Bitcoin - Cryptocurrency

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COMP 3320

ELECTRONIC COMMERCE TECHNOLOGY


LECTURE 6: BLOCKCHAIN AND CRYPTOCURRENCY

Dr John T. H.Yuen
CYC 306, thyuen@cs.hku.hk 1
2
3
OVERVIEW

The Birth of Bitcoin.


Why is Bitcoin invented?

Bitcoin Fundamentals.
Technology to build Bitcoin.
Blockchain and
Cryptocurrency Cryptoeconomy.
The ecosystem developed from Bitcoin

Shortcomings, Scandals & Hacks.


The problem of Bitcoin.
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GET READY FOR A WORLD CURRENCY BY 2018 ECONOMIST
Economist 1988

THIRTY years from now, Americans, Japanese,


Europeans, and people in many other rich countries,
and some relatively poor ones will probably be
paying for their shopping with the same currency.
Prices will be quoted not in dollars, yen or D-marks
but in, let s say, the phoenix. The phoenix will be
favoured by companies and shoppers because it will
be more convenient than national
currencies, which by then will seem a quaint cause
of much disruption to economic life in the last
twentieth century

5
2008 GLOBAL FINANCIAL CRISIS
After the bursting of dot-com bubble in 2001, the global financial
crisis in 2008 is the worst financial crisis
The subprime mortgage crisis in the US caused the collapse of
the investment bank Lehman Brothers on September 15, 2008
Quantitative easing (QE) undertaken has mitigated some of the
economic problems since the crisis

-to-Peer Electronic Cash


Nakamoto
First transaction of Bitcoin contains the message of the

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WHAT IS BITCOIN?
Bitcoin is the first decentralized digital currency (cryptocurrency)
The system is peer-to-peer, and transactions take place between users directly, without an intermediary
Transactions are verified by network nodes and recorded in a public distributed ledger called a
blockchain
Total 21 million bitcoins to be mined until 2140
monetary policy based on artificial scarcity

Some important properties:


Everyone can use Bitcoin as long as he has access to internet
No one has full control to the Bitcoin system, not even by its inventor Satoshi Nakamoto
Bitcoin system cannot be shut down 7
BITCOIN HISTORY

Research paper: "Bitcoin: A Peer-to-Peer Electronic Cash System"


Open source code was released in January 2009
The identity of Nakamoto remains unknown
believed to own about 1 million bitcoins, which makes him ~18th richest person in the world in April 2021!

Jan-Jun 2018, $761 million


worth of cryptocurrencies
2017.11. CME Group was stolen from exchanges
launches Bitcoin futures
2013.11: BTC reaches

response of BTC

Source: https://coinmarketcap.com/currencies/bitcoin/
BITCOIN: WHY IS IT IMPORTANT? (LAYMAN)
for the first time, a way for one Internet user to transfer a unique
piece of digital property to another Internet user, such that the transfer is guaranteed to
be safe and secure, everyone knows that the transfer has taken place, and nobody can
New York Times, January 2014.

confidence in each other collaborate without having to go


through a neutral central authority. Simply put, it is a
Economist, October 2015

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BITCOIN: WHY IS IT IMPORTANT? (CYPHERPUNK)

Cypherpunk
A libertarian fight for privacy and self-governance using cryptography
Rooted from anonymous e-cash paper and pseudonymous reputation
systems paper "Security without Identification: Transaction Systems to Make Big

Move cryptography from military to civilian use


Pretty Good Privacy (PGP) for email was invented in 1991. The inventor was sue by the US

is necessary for an open society in the electronic age When I purchase a magazine at a
store and hand cash to the clerk, there is no need to know who I am Therefore, privacy in an open
society requires anonymous transaction systems. Until now, cash has been the primary such system.
An anonymous transaction system is not a secret transaction system. An anonymous system 10
empowers individuals to reveal their identity when desired and only when desired; this is the essence
of privacy. Cypherpunk manifesto (1993).
EARLY ATTEMPTS OF CRYPTOCURRENCY

Hashcash (1997) by Adam Back: Anti-spam by adding computational power cost to


sending email (similar to the Proof of Work in Bitcoin)
Reusable Proof of Work (2004) Bitgold (2005)

B-Money (1998) by Dai Wai: deposit money in order to maintain the transaction data
(similar to the Proof of Stake)
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BITCOIN FUNDAMENTALS
TECHNOLOGY TO BUILD BITCOIN

12
CURRENCY SYSTEM

Store your personal information when Identity


you open an account Management

Store account transaction data in Record Global, distributed


database Management ledger (blockchain)

Validate your signature and account balance


when you transfer/withdraw money Service
13

Verified by professionals, regulated by


government Trust
DIFFICULTY OF DEVELOPING E-CASH
Cryptographic E-cash

E-cash based on blind signature (1982)

Ledger
Bank

Paper money: protected by anti-counterfeit


technology (physical protection)

Ledger = Transaction Record

More like a Cashier's cheque:


The bank signed a e-cash (Cashier's cheque), the
user use it to sign for a single transaction, and the
merchant deposit it back to the bank. The bank
updates both ledgers 14

Problem:
Non-transferable
BITCOIN OVERVIEW: GLOBAL LEDGER
Current Bank Account Bitcoin
Satoshi Bitcoin based on blockchain (2008)

Bank
Global Ledger
2/7 Bob Alice $10
3/7 Carol Alice $50
4/7 Dennis Bob $20
6/7 Alice Carol $20

2/7 +10 Balance: 200 2/7 -10 Balance: 300


3/7 +50 Balance: 250 4/7 +20 Balance: 320
6/7 -20 Balance: 230 6/7 -20 Balance: 300
Decentralized:
Trust no one!
Centralized: One ledger in the world
Trust the bank
One ledger per user
transaction record even better to have more copy! 15

Peer-to-peer network enables global ledger


GLOBAL LEDGER = BLOCKCHAIN

Blockchain: a method of storing data amongst multiple parties


that ensures data integrity
blockchain
The technology behind cryptocurrencies that is receiving attention
because of its immutability and transparency
o Data committed to blockchain cannot be changed

copy

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constructed by a hash function to


ensure immutability
CRYPTOGRAPHIC BUILDING BLOCK
(Cryptographic) Hash function:
A function to map data of arbitrary size to data of a fixed size
Preimage resistance: Difficult to find the input when only given
the output
Collision resistant: Difficult to find two inputs that give the
same output
Bitcoin use a hash function called SHA-256

Preimage resistance 17

Collision resistant
Demo: https://andersbrownworth.com/blockchain/hash
SHA-256
BLOCKCHAIN DATA STRUCTURE (1)
Block n-1 Block n Block n+1
Previous Hash Previous Hash Previous Hash

TX Data:
Transaction 1: Alice Bob
TX Data TX Data
Transaction 2: Carol David

Security guarantee 1:
integrity

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Merkle
Demo: https://andersbrownworth.com/blockchain/tokens
CURRENCY SYSTEM

Store your personal information when Identity


Management Address (Public key)
you open an account

Store account transaction data in Record Global, distributed


database Management ledger (blockchain)

Validate your signature and account balance


when you transfer/withdraw money Service
19

Verified by professionals, regulated by


government Trust
ADDRESS/PUBLIC KEY AS IDENTITY

Identity in daily life:


Houses have addresses and mailbox keys Each entity is represented with a unique public
key
Emails have username and passwords
A corresponding private key acts as a key to
Bitcoin has public keys and private keys
In a transaction, the identity is used to Private key chosen at random, public key
identify the sender and the recipient generated from private key
An identity should be unique (e.g., Public key for receiving, private key for redeeming
passport number)
Usually managed by a central authority
such as the government or bank
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Demo: https://andersbrownworth.com/blockchain/public-private-keys/keys
QUESTIONS ON BITCOIN ADDRESS?

Is any personal information required to create a Bitcoin address?


Is Bitcoin anonymous?
How many address can you create? Does this affect the security of
Bitcoin?
Will someone have the same address as me in Bitcoin? If so, can he steal
my money?
***** Bitcoin address is the hash of public key *****

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BITCOIN ADDRESS

Bitcoin is hidden in the large amount of public keys/address


2160
= (1,461,501,637,330,902,918,203,684,832,716,283,019,655,932,542,976)
possible addresses
Number of sand in Earth: 263
Practically impossible for anyone to overlap using random generation
of public key
Population of world: ~7.5 billion in 2017
Every person could have about 2127 addresses all to themselves

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CURRENCY SYSTEM

Store your personal information when Identity Address (Public key)


you open an account Management

Store account transaction data in Record Global, distributed


database Management ledger (blockchain)

Validate your signature and account balance Validate transaction using digital
when you transfer/withdraw money Service signature and UTXO model
23

Verified by professionals, regulated by


government Trust
VALIDITY OF TRANSACTION

The transaction is signed by the signer (digital signature)


The account has enough fund for transaction (UTXO Model)
The same fund is not used twice (double spending)

Digital signature
A valid digital signature gives a recipient reason to believe
that the message was created by a known sender
(authentication), that the sender cannot deny having sent
the message (non-repudiation), and that the message was
not altered in transit (integrity). 24

Demo: https://andersbrownworth.com/blockchain/public-private-keys/signatures
BLOCKCHAIN DATA STRUCTURE (2)
Block n-1 Block n Block n+1
Previous Hash Previous Hash Previous Hash

TX Data:
Transaction 1: Alice Bob
TX Data TX Data
Transaction 2: Carol David

Security guarantee 2:
blockchain) integrity
non-repudiation

Cryptography ensures the security of blockchain 25

Demo: https://andersbrownworth.com/blockchain/public-private-keys/transaction
ACCOUNT BALANCE MODEL VS. UTXO MODEL

Traditional bank account uses account balance model


To spend, money is subtracted from the total
To receive, money it is added to the total
The bank (trusted party) maintains the balance for everyone
Bitcoin uses the Unspent Transaction Outputs (UTXO) model
Each account holds a set of UTXOs: quantities of bitcoin sent to this account that have not been redeemed
yet
A UTXO may contain any quantity of bitcoin, and is spent in its entirety
UTXOs can only be redeemed once

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UTXO MODEL

John Alice Bob

2 BTC
from Tx#12
5 BTC 7 BTC 3 BTC 12 BTC
from Tx#12 from Tx#17 from Tx#15 from Tx#16

Each person has his/her own secret key for the Bitcoin

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UTXO MODEL

John Alice Bob

1 BTC
from Tx#20
2 BTC
from Tx#12
5 BTC 7 BTC 3 BTC 4 BTC 12 BTC
from Tx#12 from Tx#17 from Tx#15 from Tx#20 from Tx#16

John sends 4 BTC to Alice by:


Redeeming his UTXO containing 5 BTC
Sending 4 BTC to Alice
And sending 1 BTC back to himself
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UTXO MODEL

John Alice Bob

1 BTC
from Tx#20
2 BTC
from Tx#12 7 BTC
from Tx#23
7 BTC 3 BTC 4 BTC 12 BTC
from Tx#17 from Tx#15 from Tx#20 from Tx#16

Alice sends 7 BTC to Bob by:


Redeeming her UTXO containing 3 BTC and 4 BTC
Sending 7 BTC to Bob

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CHECKING FOR DOUBLE SPENDING

John Alice Bob

1 BTC
from Tx#20
2 BTC
from Tx#12 7 BTC
from Tx#23
5 BTC 7 BTC 3 BTC 4 BTC 12 BTC
from Tx#12 from Tx#17 from Tx#15 from Tx#20 from Tx#16

Everyone can see that he used it in Tx#20


This information is stored in blockchain transaction record
This new transaction is rejected
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QUESTIONS

If John spent $100 to Alice in block #5:


Can John deny the validity of this transaction later? Why?
Can John claim that he paid $10 instead? Why?
What happens if John spends the same UTXO to Alice and Bob within the same
time slot for creating block #7?

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CURRENCY SYSTEM

Store your personal information when Identity Address (Public key)


you open an account Management

Store account transaction data in Record Global, distributed


database Management ledger (blockchain)

Validate your signature and account balance Validate transaction using digital
when you transfer/withdraw money Service signature and UTXO model
32

Verified by professionals, regulated by Consensus without trusted


government Trust authority (Trust the maths)
CONSENSUS IN BANK
Centralized
Trust the bank is correct
Deposit $10
The bank has regular auditing
Withdraw $30
The bank is under regulation and
is oversighted by the
government

Transfer $20
to John
Withdraw $10M

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BITCOIN CONSENSUS

Recall that Bitcoin used distributed ledger


The next important question is: who writes the ledger if there is no trusted third party?

block of transactions)
Everyone should be able to check if the winner misbehaves (and how to handle it if it happens)
Everyone maintains the same copy of ledger (in the long run) no matter what happens Consensus

(unless you can limit who can vote)


Proof of Work Mining

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Puzzle to solve: Proof of Work:
Previous Hash In order to propose a new block, must
? include Proof-of-Work or the solution to
hash < 0000..0000xxxxxxxxxxxxx a hash puzzle:
TX Data
Number of zeros 75 now find a random number to put in the block,
such that the hash of the new block starts
with many zeros
Try to mine
Hash puzzle can only be solved using
one by one
brute-force computation, which spends
Hash(Prev hash || 0000 || Tx Fail resources
Hash(Prev hash || 0001 || Tx Fail
Hash(Prev hash || 0010 || Tx Fail
Hash(Prev hash || 0011 || Tx Fail hash function

Hash(Prev hash || 1100 || Tx Success! 35

Try it out: https://andersbrownworth.com/blockchain/block


Puzzle to solve: Proof of Work:
Previous Hash
People who create and propose blocks are called
? miners
hash < 0000..0000xxxxxxxxxxxxx
Difficulty of the puzzle will change in order to keep
TX Data
Number of zeros 75 now the generation rate of new blocks: 1 new block
every 10 minutes
Bitcoin network currently consumes about 2.55
gigawatts (GW) of electricity per year
the entire country of Ireland has an average
electricity consumption of 3.1 GW per year
Major problem of Bitcoin
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Block n-1 Block n Block n+1
Previous Hash Previous Hash Previous Hash
Generated
Answer to puzzle Answer to puzzle Answer to puzzle new bitcoins

TX Data:
Transaction 1: Alice Bob Tx fee
Transaction 2: Carol David TX Data TX Data

reward

miners

maintain the ledger, because they get Bitcoin for mining!


37

The miner who solves the puzzle first will be rewarded.


FORKING
What happens if two miners win at (roughly) the same time?
Forking!

Block n+1
Previous Hash
Answer to puzzle

Block n TX Data:
Alice Bob $10
Previous Hash
Carol David $3
Answer to puzzle
immediately

TX Data Other miners will continue mining in


Previous Hash
Answer to puzzle

TX Data:
Carol David $3 38
Eve Fred $1
FORKING
Eventually, one chain will be longer than the other
Block n+1 Block n+2
Previous Hash Previous Hash No one will follow the shorter chain and this branch
Answer to puzzle Answer to puzzle is dead
Block n
All transactions there are not completed
Previous Hash TX Data TX Data
Answer to puzzle No mining reward earned

TX Data

Previous Hash Previous Hash Previous Hash Previous Hash Previous Hash
Answer to puzzle Answer to puzzle Answer to puzzle Answer to puzzle Answer to puzzle

TX Data TX Data TX Data TX Data TX Data

A transaction in block n is usually considered to be complete if the current block is n+6


39

Since it takes 10 minutes to mine a block in Bitcoin, a transaction is complete after 1hour.
SECURITY BASED ON HONEST MAJORITY

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COMBINING EVERYTHING
Demo:
https://andersbrownworth.com/blockchain/public-private-keys/blockchain

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QUESTIONS

What if

Can I fork on a very old block and create a sub-chain from there?
What happens after the 21 million Bitcoin are mined after 2140?
If it takes 1 hour to complete a transaction, how can I buy something (e.g.,
coffee) from a shop using Bitcoin?

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CRYPTOECONOMY
THE ECOSYSTEM DEVELOPED FROM BITCOIN

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Bitcoin provides an open platform (without trusted third party) for monetary
transaction, participated by the following parties:
User
buy Fiat Money
User
Other cryptocurrencies
User
Miners
Exchange
regulate

Developer
Government
Nakamoto
2008, whose real identity is unknown Bitcoin system cannot be
Maintained by development regulated or be shut down 44
community Miners Regulate exchange
Miner
BITCOIN USERS

Blockchain

Important concepts:
Not every client is a miner

Not every client has the entire blockchain (160+ GB)


What if I just want to send bitcoins with my phone?
Not every client is directly connected to the network
?
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1. Private key

2. Address
BITCOIN WALLET 3. VTXO

ADDRESS 1: ADDRESS 2: ADDRESS 3:


1JJQmRbU9JT9mfxjp756Y
MuxV6yksKtbk5
We manage our private keys PRIVATE_KEY 2: PRIVATE_KEY 3:
PRIVATE_KEY 1:
with a wallet L1fm3iAFdDHwSD3CZuZm
Wp54GXpQ6QzUjmrACVfK
The wallet stores, sends, KE8BkggW99u3

receives and lists transactions


(connected to internet But easier to be hacked Gees
:
easy & uses
friendly secure)

Several types: save private key


in a 3rd
party
Mobile Apps software
Hot
wallet
Web-based wallet
Paper wallet Cold
wallet
Hardware wallet 46

$
Write on
paper or store in USB (Disconnected to internet a safer) less countenance
BUYING BITCOIN
There are some Bitcoin exchanges with local Hong Kong bank
accounts. can
buy bitcoin directly there
E.g., Tidebit, Liquid, Bitstamp, Gemini, Maicoin
HK proposed to restrict crypto exchanges to professional investors
(>$8M) in 2021-2022 any professional can buy the exchange l $8M)
in >

Brokerages, also called OTC (Over the counter), are places where
you can buy Bitcoin for cash or a wire transfer for a fixed rate,
similar to the forex shops foreign estrange shops lhiqher transaction feel
-

Bitcoin ATMs can be found all around Hong Kong.


Need Arcadefrom bitcoin wallet
charge 5-8% on top of the market exchange rate.
.

Once you get some Bitcoin, there are many website that allows
you to trade Bitcoin with cryptocurrencies. 47

Get Bitcoin first then transact with other


cryptocurrencies ( each transaction produce fees)
-
MERCHANT ACCEPTANCE Pay without
leaving record .

2014 Jan. Porn.com accepts Bitcoin


2014 Jan. Overstock.com Becomes First Major
Retailer to Accept Bitcoins
2014 Sep. PayPal partners with and Coinbase, BitPay
Companies who accepts Bitcoins
KFC Canada, Subway, Microsoft (buy content with Bitcoin
on Xbox and Windows store), Expedia, Rakuten
A 2020 survey reveals that 36% of small-medium businesses
in the US accept Bitcoin.
48

Source: https://99bitcoins.com/who-accepts-bitcoins-payment-companies-stores-take-bitcoins/
MERCHANT ACCEPTANCE

AT&T becomes first big mobile carrier to accept Bitcoin payments in May 2019
cryptocurrency for payments for tax and various services in 2019.
Amazon: Cryptocurrency for payments through

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MINING INDUSTRY

Mining Profit = Revenue - Cost

Block Fix Variable


Tx fee
reward cost cost
Transaction fee

Block_reward: currently get 6.25 BTC per block


1 BTC a 40,800USD

The reward is halved every 4 years limited number of money supply


Total BTC supply = 21,000,000 (Fixed supply from a economic point of view)
Tx_fees: ( have market value :
depends on the demand for the mining )

Voluntarily set by the sender, but if you set a higher transaction fee, it will be handled by miners
more quickly # For normal the software will deduce transaction fee
users
,
automatically .

So Tx_fees and deduct from the users


'

wallet .
50
MINING INDUSTRY
Fixed_cost: Variable_cost: Energy consumed in mining
Electricity, to power your hardware
Cooling, to maintain your hardware
From 2010 ,

Gpus
miner
buys .

Bitcoin farm is usually located in a place of


cheap electricity and cold weather for cooling purpose .

(to lower
E.g. Iceland; Dalian, China electricity
GPUs not enough ,

# China banned
mining .

ASICs dedicated

in
calculating
Hash functions
ASIC: 14 trillion hash per second now! 51
ALTCOINS
FROM BITCOIN TO OTHER CRYPTOCURRENCIES earhhasits advantages ↳ woatypesof cryptocurrencies )
-

52
(platform using smart contract)

53
ALTCOINS Alternative coins ( eaeh has its setting point)

Usually, each altcoins has their own selling point, by improving a bit from Bitcoin
One popular direction is to replace Proof-of-Work for the consensus: ( reduce electricity consumption )
Use memory-hard puzzle: it requires large amount of memory instead of computational power deter ASICS. Used in
Litecoin, Dogecoin

Developing
Two main steps:
toprevent
waste
1. Fill buffer w/ interdependent data
of energy em .

2. Access data in pseudorandom way


TNT seur & new
Without using memory, V[j], a previously computed
}
• ↳°
needto repeatedly calculate hashfunction
value, must be computed on the fly. to do the
calculation
hashed eq . woo times

Drawbacks: return one


of the woo trash
1. Requires equal amount of memory to verify for solution 54

needto shore all hashes


2. ASIC developed; not resistant!
?⃝
ALTCOINS Some designed for specific application
Some cryptocurrencies are application specific.
E.g., Ripple is used for currency exchange

International wire transfer Ripple


Ripple: real-time gross settlement system,
International
currency exchange and remittance network
correspondent bank

huge time cost 1


Bank
3
Bank
4
Bank Bank
1 1
Bank Bank
1
& 2 Transaction on Ripple blockchain

National Nostro National


transaction fee settlement accounts settlement
Ripple messaging
messaging

Time cost: Time cost: 1


1 Anti-money laundering, 2manual validation,3 batch 7x24 immediate transaction, only need anti-money
processing,4 time difference between countries laundering
Average: 3-5 days Blockchain transaction: 3-6 seconds 55
Transaction Cost: Transaction Cost:
Intermediate banks, settling banks, payment system 60% less
(~0.1% of amount); SWIFT (~$150)
ALTCOINS focus on privacy

Some cryptocurrencies are focused on privacy

?? * address of parties
# amount
oftransfer
Sender Confidential Recipient
anonymity transaction anonymity except the

sender &
recipient

Zcash (#26) Monero (#12) Dash (#13) (not updated


ranking ) 56
ALTCOINS: STABLECOIN tomimiutliecumeneyrateforrealmoney
Stablecoins are cryptocurrencies designed to minimize the volatility of the
price of the stablecoin, relative to some "stable" asset or basket of assets. USD Tether (USDT)

A stablecoin can be pegged to a cryptocurrency, fiat money, or to


exchange-traded commodities.
Digix Gold Tokens ( Gold), USD Tether/USD Coin (
( USD)
ehetraaingvolnmeis evenwgher-wnanB.TL
Almost fixed currency
-

rate

IEUSD
most- µ
more suitable
more
popular tomy
than BTC
Maltings
57
SHORTCOMING, SCANDALS & HACKS
THE PROBLEM OF BITCOIN

58
BITCOIN STRUGGLES TO SCALE

Technical consideration:
Bitcoin blocks are created every 10 minutes and can only hold 1 MB of transactions
2015: blocks begin to run out of space, transactions go unconfirmed
Block size debate raises questions about decentralized governance

59
In February 2022, the Russian government announced it would
support, legalize, and regulate cryptocurrencies

LEGAL STATUS OF CRYPTOCURRENCY


When a cryptocurrency is developed, its legal
status is unclear
EU:
The European Central Bank classifies bitcoin as a
convertible decentralized virtual currency.
VAT/GST is not applicable to the conversion between fiat
currency and bitcoin.

US:
U.S. Treasury classified bitcoin as a convertible
decentralized virtual currency in 2013.
China:
Commodity Futures Trading Commission classified bitcoin
as a commodity in 2015. Cryptocurrency exchanges or trading platforms were
effectively banned by regulation in September 2017
For Internal Revenue Service, bitcoin is taxed as a property. with 173 platforms closed down by July 2018 60

Bitcoin was mentioned in a U.S. Supreme Court opinion A complete ban on cryptocurrency trading and
regarding the changing definition of money in 2018. mining was put into effect on 24 September 2021.
LEGAL STATUS OF CRYPTOCURRENCY

Using cryptocurrency for financial operations are also subjected to approval


US: cryptocurrency exchanges, money transmitters (e.g., Ripple), and anonymizing
services do a substantial amount of business in the U.S., they are required to
register with the Government as a money services business
design and enforce an anti-money laundering (AML) program, and
keep appropriate records and make reports to the Government
US: approved future trading of Bitcoin by CME and CBOE (largest option/future
exchange) in 2018
61
Developing new financial operations by cryptocurrency faces legal challenges
CYBERCRIME
2014: Mt. Gox (handling 70% of BTC transactions at that Ransomware
time) Feb 2011: Silk Road opens as the
(worth US$450 million at that time); Mt.
Gox declares bankruptcy and Bitcoin
Unauthorized mining
January 2018: hackers stole US$530 million worth of NEM In Dec 2013-Jan 2014, Yahoo! Europe
from Japanese exchange Coincheck hosted an ad containing bitcoin mining
malware that infected an estimated two
million computers
In February 2014, a member of
the Harvard community was stripped of

computing facilities after setting up a


62
dogecoin
Harvard research network
RECENT NEWS

bitcoin transaction needs verification. Maybe the ring 63


bypassed the verifying process before taking the
GOOD OR BAD? JUDGE ON YOUR OWN!
64
REFERENCE:

1. -to- Nakamoto.
2. https://medium.com/@VitalikButerin
3. Why Bitcoin Matters. New York Times. https://dealbook.nytimes.com/2014/01/21/why-bitcoin-matters/
4. The trust machine. Economist. https://www.economist.com/leaders/2015/10/31/the-trust-machine
5. PwC 6th ICO / STO Report, Spring 2020.
https://www.pwc.ch/en/publications/2020/Strategy&_ICO_STO_Study_Version_Spring_2020.pdf

65

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