The Cryptocurrency Market size in terms of transaction value is expected to grow from USD 1.33 trillion in 2023 to USD 5.02 trillion by 2028, at a CAGR of 30.40% during the forecast period (2023-2028). With the evolving nature of this market with new cryptocurrencies created every week, it is difficult to know how big the cryptocurrency market is. A wide scope of market exchanges for cryptocurrency trading, spread across the globe because of their privacy protection features as well as rapid growth, extreme price volatility, and market illiquidity add to the complexity of the cryptocurrency market. The market capitalisation of cryptocurrencies over the years shows how high the price volatility of the market is. The estimated cryptocurrency market capitalisation, for example, during January 2022, varied between $400 billion and $800 billion, and finally settled at $128 billion by the end of the year 2022. In terms of transaction volumes, bitcoin alone had the highest number of 200,000 average daily transactions. Enterprise adoption of blockchain technology has quietly reached a tipping point across multiple use cases. Companies that have recognized value from their initial pilot projects are now moving towards turning these projects into production. Specifically, there is still uncertainty about this technology in the areas of regulations and governance, but the adoption of blockchain for financial services, identity, trade, and other markets is increasing. Global blockchain spending will be led by the banking industry followed by discrete manufacturing and process manufacturing with a combined market share of about 50% of overall spending. In the banking industry, the spending will be driven by two of the largest use cases cross-border payments & settlements and trade finance & post-trade settlements. Spending on blockchain solutions will be the highest in the United States followed by Western Europe and China. All the regions shown in the infographics are expected to see phenomenal growth in the coming years. Most cryptocurrencies are highly volatile, with values swinging widely due to speculation. Stablecoins (cryptocurrencies pegged to an external reference asset) may be less volatile, but they also come with important problems which have yet to be resolved. The decentralized governance of crypto assets (without intermediaries or central authority) has meant that trust is lacking. Finally, the blockchain technology itself requires excessive energy consumption, which has a negative impact on the environment. Although these ethical problems are serious and important, the benefits, opportunities and technological innovations that cryptocurrencies and blockchain technology have brought should not be missed.

a. Discuss how security and transparency works in Blockchain and evaluate some of the potential pitfalls of Blockchain technology.

b. Evaluate the role of proof of work in the management of Blockchain.

c. Critically examine the role of cryptocurrencies in providing a stable alternative to fiat money.

d. The cryptocurrency market and the technology that supports it have exposed ethical risks that, as a society, we must face. Keeping in view the above statement, evaluate the ethics of new technology.