Cryptocurrency: History, Advantages, Disadvantages, and the Future

Cryptocurrency is a digital asset that has seen a large amount of attention within the past five years. Its origin is intriguing to some based upon its newness, yet it has invoked mysticism and skepticism in others. Bitcoin is the most recognizable currency, receiving heavy media attention. There are several other cryptocurrencies as well, less in the spotlight. Most appealing to cryptocurrency could include lack of government oversight, and increased privacy available to the consumer(s) (Bunjaku, Gjorgieva-Trajkovska, and Miteva-Kacarski, 2017, p. 37). Additional advantages include the simplicity in the start-up process, the ease of transferability, and the opportunity to have a seamless process in investing and/or exchanging monies. Cryptocurrency creates the ability to invest for some people groups that could never invest before and diversify investment portfolios (Theron and van Vuure, 2018, p. 2). While the newness of cryptocurrency certainly has been appealing for some, it also has been perceived oppositional by others. There has been concerns identified with regard to the level of trust required, an obvious and significant drawback if valid. Another identified disadvantage to cryptocurrency is its low amount of oversight and liquidity hurt for investing future. The ability for cryptocurrency to be used for illegal and/or evil activity is an ethical drawback (Nian and Chuen, 2015, p. 15). Lastly, the uncertainty of the future is a significant drawback. The future of cryptocurrency requires much economic forecasting. The new changes that cryptocurrency will bring to traditional economic institutes is an area which cryptocurrency needs to explored more. Lastly, is cryptocurrency a fad or an economic bubble

Centrally Banked Cryptocurrencies

Current cryptocurrencies, starting with Bitcoin, build a decentralized blockchain-based transaction ledger, maintained through proofs-of-work that also generate a monetary supply. Such decentralization has benefits, such as independence from national political control, but also significant limitations in terms of scalability and computational cost. We introduce RSCoin, a cryptocurrency framework in which central banks maintain complete control over the monetary supply, but rely on a distributed set of authorities, or mintettes, to prevent double-spending. While monetary policy is centralized, RSCoin still provides strong transparency and auditability guarantees. We demonstrate, both theoretically and experimentally, the benefits of a modest degree of centralization, such as the elimination of wasteful hashing and a scalable system for avoiding double-spending attacks.Comment: 15 pages, 4 figures, 2 tables in Proceedings of NDSS 201

An architecture for distributed ledger-based M2M auditing for Electric Autonomous Vehicles

Electric Autonomous Vehicles (EAVs) promise to be an effective way to solve transportation issues such as accidents, emissions and congestion, and aim at establishing the foundation of Machine-to-Machine (M2M) economy. For this to be possible, the market should be able to offer appropriate charging services without involving humans. The state-of-the-art mechanisms of charging and billing do not meet this requirement, and often impose service fees for value transactions that may also endanger users and their location privacy. This paper aims at filling this gap and envisions a new charging architecture and a billing framework for EAV which would enable M2M transactions via the use of Distributed Ledger Technology (DLT)

Bitcoin's Highest Volatility Trend Analysis Since the COVID-19 Crash: Way out to FinTech Perspective

This research finds that the bitcoin’s (BTC) volatility is higher than normal. Bitcoin’s realized volatility has reached the levels as high as March-2020, the duration of month in which Bitcoin crashed for COVID. During bull runs, price fluctuations are the more common because investors cash out next to different points. More enormous volatility creating greater magnitude of change in prices of the bitcoin. It is implicit that this downward can go to upward eventually. Despite bitcoin’s explicit volatility, it has already outperformed the other assets, such as the gold, during previous year. Overall this volatility of bitcoin is chronologically going down: as price and the market cap of cryptocurrency has already increased over time, the explicit volatility of this asset shows fluctuating trend. During previous year, Bitcoin along with other cryptocurrencies are at upward but fluctuating trend and performing comparatively better opposite to traditional. This study finds way out to remedy through fintech perspective for volatility to overcome

Instantaneous Decentralized Poker

We present efficient protocols for amortized secure multiparty computation with penalties and secure cash distribution, of which poker is a prime example. Our protocols have an initial phase where the parties interact with a cryptocurrency network, that then enables them to interact only among themselves over the course of playing many poker games in which money changes hands. The high efficiency of our protocols is achieved by harnessing the power of stateful contracts. Compared to the limited expressive power of Bitcoin scripts, stateful contracts enable richer forms of interaction between standard secure computation and a cryptocurrency. We formalize the stateful contract model and the security notions that our protocols accomplish, and provide proofs using the simulation paradigm. Moreover, we provide a reference implementation in Ethereum/Solidity for the stateful contracts that our protocols are based on. We also adopt our off-chain cash distribution protocols to the special case of stateful duplex micropayment channels, which are of independent interest. In comparison to Bitcoin based payment channels, our duplex channel implementation is more efficient and has additional features