Investigation of the working methods of blockchain based crypto currencies

Cryptocurrency technology which has been introduced into a mailing list with a paper by Satoshi Nakamoto in 2008 and is being used since 2009 has changed many aspects in both finance and technology and is regarded as a revolution. Cryptocurrencies working independently of the governments, persons and systems without central bodies, has turned into a very popular means of investment and increased in demand while eliminating intermediary companies of money transfer. Governments has been closely monitoring cryptocurrencies particularly in the recent years and trying to find out how they work and utilise, and syncronise their algorithms especially in a scarsely sourced and confusing environment. In addition, cryptocurrencies are a topic of debate by many regarding how they will be able to operate even when the governmental bodies cannot intervene and the fact that the cryptocurrency system will be operational as long as it has the essential supplies such as power and internet. Cryptocurrencies have over time developed certain problems regarding security and how they work. In this dissertation, it has been detailed how the cryptocurrencies, specifically Bitcoin, utilise their synronisation with their algorythms and the type of their relationship with the block-chain technology along with a number of suggestions for further development. Lastly, in this study, a cryptocurrency simulator has been developed demonstrating the applicability of the suggested development strategies in practice.