University of Technology (Yatanarpon Cyber City)

Faculty of Information and Communication Technology

Department of Computer Engineering
2018-2019 ACADEMIC YEAR

GRADUATION THESIS

FIRST SEMINAR

CRYPTOCURRENCY TRANSACTIONS

Supervised By Presented By
Dr. Cho Me Me Maung Mg Kyaw Thet Win 14.3.2019
6CE-15 (Thursday)
Outline
 Abstract
 Introduction
 Aim and Objectives
 Theory
 System Design
 Application Areas
 Limitations
 Conclusion
 Abstract
• Blockchain is a public ledger that keeps track of all online
transaction securely and anonymously.
• The proposed system is the process of developing a web
application aimed to simplify the Ether (cryptocurrency)
transaction process.
• A web application was developed as a front-end point for a
service that would enable users to send ether to a receiver.
• The application has simplified the process of Blockchain and
cryptocurrency.

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 Introduction
• The Blockchain is very secure considering that information can be shared,
produced and maintained completely decentralized (distributed ledger).
Everyone who joins the network gets a copy of the network via the
distributed ledger.
• Nowadays cryptocurrency, such as Bitcoin and ETH , is gaining more and
more popularity among people and we cannot deny its role in the world
economy.
• There is a vast number of different cryptocurrencies but this system
describes the service which works with Ether (Eth) on its blockchain –
Ethereum.
• Unlike Bitcoin, Ethereum blockchain is not just a supportive tool for its
cryptocurrency, it is a powerful decentralized platform that brings several
opportunities for development: new markets, debt, registry and other
services.
• This makes Ethereum an ideal replacement for known payment methods.

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 Aim and Objectives

 To protect our sensitive data

 To reduce the transaction fees for money exchanges
 To make transaction promptly
 To secure the transaction

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 Theory
Cryptocurrency
• Cryptocurrency is a “coin” (token) we send over a given protocol,
and each protocol has its own token. Bitcoin has Bitcoin, Ethereum
has Ether, Augur has REP, etc.
• Each protocol has a specific purpose: Bitcoin was invented to
replace traditional currency, Ethereum's purpose is to be a platform
on which other tokens can be built.
• Each individual token is unique and impossible to duplicate.
• The coins in a game are a digital currency, and they differ from
cryptocurrency.
• Digital currency is controlled by a single corporation, the owner of
the game
• Cryptocurrency is controlled by the community of users
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 Theory
Blockchain
• All cryptocurrencies are based on blockchain technology.
• Blockchain technology allows for distributed control over the financial
system of a society – local or global – and helps with avoiding middlemen.
• This is one of the main reasons why cryptocurrencies have exploded in
popularity so much.
• Blockchain (BC), firstly created as a supportive tool for Bitcoin, has
become an independent technology used not only in the cryptocurrency
field.
• The distributed ledger consists of blocks containing a copy of the
information about transactions or contracts, and it is constantly updated.
• Each block contains a cryptographic hash linked to the previous block so
they create a chain of blocks – Blockchain.

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 Con’t
There are two types of blockchain.
o Public Blockchain(Permissionless)
Public blockchains can receive and send transactions from anybody in the world.
Bitcoin, Ethereum and Litecoin are the examples of public blockchain.
o Private blockchain(Permissioned)
In private blockchains, only specific, pre-chosen entities have the ability to create
new transactions on the chain. Thus, a private blockchain is a closed network.

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 Theory
Ethereum
• Ethereum, launched in 2015 by Vitalik Buterin, is a special
blockchain with a special token called Ether (the ETH symbol
in exchanges).
• Ether is used as fuel (literally, gas) to power the Ethereum
network and execute smart contracts.
• Ether is paid to miners (the people running the network) in gas
cost to make the features below possible, and thus isn't a
cryptocurrency as much as cryptooil.

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 Con’t
• Ethereum is an open software platform based on blockchain
technology that enables developers to build and deploy decentralized
applications.
• While the Bitcoin blockchain is used to track ownership of digital
currency (bitcoins), the Ethereum blockchain focuses on running the
programming code of any decentralized application.
• Ether is also used by application developers to pay for transaction fees
and services on the Ethereum network.

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 Theory
Ethereum Virtual Machine (EVM)

 The EVM is a runtime environment used by Ethereum blockchain for smart

contract execution.
 Process virtual machines: Virtual machines that are designed to execute
programs in a platform-independent environment. They can also be referred
to as Managed Runtime Environments as they manage their own runtime
environment and processes on the host machine. The EVM may be loosely
classified as a process virtual machine.

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 Theory
Smart Contracts
 Smart contracts are account holding objects on the ethereum blockchain.
They contain code functions and can interact with other contracts, make
decisions, store data, and send ether to others.
 Solidity is an object-oriented programming language designed for
developing smart contracts that run on the EVM.

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 Theory
Geth
• There are several popular clients to work with the Ethereum blockchain.
They are:
1. eth – a client written in C++
2. geth – a client written in Go
3. pyethapp – a client written in python
• Geth is a multipurpose command line tool that runs a full Ethereum node
implemented in Go.
• Geth is an implementation of an Ethereum node in the Go programming
language.
• Geth is a program which serves as a node for the Ethereum blockchain, and
via which a user can mine Ether and create software which runs on the
EVM – the Ethereum Virtual Machine.
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 Theory
Mining
• Blockchain mining involves adding transactions to the existing
blockchain ledger of transactions distributed among all users of a
blockchain.
• Mining is typically done on a dedicated computer, as it requires a fast
CPU, as well as higher electricity usage and more heat generated than
typical computer operations.

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 Theory
Truffle Framework
Truffle is a development environment, testing framework and asset pipeline for
Ethereum, aiming to make life as an Ethereum developer easier. With Truffle, you
get:
 Built-in smart contract compilation, linking, deployment and binary
management.
 Automated contract testing with Mocha and Chai.
 Configurable build pipeline with support for custom build processes.
 Scriptable deployment & migrations framework.
 Network management for deploying to many public & private networks.
 Interactive console for direct contract communication.
 Instant rebuilding of assets during development.
 External script runner that executes scripts within a Truffle environment.

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 Theory

Ethereum Wallet
• The Ethereum Wallet is a gateway to decentralized applications on the
Ethereum blockchain. It allows you to hold and secure ether and other
crypto-assets built on Ethereum, as well as write, deploy and use smart
contracts.

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 Theory
Mist Browser
 Mist is the browser for decentralized web apps.
 Mozilla Firefox or Google Chrome are for the Web 2.0, the Mist
Browser will be for the Web 3.0 (which will be decentralized).
 Mist wallet is basically used to store and send your Ether.
 If you are choosing to buy, invest or trade in Ethereum, then you'll
require a wallet to carry out the transactions.
 Mist browser, on the other hand, is a browser to access the DAPPS.
 Just similar to chrome and safari. But, with mist, you can access DAPPS
and web 3.0.

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 Theory
Web3.0
 Web 1.0 : the "readable" phase of the world wide web, denoted by static
flat data presentation. i.e. HTML, XML, etc.
 Web 2.0 : the "writable" phase, denoted by interactive dynamic data and
client-server synchronization. i.e. PHP/JS, AJAX, etc.
 Web 3.0 : the "executable" phase, denoted by dynamic web applications
and composite interactive services. i.e. Online Operating Systems, SaaS,
etc

Web3.js is a collection of libraries which allow you to interact with a local

or remote ethereum node, using a HTTP or IPC connection.

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 Ethereum wallet
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 System Design

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 Application Area

 A cryptocurrency is a digital asset designed to work as a medium of

exchange that uses strong cryptography to secure financial
transactions, control the creation of additional units, and verify the
transfer of assets.

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 Limitations

 If you transfer the wrong address, you can’t retrieve your funds.

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 Conclusion

 Nowadays, cryptocurrency plays in important role of world

economy.
 We can develop more secure and confidential applications by using
blockchain technology.
 Ethereum is a good platform to develop applications.

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