develop Project Plan Gain Formal Acceptance
Project Charter Hardware/Software Management Plan
1.2.4 1.5.4
1.1.4 1.3.4 1.4.4

Project Charter Install Development

Submit Project Plan Archive Files/ Documents
Signed/Approved System
1.2.5 1.5.5
1.1.5 1.3.5

Milestone: Project Plan

Testing Phase
Approved
1.3.6
1.2.6

Install Live System

1.3.7

User Training
1.3.8

Go Live
1.3.9
WP3: Project Planning
Detailed deliverable structure, timeline and milestone
Firstly, we should have a knowledge of structure of block chain which is one of the
famous module of crypto currency before taking over review of our project,
 Nodes and p2p network
 Characteristics of block and genesis block
 Transactions among the ledger
 Validation of works
First, let's learn what block chain technology is. Logically, a block chain can be a
block chain that contains certain data (databases), but during a safe and real
approach that is ordered over a network (peer-to-peer). In other words, the block
chain could be a combination of computers connected to each alternative and not a
central server, which means that the whole network is sub urban .To make it even
easier, the block chain design is compared with the finished Google Docs image.
You will remember the moments of excitement on the doc. Document and contact
other participants to make the necessary changes. Nowadays you can use Google
Docs to appear simultaneously on an identical document. Block chain technology
allows you to distribute digital data instead of deriving it. This large distributed book
offers transparency, trust and information security. Block chain design is used very
roughly in the currency sector. Today, however, this technology is used not only for
crypto currencies, but also for records, digital notaries and good contracts.

Figure 6: Client server vs P2P Network

The traditional conception of the planet Wide Internet uses a client-server network.
In this case, the server stores all the desired data in one place so that they can be
easily updated since the server is centralized and controlled by a variety of
privileged administrators. In the case of the distributed block chain design network,
each participant manages, approves and updates new items at intervals managed
by the network. The system is not controlled only by individuals, but at regular
intervals by
Block chain network. Each member ensures that each member registers and
processes the zone unit so that it ends with the validity and certainty of knowledge.
The parties who do not substantially trust each other are therefore willing to
conclude a standard agreement. In summary, the block chain can be a distributed
and localized registry (public or private) of various types of transactions organized in
a P2P network. This network is made up of many computers, but it is very important
that the information cannot be changed without the consent of the entire network
(each individual computer).
The structure of block chain technology is represented by an inventory of blocks with
transactions in a very specific order. These lists are often saved as a file (TXT
format) or as simple information. 2 important knowledge structures used in the block
chain include:
 Pointer: variables that contain information on the positioning of another
variable. More specifically, this is often informed of the position of another
variable.

 Linked lists: a series of blocks in which each block has specific knowledge
and is connected to the next block by a pointer.

Figure 7: Block chain Hashing

Logically, the first is | the primary block} does not contain the pointer because it is
the first in a chain. At a constant time, there is undoubtedly one last block within the
block chain information that contains a pointer with no value. Basically, the following
block chain sequence diagram could be a coherent list of records:
 Figure 8: Block chain structure

Block chain design performs the following functions for organizations and
companies:
 Cost reduction - Several funds are spent on maintaining central control
databases (e.g. banks, government institutions) to keep information on
cybercrime and various corruption intentions up to date.
 Information history: the history of each transaction can be verified at any
time by a block chain structure. This can be a constantly growing archive,
while centralized information is added to an increase in knowledge for a
specific purpose.
 Validity and data security: once entered information is difficult to create due
to the nature of the block chain. Validation of data sets takes some time
because the method takes place in all independent networks and not through
the performance of the combined process. This means that the system
sacrifices the speed of performance, but on the contrary guarantees high
security and validity of the information.

Figure 9: Nodes in public vs Private Block chain

All blockchain structures are divided into 3 categories:
Public blockchain design:
A public blockchain design implies that information and access to the system is
accessible to anyone who wants to participate (for example, the Bitcoin, Ethereum
and Lite coin block chain systems measure the public).
Private Blockchain design:
As a critical design of the public blockchain, the non-public system is controlled only
by users of a selected organization or by authorized users who have an invitation
letter to participate.
Consortium blockchain design:
This blockchain structure contains many organizations. In an excessively large
association, the quadratic measurement procedures were initiated and controlled by
the designated temporary users.
The following table provides a precise comparison between these 3 block chain
systems:

As mentioned earlier, the blockchain could be a newspaper distributed wherever all

parties have a copy of the area. However, if the type of blockchain structure and its
context support it, the system can also be centralized or localized. It only refers to
the blockchain design style and the WHO controls the ledger. A private blockchain is
also considered centrally, as it is controlled by a selected cluster with accumulated
confidentiality. On the contrary, a public blockchain is open and therefore localized.
In a public blockchain, all units in the registration area are visible to the general
public and everyone can participate in the contract method. On the other hand, this
is often cheaper because it takes a long time to accept each new record in
blockchain design. In terms of performance, the time for each group action during a
public blockchain is {shorter | it's a
Smaller amount} environmentally friendly because it requires a huge amount of
computing power compared to non-public blockchain design.
Blockchain network creation
As soon as a company or some companies plan to implement blockchain resolution,
they are already creating a network. The network can be viewed as a company with
its employees or based on the setting up of the technical infrastructure at regular
intervals of those companies.
To add more concrete, take the example of diamonds. The risks and challenges
associated with diamonds exist during part of the method, from diamond extraction
to their final industrial outcome. Shoppers should make sure they are buying real
and moral diamonds. Public institutions need to keep an eye on taxes and exports.
Blockchain design can be used to rule out these risks.
The parties involved in this network are:
 Diamond manufacturer
 Government agencies
 Bearer of diamonds
 Diamond seller
Blockchain solutions organize these parts into a peer-to-peer network, which helps
eliminate all the mentioned risks and build a clear system. Everyone would have
access to synchronized knowledge of a "common and unchangeable general ledger"
and would be willing to follow the development of the diamond from production to the
end customer. Blockchain registration would include the order of all actions that
occur, such as B. extraction, refining and distribution of diamonds.
In most cases, each organization has its own copy at regular intervals, which is
synchronized with intelligent protocols and technical levels of the blockchain network
(called peers). There is also an order service to determine that many processes are
running simultaneously. This can be shared by all parties who periodically decide on
the transactions of the blockchain structure and their order. There is only one
Membership Service Provider (MSP) for multiple users, which allows access to
certain users on the network.
In the end, all transactions in this tracking area unit were not interrupted during a
book (e.g. Knowledge of diamond photos, extraction location, color, range in series,
place where it was cut, cleaned, sold etc.). This information is complete and
authentic.
 Figure 10: Hyper ledger Composer

Skills Required:

Being a blockchain developer could be a difficult task that requires a lot of technical
skills and a chic background. In general, a solid engineering or engineering
experience is the most fascinating to appear in blockchain design. In addition, data
on agreements, knowledge structures, local registers, crypto currencies and crypto
currencies, as well as on the security of knowledge are in great demand.
Recently, the development of a blockchain has been simplified using Ethereum and
various similar blockchain codes. Ethereum is a blockchain technology supported by
an open source code platform that allows the creation and preparation of on-site
applications (DApp).
In terms of the secret writing skills required to develop blockchain resolution, you
need to be familiar with a variety of programming languages, not specifically. If the
goal is to implement a customizable blockchain system, programming languages like
C ++, Python, C, Java and Ruby will make this task easier. Additionally, network
development capabilities such as Hypertext Markup Language, CSS and Node JS
can be useful.
If the zone unit | they are fascinated by the drafting of good contracts (smart
contracts are programs stored in the blockchain system and used to mechanically
exchange coins or other funds supported by predefined conditions). Victimization
Ethereum, the artificial contract language, requires solidity.
In addition to boring programming knowledge, blockchain developers must be forced
to recognize the needs and processes of the company and at the same time have
good cooperation and negotiation skills.
Design your own Blockchain architecture
Blockchain technology can be seen as an excellent solution from a commercial,
legal and technical point of view. It can help companies manage their daily routines
more easily in a network of mutually agreed upon members. From a legal point of
view, each intermediary is excluded from the general accounting of the blockchain
and a connection is established only between the interested parties. At the same
time, it technically guarantees the control, security and confidentiality of the data in
the system.
Blockchain technology allows organizations and companies to do the following:
 Ability to act much faster and safely
Cost reduction for companies or intercompany processes by eliminating
intermediaries, inefficiencies and duplicates
 Introduction of modern digital interaction
Ability to control detailed business processes and transactions without a central
control point
 Eliminate fraud, cyber-attacks or other electronic crimes
A blockchain, with its transparent mechanisms and maximum clarity, will ultimately
revolutionize the way individuals and companies behave and face each other. Not
surprisingly, many projects already exist with blockchain architecture. For example,
TenX helps with crypto currency issuance, EOS.IO offers functions for decentralized
applications (DApps), Augur helps with predictive market analysis for future events,
etc.
The future looks promising for blockchain solutions. These are used in areas such
as crowd funding, stock trading, sharing the economy, in many areas of the
healthcare sector, etc.

WP4: Risk Assessment

1. Why risk assessments are essential
The most constant interest in risk transfer opportunities it was led by
exchanges, investors, alumni financial institutions and targeted fin tech start-
ups crypto-currencies. Insurers showed openness to old monetary institutions
 with established regulatory and compliance frameworks which unit of area is
currently
Use crypto currency as an artifact or provide a tutor services to buyers.
Many insurers want to think about coverage conventional establishments with
exposure to cryptography, such as these a small part of a much broader risk
profile. While not excluded the crypto-insurance market, start-ups or
dedicated companies
The trade in crypto currencies endure a lot of elaborate due diligence process
so that subscribers reach a level of comfort.
One factor is clear: an increasing number of companies introduce crypto
currency into their business models and into the process that creates new
levels of risk that are underinsured or even completely uninsurable for the
current market. Many of these new businesses need to be reviewed the
reaction method of current insurance policies new guidelines on the rise that
could reduce the associated risks
With an encryption company.
2. Crypto currency risk exposure
While subscribers try to familiarize themselves with the new Exposures
arising from crypto currencies are numerous the risks:
Unclear regulations these risks have been overcome previously. For example
a
Common approach to the fight against money laundering Payment and
various money transfer companies founded. Many insurers refuse to cancel
coverage for any buyer who participates in crypto currency or related
activities until regulatory standards are in effect. This lack of regulation is
evident in the (ICO), an encrypted version of an IPO to raise investment
capital. In the first 5 years of ICO It is estimated that it is going to reach $ 6
billion with the overall market. The crypto currency capitalization reaches
around $ 260 Billion. Whereas investors are also attracted to such a large
number, the United States Securities & Exchange Commission (SEC) and an
alternative Regulators have identified ICOs as potentially fraudulent. The
study shows that almost all ICOs are fraudulent. In the eyes of the SEC, the
crypto currency fall into the cracks between the rules for inventory and goods.
Many rules are being developed outside the United States achieve different
goals. Some countries may block the use of crypto currency while others,
such as China, are trying Use restriction to financial institutions. Israel is
growing Rules for treating crypto currency as an industry from his monetary
services business, with evidence that Apply transparency and protect buyers
Reduce the possibility of blurring and subtle replacement Activities. This
"normalization" approach to crypto currency could promote insurance
underwriting more easily.
3. Cyber Security
 As the demand for crypto currency knowledge increases, Security experience
is not maintained, according to a report by Small trend. Companies and
individual investor’s Mass disappearances, complicated ransom ware,
Extortion events and robots with artificial intelligence Browse the Internet and
look for weak links. Similar to cyber Threats to completely different sectors,
hackers find individuals, the service and storage areas must be easy prey.
When crypto currency companies operate in a highly centralized environment
like most old companies, they risk losing them main security feature of
blockchain technology. The blockchain offers a high level of security, but in
going back to centralization, smart hackers find a way penetrate the wall of
algorithms and alternative data protection
Methods.
4. Volatility and illiquidity
In the explicit crypto currency exchanges that customers pay from own
resources on request for group actions and so on Contact the market to sell a
square measure considered more risky Profiles through potential markets and
little or no credit Access. A study funded by the United States Treasury on
risks and vulnerabilities virtual currency everywhere in this large-scale use of
Crypto currencies and a stronger connection with The financial sector could
create general monetary risks. The Study that hope for the conclusions of the
conference
The Monetary Fund has provided two examples: threats to banks cheaper
and less regulated crypto revenue Competitors and vulnerabilities to
cryptographic risks.
The illiquidity of the crypto currency is compounded by restrictions and
technical barriers to entry on the low-rated markets side. The volatility of
Bitcoin and alternative crypto currencies is significant their usefulness as a
more dependent currency decreases Illiquidity problems. The United Nations
agency also notes that credit and liquidity there may be risks to third-party
ordering of crypto currencies
Institutions that do not respect their obligations or Liquidity for users when
needed.
5. Business and reputational risk
Companies and especially financial institutions the pressure to make
reasonable bets on the crypto currency. Strategy and scope of investments
that in the end
Required when and as soon as you think of the crypto currency.
There is also a significant risk to the name and address. Even if established
financial institutions participate. Crypto currency activities also attract a
replacement. Customers providing an encryption strategy, current buyers may
be surprised or dismayed by the divergence of traditional services. Any
negative or negative regulatory event it could trigger a further loss of
confidence in the commitment crypto currency. The big banks, however,
measure the square drop toes in crypto currency water. Some of the largest
banks in the world, such as JP Morgan Chase and Morgan Stanley, employed
consultants for fin tech and cryptography develop and direct their methods.
This could be considered Defense movement because banks are preparing to
adapt to the new currency Services, platforms and goods, but also opens old
Companies to new sources of income and potential partnerships. While the
crypto currency business continues to grow and it is natural for insurance
companies to mature risks related to crypto currencies and other digital
assets can they continue to expand as subscribers gain new knowledge and
at ease with these evolving exhibitions.
The risks listed above, which may not correspond, show that the old ones are
clean Insurance policies, namely development and adaptation they want new
goods to satisfy this growth. an additional value can be abandoned in crypto
currency transactions Brokers with the right mix of technology consultants
and experienced insurance professionals.