CHAPTER ONE

INTRODUCTION

1.0 INTRODUCTION

Cryptocurrencies such as Bitcoin consist of a peer-to-peer network of

nodes which jointly maintain a common tamper-resistant record of
historical transactions without relying on a central authority or trusted
third party. The key innovation is a novel transaction-recording
mechanism known as the blockchain. This is made up of blocks – that is,
batches of validated transactions, which are chained together, that is,
logically linked or tied to each other in such a way that any attempt to
edit or otherwise corrupt the historical record is either prohibitively
expensive or becomes immediately evident. Therefore, a Bitcoin, enables
its participants to co-create an irrefutable record of transactions.
Customers avoid making actual purchases on mobile devices because of
concerns about security and the inherent difficulty of entering bank card
information using a touch screen interface. Electronic wallets look to
sidestep these concerns by streamlining the mobile payment process via a
secure service. Customers simply click to buy something and all of their
payment info is already entered into the wallet. The fast checkout works
both in-app and on participating mobile sites.

Currency Wallet also gives merchants the ability to highlight special

offers or discounts from their websites or emails directly to the shopper
via the app. Customers can also add any gift card balances to their virtual
wallets, which helps drive additional sales. According to Forrester
Research, payments made with currency Wallet and other services like it
are expected to top $140 billion by 2019. Crytpo Wallet's main
competitor is Apple, although other companies such as Samsung and
PayPal have their own digital payment systems as well (Samsung Pay and
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 PayPal Wallet, respectively). While the products may have a few
differences when it comes to the user, they offer similar features from the
perspective of an online store owner.

1.1 BACKGROUND OF THE STUDY

currency Wallet is what is known as a server-side wallet, which means

that all of a user's information is stored remotely on Crytpo's system,
rather than on the user's device. currency payment services
provider BitPay announced Wednesday (Aug. 11) in a press release that
U.S. BitPay Prepaid Mastercard holders can add their cards to Crytpo
Wallet and spend their Bitcoin and other currency on contactless
purchases in the app, online and in person with Android phones, tablets
and watches using Crytpo Pay. Support for BitPay will come to Apple
Pay and Samsung Pay soon, the release stated.Consumers are seeking
more new places and ways to spend their , and we want to make their
experience fast, easy and secure,” said BitPay CEO Stephen Pair.
“Adding Crytpo Pay makes it easy and convenient for customers to live
life on and benefit from the increased value provides from day-to-day
items to luxury purchases.” The BitPay Wallet app allows customers to
manage, protect, track and spend 12 forms of currency, including Bitcoin,
Dogecoin and Ethereum as well as several stablecoins.
1.2 SCOPE OF THE STUDY

This study focused on the concept, application area and relevance of

currency wallet.

1.3 AIM AND OBJECTIVES OF THE STUDY

To examine the relevance of currency Wallet on Nigeria economy and its

usefulness in the society at large.

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 The following are the objectives of this study:

1. To understand the concept of currency in Nigeria economical

system.

2. To determine the level of relevance of currency Wallet.

1.4 DEFINITION OF TERMS

i. CURRENCY– a digital currency in which transactions are verified

and records maintained by a decentralized system using graphy, rather
than by a centralized authority.
ii. PAYPAL – PayPal Holdings, Inc. is an American company operating
a worldwide online payments system that supports online money
transfers and serves as an electronic alternative to traditional paper
methods like checks and money orders.
iii. ENCRYTION – Encryption is the process of encoding information.
This process converts the original representation of the information,
known as plaintext, into an alternative form known as ciphertext.
Ideally, only authorized parties can decipher a ciphertext back to
plaintext and access the original information.
iv. TOKENIZATION – Tokenization, when applied to data security, is
the process of substituting a sensitive data element with a non-
sensitive equivalent, referred to as a token, that has no extrinsic or
exploitable meaning or value. The token is a reference that maps back
to the sensitive data through a tokenization system.
v. DIGITAL WALLET – A digital wallet also known as "e-Wallet"
refers to an electronic device, online service, or software program that
allows one party to make electronic transactions with another party
bartering digital currency units for goods and services.
vi. MERCHANT – A merchant is a person who trades in commodities
produced by other people, especially one who trades with foreign
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 countries. Historically, a merchant is anyone who is involved in
business or trade. Merchants have operated for as long as industry,
commerce, and trade have existed.
vii. DIVEGNRCE – Divergence can also mean a deviation from
standards or norms, like the divergence between your state's smoking
laws and those of your neighboring states.
viii. SERVER – In computing, a server is a piece of computer hardware or
software that provides functionality for other programs or devices,
called "clients". This architecture is called the client–server model.
ix. ECONOMIST – An economist is a practitioner in the social science
discipline of economics. The individual may also study, develop, and
apply theories and concepts from economics and write about
economic policy.
x. E-COMMERCE – E-commerce is the activity of electronically
buying or selling of products on online services or over the Internet.

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 CHAPTER TWO

LITERATURE REVIEW

2.0 OVERVIEW OF CURRENCY WALLET

According to Perez, (2017), currency Wallet functions in three distinct

ways: (i) As a mobile payment service, (ii) As an online payment service
and (iii) as a means of funds storage.

 AS A MOBILE PAYMENT SERVICE

The Crytpo Wallet mobile payment service is available for select Crytpo
Android-powered devices. It stores credit and debit card information and
then facilitates transactions at stores using near-field communication
(NFC), enabling payment by simply touching the mobile device to a
store’s PayPass reader. According to Cóil, (2016), Wallet is a mobile
payment system that acts as a virtual wallet, allowing users to make
payments and transfer money straight from their phones. The service is
free for users and can store credit, debit, gift and loyalty card information.
The fast checkout works both in-app and on participating mobile sites

 AS AN ONLINE PAYMENT SERVICE

Crytpo Wallet’s online payment service functions separately from the

mobile payment service and is designed to securely store customers’
credit and debit card information in order to simplify online purchases for
customers. Crytpo Pay makes it easy to purchase both in-store and online,
without having to dig through your purse or wallet for physical credit
cards. You can add as many cards as you want to your Crytpo Pay
account, as well as loyalty cards or even your Paypal account. In addition
to the stores and online shops that support Crytpo Pay payments, you can
also send money peer-to-peer without needing a bank transfer (Amadeo,
2018).
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  AS A MEANS OF FUNDS STORAGE
Crytpo wallet is a safe, simple, and helpful way to manage your money,
giving you a clearer picture of your spending and savings:
- Pay at your favorite places
- Send and receive money instantly
- Earn rewards for everyday payments
- Understand your spending & improve your financial health

2.1 COMPACTIBILITY OF CURRENCY WALLET

currency wallet is available on all modern Android phones (KitKat 4.4+).

However, to pay in stores using Crytpo Pay, your phone must support
NFC (Near-Field Communication) and HCE (Host Card Emulation).
When you place your phone over a contactless payment terminal in a
store, NFC and HCE work together to send your payment information to
the store so you can make your purchase.

With Wear OS watches, it's a similar situation. Most modern Wear OS

watches will have currency wallet support, providing they have NFC
built-in for the contactless transactions (Amadeo, 2018).

To find out if your Android phone supports Crytpo Pay in stores, open
your device’s Settings app and then tap More under Wireless & networks.
If you don’t see this option, look for a similar one like Connections or
NFC for example. You may need to tap More to see other settings. If you
see the option NFC or something similar, you can officially make
payments in stores using Crytpo Pay (Lynley, 2016). 

2.2 BANKS THAT WORK’S WITH CURRENCY WALLET

currency wallet works with credit and debit cards from the following US
financial institutions: American Express, Discover, MasterCard, and

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 Visa. These cards are issued by the following US banks and credit
unions: Bank of America, Capitol One, Chase, Citi, Discover, PNC, US
Bank, Wells Fargo, and more, and also the UK financial institutions: Visa
and MasterCard cards are supported. These financial institutions support
Crytpo Pay in the UK: Bank of Scotland, First Direct, Halifax, HSBC,
Lloyds Bank, M&S Bank, MBNA, Nationwide Building Society,
NatWest, and more (Richard, 2017).

2.3 SECURITY OF CURRENCY WALLET

Theoretically, when you're paying in store, currency wallet doesn't share

your actual card details. Instead, the merchant receives a unique
encrypted number. Similarly, with Android Pay, Crytpo worked with
leading payment networks and financial institutions to deliver industry-
standard security tokenization (Bennett, 2018). As a result, currency
wallet tokenization is different from Apple Pay's in that tokens aren't
generated in a secure chip within the phone but rather within the cloud.
Still, if you should ever lose your phone, Crytpo recommends using Find
My Device to find or erase it in order to keep your local data safe from
prying eyes. However, Crytpo Pay does accept a PIN code, password, or
pattern to authenticate transactions (Bhat, 2016).

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 CHAPTER THREE
DISCUSSION

3.0 UNDERSTANDING CURRENCIES

currencies are systems that allow for secure payments online which are
denominated in terms of virtual "tokens," which are represented by ledger
entries internal to the system. "" refers to the various encryption
algorithms and graphic techniques that safeguard these entries, such as
elliptical curve encryption, public-private key pairs, and hashing
functions. A currency wallet, also known as a Bitcoin wallet or wallet,
functions like a traditional wallet, but instead of paper currency, it holds
proof of your digital cash.

A currency wallet stores the public and private keys required to buy
Bitcoin or other currencies, and provides digital signatures authorizing
each transaction. These digital wallets can be a device, a program on an
app or online website, or a service offered by exchanges. currency
wallet, is a peer-to-peer payments service developed by Crytpo before its
merger into Crytpo Pay. It allowed people to send and receive money
from a mobile device or desktop computer. In 2018, Android Pay and
currency wallet were unified into a single pay system called Crytpo Pay.
Crytpo Pay Send, a feature included inside currency wallet, has replaced
the Crytpo Wallet service.

3.1 TYPES OF CURENCY WALLETS

The following are some of the most popular digital wallets:

 Bitflyer: is one of the best currency exchange that helps you to buy, sell
Bitcoin and other digital currencies by paying nominal fees or payment.
This cloud-based program uses the latest encryption to secure your
Bitcoins.

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  Blockchain: Blockchain the safest and most popular wallet. It is used for
investing and storing currencies. It is one of the most secure Bitcoin
wallet which keeps track of who owns the digital tokens.

 Kraken: Karken is a strong competitor of Coinbase. It also offers

financial stability by maintaining full reserves, relationships, and the
highest legal compliance standards.

 Paxful wallet: Paxful is the poplar peer-to-peer marketplace to buy and

sell bitcoin with 300+ payment methods. This bitcoin wallet is easy to use
for beginners and veterans alike to make a profit.

 Trezor: The Trezor hardware wallet helps you to store your bitcoins.

You can easily plug into your computer or smartphone. It helps you to
randomly generated pin code that keeps the device safe and secure.
3.2 WORKING PRINCIPLE OF A CRYTO CURRENCY WALLET

A currency wallet works by a theoretical or random number being

generated and used with a length that depends on the algorithm size of the
currency's technology requirements. The number is then converted to a
private key using the specific requirements of the currency graphy
algorithm requirement. A public key is then generated from the private
key using whichever graphic algorithm requirements are required. The
private key is utilized by the owner to access and send currency and is
private to the owner, whereas the public key is to be shared to any third
party to receive currency.

Up to this stage no computer or electronic device is required and all key

pairs can be mathematically derived and written down by hand. The
private key and public key pair (known as an address) are not known by
the blockchain or anyone else. The blockchain will only record the

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 transaction of the public address when currency is sent to it, thus
recording in the blockchain ledger the transaction of the public address.

3.3 ADVANTAGES AND DISADVANTAGES OF CURRENCIES

Advantages of currency
Below are some of the advantages of currency.
1. No Restrictions on Payment: There is freedom of payment. For
individuals living under the tyranny of governments, Bitcoin can work as
a significant financial tool to use as a medium of exchange without a
single entity or government having control over it.
2. Maintenance of Anonymity: Many people are working towards it
since the anonymity is maintained. It protects identity theft.
Personal information does not matter of wrangle since the payment can
be made and finalized with the user’s virtual identity.
3. Use of Complex Algorithm: Since Bitcoin uses a complex algorithm,
it cannot be manipulated by any individual, organization, a country as
some crazy serious skill is required to make digital heist.
4. Speed of Exchange: How boring is it for you all to stand on line at the
bank between banking hours just to get your own money? How difficult it
becomes when you need money urgently but you realize it’s a public
holiday?
That’s not something to worry about as currencies offer very fast
transactions. Bitcoin takes around 10 minutes of validating exchange and
its less if you use other currency techniques.
5.No Third-Party Involvement: currencies are also gaining popularity
as there is no third party involvement or approval required. It removes
delays in payments. What a great medium of exchange especially for
freelancers to keep complaining about delays in payment!
6. Free/ Very Less Transaction Fee: Most currencies transactions are
normally free. Anyone can exchange without paying any exchange fees
which is very beneficial compared to the normal banking system. But
some also offer transactions fee to speed up their transactions.
7. No Inflation: There will be no inflation since no political forces can
change the order of use of coins and mines in currency.
Despite the many advantages it has to offer, there are certain
disadvantages, it’s better to keep having knowledge about it.

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 Disadvantages of currency
1. Lack of Awareness/Knowledge: People are still unaware that digital
currencies like Bitcoin exists. They have no or very few background
knowledge regarding currency. currency is a newly introduced system
and it uses quite complicated blockchain technology, loads of turns and
twists to learn and adapt. Without comprehending currency, it is risky to
deal with it.
2. Use of Complex Technique: It is true that the use of complex
algorithms makes it rare to create digital heists, but what is the point if
the worker does not know about the usefulness of this very well? It
becomes very difficult for customers as well as the service providers to
understand and use currencies for transactions.
3. Highly Volatile in Nature: Since its early days, currencies are known
for having a highly volatile nature. It is unpredictable and risky to invest
without understanding possible risk factors. As there is a limited amount
of coins and the demand for them is increasing by each passing day. As a
result, people become skeptical if they should invest in it or not.
4. Not Accepted Everywhere: Though the hype of currency is rising
each passing day, currencies are still not accepted everywhere. Some
countries around the globe have still not accepted and legalized the use of
currency, so it might still be difficult to transact money all around the
world.
5. Victim of Theft and Scam: People still find it difficult to understand
how currencies and blockchain technology operate, so they have often
become victims of theft and scams by letting other people keep a record
of their bitcoins.
6. No Reverse of Payment or Recovery: Once you have made the
payment, you can’t reverse it.
If you mistakenly send money to someone and then if they do not agree to
refund the money, damn! you can do nothing but feel sorry for yourself.
You need to remember your account details because in case if you forget
your account details, there is no way you can retrieve it. The data will be
lost and the reason why you cannot get back your account is that
blockchain technology uses very tight security. This loss adds up distress.
7. Black Market: As personal identity isn’t shown anywhere, anonymity
can give rise to the black market. It can be a platform to conduct unlawful
activities. According to www.topbrokers.trade, the infamous “dark web”
marketplace Silk Road used Bitcoin, facilitating illegal drug purchases
and other illicit activities before it was shut down in 2014.

3.4 ISSUES AND CHALLENGES OF CRYTO CURRENCY

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The following are some of the major problems in the currency market.

 PRICE MANIPULATION

By far the biggest issue in the currency market is the excessive volatility.
The prices of currencies on exchange platforms rise and fall dramatically
over a short period of time. When a tradable asset can drop by as much as
49 percent in less than 24 hours, then the volatility of the market is high.
There are a number of reasons that contribute to the excessive volatility in
the market but perhaps the biggest contributor is the activities of
“whales.”

Whales are individuals that have large currency holdings. They are able
to swing the market by manipulating the price of a currency. They do this
by means of “buy and sell walls.” A buy wall is simply when a “buy
position” worth a lot of money (probably running into millions of dollars)
is opened on a trading platform. Regular investors who trade in small
amounts will notice this big buy position that has been opened and
interpret it to mean an imminent price increase. Once this happens, the
price of the currency will inevitably go up.

 PUMP AND DUMP ICO SCHEMES

ICOs have emerged to become an integral part of the currency market.

Many tokens are introduced to the market via ICOs with investors buying
these tokens in exchange for fiat money. Pump and dump ICO schemes
continue to be a problem for the market due to the lack of regulation.
During the ICO, the entrepreneurs behind the token speculate massively
on the coin, driving the prices up and getting investors attracted. Once
this is done, they cash out, leaving the investors with worthless coins that
have little or no value.

 THE ACTIVITIES OF CYBERCRIMINALS

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The currency market has right from its inception been beset by the
activities of hackers and cybercriminals. There have been a number of
high-profile currency hacks and heists that have resulted in millions of
dollars being stolen. Traders and investors have lost funds and some
platforms have ceased to operate. In the aftermath of these hacks, the
price of particular currencies has dropped considerably.

In a bid to counter the activities of these cybercriminals, traders and

platform operators have to take a number of precautionary measures.
While some of these measures are indeed helpful, they create bottlenecks
that hamper the currency trading process. This then creates a trade-off
between security and efficiency. Take for instance, the need to provide
adequate security for currency held in wallet storage. Due to the activities
of hackers, some traders prefer to store the bulk of their currency
holdings in offline wallets. This means that anytime they wish to trade,
they have to move from offline storage to online storage before
participating in the trade. This constitutes another hassle in an already
convoluted trading environment.

 LACK OF PRICE UNIFORMITY

Price charting is an essential part of asset/commodity trading. It is often

necessary to develop price charts in order to carry out investment analysis
and develop trading strategies. The problem here is the price of a
currency can vary considerably on the different exchange platforms. With
such extreme price differences for the same currency, price charting
becomes a difficult endeavor. Add to this, the sheer degree of volatility in
the market and the problem becomes even more exacerbated.

The currency market is plagued with a litany of delays across almost

every type of transaction. From opening a trading account to verifying
your identity and being able to make deposits and withdrawals, the
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 system seems to be quite slow. Blockchain technology ought to make
transactions occur faster but it seems to take forever for transactions to be
approved on the various chains.

Issues having to do with scalability have been identified by experts as

being the cause of transaction delays. As the blockchains become longer,
more transactions are being held up in the queue awaiting approval. The
market is volatile and as such, delays can be costly. Traders end up
missing out on favorable positions because the transaction didn’t get
posted on time.

These are just some of the nagging issues in the currency market that
threaten to affect the quality of the trading experience. It is vital that key
stakeholders in the market continue to work on efforts to combat these
issues. As the market grows and evolves, it is hoped that some of these
issues will become a thing of the past.

CHAPTER FOUR

SUMMARY, CONCLUSION AND RECOMMENDATION

4.0 SUMMARY

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 A currency wallet can be used for various transactions, such as bill
payments (DTH, electricity, water, broadband, cable, etc.), buying tickets
for flights, buses or trains, purchasing movie tickets, buying groceries,
saving and even transferring money. currency wallet is one of the most
used wallets. In this paper a review on the concept of currency wallet was
carried out stating the working principle and relevance of the wallet.

4.1 CONCLUSION

In conclusion currency wallets are all electronic wallets used to store

digital information such as currencies and many other things. They have
other use cases like a mobile payment system, they act as a virtual wallet,
allowing users to make payments and transfer money straight from their
phones. The service is free for users and can store credit, debit, gift and
loyalty card information.

4.2 RECOMMENDATION

With all the relevance of currency wallet, were it not for its limitations on
the Android side, it would be a strong contender for “Best App that Isn’t
Venmo.” I hereby recommend that it should be Boasting a simple
interface, robust bill splitting abilities well, for iOS users, anyway and
ability to store, send or receive currency from virtually anyone.

REFERENCES

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Pay". http://Artstechnica.com/gadget/2018/01. Retrieved 28th of Jul,
2022.
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Bennett, B. (2018). "Crytpo merges payment platforms under Crytpo Pay
brand". "Crytpo Pay now available in Switzerland – Here's how it
works". https://web.archieve.org/web. Retrieved 4th of Aug, 2022.

Bhat, P. (2016). "Testing , Testing - One, Two, Hands Free". Crytpo

Commerce. http://Artstechnica.com/gadget/2018/01. Retrieved 3rd of
Aug, 2022.

Bradshaw, K. (2018). "Crytpo Pay is now available in France, w/ initial support

from 6 banks and card companies". https://www.checkout.ie/crytpo-
launch-smartphone-payment-system-ireland. Retrieved 28th of Jul, 2022.

Cóil, D. (2016). "Crytpo Launches Smartphone Payment System In

Ireland". Checkout Magazine. http://www.checkout.ie/crytpo-launch-
smartphone-payment-system-ireland. Retrieved 29th of Jul, 2022.

Lynley, M. (2016). "Crytpo experiments with a way to pay without taking out

your phone". https://www.techcrunch.com. Retrieved 28th of Jul, 2022.

Perez, S. (2017). "Crytpo will now let users pay with any card they have on file,
not just those saved in Android Pay". https://www.techcrunch.com.
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Richard, G. (2017). "Android Pay is official for Russia, with 15 banks

supported at launch". https://www.androidpolice.com. Retrieved 2nd of
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