Bitcoin Protocol: Model of ‘Cryptographic Proof’ Based Global Crypto-Currency & Electronic Payments System

Abstract

This is the first research report with specific technical focus on cryptographic ‘proof of work’ in the context of virtual crypto-currencies such as Bitcoin. Situated somewhere along the trajectory between real money and quantum money, virtual crypto-currencies based upon ‘cryptographic proof’ represent a natural stage in the evolution of global finance. Its cryptographic solution enables creation and regulation of issue of crypto-currency, preventing its counterfeiting and double-spending, and securing its global transmission at minimal transaction cost while using little time. Specific cryptographic vulnerabilities however need attention to ensure its integrity as a reliable medium of exchange and store of value.