Research Assignment: Hashing and Cryptocurrency
Topic. For this assignment, you are to write a well-researched, well-edited paper, at least 3 double-spaced pages long, not including references. The topic is as follows:
Digital currencies such as Bitcoin (BTC) are becoming increasingly popular as forms of exchange. Such currencies are known as cryptocurrencies, due to their dependence on cryptographic techniques to make the generation and transfer of funds secure without relying on a centralized bank. Specifically, virtually all cryptocurrencies rely on the existence of secure hash functions, which we have discussed in class, to create a secure medium of exchange. Your assignment is to select and research a currently active cryptocurrency, and in your paper describe in detail how secure hashing is used to verify transactions and/or mine new coins for this currency.
Since we have not covered cryptocurrency in the lectures, to write this paper you will need to do some independent reading to obtain a basic understanding of the concepts of cryptocurrency and blockchain technology. To help you choose a digital currency, you can find a listing of current cryptocurrencies on Wikipedia or any other online source.
Structure and Content. Your paper should be organized to flow logically and be written in the form of coherent, single-topic paragraphs. As a guideline, you should strive to write the paper in such a way that one of your peers who has taken this course can read it from start to finish and gain a concrete understanding of the currency you chose and how it uses hashing.
At a minimum, your paper needs to include the following elements:
- A basic overview of your chosen cryptocurrency, including facts such as when the currency was introduced, who developed it, the current price and market cap, and most importantly, an overview of the structure and principles of operation of the currency's blockchain.
- A description of the secure hash algorithm or algorithms used in your chosen cryptocurrency. You do not need to describe the algorithm at byte-level detail, but you should be able to give a fairly detailed overview of its operation, including the hash function type, number of rounds, digest size, and whether it works by combining multiple other hash functions. You also need to describe what security guarantees the hash algorithm is intended to provide.
- A description of how secure hashing supports the secure transaction and/or mining functions of the currency. You should clearly explain where in the transaction process hashing is used (possibly more than one place), what type of data is hashed, and how the security of the currency depends on the security of the hash function. To make this clear, you may wish to discuss how the use of an insecure hash function might enable some type of fraudulent transactions.
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also include a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also Include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.