Chapter Trio – Bitcoin Mining Technology

Bitcoin network functions on cryptographic technology and thrives on mining, an incentivized mechanism to generate fresh bitcoins. Te this chapter, wij describe the fundamentals of Bitcoin system, underlying technical aspects of the network and mining process. Wij have also assessed the methods of mining, the worried opportunities and implications for the benefit of potential miners. Furthermore, wij have also provided a comparison of existing mining pools, different types of pool prize schemes, and the latest innovations te the Bitcoin industry.


  • Nirupama Devi Bhaskar
  • David Lee Kuo Chuen

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Chapter Eighteen – A Facilitative Prototype for Cryptocurrency Regulation te Singapore

While many consider cryptocurrency regulation necessary because of their potential for illicit use, heavy-handed regulation would overburden the development of a nascent industry that has captured the imagination of many. This chapter reflects on a number of key issues that arise from cryptocurrency regulation ter the Singapore setting and proposes a “facilitative” proefje for optimal [&hellip,]

Chapter Nineteen – Advancing Egalitarianism

Bitcoin, and with it, cryptocurrency, has given the world the very first peek of a social system enforced not by any trusted authority but by a global overeenstemming based around a strong convention. Blockchain technology, the fundament of Bitcoin, permits an unprecedented fresh paradigm for building social constructs based around not traditional law, but unspoiled computation [&hellip,]

Chapter 20 – How Digital Currencies Will Cascade up to a Global Stable Currency: The Fundamental Framework for the Money of the Future

Assortment of nonspeculative digital currencies will coagulate into combined currencies, cascading toward an inherently stable global currency, whipping out a fresh prosperity propelled by a stability-leveraged credit market, and weaving securitization into the currency itself—coexistence with national fiat currencies.

Chapter 21 – Bitcoin-Like Protocols and Innovations

Ter this chapter, the authors examine the Bitcoin protocol and its innovation. Their conclusion is that Bitcoin’s role spil a system providing financial services may have bot grossly underestimated, and bitcoin’s role spil an alternative to fiat currencies is likely to fail. This chapter discusses the Bitcoin key engineering elements that offerande the possibility of [&hellip,]

Chapter 22 – Blockchain Electronic Vote

Existing electronic voting systems rely on a proprietary and centralized vormgeving by a single supplier who controls the code base, the database, and the system outputs and supplies the monitoring instruments at the same time. They lack an open-source, independently verifiable output to build up the confidence required by voters and election organizers. This chapter describes [&hellip,]

Chapter 23 – Translating Commons-Based Peer Production Values into Metrics: Toward Commons-Based Cryptocurrencies

Commons-based peer production (CBPP) constitutes today an significant driver for innovation and social and cultural development, both online and off-line, through the establishment of an alternative, commons-based ecosystem, relying on peer production and collaboration among peers contributing toward a common good. Yet, to the extent that it operates outside of the market economy, the value [&hellip,]

Chapter 24 – The Confluence of Bitcoin and the Global Sharing Economy

Spil the Sharing Economy is emboldened by bitcoin and blockchain network peer-to-peer transaction processing, the virtuous cycle of efficiency of the Sharing Economy will be strengthened. The waste of fallow assets is diminished, and the related need for individual resource ownership declines. This increases the amount of discretionary budget and time available to consumers, and [&hellip,]

Chapter 25 – What Does Cryptocurrency Mean for the Fresh Economy?

If the cost of creating, maintaining, and transacting ter a fresh currency is driven down by cryptocurrency technology, then what will be the market response? This chapter investigates the likely influence by examining the characteristics of cryptocurrency against specific examples of fresh currency concepts from three different perspectives: canap currency, company currency, and community currency. [&hellip,]

Chapter 26 – Bitcoin: A Look at the Past and the Future

Te this chapter, Anton Cruysheer describes the function of money ter relation to the bitcoin, a verbinding that cannot be found reasonably ter discussions spil of yet. Te addition, he not only looks back te history but also looks at current alternative methods of exchange. Several developments are also described, such spil the role of [&hellip,]

Chapter 27 – Bitcoin IPO, ETF, and Crowdfunding

Wij discuss the latest attempts at initial public suggesting (IPO) for Bitcoin entities on traditional exchanges and the emergence of alternative unregulated decentralized exchanges via blockchain technology te this chapter. The very first part of this chapter considers, spil case studies, the legal structure of the Digital CC IPO ter Australia, the Winklevoss Bitcoin Trust spil [&hellip,]

Chapter 28 – Bitcoin Exchanges

Bitcoin exchanges act spil the most significant third-party intermediary by serving spil the gateway for newcomers to step into the Bitcoin world and supporting payment transactions of the users. However, this exchange market resumes to puzzle the Bitcoin enthusiasts. Many users may choose to deposit their Bitcoins ter a large exchange for the benefit of [&hellip,]

Chapter 16 – A Light Touch of Regulation for Virtual Currencies

With the rise of Bitcoin, governments are increasingly worried about the risks that the market will face spil a result of thesis virtual currencies. This chapter considers the virtual currency landscape from a market supervisory perspective. Very first, Bitcoin is introduced spil a type of virtual currency known spil a decentralized cryptocurrency, and the main participants [&hellip,]

Chapter 17 – Real Regulation of Virtual Currencies

Described spil a technology with “world-changing” promise, Bitcoin has also bot derided spil a “virtual Wild Westelijk for narcotraffickers and other criminals.” The debate overheen the long-term potential of Bitcoin has bot influenced te part by the regulatory scrutiny of federal regulators and law enforcement, and the United States Senate. Growing acceptance of Bitcoin shows up [&hellip,]

Chapter 1 – Introduction to Bitcoin

This chapter considers the evolution of alternative digital currencies from DigiCash to Bitcoin, the very digital currency that has spurred the development of this book. Specifically, this chapter probes the general features of Bitcoin and its benefits and risks before suggesting some conditions for a successful cryptocurrency to thrive. The chapter then concludes with optimism [&hellip,]

Chapter Two – Is Bitcoin a Real Currency? An Economic Appraisal

A bona fide currency functions spil a medium of exchange, a store of value, and a unit of account, but bitcoin largely fails to sate thesis criteria. Bitcoin has achieved only scant consumer transaction volume, with an average well below one daily transaction for the few merchants who accept it. Its volatility is greatly higher [&hellip,]

Chapter Four – National Cryptocurrencies

Cryptocurrencies are rapidly evolving past being ordinary payment vehicles. They have the capability to help communities, or even entire nations, by providing a secure, plain, inexpensive framework that can process transactions and store proof of ownerships and information. This chapter collects the current efforts toward thesis first-generation national cryptocurrencies.

Chapter Five – Evaluating the Potential of Alternative Cryptocurrencies

Since the creation of Bitcoin te 2009, many alternative cryptocurrencies (altcoins) have bot created that keuze to be the currency of the future. There are now overheen 440 active altcoins ter the market and fresh ones are being created each day. With every altcoin claiming to suggest distinctive features, it is becoming increasingly difficult for [&hellip,]

Chapter 6 – The Effect of Payment Reversibility on E-commerce and Postal Quality

Ter this chapter wij develop a stylized prototype of competition inbetween brick-and-mortar merchants and online retailers. An offline transaction, matching payment with delivery, is without risk for both the seller and the buyer. Te an online transaction, the seller faces the potential risk of nonpayment, while the buyer risks failed delivery. The effects of thesis [&hellip,]

Chapter 7 – Blockchain and Digital Payments: An Institutionalist Analysis of Cryptocurrencies

The latest financial keerpunt has caused a confidence and legitimation deficit ter the official monetary system, opening up the space for alternative systems of payment. Bitcoin is one of the most famous incumbents, both for its innovative technology and the opportunities for speculation that it permitted for to the early adopters. This chapter develops a [&hellip,]

Chapter 8 – Counterfeiting te Cryptocurrency: An Emerging Problem

This chapter presents the current legal environment of crypto-counterfeiting spil it relates to virtual currencies. Considering historical examples of traditional financial muziekinstrument mishaps, issues associated with the use of cryptocurrencies are discussed. From past practice, the three most pressing issues are (a) ownership, (b) regulation, and (c) dispute resolution. Ter essence, the security and success [&hellip,]

Chapter 9 – Emergence, Growth, and Sustainability of Bitcoin: The Network Economics Perspective

A large and well-connected set of users is essential for the survival of Bitcoin or any other peer-to-peer cryptocurrency. Wij can use network economics to analyze the Bitcoin network, cryptocurrencies are said to exhibit network externalities or request side economies of scale. The chapter starts by discussing network effects and how they affect a cryptocurrency’s [&hellip,]

Chapter Ten – Cryptocurrencies spil Distributed Community Experiments

This chapter outlines the major criticism cryptocurrencies faced since Bitcoin’s introduction ter 2009 that resulted ter the iterative development of various “altcoins.” Thesis alternative cryptocurrencies, which can be seen spil “distributed community experiments,” introduced fresh algorithms while also tackling social and other evolving problems that emerged via the various phases of adaptation and collective learning [&hellip,]

Chapter 11 – Extracting Market-Implied Bitcoin’s Risk-Free Rente Rate

Monetarist theory and uncovered rente rate parity condition are used te order to samenvatting implied Bitcoin risk-free rente rates from market gegevens. Application to euro and US$ market gegevens permits derivation of the theoretical Bitcoin risk-free rate dynamics overheen the period 2010-2014. Eventually, te light of the results obtained and other considerations on risk factors [&hellip,]

Chapter 12 – A Microeconomic Analysis of Bitcoin and Illegal Activities

This chapter considers a taste-for-variety proefje including legal and illegal varieties and a numéraire. The multiplicity goods are paid with bitcoins that reduce effective penalties against illegal consumptions. This prototype suggests that an increase ter the severity of penalties may expand the illegal varieties, spil illegal consumers need to compensate for the loss by the [&hellip,]

Chapter 13 – Legal Issues ter Cryptocurrency

Each country has its own specific rule on dealing with local and foreign currencies. Foreign currencies are generally managed by enactment of special legislation. Citizens can transact ter any foreign currency subject to rules. Thesis rules are many time linked with other legislations, for example, investment caps, sectoral investment, and corporate law. This chapter discusses [&hellip,]

Chapter 14 – How to Tax Bitcoin?

The purposes of this chapter are to explain the most common taxation problems related to the use of virtual currency and to examine how tax authorities of various countries are fighting to solve them. The chapter discusses legal developments ter, inter alia, the United Kingdom, the United States, Singapore, Norway, Ukraine, the Netherlands, and Denmark. [&hellip,]

Chapter 15 – Cryptocurrency and Virtual Currency: Corruption and Money Laundering/Terrorism Financing Risks?

Individuals involved ter bribery and corruption will permanently seek to exploit fresh areas and opportunities to offend and launder their corruption proceeds and evade the scrutiny of law enforcement and other government agencies. The broad objective of this chapter is to examine whether cryptocurrencies and other virtual methods are potential instruments for laundering corruption proceeds. [&hellip,]

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