Cryptocurrency security research paper
Therefore, the security and user acceptance of cryptocurrency can be enhanced by the development of better software. To summarize, cryptocurrencies that adopt blockchain technology have shown great application advantages in finance and the Internet and have displayed a trend of rapid development in multiple fields.
However, cryptocurrency, as an emerging digital virtual currency, is not stable and mature enough in terms of business management and technical implementation, and some security and privacy issues that are gradually exposed, and security incidents against the application of blockchain cryptocurrency also occur frequently.
Research Methodology As shown in Figure 3 , the framework of our technology and security analysis of cryptocurrency based on blockchain mainly includes security support from the blockchain technology platform and blockchain technology. The details are presented as follows: on the one hand, the majority of blockchain technology platforms, to enable the development of next-generation multiparty applications, utilize distributed ledger and confidential computing technologies, which foster and deliver digital trust between parties.
Hence, we discuss security support from blockchain technology platforms involving the aspects of raised funds, duration, employees, and especially the consensus algorithm. Hence, we also analyze the security support from blockchain technology. Figure 3 Framework. In simple terms, our study focuses on the security of data authenticity and recording, blockchain structure, and protocols.
To better explain the security of data authenticity and recording, we use the hash function SHA as an example to describe its principle. In addition, we divide the blockchain structure into six layers and conclude that these layers are composed of security and basic components. Finally, we illustrate the security of the protocols in the case of Bitcoin and DAG. Meanwhile, we also employ these examples to discuss the balance between security, efficiency, and functionality of cryptocurrency protocols.
Research on the Technology and Security of Cryptocurrency Based on Blockchain Cryptocurrency employs blockchain technology to maintain security and transaction processes. Specifically, the security of cryptocurrency is supported by the blockchain technology platform and blockchain technology itself.
Blockchain technologies such as hash encryption, electronic signatures, asymmetric encryption, distributed ledgers, smart contracts, and P2P networks are used to verify data and ensure safe storage. The Security Support for Cryptocurrency from the Blockchain Technology Platform Security support from blockchain technology platforms is insufficient.
As shown in Figure 4 , we present a radar chart of the total funds raised, duration, and employees of blockchain technology platforms. In Figure 4 , the total raised funds of Bitmain ranks top of blockchain technology platforms, Dapper Labs, and Hyperchain Technology, ranking the top two and three. However, the funds raised by blockchain technology platforms are much less than those of traditional Internet financial platforms, such as Lufax.
In addition, the duration of these blockchain technology platforms is between 3 and 10, and at an average of 5. Blockchain, which is treated as an immutable DLT, is the underlying technology behind cryptocurrencies [ 47 ]. Hence, the ability of blockchain technology platforms to sustain the security and stability of cryptocurrencies may be significantly deficient.
Moreover, Bitmain employees rank first among blockchain technology platforms. In particular, Bitmain has staff, whereas StarkWare has only In other words, the human resource gap among blockchain technology platforms is prominent.
In addition, there is a marked difference in the speed of the crisis response of blockchain technology platforms. Thus, our results are consistent with the market share of Bitmain and prove that Bitcoin has been the largest manufacturer of new Bitcoin mining machines and hardware. Figure 4 Radar chart of total raised funds, duration, and employees of blockchain technology platform. Blockchain technology platforms also play a crucial role in the selection of consensus algorithms for blockchain practitioners.
First, a consensus mechanism with high security requires computational resources. These platforms employ computationally intensive asymmetric key technology to help users identify and verify transactions. Second, available blockchain technology platforms lack uniformity in accessing built-in APIs. Analysis of the Security of Data Authenticity and Recording of Cryptocurrency Based on Blockchain Technology The security of data authenticity and the recording of cryptocurrency mainly depend on encryption.
Specifically, digital signatures and cryptographic hash functions significantly influence the security of cryptocurrencies. Digital signatures and their hashing algorithm can confirm whether the identity of the signatory and the transaction have been identified.
Meanwhile, they confirmed ownership. Technically, attackers, owing to the cryptographic hash function such as the SHA algorithm, have to guess bit strings correctly to breach the security systems of cryptocurrencies. The cryptographic hash function is infeasible to be inverse under the current computing power.
In other words, there is no better method than guess and random check for attackers to find a message of arbitrary length that has a specific string of bits note that acquiring the message requires, on average, guesses in general, which benefits the given piece of security of cryptocurrency.
Additionally, the records in the blockchain can be queried by every participant, which indicates that the information in the system is transparent and open, and reliable. Analysis of the Cryptocurrency Security Based on the Structure of Blockchain Technology The structure of blockchain technology, as it is shown in Figure 5 , is considered a hierarchical system and mainly includes the applicaryer, contract layer, incentive layer, consensus layer, network layer, and data layer.
Each layer contained basic and security components. On the one hand, basic components are used to realize the main business logic functions of the layer. On the other hand, security components are used to deal with frequent security threats and provide threat response solutions and technical security support for the layer and upper layer. In addition, these security components may have certain connections or joint effects in the blockchain.
Figure 5 The basic structure of blockchain. The application layer involves all services and features implemented in the form of smart contracts and is based on a remote cloud. Hence, users in a blockchain system can also employ application-layer services. Meanwhile, the application layer can provide an interface for the underlying message transmission and application. The application layer mainly includes the basic components—APIs and cross-chain heterogeneity, and the security components—regulatory mechanism and cloud service.
The application programming interface API is not provided to interact with service interfaces in the blockchain. In addition, heterogeneous blockchains migrate data from one blockchain to another. Therefore, to ensure confidentiality and privacy, a cross-chain data migration architecture was generated.
Nevertheless, regulatory mechanisms, such as laws and regulations, secure the democratic accountability of blockchain technology. Furthermore, cloud services can provide identity authentication for IoT devices based on their computing and resource storage abilities.
The contract layer is designed to set rules for blockchain systems to interact with each other. First, advanced smart contracts can achieve programs and commands, operate asset transactions, and manage smart assets in blockchain 2. For users, smart contracts are automatic guarantee plans that can ensure the objectiveness of the execution. Specifically, these contracts release or transmit data when they meet certain conditions. Contracts such as Hyperledger can deal with mutual trust issues among participants.
Likewise, script coding plays a critical role in maintaining the security of smart contracts. Furthermore, the sandbox environments vary from country to country. Additionally, the sandbox regulation involves the regulatory sandbox, industry sandbox, and umbrella sandbox. More importantly, formal verification of blockchain is chiefly based on mathematics and can check and verify unknown vulnerabilities, such as logical vulnerabilities in contracts. Employing a testing network can guarantee configuration flexibility.
For example, a test network was adopted in the Ethereum wallet. Furthermore, program analysis tools were used to optimize and correct the programs. Hence, smart contracts, script coding, sandbox environments, formal verification, testing networks, and program analysis tools can be considered components.
Nevertheless, the programming language provides a standard method to write the blueprints and contracts of blockchain. The incentive layer involves incentive mechanisms in cryptocurrencies to accelerate resource sharing, stimulate group intelligence, and promote collaborative communication.
In addition, the incentive mechanism is regarded as a monetary incentive that responds to information about events. Meanwhile, monetary incentives share the correct information. In addition, incentive schemes can be used to detect malicious miners.
Next, the distribution mode in the incentive layer can operate data and store and handle additional images that contribute to parallel large-image processing. Moreover, the incentive layer integrates economic incentives and distribution mechanisms into the blockchain.
The consensus layer mainly contains consensus protocols that are adopted to share information and conduct transactions. Moreover, consensus agreements league multiple organizations to build a consortium system. Moreover, the consistent and efficient problems in distributed scenarios of blockchain can be solved by a consensus mechanism. These protocols aim at maintaining a peer-peer consensus state for blockchain systems.
In addition, trusted hardware such as the TrustZone of Intel SGX can also enhance security at a slight cost of performance. More precisely, the security of trusted hardware relies on a trusted computing base TCB. Additionally, the smaller the TCB, the better the security. In fact, the consensus mechanism can verify and record data into a blockchain, which makes a blockchain ledger that is immutable, irrevocable, and traceable.
The security of the network layer has a decisive effect on the security of the cryptocurrency system. In particular, the bigger the network, the stronger the protection against attacks and data corruption, which makes Bitcoin the most secure blockchain.
Meanwhile, the network may require a Bitcoin core see Figure 2 for users. In general, the network layer receives and transmits data and verification mechanisms. For instance, the P2P network structure has the features of decentralization, load balance, fault tolerance, and privacy protection [ 20 , 48 ].
Meanwhile, the P2P network can be a small-world model, which implies that the robustness and data integrity of the network can be guaranteed dynamically when nodes are changing. In addition, the security and privacy of P2P data transactions are critical for P2P networks.
Thus, we conclude that the P2P network is a security component for the blockchain. More importantly, P2P networks can verify and synchronize data. In general, a network layer specifies a verification mechanism. For instance, the network nodes verify the received data or new blocks based on predefined specifications.
Next, the blockchain network layer encapsulates the networking mode. For example, the network layer contains a P2P network-networking mode. Most networking modes are peer-to-peer networks and can quickly detect the link state of the Internet. Furthermore, an extended network of miners can be generated using a hash code. Specifically, two miners simultaneously mine two different blocks, which may result in a fork.
The blockchain is then extended to process transactions in the extended network. Similar to the P2P network, anonymity-providing networks also consider adversary security requirements and adversary models, even though their requirements regarding information propagation are different. In addition, the communication anonymity-providing systems safeguard the confidentiality of the exchanged data between the sender and receiver.
However, anonymity is attacked by linking network data to the application data. Furthermore, the anonymity of the users can be attacked by gathering data from operating the seed node. For instance, many cryptocurrencies, such as Bitcoin, have issued operator policies to ensure security. Therefore, anonymous network communication ANC technology can be considered a security component. Furthermore, intrusion detection in the network layer detects endangered network behavior in computer systems.
Generally, intrusion detection can be divided into anomaly-based and feature-based intrusion detection methods. The former is for normal user behavior definition and identification, and the latter is for the characteristics of the received packet behavior extraction and comparison. In intrusion detection, the improved semi-distributed topology can strengthen the stability of the system. In particular, the advantages of distributed networks make the accuracy rate reach the network limit.
Next, the slicing technology can multiplex a network that is virtualized and independent logical in identical physical network devices and delivers information-centric networking ICN services. The data layer mainly contains data structures, block contents, and data transactions of the blockchain. The chained data structure refers to the blocks of data and information that are combined in chronological order, and then, these blocks are encrypted and recorded as a distributed ledger that cannot be tampered with or forged.
All transactions were coordinated and executed through a public ledger. This layer targets data collection, validation, and manipulation. Data management makes data confidentiality possible, ensures data security, and protects the privacy of users from leaking.
In addition, keys grow rapidly owing to the complexity of access relationships. Furthermore, key management achieves hierarchical access control and is stored in the blockchain, and acts as a public ledger. Specifically, the key pool assigns each node a unique key chain, which ensures hierarchical access control.
Additionally, key management can simplify the key transfer handshake procedure, decrease the key transfer time, improve efficiency, and guarantee security. However, key management is usually controlled by users instead of a third party for privacy-oriented scenarios. Cryptography technology ensures the ability of the ledger to detect tampering with blockchain data. For instance, the hash Merkle tree solves the problem of authenticated nodes that act maliciously in a private blockchain.
Moreover, users are expected to back up passphrases to ensure security and disclosure. Hence, we may conclude that data transactions, key management, and cryptography are security components. Analysis of the Security of Cryptocurrency Based on the Protocols of Blockchain Technology Cryptocurrency transactions are known to be high throughout and require fast confirmation times.
Above all, security in cryptocurrency transactions is critical for users to invest. Therefore, cryptocurrencies have various protocols to solve these problems. However, the underlying technology of these cryptocurrencies is still centered on blockchain technology. Besides, their main ideas were consistent with the protocols proposed by Nakamoto [ 11 ]. The protocols of cryptocurrencies involve cryptography, distributed ledgers, decentralization, consensus mechanisms, and incentives to maintain an efficient and stable function and the security of a blockchain system.
Firstly, we compare the underlying ledger structure of Bitcoin with that of a directed acyclic graph DAG. In general, the underlying ledger structure of Bitcoin is a single chain. Ideally, the next block can be packaged as a candidate block broadcast only after the previous one has been confirmed and added to the chain by the whole network. However, the block output speed is much faster than broadcast, which generates forks. To put it differently, a block is being dug up and broadcast before the whole network can confirm it.
Additionally, the consensus can discard forked blocks that are not part of the main chain. Nevertheless, forks are unavoidable due to accidental factors such as network latency. Thus, the security issues caused by forks have aroused our concern. Although the security risks caused by the fork can be avoided, these settings severely limit the transaction processing performance of Bitcoin, and the TPS transaction per second is solely about 7.
However, it is noteworthy that DAG is expected to solve the problems above [ 48 ]. As it is shown in Figure 6 , we make a more intuitive comparison between the two structures. DAG mainly has 5 mathematical properties, which are highly related to security issues. To start with, DAG has a topological structure that allows forking, and the topological order for all nodes can be transformed into a node sequence, where the number of the allowed forks is determined by the fork coefficient k k is an integer greater than 0 of the system.
To put it another way, the block output speed may exceed the broadcast speed. Meantime, the network node can record different information at the same time. More importantly, the system based on the DAG structure usually presents the characteristics of high concurrency, weak synchronization, and high TPS owe to the DAG asynchronous accounting method. Secondly, the connected nodes in the DAG can be sorted. Eric Trist first described sociotechnical systems, in the context of the coal mining industry, as microlevel work practices, meso-level organizational practices, and macro-level social systems Trist, Hayes suggests that blockchain-based cryptoeconomic systems should not be studied as money per se, but rather as systems that organize individuals through the radical disintermediation of institutions Hayes, Thus, employing STS methods is a suitable approach to reveal the implicit and embedded technical, social, economic, and political assumptions and decisions that influence how blockchains are applied in social contexts Bijker et al.
Framing of blockchains as a sociotechnical construct and multiscale institutional infrastructure that operates at micro-, meso-, and macrosocial levels across different implementations. A sociotechnical analysis of the security attributes and limitations of blockchain security for people across various types of blockchains and blockchain applications, to expose the trust and security issues.
An analysis of the security assumptions for participants across different types of blockchain applications, including possible future risks from blockchain automation and why blockchain may not be a desirable digital infrastructure in macrosocial contexts. The innovation of public blockchains is the application of cryptoeconomic mechanisms to facilitate coordination at each level of a complex, sociotechnical digital system. At the technical level, blockchains incorporate the encoding of economic game-theory mechanisms of byzantine fault tolerance and governance rules to enforce certain attributes, such as Sybil resistance, execute transactions, and perform certain functions as part of a broader system.
At an organizational infrastructure level, blockchains are responsible for coordination within a system. At a macrosocial level, blockchains operate as a coordinating technology at the social, economic, and political level in society Berg et al. Blockchains as a Sociotechnical Construct Blockchain security in a cybersecurity sense tends to consider blockchains as a technical object of inquiry, when in fact they are a sociotechnical construct Hayes, Blockchains enable transactions between participants in a network.
The key attributes of both public and private blockchains demonstrate the ways in which security is both a technical and a social consideration. Different Types of Blockchains Blockchain technologies can be divided into three broad categories.
These distinctions are important for understanding the role of people in the system and how the system operates in the context in which it is applied. Public Blockchains Public blockchains emphasize transparency and participation. The key attribute of public blockchain networks is that they pursue decentralization through cryptoeconomics, to ensure cooperation in a distributed network.
In this case, decentralization refers to the characteristic of having no political center of control and no architectural central point-of-failure in the design of the software system Buterin, Governance considerations include who can develop the software code, who can participate in the consensus mechanism, and who can take part in communal governance activities to maintain the network.
Public blockchains can be applied to macrosocial coordination problems in society, due to their unique ability to provide decentralized consensus. Private Blockchains Private blockchains mean that membership to participate in validating transactions on the network is restricted to only include parties that are approved by a central administrator. Thus, private blockchains are centralized and operate more closely to a traditional database, than a complex, macrosocial coordination system.
Transaction data is most often kept private. Private blockchains are often adopted in internal, business secure environments, such as access, authentication, and record keeping. Consortium Blockchains Consortium blockchains are comprised of known participants that are preapproved by a central authority to participate in consensus in a blockchain network. Transaction data may be kept private. This type of blockchain may be used between known parties, in supply chain management, banking, or Internet of Things IoT applications.
Security in Different Types of Blockchains—Surfacing Assumptions Blockchain security research is deeply focused on the technical attributes of security, which are under continuous development and improvement to strive toward the goal of offering stronger security guarantees to users Karame and Androulaki, ; Li et al. All blockchains rely on secure software code to enable peer-to-peer transactions through the use of digital currency to offer security to users.
A number of blockchain cybersecurity vulnerabilities remain under active investigation in the field of computer science Lin and Liao et al. What security means for users of a blockchain network is different across different disciplines. While cybersecurity focuses on securing networks from threats, sociotechnical security focused on securing participants in the network.
Public blockchains are often referred to as decentralized, transparent, autonomous, immutable, and pseudonymous Buterin, The attribute of decentralization in public blockchains refers to freedom from relying on central intermediaries in its original interpretation from the cypherpunk culture and cryptoanarchic politics from which Bitcoin, the first fully functioning decentralized public blockchain, emerged May, In contrast, when information and validation on a blockchain is limited to certain parties, as with private and consortium blockchains, the privacy and security guarantees for users of that chain become very different.
These design and governance attributes have critical security implications for the assumptions of people that participate in the network, if a blockchain is applied as a coordinating system in society, but still controlled by a central issuer and administrator. Understanding the type of blockchain, who is being trusted, the needs of participants, and the context in which the blockchain is being applied is vital in reframing blockchain security in a sociotechnical setting.
Applying Sociotechnical Security to Blockchains Sociotechnical security allows for a broader security analysis lens, encompassing the social, technical, and contextual aspects of a digital system. These aspects are integral to studying the security of blockchains as macrosocial infrastructure in society.
A sociotechnical analysis is particularly valuable in analyzing blockchain systems in macrosocial contexts. Governance in blockchain-based systems presents unique security challenges as it is encoded in the technical aspects of blockchain-based systems as governance rules are formalized in software code. The aim of governance in sociotechnical settings is to recognize the need to support flexible interactions among participants in the administration of network settings Singh, This is not to say that existing security practices are wrong, but rather that science and technology studies can further enhance security practices by drawing in an analysis of the social aspects of a system, especially in digital systems that operate in an institutional infrastructure role in society, such as blockchain.
If blockchains are to be applied as organizational and macrosocial structures, a sociotechnical understanding of blockchain security is required, to place the participants within the system as the referent focus of security. These lenses require us to consider the expectations and intent of participants in the system.
There are numerous frameworks by which to guide a sociotechnical analysis of blockchains. Rather than inventing a new security framework, the contribution of this paper is to apply a sociotechnical security approach to blockchains as macrosocial institutional technology. This includes the social layer people and processes , the software layer code and applications , and the infrastructure layer physical and technological infrastructure Li et al.
The next section of this paper applies a sociotechnical security analysis to blockchains to address how the social, technical, and infrastructural layers of the system are interconnected, with the aim of revealing assumptions about where and how blockchains are applied in relation to context, participant needs, and expectations. People Security and Public Blockchains Public blockchains remove the ability for central parties to unilaterally change the rules of the system to secure users against third-party interference.
Trustlessness requires trust. Rather than a rhetoric of trustlessness, we must interrogate who is being trusted to design, deploy, and secure blockchain-based systems against the expectations of participants in that network. Blockchain security as a guarantee against the threat of centralization and a promise of trustlessness can be misleading.
In the first instance the rules of blockchain-based technology are a product of the context and beliefs in which they were developed and then applied. Trustlessness in not requiring third-party verification to execute transactions has been conflated with broader meanings of trust, which can create misleading assumptions regarding the capabilities of blockchains for users beyond the initial context Chohan, From these origins, trustlessness is a normative property that represents what people hope to achieve with blockchain technology, rather than a security guarantee.
When blockchains are applied to manage macrosocial interactions that are responsible for the coordination of, and arbitration between, people in society, they function as institutions. Public blockchains require trust between stakeholders in numerous ways. Coordination between software developers is necessary in each change to the software protocol code, such as issuance of a cryptocurrency e. This means that collusion might influence the underlying record of transactions in forks or other governance disputes, thus demonstrating the need for trust in some actors in the network for blockchain security.
In reality, blockchain technology can be compromised at the technical, software code, and social coordination layers in systems that are shaped by software engineers, social processes, and market forces. The idea is not to replace trust with code but to provide accountability by making the rules of the system transparent through publicly available, open-source code De Filippi et al. Yet, decentralized infrastructure does not necessarily lead to decentralization of influence within that infrastructure.
Despite technical sophistication, security through decentralization and trustlessness at the micro- and mesolevels in public blockchains is difficult to achieve due to social, technical, and infrastructural dependencies. The next section explores a number of private blockchain case studies by applying a sociotechnical framework to investigate the social, software, and infrastructure layers of private blockchains in action at a macrosocial level, including which community participating in the network in need of protection; what features can be exploited within the network, and who is responsible and accountable for securing participants in the network.
Applying a Sociotechnical Security Analysis to Private Blockchain Networks Private blockchains are prevalent in a number of real-world, macrosocial level applications across humanitarian, government, and corporate applications. Each case study below focuses on a use-case of blockchain as a macrosocial institutional infrastructure for coordinating goods, services, and people in society.
Each example is then run through a sociotechnical analysis. Humanitarian Case Study—Blockchain-Based Cash Voucher Assistance Blockchains have been piloted in a number of humanitarian, not-for-profit organization use-cases at the macrosocial level, predicated on governing the most vulnerable.
Blockchains were applied in the project as a ledger of transactions and settlement layer to transfer cash aid to Syrian refugees in a Jordanian refugee camp. The project received overwhelmingly positive coverage in the media Juskalian, ; Apte, ; Awan and Nunhick, However, this blockchain-based system has a number of shortcomings which could equate to significant people security vulnerabilities for participants. First, the community participating in the network in need of protection are Syrian refugees, who are a highly vulnerable population fleeing a civil war.
Protection of identity is a necessity for this population Gillespie et al. Yet, digital identities are being created that are permanently linked to biometric indicators which could then be hacked and traced back to family members or used as leverage to direct behaviors. Furthermore, biometric registrations are mandatory when receiving cash aid, making participation in the system mandatory and not voluntary. Second, a number of technical and social features can be exploited in the system.
The system is inextricably linked in political and infrastructural contexts which may not be in the best interests of users. For example, the blockchain is centrally issued and administered by WFP and administrative access is afforded to a consortium of international aid organizations Baah, This results in significant power asymmetries in terms of how the system operates, what data is recorded, where it is stored, who has permission to access the data, and for what purposes.
The biometric iris scanners used are provided by a local Jordanian company, IrisGuard, meaning persistent, biometric digital identities of refugees are being stored locally. Once data is recorded, it is hackable, replicable, and vulnerable to technical or human exploitation Verizon, Numerous technical systems and levels of cybersecurity, as well as numerous permissions to access and correlate highly sensitive data, with little to no consent from participants persist throughout this system.
In this case, accountability falls on the humanitarian agencies who are responsible for ethically providing aid without establishing systemic vulnerabilities for recipients. Although the system may provide operational control and coordination efficiencies among aid agencies, this instantiation of the digital economy inextricably links the biometric digital identity of refugees with an immutable ledger, across numerous local and international databases.
Here, blockchain is simply a database which is centrally issued and administered. This means that the system is not cryptographically secure and requires significant trust in the IT security of local companies and government agencies. Some of the justifications for CBDCs include financial inclusion of people in remote and marginalized regions and consumer protection as a low-cost interbank settlement layer. Digitization of entire nation-state monetary systems creates astounding data security vulnerabilities for populations.
Significant concerns have been raised on the data security of government-led databases, as this sensitive national data creates a target for hackers from both the inside and the outside that could be exploited for geopolitical reasons Schilling, Unlike other digital asset platforms, CBDCs may not be voluntary for participants. As digital identity, value, and transactions are tied to citizenship, participation in CBDCs could be mandatory. The system is not intended to be decentralized or interoperable in order to circumvent the threat of centralization.
Furthermore, the myth of financial inclusion is predicated on access to proprietary computing devices and digital literacy, most of which is not within reach of the most vulnerable, who rely on the cash economy Gopane, The aims of CBDCs are antithetical to the public blockchain ideology of decentralization.
CBDCs will not offer anonymity, and the advantages of cash for users to avoid exposure to customer profiling or hacking will be lost in the transition to digital currency.
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There are several cases where the idea was not well-received by the local authorities, as well as by multinational corporations. The readiness of the global economy to implement the cryptocurrency in its functioning is not associated with significant enthusiasm. Presumably, aside from the simple suspicion toward the innovative development that has a potential to disrupt the common functioning of society, they are also afraid to introduce new contributors to illicit trading into the national economies, and they also may be afraid of losing their influential geopolitical positions.
There are various benefits for the governments in the existing financial system. Particularly, it is the availability of a third party between an individual or certain establishments and the other individual, representing the receiving end of the exchange process. It opens a variety of possibilities for also introducing other parties to the process, such as, for instance, bankers, regulators, and brokers.
It is clear that all those stakeholders are cooperating with the government, and, the more successful the particular establishment, the less the government will be interested in the appearance of some outside invaders into its functioning, such as the digital currencies. Scientists are analyzing the peculiarities of the implementation of the digital currencies without taking the existing tendencies of the sociopolitical processes into account. That is, nowadays cryptocurrency is slowly becoming a part of the global market.
However, it will take time for it to become a suitable substitute of the common non-digital currency. The concept of the digital currency presents a great opportunity to end with the disadvantages of global capitalism, some researchers state. Since the Marxist premise was first introduced, people struggled to find the most suitable way of how it can be implemented into industrialized society.
Manski reports that Bitcoin may be the answer: excluding the government from the overall financial flow and preventing the cases of fraud and corruption have been long understood as the major benefits of cryptocurrency, which, notably, represent its emancipatory potential 1. Neoliberal society, with its prioritization of basic human rights and belief in law enforcement as the way to guarantee human safety, is not functioning properly, and it has great economic and social implications. The problems with ecology and the improper living conditions for a great part of the populations in the so-called third world mostly due to the use of cheap labor by large multinational corporations represent that the neoliberal world is collapsing, and democracy has become a tool in the hands of the influential political bodies.
There now is a critical need to implement an innovative development which will prevent the authorities from embodying their desires via both corruption and fraud. Cryptocurrency can be a proper substituent for non-digital money. Regarding the fact that it was designed and based entirely on impersonalization and mechanized calculations, it now may be understood as the proof that the socialist doctrine is not entirely a utopia, and there is an alternative to neoliberal global capitalism.
Cryptocurrency may reorganize and introduce some positive changes to the cross-border trade and overall international relations. According to the author, G20 should take a decisive part in the implementation of the Blockchain technology into the global economy. It is important for the governments of the political bodies to legitimize cryptocurrency. Presumably, it is the only way to prevent it from being an additional contributor to illicit activity such as drug trade and human trafficking.
Also, the introduction of cryptocurrency to both local and global economies may have a positive impact on the small business growth, and can later contribute to the emergence of the effective shared economy. Huckle et al. With the recent interest in the Internet of Things and Blockchain, the opportunity exists to create a myriad of shared applications, e.
That is, the reduction of third parties from the exchange process enables various possibilities for people to buy and sell internationally without obstacles. It is critically important to represent an additional opportunity to people to experience personal growth without unnecessary spending to third parties and excessive governmental regulations. Cryptocurrency, which is based on peer-to-peer trade, if introduced by the national governments into the local law enforcement system, can be a significant contributor to the personal growth of citizens.
A person-oriented global economy can be beneficial only if it is based on a shared economy. The latter represents a great example of the successful self-organization of people in order to receive revenue, increase profit, and eliminate the pressure of cross-border regulations. Another controversy which is associated with cryptocurrency concerns its status. Regarding the fact that the idea is a new one, and is understood as a rather innovative or even revolutionary one, the lively debates are continuing not only concerning the advisability of the introduction of cryptocurrency into legal systems, but also concerning how it can be done.
For instance, McKinney et al. Assigning to the cryptocurrency certain names, which were listed above, simply means that some countries are not considering it as a currency per se. They are rather ignoring its revolutionary real meaning, and undervaluing it, not wanting to deal with the consequences of the implementation into the local economy. That is, the national governments are not ready to accept the real meaning of the digital currency simply because they are not the ones producing its meaning.
Presumably, this is the reason why the governments are so against the idea of the introduction of the so-called digital money into their legal systems, and against assigning the proper status to it. So, the idea of the cryptocurrency, which contributed to the appearance of lively debates in the scientific field, is a concept which can be understood rather ambiguously. Despite the fact that its implementation into the legal system has a variety of positive implications it can guarantee transparent peer-to-peer trading, it is safe, and does not imply the excessive regulatory policies from the government , there are some significant disadvantages associated with the digital currency.
The greatest one is undoubtedly its contribution to the illicit drug trading and human trafficking, which can be given an opportunity to omit the legal regulations. Due to this, there is now discussion on the need to involve the law enforcement in cryptocurrency functions, at least to some extent. The innovative idea of the digital currency has a strong emancipatory potential, and undoubtedly is a person-oriented system, contributing to the emergence of the shared economy.
However, it requires some adjustments in order to become represented within the global economy. Works Cited Abboushi, Suhail. Darlington, James. Many organizations have done researches and come up with innovative ideas. Research is an important aspect when it comes to cryptocurrencies and blockchain technology. Almost a decade ago, Satoshi Nakamoto presented his invention Bitcoin along with the driving factor of the technology which is Blockchain. His brainchild was put forward in a Whitepaper in which he has described everything about Bitcoin detail.
After this, many other cryptocurrencies came in the market which presented their own whitepapers. Even when people have not come up with cryptocurrencies, many organizations have done research on various aspects of the crypto world and has put forward their study and analysis in their research papers. There are many impactful research papers by esteemed organizations which help to give insight into several aspects of the industry.
Below is a list of some impactful research papers, the order below does not imply their rank: Should cryptocurrencies be included in the portfolio of the International Reserves held by the Central Bank of Barbados? Authors: Winston Moore, Jeremy Stephen This research paper describes the recognition status Bitcoin is receiving from all over the world.
Cryptocurrency security research paper big earning bitcoins
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Money was always considered as initially deprived of ethics and, if uncontrolled, the ones who are in possession of significant capital can ignore the principles of human decency. However, in the case of the common non-digital currency, an individual could have addressed his or her complaints to the local authorities as a way of seeking justice. The separation of the cryptocurrencies from the national governments and from the international law enforcement agencies can have a variety of negative implications for the global economy.
The ethical side of the issue should be further discussed and applied to the interests of cryptocurrency users. The problem is undoubtedly controversial: on the one hand, policy-makers should prevent the national governments from the aggressive invasions into the functioning of the digital currencies, and, on the other, the preservation of the basic ethical values should be reached cryptocurrency should not contribute to unintervened illicit drug trade, human trafficking, etc.
The slow adoption of the digital currency by international governments represents a great suspicion of the local policy makers toward the overall concept of Bitcoin as the most famous example of the cryptocurrency. There are several cases where the idea was not well-received by the local authorities, as well as by multinational corporations. The readiness of the global economy to implement the cryptocurrency in its functioning is not associated with significant enthusiasm.
Presumably, aside from the simple suspicion toward the innovative development that has a potential to disrupt the common functioning of society, they are also afraid to introduce new contributors to illicit trading into the national economies, and they also may be afraid of losing their influential geopolitical positions. There are various benefits for the governments in the existing financial system.
Particularly, it is the availability of a third party between an individual or certain establishments and the other individual, representing the receiving end of the exchange process. It opens a variety of possibilities for also introducing other parties to the process, such as, for instance, bankers, regulators, and brokers. It is clear that all those stakeholders are cooperating with the government, and, the more successful the particular establishment, the less the government will be interested in the appearance of some outside invaders into its functioning, such as the digital currencies.
Scientists are analyzing the peculiarities of the implementation of the digital currencies without taking the existing tendencies of the sociopolitical processes into account. That is, nowadays cryptocurrency is slowly becoming a part of the global market. However, it will take time for it to become a suitable substitute of the common non-digital currency. The concept of the digital currency presents a great opportunity to end with the disadvantages of global capitalism, some researchers state.
Since the Marxist premise was first introduced, people struggled to find the most suitable way of how it can be implemented into industrialized society. Manski reports that Bitcoin may be the answer: excluding the government from the overall financial flow and preventing the cases of fraud and corruption have been long understood as the major benefits of cryptocurrency, which, notably, represent its emancipatory potential 1. Neoliberal society, with its prioritization of basic human rights and belief in law enforcement as the way to guarantee human safety, is not functioning properly, and it has great economic and social implications.
The problems with ecology and the improper living conditions for a great part of the populations in the so-called third world mostly due to the use of cheap labor by large multinational corporations represent that the neoliberal world is collapsing, and democracy has become a tool in the hands of the influential political bodies. There now is a critical need to implement an innovative development which will prevent the authorities from embodying their desires via both corruption and fraud.
Cryptocurrency can be a proper substituent for non-digital money. Regarding the fact that it was designed and based entirely on impersonalization and mechanized calculations, it now may be understood as the proof that the socialist doctrine is not entirely a utopia, and there is an alternative to neoliberal global capitalism. Cryptocurrency may reorganize and introduce some positive changes to the cross-border trade and overall international relations.
According to the author, G20 should take a decisive part in the implementation of the Blockchain technology into the global economy. It is important for the governments of the political bodies to legitimize cryptocurrency. Presumably, it is the only way to prevent it from being an additional contributor to illicit activity such as drug trade and human trafficking.
Also, the introduction of cryptocurrency to both local and global economies may have a positive impact on the small business growth, and can later contribute to the emergence of the effective shared economy. Huckle et al. With the recent interest in the Internet of Things and Blockchain, the opportunity exists to create a myriad of shared applications, e. That is, the reduction of third parties from the exchange process enables various possibilities for people to buy and sell internationally without obstacles.
It is critically important to represent an additional opportunity to people to experience personal growth without unnecessary spending to third parties and excessive governmental regulations. Cryptocurrency, which is based on peer-to-peer trade, if introduced by the national governments into the local law enforcement system, can be a significant contributor to the personal growth of citizens.
A person-oriented global economy can be beneficial only if it is based on a shared economy. The latter represents a great example of the successful self-organization of people in order to receive revenue, increase profit, and eliminate the pressure of cross-border regulations. Another controversy which is associated with cryptocurrency concerns its status.
Regarding the fact that the idea is a new one, and is understood as a rather innovative or even revolutionary one, the lively debates are continuing not only concerning the advisability of the introduction of cryptocurrency into legal systems, but also concerning how it can be done.
For instance, McKinney et al. Assigning to the cryptocurrency certain names, which were listed above, simply means that some countries are not considering it as a currency per se. They are rather ignoring its revolutionary real meaning, and undervaluing it, not wanting to deal with the consequences of the implementation into the local economy. That is, the national governments are not ready to accept the real meaning of the digital currency simply because they are not the ones producing its meaning.
Presumably, this is the reason why the governments are so against the idea of the introduction of the so-called digital money into their legal systems, and against assigning the proper status to it. So, the idea of the cryptocurrency, which contributed to the appearance of lively debates in the scientific field, is a concept which can be understood rather ambiguously.
Despite the fact that its implementation into the legal system has a variety of positive implications it can guarantee transparent peer-to-peer trading, it is safe, and does not imply the excessive regulatory policies from the government , there are some significant disadvantages associated with the digital currency. Authors: Winston Moore, Jeremy Stephen This research paper describes the recognition status Bitcoin is receiving from all over the world. It also describes how it is useful for the Central banks.
The authors have described the chain and prefix quality concepts. They have analyzed the protocols and underlying concepts. Does Governance Have a Role in Pricing? Cross-Country Evidence from Bitcoin Markets Author: Robert Viglione This paper throws light on the analysis of the bitcoin market data in elections along with the data generated via bitcoin.
Confidential Transactions Author: Gregory Maxwell In this paper , the author has focused on the methodology to follow in order to hide the payment values in a cryptographic transaction. In this paper , the authors have focussed on various aspects of cryptocurrencies like mining, transactions, network etc. This analysis states the method in which digital currencies can revamp the payment system.
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