Task: Introduction to Cryptography and Cryptocurrencies and How Bitcoin achieves Decentralization Write a report of XXXXXXXXXXwords on the above topic. Make sure you cover in some technical detail at...

INTERNATIONAL BUSINESS
INTRODUCTION TO CRYPTOGRAPHY AND CRYPTOCURRENCIES AND HOW BITCOIN ACHIEVES DECENTRALIZATION
Table of Contents
Introduction    3
Significant Conceptions    3
Concept of Cryptocurrency    3
Concept of Cryptography    3
Uses of Cryptography and Cryptocurrency    3
Uses of Cryptography    3
Use of Cryptocurrency    4
Concept of Bitcoin    4
1. Hash Pointers and Data Structures    4
Hash Pointers    4
Data Structure    5
2. A Simple Cryptocurrency    6
Goofy Coin    6
Scrooge Coin    6
3. Distributed Consensus in Cryptocurrency    6
4. Consensus without Identity Using a Blockchain    8
How Bitcoin Achieves De-Centralization    9
Conclusion    10
References    11
Introduction
In this assignment, the concept of the cryptography and its related terms are discussed in a vivid manner. The detailed discussion on the cryptocurrency as well as the importance of cryptography is done in this assignment. The utilization of the cryptography and cryptocurrency is stated in detail. The detailed discussion on bitcoin at the same time, the ideals of hash pointers as well as data structure are vividly shown. The assignment also comprises discussion on the distribution of consensus in the cryptocurrency, along with it the use of blockchain without being identified. Lastly, the process of de-centralization of the bitcoin is discussed in this assignment.
Significant Conceptions
Concept of Cryptocurrency
In the world of digitalization, the term cryptocurrency is one of the newest. The cryptocurrency is the form of currency that is used in the digital world. This virtual currency is distributed among the large networking system and has a decentralized structure (Hileman & Rauchs, 2017). The cryptocurrency is well protected by the algorithms of cryptography. The utilization of blockchain technology makes cryptocurrency a very much reliable source. As the structural framework of cryptocurrency is the decentralized one, it enables a great opportunity for the user to get emancipation from the control of the central authorities and government. Cryptocurrency due to its high-end secure gateway makes it easier for the transfer of huge amounts of funds without any involvement of a financial institution.
Concept of Cryptography
Cryptography is the technique that is used to protect the information with the help of the codes, which are mathematically designed. The entire process is based on the set of rules and calculations, which protect the information and becomes difficult to decipher (Stinson & Paterson, 2018). It is the ideal way of protecting the valuable information of a person or organization. The codes are built in a way that it can be only read by the processor of the codes or the person for whom the information is made encrypted. The terminology is divided into two parts: the prefix stands for ‘hidden’ and the suffix part states ‘writing’. The two kinds of cryptography that are used are single-key encryption and public-key encryption.
Uses of Cryptography and Cryptocurrency
Uses of Cryptography
The application of cryptography in modern time is very much essential to protect the valuable data of the users. Therefore, it can be said that the transmission of the encrypted information is well secured using cryptography.
Yet another utilization of the cryptography is the maintaining of the secrecy of the data that has been stored (Zechlin, 2019). The encryption provided by the cryptosystem in the storage of the information is achieving popularity among the organization.
The usage of cryptography ensures that the transmitted information remains in its original form the assurance provided to the non-alteration of the transmitted data by the cryptosystem to its users.
Use of Cryptocurrency
The cryptocurrency not only provides a secure way of transferring funds but has some significant benefits as well (Bierer, 2016). The transferring of the funds through cryptocurrency charges lower payment costs in comparison to the other financial institution. Along with it, the transferring of the funds is much faster than any different known ways.
The opportunities of earning are provided by the cryptocurrency to its users. With the help of a yield farming system, the users get enough profits and high interests.
The possibility of enabling private transactions is another advantageous aspect of using cryptocurrency. The users with the help of private centric digital currencies do not owe any explanation to their financial institution regarding money transfer.
Concept of Bitcoin
Bitcoin is the most popular as well as the largest cryptocurrency that has been created in the year 2009 after the crash of the housing market. It is one of the largest yet the decentralized cryptocurrency, which was created, traded, distributed and stored without any invasion from the central authorities (Baur, Hong & Lee, 2016). It can be referred to as a collection of the nodes or computer that runs the coded format by bitcoin. The utilization of both private and public key cryptosystems is done by the encryption algorithm of bitcoin. It is the first digital currency, which effectively utilized the technology to transfer money instantly, from one person to another.
1. Hash Pointers and Data Structures
Hash Pointers
In the most appropriate manner, the hash pointer can be termed as the data structure. The data structures are of various kinds; one of the popular is hash pointers to store data and information in vivid detail. It is the tool used in cryptography more specifically in the algorithm of bitcoin to store the information of its uses. The hash pointer consists of the two parts; one part is termed as the pointer, which stores the data, and the second part stores the cryptographic hash of the information, which has to be stored. There are various ways with which the hash pointers can be utilized to create data structure.
The creation of the linked lists with the help of a hash pointer is known as blockchain (Reber & Hutchinson, 2019). The series of blocks are used for the storage of the data, and all these are regularly linked with each other. They are linked in such a way the pointer remains attached to the next block. The utilization of the tamper-evident log helps in the creation of the log data structure that ensures the storage of the bunch of information.
The systematic creation of the tree-like data structure can be done using hash pointers (Struttmann & Beecham, 2019). This data structure is popularly known as the Markel tree structure. It is an integrated structure in which the utilization of the two pointers is required to show the blocks. From one unified block, the hash pointer goes downward to represent the flow of data.
Data Structure
The...