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CRYPTOCURRENCY MINING THROUGH BLOCKCHAIN USING PYTHON

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 INTERNATIONAL JOURNAL FOR EMERGING TRENDS IN ENGINEERING AND MANAGEMENT RESEARCH
(IJETEMR)VOLUME V, ISSUE II- June 2019 ISSN NO: 2455-7773

CRYPTOCURRENCY MINING THROUGH BLOCKCHAIN

USING PYTHON
Paras Manish khandelwal, Student, Shriram Hanmantrao Patil, Student, Dasari
Anantha Reddy, Assistant Professor
Department of Information Technology, KITS, Ramtek, Nagpur-441106.

Abstract: Block chain, the foundation of cryptocurrency uses the blockchain

crypto currency has received extensive technology. Blockchain is nothing but one big
attention in last five years. It serves as an ledger on the cloud which decentralizes
immutable ledger which allows transactions complex management systems into distributed
take place in a decentralized manner. and simpler management technology.
Basically block chain is a distributed data The current currency trends contains a huge
storage consisting of containers (blocks) risk and very complicated finance
which are connected and crypto currency uses management system, similarly there are
the block chain technology. If the data we various centralized systems in healthcare,
store on a block is a list of transactions, the supply chain, Internet of things where there is
coins transferred in transactions form the an enormous need of decentralization.
crypto currency. The security mechanism
through hashing used in block chain keeps the Blockchain provides a decentralized approach
transactions safe. We use a typical consensus as a solution. If the data we store on a block is
algorithm which is designed to achieve a list of transactions, the coins transferred in
reliability in a network involving multiple transactions form the crypto currency. The
nodes in the block chain. We also create a user security mechanism through hashing used in
interface and a wallet for convenience block chain keeps the transactions safe. We
of the users. Block chain based applications use a typical consensus algorithm which is
are springing up, covering numerous designed to achieve reliability in a network
fields including financial services, reputation involving multiple nodes in the blockchain.
system and IOT, and so on. We also create a user interface and a wallet for
KEYWORDS: Block chain, Decentralization, convenience of the users. The initial objective
Consensus, Nodes, and Crypto currency is to create a live and working blockchain
environment. The blockchain has the
Introduction: Blockchain, the foundation of capability to disrupt various sectors such as
cryptocurrency has received extensive agriculture, banking & finance, healthcare
attention in last management, IOT, governance and many
five years. It serves as an immutable ledger more.
which allows transactions take place in a Blockchain is the technology of tomorrow and
decentralized manner. Basically blockchain is the implementation of which has
a distributed data storage consisting of already begun, countries such as Japan,
containers (blocks) which are connected and Germany, and France have welcomed

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 INTERNATIONAL JOURNAL FOR EMERGING TRENDS IN ENGINEERING AND MANAGEMENT RESEARCH
(IJETEMR)VOLUME V, ISSUE II- June 2019 ISSN NO: 2455-7773

blockchain and cryptocurrency in every prevent double-spending. We propose a

sector. In India, the state of Andhra Pradesh solution to the double-spending problem using
has already started the implementation of a peer-to-peer network.
block chain in agriculture. To manage the Ittay Eyal et.al., (2016) [3] the Bit coin
block chain a lot of computing power and crypto currency records its transactions in a
various other resources are required, and a pub-lic log called the block chain. Its security
crypto currency plays as an incentive system rests critically on the distributed protocol that
for the people and organizations (miners) maintains the block chain, run by participants
who manage the block chain environment. called miners. Conventional wisdom asserts
Block chain is today what internet was in that the mining protocol is incentive-
1990, unlike social media and mail, it is not compatible and secure against colluding
one of the use cases of internet but rather minority groups, that is, it incentivizes miners
a newer and upcoming dawn in the era of to follow the protocol as prescribed.
technological advancements. Stephen Chan, et.al.,(2015)[4] analyzed
statistical properties of the largest crypto
Review of Literature: Christian Decker, currencies (determined by market
et.al.,(2014)[1]The Bit coin system only capitalization), of which Bit coin is the most
provides eventual consistency. For everyday prominent example.
life, the time to confirm a Bit coin transaction Quan-Lin Li1, et.al., (2018)[5] In this paper,
is prohibitively slow. In this paper we propose they have developed queuing theory of block
a new system, built on the Bit coin block chain systems and provide system
chain, which enables strong consistency. Our performance evaluation. To do this, we design
system, Peer Census, acts as a certification a Markovian batch-service queueing system
authority, manages peer identities in a peer- with two different service stages, which are
to-peer network, and ultimately enhances Bit suitable to well express the mining process in
coin and similar systems with strong the miners pool and the building of a new
consistency. Our extensive analysis shows that block chain. By using the matrix-geometric
Peer Census is in a secure state with high solution, we obtain a system stable condition
probability. We also show how Discoin, a Bit and express three key performance measures:
coin variant that decouples block creation and (a) The average number of transactions in the
transaction confirmation, can be built on top queue, (b) the average number of transactions
of Peer Census, enabling real-time payments. in a block, and (c) the average transaction-
Unlike Bit coin, once transactions in Discoin confirmation time. Finally, they used
are committed, they stay committed. numerical examples to verify computability of
Satoshi Nakamoto,et al., (2015) [2] a purely our theoretical results. Although our queueing
peer-to-peer version of electronic cash would model here is simple only under exponential
allow online payments to be sent directly from or Poisson assumptions, our analytic method
one party to another without going through a will open a series of potentially. Promising
financial institution. Digital signatures provide research in queueing theory of block chain
part of the solution, but the main benefits are systems.
lost if a trusted third party is still required to
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 INTERNATIONAL JOURNAL FOR EMERGING TRENDS IN ENGINEERING AND MANAGEMENT RESEARCH
(IJETEMR)VOLUME V, ISSUE II- June 2019 ISSN NO: 2455-7773

Harsha Patil et.al.,(2019)[6] the objective of design facilitates robust workflow where
this research paper is to focuses on working participants' uncertainty regarding data security is
framework of Block chain Technology and marginal. The use of a block chain removes the
enlightens the security of Block chain characteristic of infinite reproducibility from a
digital asset. It confirms that each unit of value
technology through vulnerability
was transferred only once, solving the long-
Naseema Shaik, et al.,(201)[7] Block chain is
standing problem of double spending. A
a decentralized and distributed log of records, block chain has been described as a value-
where, blocks containing a set of transactions exchange protocol. A block chain can
are chained together by cryptographic hash maintain title rights because, when properly set up
value. Transactions originating from a node to detail the exchange agreement, it
are validated by participating nodes and a set provides a record that compels offer and
of transactions are added into a block by a acceptance.
“mining” node. Any mining node with
sufficient compute power that solves a
cryptographic problem can generate and
broadcast a new block containing the set of
validated transactions.
Block chain is a technology that allows data to
be stored and exchanged on a peer-to-peer1
(P2P) basis. Structurally, block chain data can
be consulted, shared and secured thanks to
Fig:1 Blockchain
consensus-based algorithms2. It is used in a
decentralized manner and removes the need Blocks hold batches of valid transactions that
for intermediaries, or "trusted third parties". In are hashed and encoded into a Merkle
this paper we are discussed on Bloch chain tree. Each block includes the cryptographic
technology instead of digital currency. hash of the prior block in the block chain,
Block chain Approach: Block chain is a linking the two. The linked blocks form a
decentralized, distributed, and oftentimes chain. This iterative process confirms the
public, digital ledger that is used to record integrity of the previous block; all the way
transactions across many computers so that back to the original genesis block.
any involved record cannot be altered
retroactively, without the alteration of all The block time is the average time it takes for
subsequent blocks. This allows the the network to generate one extra block
participants to verify and audit transactions in the block chain. Some block chains create a
independently and relatively inexpensively. A new block as frequently as every five
block chain database is managed seconds. By the time of block completion, the
autonomously using a peer-to-peer network included data becomes verifiable. In
and a distributed time stamping server. They crypto currency, this is practically when the
are authenticated by mass collaboration transaction takes place, so a shorter block
powered by collective self-interests such a time means faster transactions. The block time

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 INTERNATIONAL JOURNAL FOR EMERGING TRENDS IN ENGINEERING AND MANAGEMENT RESEARCH
(IJETEMR)VOLUME V, ISSUE II- June 2019 ISSN NO: 2455-7773

for Ethereum is set to between 14 and Above figure present the wallet of the project
15 seconds, while for bit coin it is 10 minute with wallet and nodes. It also consists of creati
ng new wallet, loading a wallet with the
recipent key, amount of coins that wants to be
send. It also gives option like open transaction
and load blockchain. At the top of right corner
it shows available funds.After making a
transaction successful it creats a one block.

Fig. 3.2 System Architecture of Crypto currency mining

through block chain

Stem Architecture shows how the whole

system works from both the block chain
management point of view, miner point of
Fig4:Block chain
view and user point of view. It gives the
basic idea of how the transactions are stored in After making a successful transaction it
the form of data and how the nodes are creates a block and that bock is added in
interconnected in peer to peer network, and distributed network called as block chain. It is
how the user can send and receive funds collection of ‘n’ number of blocks, which are
using the GUI provided in the wallet. connected to each other and form a block
chain which is distributed. They are connected
Results: The implementation details are to each other by using hash values of next
provided in the form of results which appear block. Each new block stores the previous
in the different modules. blocks. That makes block chain is distributed.

Bit coin uses SHA 256 while Ethereal uses

Keccak-256 algorithms respectively. The only
important thing to take away is that this
generated hash key is the one that stores data
of current block and address of the next block,
hence linking both the blocks and keeping
track of the previous block. In given diagram
below, I have generated hash of a string using
SHA 256 algorithm, you too can generate
hash values from here.
Fig3: Home Screen

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 INTERNATIONAL JOURNAL FOR EMERGING TRENDS IN ENGINEERING AND MANAGEMENT RESEARCH
(IJETEMR)VOLUME V, ISSUE II- June 2019 ISSN NO: 2455-7773

conference on Distributed computing

and Networking (ICDCN).
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13.

2. S.Nakamoto, “Bitcoin: A Peer-to-peer

electronic cash system”
, 2008 [online] Available:
http://bitcoin.org/bitcoin.pdf
Fig5: SHA-256 Conversion

3. I. Eyal, A. E. Gencer, E. G. Sirer and

Conclusion: Same as paypal or bank credits R. Van Renesse, “Bitcoing : A
the crypto currencies could be considered as a Scalable blockchain protocol” , in
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recording the digital transactions and balances Design and Implementation(NSDI16) ,
which is in term called as block chain. Wallets Santo Clara, CA , USA ,2016, pp.45-
are the software’s used to access the crypto 59.
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(IJETEMR)VOLUME V, ISSUE II- June 2019 ISSN NO: 2455-7773

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