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Bitcoin is a peer-to-peer payment system proposed by Nakamoto in 2008. Based on the Nakamoto consensus, Bagaria, Kannan, Tse, Fanti, and Viswanath proposed the Prism protocol in 2018 and showed that it achieves near-optimal blockchain…

Cryptography and Security · Computer Science 2020-04-27 Jing Li , Dongning Guo

We review different classes of cryptocurrencies with emphasis on their economic properties. Pure-asset coins such as Bitcoin, Ethereum and Ripple are characterized by not being a liability of any economic agent and most resemble commodities…

General Economics · Economics 2021-09-22 Matheus R. Grasselli , Alexander Lipton

Numerous electronic cash schemes have been proposed over the years - however none have been embraced by financial institutions as an alternative to fiat currency. David Chaum's ecash scheme was the closest to something that mimicked a…

Cryptography and Security · Computer Science 2021-05-11 Hitesh Tewari

Bitcoin is a decentralised digital currency that relies on cryptography rather than trusted third parties such as central banks for its security. Underpinning the operation of the currency is a peer-to-peer (P2P) network that facilitates…

Cryptography and Security · Computer Science 2018-05-29 James Tapsell , Raja Naeem Akram , Konstantinos Markantonakis

Bitcoin is a "crypto currency", a decentralized electronic payment scheme based on cryptography. Bitcoin economy grows at an incredibly fast rate and is now worth some 10 billions of dollars. Bitcoin mining is an activity which consists of…

Cryptography and Security · Computer Science 2014-12-03 Nicolas T. Courtois , Lear Bahack

Designed to compete with fiat currencies, bitcoin proposes it is a crypto-currency alternative. Bitcoin makes a number of false claims, including: solving the double-spending problem is a good thing; bitcoin can be a reserve currency for…

Computational Engineering, Finance, and Science · Computer Science 2018-07-06 Brian P. Hanley

Modern societies have adopted government-issued fiat currencies many of which exist today mainly in the form of digits in credit and bank accounts. Fiat currencies are controlled by central banks for economic stimulation and stabilization.…

Cryptography and Security · Computer Science 2022-12-29 Heung-No Lee , Young-Sik Kim , Dilbag Singh , Manjit Kaur

There are different interpretations of the terms "tokens" and "token-based systems" in the literature around blockchain and digital currencies although the distinction between token-based and account-based systems is well entrenched in…

Theoretical Economics · Economics 2021-09-21 Aldar C-F. Chan

Two taxonomies of money that include cryptocurrencies are analyzed. A definition of the term cryptocurrency is given and a taxonomy of them is presented, based on how its price is fixed. The characteristics of the use of current fiat money…

General Finance · Quantitative Finance 2020-02-21 Jorge Barrera

Bitcoin is a digital currency which relies on a distributed set of miners to mint coins and on a peer-to-peer network to broadcast transactions. The identities of Bitcoin users are hidden behind pseudonyms (public keys) which are…

Cryptography and Security · Computer Science 2014-07-08 Alex Biryukov , Dmitry Khovratovich , Ivan Pustogarov

Digital payment schemes show an ever increasing importance. Out of the countless different schemes available this article focuses on the popular Bitcoin system. The authors provide a description of Bitcoin's unique technological basis and…

Computers and Society · Computer Science 2013-09-02 Artus Krohn-Grimberghe Christoph Sorge

A peer-to-peer network, enabling different parties to jointly store and run computations on data while keeping the data completely private. Enigma's computational model is based on a highly optimized version of secure multi-party…

Cryptography and Security · Computer Science 2015-06-12 Guy Zyskind , Oz Nathan , Alex Pentland

Bitcoin is a decentralized crypto-currency, and an accompanying protocol, created in 2008. Bitcoin nodes continuously generate and propagate blocks---collections of newly approved transactions that are added to Bitcoin's ledger. Block…

Cryptography and Security · Computer Science 2015-07-24 Ayelet Sapirshtein , Yonatan Sompolinsky , Aviv Zohar

A key challenge for Bitcoin cryptocurrency holders, such as startups using ICOs to raise funding, is managing their FX risk. Specifically, a misinformed decision to convert Bitcoin to fiat currency could, by itself, cost USD millions. In…

Risk Management · Quantitative Finance 2018-05-15 Cuneyt Akcora , Matthew Dixon , Yulia Gel , Murat Kantarcioglu

Modern technology has brought novel types of wealth. In contrast to hard cashes, digital currencies do not have a physical form. They exist in electronic forms only. Yet, it has not been clear what impacts their ongoing growth will make, if…

General Economics · Economics 2023-10-02 Zae Young Kim , Jeong-Hyuck Park

Bitcoin is a peer-to-peer cryptographic currency system. Since its introduction in 2008, Bitcoin has gained noticeable popularity, mostly due to its following properties: (1) the transaction fees are very low, and (2) it is not controlled…

Cryptography and Security · Computer Science 2014-07-01 Marcin Andrychowicz , Stefan Dziembowski , Daniel Malinowski , Łukasz Mazurek

We revisit the fundamental question of Bitcoin's security against double spending attacks. While previous work has bounded the probability that a transaction is reversed, we show that no such guarantee can be effectively given if the…

Cryptography and Security · Computer Science 2016-06-01 Yonatan Sompolinsky , Aviv Zohar

Bitcoin mining presents a significant economic incentive for efficient hashing and broadcast of data, both parameters stemming from the Proofs of Work used to advance the network. This incentive has led to the development of Bitcoin…

Cryptography and Security · Computer Science 2016-03-17 Jonathan Harvey-Buschel , Can Kisagun

The Bitcoin cryptocurrency records its transactions in a public log called the blockchain. Its security rests critically on the distributed protocol that maintains the blockchain, run by participants called miners. Conventional wisdom…

Cryptography and Security · Computer Science 2013-11-18 Ittay Eyal , Emin Gun Sirer

Bitcoin is a digital currency and payment system based on classical cryptographic technologies which works without a central administrator such as in traditional currencies. It has long been questioned what the impact of quantum computing…

Quantum Physics · Physics 2018-01-10 Louis Tessler , Tim Byrnes