Banks and other financial institutions have evolved along with e-commerce by enabling unfamiliar parties to transact around the globe with little to no risk. This service does not come without a price. Bitcoin was established as a more efficient way to securely transact online, removing the need for third-party financial institutions. The purpose of this Note is to highlight the potential of Bitcoin as a medium of exchange, making Internet transactions more flexible and affordable to all. The author analyzes Bitcoin’s current price volatility, highlighting a trend of Bitcoin-backed investments, and argues against any government action in support of these purely speculative and short-sited investment schemes. This Note expounds upon the major obstacles facing Bitcoin’s acceptance by mainstream commercial marketplaces. Most importantly, the author looks at future government intervention, and argues against any direct legislation on the Bitcoin system in order to allow for its growth and development.
The ability to assess the reputation of a member in a web community is a need addressed in many different ways according to the many different stages in which the nature of communities has evolved over time. In the case of reputation of goods/services suppliers, the solutions available to prevent the feedback abuse are generally reliable but centralized under the control of few big Internet companies. In this paper we show how a decentralized and distributed feedback management system can be built on top of the Bitcoin blockchain
Bitcoins have recently become an increasingly popular cryptocurrency through which users trade electronically and more anonymously than via traditional electronic transfers. Bitcoin's design keeps all transactions in a public ledger. The sender and receiver for each transaction are identified only by cryptographic public-key ids. This leads to a common misconception that it inherently provides anonymous use. While Bitcoin's presumed anonymity offers new avenues for commerce, several recent studies raise user-privacy concerns. We explore the level of anonymity in the Bitcoin system. Our approach is two-fold: (i) We annotate the public transaction graph by linking bitcoin public keys to "real" people - either definitively or statistically. (ii) We run the annotated graph through our graph-analysis framework to find and summarize activity of both known and unknown users.
The appearance of bitcoin is the beginning of a new era in which advanced technological capabili- ties have changed the perspective on the financial system's functioning rules and have expanded the understanding of the category of money. Bitcoin is used in commercial transactions, transfers and as an investment asset. The establishment of bitcoin is a part of the movement away from cash transactions and the general acceptance of non-material form of money observed around the world. The aim of the study is to analyse the bitcoin cryptocurrency in the scope of the fulfilment of the definition criteria and functions of money formulated in an economic theory, and to present the current legal situation in selected countries relating with its functioning.
Bitcoin, new digital money, recently got into focus. It uses P2P interaction where each owner transfers the electronic coin to the next owner signing and adding to the end of the coin a hash of the previous transaction and the public key of the next owner. Payment verification is accomplished by notifying the entire network about the transaction. This prevents double-spending and avoids the generation of nonexistent money. Personal information between parties in the transaction are not transferred. Unlike completely anonymous transaction, the
Tehniskās attīstības rezultātā mums ir iespēja izvēlēties izdevīgākus, ērtākus un drošākus norēķinu veidus. Tomēr esošais normatīvais regulējums nespēj aptvert visus jaunus institūtus. Līdz ar to daudzās jomās, tostarp nodokļu, rodas neskaidrības par tiesību normu piemērošanu.\nSamērā jauna virtuālā valūta bitcoin var tikt izmantota darījumos kā maksāšanas līdzeklis. Tā nodrošina iespēju veikt transakcijas ātri un izdevīgi, vienlaicīgi pasargājot savas sistēmas lietotājus no konfidenciālās informācijas izpaušanas trešajām personām. Diemžēl ES līmeni nav specifiska regulējuma attiecībā uz virtuālajām valūtām. Tajā pašā laikā bitcoin tiesiskais statuss ir izšķirošs PVN piemērošanā darījumiem, kur tie ir izvēlēti par maksāšanas līdzekli.\nAutors analizēja gan esošu ES regulējumu PVN un finanšu tirgus jomā, gan 20 ES dalībvalstu oficiālo nostāju, gan doktrīnā paustas atziņās par virtuālo valūtu. Tādā veidā tika iegūts pilns priekšstats par bitcoin tiesisko statusu. Analīzes rezultāti ļāva izdarīt pamatotus secinājumus par esošā regulējuma piemērošanas iespējam un par nepieciešamību pēc jauna regulējuma ES līmenī.
The English version of this paper can be found at: http://ssrn.com/abstract=2709713 Italian Abstract: La tecnologia fondamentale del protocollo Bitcoin, conosciuta come blockchain, è emersa recentemente in tutta la sua straordinaria portata innovativa, teoricamente in grado di riconfigurare le nostre attuali interazioni economiche, politiche e sociali. Sebbene l'interesse accademico per questa tecnologia sia ormai crescente, finora non è stata ancora divulgata un'analisi esaustiva delle sue applicazioni dal punto di vista politologico. Questa ricerca si propone di discutere i punti essenziali di una governance decentralizzata fondata sulla blockchain, che sfida in varia misura i meccanismi tradizionali della autorità statale, della cittadinanza e della democrazia. In particolare, la ricerca si pone l'obiettivo di verificare la performance della blockchain e delle piattaforme decentralizzate come strumenti iperpolitici, in grado cioè di gestire interazioni sociali su ampia scala e di destituire eventualmente le autorità centrali tradizionali. L'analisi evidenzia i rischi relativi a posizioni dominanti di natura privatistica negli ecosistemi distribuiti, che potrebbero spogliare i cittadini dei loro diritti e permettere l'insorgere di una società globale senza stato. Se gli utopisti tecnologici sollecitano la destituzione di qualsiasi autorità centrale, questa ricerca difende invece il ruolo dello Stato come necessario punto di coordinazione nella società civile e dimostra come la decentralizzazione attuata attraverso algoritmi e sistemi di consenso distribuito costituisca una teoria organizzativa, non una teoria politica autonoma. English Abstract: The core technology of Bitcoin, the blockchain, has recently emerged as a disruptive innovation with a wide range of applications, potentially able to redesign our interactions in business, politics and society at large. Although scholarly interest in this subject is growing, a comprehensive analysis of blockchain applications from a political perspective is severely lacking to date. This paper aims to fill this gap and it discusses the key points of blockchain-based decentralized governance, which challenges to varying degrees the traditional mechanisms of State authority, citizenship and democracy. In particular, the paper verifies to which extent blockchain and decentralized platforms can be considered as hyper-political tools, capable to manage social interactions on large scale and dismiss traditional central authorities. The analysis highlights risks related to a dominant position of private powers in distributed ecosystems, which may lead to a general disempowerment of citizens and to the emergence of a stateless global society. While technological utopians urge the demise of any centralized institution, this paper advocates the role of the State as a necessary central point of coordination in society, showing that decentralization through algorithm-based consensus is an organizational theory, not a stand-alone political theory.
Bitcoin is a virtual currency based on the P2P network. Because of decentralization, anonymity, stability and other advantages, Bitcoin develops rapidly. In order to cope with increasingly wide application fields of bitcoin, this research designs bitcoin's payment based on the IC card, which improves its safety and convenience. According to Bitcoin's unique utilization, we've designed and achieved the documental structure of Bitcoin IC card and mutual authentication between PSAM card and IC card. With the combination of IC card private key and user's private key leading to account's private key, it will be safer to private key. Besides using merge-avoidance algorithm when trading improves the security of the account.
Oppgaven analyserer noen sentrale skatterettslige sider ved bruk av BitCoin etter norsk rett. Problemstillingene vil også ha relevans for andre kryptovalutaer såfremt de fungerer på samme måte.
In dit artikel worden de mogelijke gevolgen belicht van de introductie van nieuwe en bestaande toepassingen van Bitcoin-technologie. De transnationale, decentrale en gedistribueerde peer-to-peer-structuur van de Bitcoin-technologie en van nieuwe toepassingen hiervan, hebben de potentie om bestaande sociale relaties en instituties te ontregelen. Het krachtenveld waarin maatschappelijke actoren staan kan hierdoor uit balans worden gebracht. De meest radicale van deze nieuwe technologieën is Ethereum. Met name het concept van de Digital Autonomous Organisation (DOA) heeft mogelijkerwijs verregaande consequenties. Ethereum is een ‘contract validating and enforcing system’, een gedistribueerd systeem dat een platform biedt voor autonome computerprogramma’s die in staat zijn om zelfstandig overeenkomsten met rechtspersonen en andere DOA’s aan te gaan en te ontbinden. Ik richt mij op de mogelijkheden van deze toepassingen als nieuwe platformen voor International Financial (Cyber) Crime.
Tässä opinnäytetyössä tutkittiin bitcoin virtuaalivaluuttaa, mitä bitcoin on ja kuinka se toimii. Työssä virtuaalivaluuttaa verrataan perinteisiin fiat-valuuttoihin ja pohditaan, millä tavoin bitcoin eroaa tavallisista valuutoista. Työn tutkimuskysymyksiä olivat bitcoinin käytön edut ja haitat, toimivuus maksuvälineenä sekä bitcoinin tulevaisuuden näkymien pohtiminen. Työssä tutkittiin myös, täyttääkö bitcoin rahan määritelmän vai onko se vain hyödyke. \n \nOpinnäytetyön teoriaosuus pohjatuu pääasiassa ajankohtaisiin artikkeleihin ja uutisiin sekä muutamiin bitcoinia käsitteleviin kirjoihin. Aihe rajattiin virtuaalivaluutoista vain bitcoiniin. Työssä ei perehdytä syvemmin bitcoinin teknisiin ominaisuuksiin, koska niihin perehtyminen vaatisi niin lukijalta, kuin kirjoittajalta enemmän tietoteknistä tietämystä. \n \nTutkimuksen tuloksissa todettiin, ettei bitcoin vielä aivan täysin täytä valuutan määritelmiä, eikä siitä nykyisessä muodossaan ole korvaamaan perinteisiä fiat-valuuttoja. Bitcoinin käyttö maksuvälineenä joka tapauksessa yleistyy ja käyttäjäkunta kasvaa. Toisaalta on kuitenkin vielä mahdoton sanoa tuleeko bitcoin kasvamaan merkittäväksi valuutaksi fiat-valuuttojen rinnalle, vai jääkö se pienen yleisön maksuvälineeksi.
Italian Abstract: Il tema di questo articolo richiama volutamente la definizione di analisi sequenziale propria delle scienze statistiche, nel cui ambito si procede formando un campione rappresentativo senza determinarne a priori l’ampiezza o la numerosità, che dipenderanno dai risultati ottenuti col progredire dell’osservazione o dell’esperimento. La ragione di questa scelta dipende dalla natura stessa del tema esaminato: si tratta di una materia nuova, in continua metamorfosi degli effetti, al punto da rendere particolarmente difficoltosa la determinazione astratta del campione di studio. Le ragioni storiche ed economiche che, nel tempo, hanno portato alla programmazione del protocollo Bitcoin conoscono oggi un'interessante fase evolutiva negli algoritmi di criptazione per l'identificazione di dati e il trasferimento di diritti, un sistema che presenta risvolti giuridici degni di nota. English Abstract: The theme of this paper is, on purpose, recalling the definition of sequential analysis typical of Statistics where the analysis goes on forming a representative sample with no predetermination of its magnitude or numerical amount, which will depend on the result gained as the observation or the experiment are going by. The reason for this choice is depending on the very nature of the topic we aim to analyse: a new subject matter, which effect are keeping on changing, thus making quite difficult the sample abstract determination. The historical reasons that, over time, have led to the Bitcoin protocol development are nowadays having an interesting implement in the encrypting algorithm for data identification and goods transferring, a system with remarkable legal effects.
Virtual currencies and mobile banking are technology advancements that are receiving increased attention in the global community because of their accessibility, convenience and speed. However, this popularity comes with growing security concerns, like increasing frequency of identity theft, leading to bigger problems which put user anonymity at risk. One possible solution for these problems is using cryptography to enhance security of Bitcoin or other decentralised digital currency systems and to decrease frequency of attacks on either communication channels or system storage. This report outlines various methods and solutions targeting these issues and aims to understand their effectiveness. It also describes Secure Bitcoin Wallet, standard Bitcoin transactions client, enhanced with various security features and services.
Bitcoin is the first and most successful digital currency in the world. It polarizes the news almost daily, with either glowing reviews of the many benefits of an alternative and international currency, or doomsday predictions of anarchy, deflation, and another tulip bubble.\nThis article focuses on the truly innovative aspect of Bitcoin - and that which has gone mostly unnoticed since its inception - the technological platform used to transfer Bitcoin from one party to another. This technology is called the Blockchain. The Blockchain eschews a bank or other intermediary and allows parties to transfer funds directly to one another, using a peer-to-peer system. This disruptive technology has done for money transfers what email did for sending mail - by removing the need for a trusted third party just as email removed the need for using the post office to send mail.\nIf this technology can be used for peer-to-peer money transfers, why not extend the technology to accomplish other forms of transfers? Imagine selling a house or buying a car peer-to-peer. What about using the Blockchain technology to buy and sell stocks? Stocks exchanged completely peer-to-peer could resolve many of the issues facing the stock market today, including high frequency trading and short sales. This article develops a peer-to-peer stock market system, the legal implications of such a system, and how this system will fit in with current legislation and regulation.
The emerging digital cryptocurrency Bitcoin has made waves in mainstream media across the globe, as have the numerous extreme events that have rocked it. One such event, the bankruptcy of a prominent Bitcoin exchange called Mt.Gox, particularly shocked the emerging sociotechnical field. However, it is not clear how the numerous entrepreneurial firms operating in this field survived this shock. \\ \\ Studies of resilience in the face of extreme events have typically examined mature firms, characterised by formal structures and some slack resources. In such studies, the resilience, adaptability and trans-formability of the firm come into view. A new firm in an emergent field, however, is equally driven to survive â but must do so with far more limited resources, without a formal structure and little in the way of organisational learning. In our study, we find that such entrepreneurial firms rely on their col-lective identity in forming resilient responses. Furthermore, one outcome of this shock was a call for regulations and oversight â despite earlier dogmatic rejections of such formal control. \\ \\ Keywords: Bitcoin, Entrepreneurship, Resilience, Extreme Event, Qualitative Study \\
The underlying values inherent in the creation of bitcoins are those of decentralization and accessibility. The horizontal power structure is an integral part of bitcoins’ architecture – this paper seeks to find a feasible alternative to status quo in order to preserve these characteristics. First, we look at the harms of monopolies and how the concentration of bitcoins is exceptionally harmful to its continued existence. Second, we expose the inadequacies of the existing regulatory frameworks, and discuss how status quo militates against the foundational ideology of bitcoin as a non-institutional cryptocurrency. Third, we undertake a comparative study of the existing regulatory regimes to identify legal and regulatory issues surrounding bitcoins. Finally, we propose a solution to the concern of centralization by discussing the relationship between law, code and the market, and discussing existing coded solutions that may be further improved upon to prevent such monopoly