Academic Master

Technology

Virtual currency and Digital Currency

Virtual currency is a term used to describe digital representations of money that can only be accessed online (Frankenfield, 2019). Using virtual currency requires the right desktop and mobile software. Due to the delicate nature of the virtual currency, purchases must be performed either online or through specific, secure networks. The virtual currency is produced and controlled primarily by a private issuer rather than a central bank, so it is not subjected to any monetary policy. Conversely, the term “digital money” is used to describe any form of digitally exchanged currency, regardless of whether or not it is subject to any oversight. The government issues a digital currency tied to a sovereign’s value. As a result, national monetary policy determines the rules for the regulated form of digital currency.

The virtualization and cloud computing industries are part of the larger digital and virtual currency ecosystem. In contrast to the provision of computing services via the internet, as in cloud computing, virtualization entails the creation of physical resources, such as servers and networks (Habib et al.,2022). Customers can get computing power whenever they need it and pay just for what they use in this manner. Virtual currencies are relevant in virtualization and cloud computing because they are commonly used as a means of payment for virtual items and services within cloud-based apps or games. For instance, players may need to purchase in-game currency to progress through a virtual reality game hosted on the cloud server. In contrast, digital currency has the potential to be utilized for international payments and transactions because it can be exchanged between people and businesses regardless of their locations (Habib et al.,2022). Cloud computing is more secure and transparent when blockchain technology is applied to digital currency.

Virtual Currencies Spreadsheet

Virtual Currency Encryption Method Cybersecurity Technologies/Characteristics Policy Constraints
Bitcoin SHA-256 and AES
  • Pre image resistance
  • Second pre-image resistance
  • collision resistance
  • Public and private key cryptography
  • Two-factor authentication
  • The price of bitcoin is susceptible to government regulation. The expansion of cryptocurrency markets was stymied each time a government introduced new restrictions on the industry.
  • Volatility: Public attitude substantially affects bitcoin pricing. These large swings make many economists skeptical of digital currencies (Alcorn et al.,2013). No government backs currency. Bitcoin’s decentralized structure causes price instability without stabilizing institutions since fiat money consumers trust the government, not the coin. Bitcoin ownership and trade issues limit adoption.
  • There isn’t universal acceptance of bitcoin because most governments don’t consider it to be a legitimate cryptocurrency.
 Litecoin Scrypt
  • Automatic swaps
  • Parenthetical
  • Character name
  • Institutions may need to weigh the benefits and drawbacks of using a currency with a smaller market cap than Bitcoin or Ethereum and consider the potential security implications of the Lightning Network and Atomic Swaps technologies.
XRP Hash Tree
  • High level of data integrity
  • High scalability level
  • Based on Merkle tree
  • It is Scalable
  • The U.S. Securities and Exchange Commission has lodged a formal lawsuit against XRP, claiming that the company and its leadership engaged in unlawful cryptocurrency sales.
Binance Coin Modified Byzantine Fault Tolerance (BFT)
  • Pre prepare phase
  • Prepare
  • Commit
  • Fault tolerance
  • Leader-based encryption techniques
  • Binance must follow the laws and regulations of the jurisdictions where its services are offered. This regulation may or may not work in favor of this digital currency.
  • Some institutions and the government have voiced concerns over the centralization of Binance networks and its techniques of inter-person transactions.

Virtual Currency Findings

Virtual and digital currencies have altered the financial system and commercial operations. Virtual currency is a digital currency that is unregulated and uncontrolled by a central bank (Bolt & Van Oordt, 2020). There are both centralized and decentralized forms. Blockchain networks are required for user-to-user virtual currency transactions. In contrast to traditional currency, digital currency only exists in the virtual world of the internet. Any electronic device, like a computer, smartphone, or tablet, can be used to buy and sell digital currency. Virtual and digital currencies are complex because they rely on technology to enable transactions. In today’s market, both currencies are valuable, and certain businesses can conduct transactions in both. Understanding virtual and digital currency evaluation requires understanding virtualization, cloud computing, cryptography and cryptanalysis, encryption technologies, and cybersecurity challenges.

Encryption technology

Encryption, often known as cryptography, secures digital data through various mathematical procedures. Encryption helps keep sensitive data safe from prying eyes by transforming it into a hybrid of “plain text” and “ciphertext,” which only the authorized recipient can see (Chen, 2021). An authorized user must first decrypt the data by converting the ciphertext back to plaintext using a password or critical phrase before they may access the original data. That’s why encryption is such an excellent tool for protecting sensitive information.

Cryptography and Cryptanalysis

Cryptanalysis is the process of determining the plain text content of encrypted data without having access to the decryption key. Secure hashing, digital signatures, and other cryptographic methods are common targets for cryptanalysts. They may try to decrypt ciphertexts without the original plaintext, encryption key, or decryption technique. On the other hand, cryptography analyzes communications and information systems by using codes explicitly written for that purpose, which helps boost data security (Subramanian & Jeyaraj, 2018). In addition, they protect against data fraud by facilitating authentication procedures like message authentication codes (MAC) and digital signatures (Subramanian & Jeyaraj, 2018). End users cannot be assured that the data is correct without using hash techniques. Moreover, the non-repudiation service provided by a digital signature helps prevent arguments from arising if the sender decides to back out of the communication transmission.

References

Alcorn, T., Eagle, A., & Sherbondy, E. (2013). Legitimizing Bitcoin: Policy Recommendations. Massachusetts Institute of Technology.

Bolt, W., & Van Oordt, M. R. (2020). On the value of virtual currencies. Journal of Money, Credit and Banking52(4), 835-862.

Chen, J. (2021, October 31). Encryption. Investopedia. https://www.investopedia.com/terms/e/encryption.asp

Frankenfield, J. (2019). Virtual Currency. Investopedia. https://www.investopedia.com/terms/v/virtual-currency.asp

Habib, G., Sharma, S., Ibrahim, S., Ahmad, I., Qureshi, S., & Ishfaq, M. (2022). Blockchain Technology: Benefits, Challenges, Applications, and Integration of Blockchain Technology with Cloud Computing. Future Internet14(11), 341.

Subramanian, N., & Jeyaraj, A. (2018). Recent security challenges in cloud computing. Computers & Electrical Engineering71, 28-42.

SEARCH

Top-right-side-AD-min
WHY US?

Calculate Your Order




Standard price

$310

SAVE ON YOUR FIRST ORDER!

$263.5

YOU MAY ALSO LIKE

Dragons Characteristics

Species are groups of living organisms in which individuals have the same characteristics and are capable of exchanging genes and interbreeding. Dragon has been chosen

Read More »
Pop-up Message