4,087 research outputs found
The cost of Bitcoin mining has never really increased
The Bitcoin network is burning a large amount of energy for mining. In this
paper we estimate the lower bound for the global energy cost for a period of
ten years from 2010, taking into account changing oil costs, improvements in
hashing technologies and hashing activity. Despite a ten-billion-fold increase
in hashing activity and a ten-million-fold increase in total energy
consumption, we find the cost relative to the volume of transactions has not
increased nor decreased since 2010. This is consistent with the perspective
that, in order to keep a the Blockchain system secure from double spending
attacks, the proof or work must cost a sizable fraction of the value that can
be transferred through the network. We estimate that in the Bitcoin network
this fraction is of the order of 1%.Comment: 16 pages, 6 figure
What are the main drivers of the Bitcoin price? Evidence from wavelet coherence analysis
Bitcoin has emerged as a fascinating phenomenon of the financial markets.
Without any central authority issuing the currency, it has been associated with
controversy ever since its popularity and public interest reached high levels.
Here, we contribute to the discussion by examining potential drivers of Bitcoin
prices ranging from fundamental to speculative and technical sources as well as
a potential influence of the Chinese market. The evolution of the relationships
is examined in both time and frequency domains utilizing the continuous
wavelets framework so that we comment on development of the interconnections in
time but we can also distinguish between short-term and long-term connections.Comment: 19 pages, 5 figure
Blockchain Technology: An Analysis of Potential Applications and Uses
This paper will focus on explaining what blockchain technology is, the fundamentals of how it works, and applications of it. By utilizing sophisticated cryptography, a distributed network, a specified order of events the technology is able to create a ledger that cannot be altered due to its existence on many computers that able to detect if the data has been changed or tampered with. To help illustrate the uses of blockchain technology the technical explanation is complemented with real and hypothetical ways that the technology it being used. The use of blockchain technology originated with financial application and has expanded to many industries as new and creative ideas come to fruition
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