Blockchain and Cryptocurrency

A Project Report submitted to the

Department of Computer Science and Engineering,
Bangabandhu Sheikh Mujibur Rahman Science and Technology University
in partial fulfillment of the requirements for the degree of
B.Sc. in Computer Science and Engineering

Submitted By
Md Abdullah Al Mamun
Student Id: 18CSE038
Session: 2018 - 2019

Supervised by
Nasif Ahmed

Assistant Professor

DEPARTMENT OF COMPUTER SCIENCE AND

ENGINEERING
BANGABANDHU SHEIKH MUJIBUR RAHMAN
SCIENCE AND TECHNOLOGY UNIVERSITY
 Abstract

Blockchain is a shared, immutable ledger that facilitates the process of recording

transactions and tracking assets in a business network. An asset can be tangible (a
house, car, cash, land) or intangible (intellectual property, patents, copyrights,
branding). The project titled "Blockchain and Cryptocurrency" explores the
fundamental concepts and technologies behind blockchain and its application in
cryptocurrency systems. The project aims to provide a comprehensive understanding
of how blockchain works as a decentralized ledger technology and its role in
enabling secure and transparent transactions in the realm of digital currencies. This
project is about blockchain technology, highlighting its decentralized nature and
secure transactional capabilities. It explores essential blockchain principles,
including consensus mechanisms, cryptography, and smart contracts, enabling
trustless, immutable, and transparent transactions. Through a combination of
research, analysis, and practical demonstrations, this project seeks to elucidate the
potential of blockchain and cryptocurrency in revolutionizing traditional financial
systems and fostering innovation in decentralized applications

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 Declaration
The work entitled “Blockchain and Cryptocurrency” has been carried out in the
Department of Computer Science and Engineering, Bangabandhu Sheikh Mujibur
Rahman Science and Technology University is original and conforms the regulations
of this University.

I understand the University’s policy on plagiarism and declare that The work
presented does not infringe any patented work and has notbeen submitted to any other
university or anywhere else for the award of any degree or any professional
graduation

Signature of the Candidate Signature of the Supervisor

Date: Date:

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 Acknowledgment

I would like to express my sincere gratitude to Nasif Ahmed, my supervisor, for

their invaluable guidance, support, and encouragement throughout the duration
of this project. Their expertise and insightful feedback have been instrumental in
shaping the direction and outcomes of this research.
I am also thankful to the faculty members of the Department of Computer
Science and Engineering at Bangabandhu Sheikh Mujibur Rahman Science and
Technology University for providing a conducive environment for academic and
intellectual growth.
Furthermore, I extend my appreciation to my peers and colleagues for their
constructive discussions and assistance during various stages of this project.
This project would not have been possible without the collective efforts and
contributions of all those mentioned above. Thank you

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TABLE OF CONTENTS
........................................................................................................................................................ vi
Chapter 1: Introduction ....................................................................................................................1
1.1 Motivation: .........................................................................................................................1
1.2 Objective.............................................................................................................................2
1.3 Scope ..................................................................................................................................2
1.4 Significance ........................................................................................................................2
Chapter 2: Literature Review ...........................................................................................................3
2.1 Blockchain Technology: Concepts and Principles .............................................................3
2. 2 Blockchain Architectures and Protocols ...........................................................................3
2.3 Cryptocurrencies: Evolution and Economics .....................................................................3
2.4 Blockchain Applications: Use Cases and Implementations ...............................................3
2.5 Challenges and Future Directions ......................................................................................4
2.6 Conclusion ..........................................................................................................................4
Chapter 3: Methodology ..................................................................................................................5
3.1 Literature Review: ..............................................................................................................5
3.2 Conceptual Framework: .....................................................................................................5
3.3 Theoretical Exploration: .....................................................................................................6
3.4 Practical Implementation: ...................................................................................................6
3.5 Project Development: .........................................................................................................7
3.6 Documentation and Reporting:...........................................................................................8
3.7 Peer Review and Feedback:................................................................................................8
3.8 Presentation and Dissemination: ........................................................................................8
Chapter 4:Project Architectures: ......................................................................................................9
4.1 Files and folders: ................................................................................................................9
4.2 Home Page: ......................................................................................................................10
4.3 Blockchain Viewer: ..........................................................................................................11
4.4 Make Transaction: ............................................................................................................12
4.5 Mining Page......................................................................................................................12
4.6 My Account Page: ............................................................................................................13
4.7 Login and Registration Page ............................................................................................13

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Chapter 5: Conclusion: ..................................................................................................................14
5.1 Key Achievements: ..........................................................................................................14
5.2 Future Directions: .............................................................................................................15
5.3 Final Remarks:..................................................................................................................15
References: .....................................................................................................................................16

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 CHAPTER 1
INTRODUCTION
In recent years, blockchain technology has emerged as a revolutionary force with profound
implications across various industries, particularly in the realm of finance and digital transactions.
At its core, blockchain offers a decentralized and immutable ledger system that enables secure and
transparent recording of transactions. Coupled with the advent of cryptocurrencies like Bitcoin,
blockchain has ushered in a new era of digital finance, challenging traditional notions of currency,
trust, and intermediation.
The project titled "Blockchain and Cryptocurrency" explores the foundational principles,
implementation, and applications of blockchain technology, with a specific focus on its role in
facilitating cryptocurrencies. Conducted within the Department of Computer Science and
Engineering at Bangabandhu Sheikh Mujibur Rahman Science and Technology University, this
project delves into the intricacies of blockchain architecture, consensus mechanisms, smart
contracts, and cryptographic techniques underlying its functionality.

1.1 MOTIVATION:
The motivation behind this project stems from the growing significance of blockchain and
cryptocurrencies in the global landscape. As traditional financial systems face increasing scrutiny
and vulnerabilities, there is a pressing need for innovative solutions that offer greater security,
efficiency, and inclusivity. Blockchain technology presents a compelling alternative by
decentralizing trust and empowering individuals to transact directly without the need for
intermediaries.
Moreover, the proliferation of cryptocurrencies has sparked widespread interest and debate
regarding their potential to redefine the concept of money and reshape economic systems. By
investigating the technical underpinnings of blockchain and cryptocurrencies, this project aims to
provide insights into their transformative potential and implications for various sectors, including
finance, supply chain management, healthcare, and beyond.

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1.2 OBJECTIVE
The primary objectives of this project are as follows:

1. To elucidate the fundamental concepts and principles of blockchain technology, including

its decentralized architecture, consensus algorithms, and cryptographic mechanisms.
2. To analyze the design and operation of prominent blockchain networks, such as Bitcoin
and Ethereum, and assess their strengths, weaknesses, and scalability challenges.
3. To explore the process of cryptocurrency creation, distribution, and exchange, and examine
the economic incentives and governance structures that underpin these digital assets.
4. To investigate real-world applications of blockchain technology across diverse industries
and evaluate their potential impact on efficiency, transparency, and security.
5. To develop practical skills in blockchain development, including the creation of smart
contracts, decentralized applications (DApps), and secure digital wallets.

1.3 SCOPE
This project encompasses both theoretical exploration and hands-on experimentation with
blockchain technology and cryptocurrencies. It involves literature review, case studies, and
practical implementation exercises to provide a comprehensive understanding of the subject
matter. While the focus is primarily on blockchain and cryptocurrencies, the project also touches
upon related topics such as decentralized finance (DeFi), non-fungible tokens (NFTs), and
blockchain interoperability.

1.4 SIGNIFICANCE
By shedding light on the intricate workings of blockchain technology and its applications in the
realm of cryptocurrencies, this project aims to contribute to the body of knowledge surrounding
decentralized systems and digital assets. It seeks to empower individuals, businesses, and
policymakers with the knowledge and insights needed to navigate the rapidly evolving landscape
of blockchain technology and harness its transformative potential for societal benefit.

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 CHAPTER 2
LITERATURE REVIEW
The literature review for the project "Blockchain and Cryptocurrency" explores the foundational
research, key developments, and emerging trends in blockchain technology and its applications in
the realm of cryptocurrencies. This review provides a comprehensive overview of scholarly works,
industry reports, and technical documentation to elucidate the theoretical underpinnings, practical
implementations, and real-world implications of blockchain and cryptocurrencies.

2.1 BLOCKCHAIN TECHNOLOGY: CONCEPTS AND PRINCIPLES

The literature on blockchain technology delves into its core concepts, including decentralization,
immutability, and consensus mechanisms. Research by Nakamoto (2008) introduced the concept
of a decentralized ledger, which forms the basis of blockchain. Subsequent studies by Buterin
(2013) and Wood (2014) explored enhancements such as smart contracts and decentralized
autonomous organizations (DAOs), paving the way for programmable blockchain platforms like
Ethereum.

2. 2 BLOCKCHAIN ARCHITECTURES AND PROTOCOLS

Scholarly works by Swan (2015) and Tapscott (2016) provide insights into different blockchain
architectures, including public, private, and consortium blockchains. These studies examine
consensus algorithms such as Proof of Work (PoW), Proof of Stake (PoS), and Byzantine Fault
Tolerance (BFT), highlighting their strengths and limitations in terms of security, scalability, and
energy efficiency.

2.3 CRYPTOCURRENCIES: EVOLUTION AND ECONOMICS

The literature on cryptocurrencies traces their evolution from the invention of Bitcoin to the
proliferation of alternative digital assets such as Ethereum, Ripple, and Litecoin. Research by
Antonopoulos (2014) and Narayanan et al. (2016) explores the economic implications of
cryptocurrencies, including their role as mediums of exchange, stores of value, and units of
account. These studies analyze factors influencing cryptocurrency prices, market dynamics, and
regulatory challenges.

2.4 BLOCKCHAIN APPLICATIONS: USE CASES AND IMPLEMENTATIONS

Scholarly works by Tapscott and Tapscott (2016) and Don and Alex Tapscott (2018) examine
various use cases of blockchain technology across industries, including finance, supply chain
management, healthcare, and government. Case studies on projects like IBM's Hyperledger Fabric,
Microsoft's Azure Blockchain, and Ripple's cross-border payment solutions provide insights into
real-world implementations and challenges faced in deploying blockchain-based solutions at scale.

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2.5 CHALLENGES AND FUTURE DIRECTIONS
The literature on blockchain and cryptocurrencies also addresses challenges such as scalability,
interoperability, privacy, and regulatory compliance. Research by Bonneau et al. (2015) and Eyal
and Sirer (2018) explores potential solutions and future directions for addressing these challenges,
including layer 2 scaling solutions, privacy-preserving techniques, and regulatory frameworks for
governing blockchain-based systems.

2.6 CONCLUSION
The literature review provides a comprehensive overview of research and developments in
blockchain technology and cryptocurrencies. It highlights the transformative potential of
blockchain for revolutionizing various industries and fostering financial inclusion, transparency,
and trust in digital transactions. By synthesizing insights from scholarly works and industry
reports, this review lays the foundation for further exploration and analysis in the project
"Blockchain and Cryptocurrency."

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 CHAPTER 3
METHODOLOGY
The methodology for the project "Blockchain and Cryptocurrency" encompasses both theoretical
research and practical implementation, aiming to provide a comprehensive understanding of
blockchain technology and its applications in cryptocurrencies. The following steps outline the
methodology for conducting the project:

3.1 LITERATURE REVIEW:

Begin by conducting a thorough literature review to familiarize yourself with foundational
concepts, key developments, and emerging trends in blockchain technology and
cryptocurrencies. Consult scholarly works, industry reports, technical documentation, and online
resources to gain insights into the theoretical underpinnings and practical applications of
blockchain.

3.2 CONCEPTUAL FRAMEWORK:

The conceptual framework of blockchain and cryptocurrency revolves around a decentralized
ledger system where transactions are recorded in blocks, linked together using cryptographic
hashes for immutability. Consensus mechanisms like Proof of Work (PoW) or Proof of Stake (PoS)
ensure agreement on valid transactions across a network of nodes. Cryptocurrencies are digital
assets created and managed on blockchain platforms, utilizing wallets for secure storage and
transaction initiation with cryptographic keys.

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3.3 THEORETICAL EXPLORATION:
The theoretical implementation of blockchain and cryptocurrency involves a decentralized ledger
system where transactions are grouped into blocks linked together in a chain. Each block contains
transaction data, a timestamp, and a reference to the previous block, ensuring immutability and
transparency. Cryptographic principles like hash functions and digital signatures secure
transactions and verify identities. Consensus mechanisms such as Proof of Work (PoW) or Proof
of Stake (PoS) validate transactions and maintain network integrity. Users initiate transactions by
signing with their private keys, and miners add validated transactions to the blockchain.
Cryptocurrencies are created on blockchain platforms with defined issuance rules and tokenomics.
Smart contracts, prevalent in platforms like Ethereum, enable self-executing contracts and
decentralized applications (DApps), extending blockchain's utility beyond currency. This
framework promotes trustless, secure, and resilient systems, revolutionizing finance and
decentralized applications.

3.4 PRACTICAL IMPLEMENTATION:

In a practical implementation of a transaction on a blockchain, a user initiates the process by
specifying the recipient's wallet address and the amount of cryptocurrency to be sent. This
transaction request is then broadcasted to nodes within the blockchain network for validation.
Nodes verify the transaction's validity, ensuring that the sender has sufficient funds and that the
transaction complies with consensus rules.

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Once validated, the transaction, along with others, is grouped into a block by miners (in Proof of
Work) or validators (in Proof of Stake). These participants then engage in consensus mechanisms
such as solving cryptographic puzzles or staking tokens to add the block to the blockchain.

After the block is added and subsequent blocks confirm its validity, the transaction becomes final
and irreversible. The ledger state across all nodes is updated to reflect the completed transaction,
adjusting the sender's and recipient's balances accordingly. Both parties receive confirmation of
the transaction through their wallets, providing transparency and assurance in the decentralized
blockchain ecosystem. This process highlights the efficiency and security of blockchain
transactions, enabled by consensus mechanisms and the immutable nature of the distributed
ledger.

3.5 PROJECT DEVELOPMENT:

Based on the conceptual framework and theoretical exploration, develop a project plan outlining
the specific tasks, milestones, and deliverables for the project. Define the project scope, timeline,
and resource requirements, allocating sufficient time for research, development, testing, and
documentation.

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3.6 DOCUMENTATION AND REPORTING:
Document the research process, methodologies, findings, and conclusions in a comprehensive
report or thesis. Include relevant visuals, such as diagrams, charts, tables, and screenshots, to
illustrate key concepts and findings. Clearly communicate the significance of the research and its
contributions to the field of blockchain and cryptocurrencies.

3.7 PEER REVIEW AND FEEDBACK:

Seek feedback from peers, advisors, and experts in the field to validate research findings and
improve the quality of the project. Incorporate constructive criticism and suggestions into the
final report or presentation to enhance its credibility and impact.

3.8 PRESENTATION AND DISSEMINATION:

Present the project findings to stakeholders, including academic audiences, industry
professionals, and policymakers. Disseminate research outputs through conferences, workshops,
seminars, publications, and online platforms to reach a wider audience and stimulate further
discussion and collaboration in the field of blockchain and cryptocurrencies.

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 CHAPTER 4
PROJECT ARCHITECTURES

4.1 FILES AND FOLDERS:

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4.2 HOME PAGE:
The home page offers users a convenient and interactive way to stay informed about the latest
cryptocurrency prices in real-time. By providing live updates for a diverse range of
cryptocurrencies, it empowers users to make informed decisions and stay ahead in the dynamic
world of digital assets. The seamless integration of API data and robust error handling
mechanisms ensure a reliable and responsive user experience, enhancing the overall usability and
utility of the home page.

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4.3 BLOCKCHAIN VIEWER:
The "Current Verified Blockchain" page offers users a comprehensive overview of the
blockchain's structure and transaction history. By presenting blockchain data in a visually
appealing and accessible format, the page enhances user understanding and engagement with
blockchain technology. The interactive elements enable users to interactively explore the
blockchain's contents, fostering a deeper appreciation for its decentralized and transparent nature.

Genesis Block

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4.4 MAKE TRANSACTION:
The "Create a Secure Transaction" page offers users a user-friendly and secure platform to
initiate cryptocurrency transactions. By providing a streamlined form interface and handling user
authentication gracefully, the page facilitates seamless transactions while ensuring the security
and integrity of the blockchain network.

4.5 MINING PAGE

The "Mine Blocks for Rewards" page offers users an interactive and informative interface for

4.5 MINING PAGE:

Participating in the CacheCoins mining process. By presenting pending transactions, displaying
the current mining reward, and providing a seamless authentication experience, the page
encourages user engagement and facilitates the growth and security of the CacheCoins
blockchain network.

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4.5 MY ACCOUNT PAGE:
The "My Account" page offers users a convenient and secure way to access and review their
account information within the CacheCoins platform. By presenting personalized data and
managing authentication seamlessly, the page enhances user experience and fosters trust in the
platform's handling of sensitive information.

4.7 LOGIN AND REGISTRATION PAGE

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 CHAPTER 5
CONCLUSION
T\he project "Blockchain and Cryptocurrency" embarked on a journey to explore the realms of
decentralized ledger technology, specifically focusing on blockchain and its applications in the
domain of cryptocurrency. Through meticulous research, practical implementation, and
insightful analysis, the project aimed to shed light on various aspects of blockchain and
cryptocurrency, ultimately contributing to the understanding and advancement of this rapidly
evolving field.

5.1 KEY ACHIEVEMENTS:

 Comprehensive Exploration: The project delved deep into the theoretical underpinnings
of blockchain technology, elucidating its fundamental principles, including
decentralization, immutability, and consensus mechanisms. This foundational
understanding laid the groundwork for further exploration.

 Practical Implementation: Beyond theoretical discourse, the project ventured into

practical implementation, showcasing real-world applications of blockchain through the
development of a cryptocurrency platform. From transaction verification to mining and
account management, each component was meticulously crafted to emulate the
functionalities of a decentralized system.

 Innovative Features: The project introduced innovative features such as live crypto
price updates, secure transaction creation, mining for rewards, and personalized account
management. These features not only demonstrated the versatility of blockchain
technology but also enriched the user experience within the cryptocurrency ecosystem.

 User-Centric Design: Throughout the development process, a user-centric approach was

adopted, ensuring that the platform prioritized usability, security, and accessibility. From
intuitive interfaces to robust authentication mechanisms, every design choice aimed to
enhance user satisfaction and trust.

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5.2 FUTURE DIRECTIONS:
While the project has achieved significant milestones, there exist ample opportunities for future
enhancement and expansion. Some potential avenues for further exploration include:

 Scalability Solutions: Investigating scalability solutions such as sharding and layer-2

protocols to address the scalability challenges inherent in blockchain networks, enabling
them to support a larger user base and higher transaction throughput.

 Interoperability: Exploring interoperability frameworks to facilitate seamless

communication and asset transfer between different blockchain networks, fostering a
more interconnected and inclusive ecosystem.

 Security Enhancements: Continuously enhancing security measures to mitigate

potential vulnerabilities and threats, including smart contract auditing, multi-factor
authentication, and consensus algorithm refinements.

 Regulatory Compliance: Navigating the evolving regulatory landscape surrounding

cryptocurrency and blockchain technology, ensuring compliance with relevant laws and
regulations while fostering innovation and adoption.

5.3 FINAL REMARKS:

In conclusion, the project "Blockchain and Cryptocurrency" has been a remarkable journey
encompassing theoretical exploration, practical implementation, and user-centric innovation. By
leveraging the transformative potential of blockchain technology, the project has not only
enriched our understanding of decentralized systems but also paved the way for future
advancements in the realm of cryptocurrency. As we continue to navigate the ever-changing
landscape of blockchain technology, let us remain steadfast in our commitment to innovation,
collaboration, and responsible stewardship, ensuring a brighter and more decentralized future for
generations to come.

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REFERENCES:

[1] Nakamoto, S. (2008). Bitcoin: A Peer-to-Peer Electronic Cash System. Retrieved from
https://bitcoin.org/bitcoin.pdf

[2] Buterin, V. (2013). Ethereum: A Next-Generation Smart Contract and Decentralized

Application Platform. Retrieved from https://github.com/ethereum/wiki/wiki/White-Paper

[3] Antonopoulos, A. M. (2014). Mastering Bitcoin: Unlocking Digital Cryptocurrencies.

O'Reilly Media.

[4] Tapscott, D., & Tapscott, A. (2016). Blockchain Revolution: How the Technology Behind
Bitcoin Is Changing Money, Business, and the World. Portfolio.

[5] Narayanan, A., Bonneau, J., Felten, E., Miller, A., & Goldfeder, S. (2016). Bitcoin and
Cryptocurrency Technologies: A Comprehensive Introduction. Princeton University Press.

[6] Eyal, I., & Sirer, E. G. (2018). Majority is not enough: Bitcoin mining is vulnerable.
Communications of the ACM, 61(7), 95-102.

[7] Wood, G. (2014). Ethereum: A Secure Decentralised Generalised Transaction Ledger.

Retrieved from https://ethereum.github.io/yellowpaper/paper.pdf

[8] Pilkington, M. (2016). Blockchain technology: principles and applications. Research

Handbook on Digital Transformations, Edward Elgar Publishing.

[9] Grigg, I. (2005). Triple entry accounting. Ian Grigg's financial cryptography blog. Retrieved
from http://iang.org/papers/triple_entry.html

[10] Swan, M. (2015). Blockchain: Blueprint for a New Economy. O'Reilly Media.

[11] Szabo, N. (1997). Formalizing and securing relationships on public networks. First Monday,
2(9).

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