A Fistful of Bitcoins: Characterizing Payments Among Men With No Names

ABSTRACT

Bitcoin is a purely online virtual currency, unbacked by either physical commodities or sovereign obligation; instead, it relies on a combination of cryptographic protection and a peer-to-peer protocol for witnessing settlements. Consequently, Bitcoin has the unintuitive property that while the ownership of money is implicitly anonymous, its flow is globally visible. In […]

The Second Bitcoin Whitepaper

The Second Bitcoin Whitepaper

We claim that the existing bitcoin network can be used as a protocol layer, on top of which new currency layers with new rules can be built without changing the foundation. We further claim that the new protocol layers described in this document:

• Will fix the two biggest barriers to […]

Bitcoin – A Primer for Policymakers

Bitcoin is the world’s first completely decentralized digital currency. Four short years ago, knowledge of it was confined to a handful of hobbyists on Internet forums.

Today, the bitcoin economy is larger than the economies of some of the world’s smaller nations. The value of a bitcoin (or BTC) has grown and fluctuated greatly, from […]

Bitcoin 2: Freedom of Transaction

We propose a set of changes to the original Bitcoin protocol (called Bitcoin 2) that allows Bitcoin to evolve into a system that is future-proof against developing threats to its original vision – analternative, decentralized payment system which allows censorship-resistant, irreversible transactions. Bitcoin 2 strives to be a minimal set that lays the foundations for […]

Virtual Economies and Currencies – Additional IRS Guidance Could Reduce Tax Compliance Risks

Virtual Economies and Currencies – Additional IRS Guidance Could Reduce Tax Compliance Risks – US General Accountability Office – June 2013

Transactions within virtual economies or using virtual currencies could produce taxable income in various ways, depending on the facts and circumstances of each transaction. For example, transactions within a “closed-flow” virtual currency system do […]

Regulating Digital Currencies: Bringing Bitcoin within the Reach of the IMF

Regulating Digital Currencies: Bringing Bitcoin within the Reach of the IMF – Nicholas Plassaras – University of Chicago- April 2013

This paper examines the potentially destabilizing effects of emerging digital currencies on the international foreign currency exchange. Specifically, it examines “Bitcoin,” a decentralized, partially anonymous, and largely unregulated digital currency that has become particularly popular […]

Redefining Virtual Currency

Redefining Virtual Currency – Yankee Group – May 2013

Virtual currencies are frequently used by consumers as a means of exchanging value, whether they realize it or not. In fact, many of the media of exchange we use outside of traditional currencies like cash are actually virtual currencies. For instance, commonly used […]

An Analysis of Anonymity in the Bitcoin System

An Analysis of Anonymity in the Bitcoin System – May 2012

Anonymity in Bitcoin, a peer-to-peer electronic currency system, is a complicated issue. Within the system, users are identi ed by public-keys only. An attacker wishing to de-anonymize its users will attempt to construct the one-to-many mapping between users and public-keys and associate information […]

Bitcoin Virtual Currency: Unique Features Present Distinct Challenges for Deterring Illicit Activity – FBI

Bitcoin Virtual Currency: Unique Features Present Distinct Challenges for Deterring Illicit Activity – FBI – April 2012

Bitcoin – A decentralized,1 peer-to-peer (P2P) network-based virtual currency – provides a venue for individuals to generate, transfer, launder, and steal illicit funds with some anonymity. Bitcoin offers many of the same challenges associated with other virtual currencies,such […]

Bitcoin: An Innovative Alternative Digital Currency – Science/Tech Law Journal

Bitcoin: An Innovative Alternative Digital Currency – December 2011

Bitcoin is a digital, decentralized, partially anonymous currency, not backed by any government or other legal entity, and not redeemable for gold or other commodity. It relies on peer-to-peer networking and cryptography to maintain its integrity.[1] Its proponents argue that Bitcoin has many properties that could […]

Virtual Currencies – European Central Bank

Executive Summary – October 2012

Virtual communities have proliferated in recent years – a phenomenon triggered by technological developments and by the increased use of the internet. In some cases, these communities have created and circulated their own currency for exchanging the goods and services they offer, and thereby provide a medium of exchange and […]

Decentralised Currencies Are Probably Impossible

Decentralised Currencies Are Probably Impossible – But Let’s At Least Make Them Efficient -2011

Lately, there’s been a good deal of excitement about Bitcoin, an (allegedly) decentralised currency, based on proof-of-work. I explore the limitations and costs of Bitcoin and introduce an efficient alternative. Both Bitcoin and my alternative proposal suffer from a […]

An Efficient Distributed Currency

An Efficient Distributed Currency – Dan Laurie – 2011

Given that it is probably impossible to create a decentralised currency[2], what’s the next best thing?

I claim that it is a distributed currency: one that relies on a distributed central authority. In this case, the interesting questions are how one builds a […]

Beware the Middleman: Empirical Analysis of Bitcoin-Exchange Risk

Beware the Middleman: Empirical Analysis of Bitcoin-Exchange Risk

Bitcoin has enjoyed wider adoption than any previous crypto-currency; yet its success has also attracted the attention of fraudsters who have taken advantage of operational insecurity and transaction irreversibility. We study the risk investors face from Bitcoin exchanges, which convert between Bitcoins and hard currency. We […]

Coinlab – A Bitcoin Primer

Coinlab – A Bitcoin Primer. January 2012

What if you could store and transfer money safely, securely, cheaply and quickly anywhere in the world yourself, without relying on anyone else?

Bitcoin is a new technology that has the potential of supplanting many of our contemporary banking and money transfer services (at least in […]

Quantitative Analysis of the Full Bitcoin Transaction Graph

Quantitative Analysis of the Full Bitcoin Transaction Graph.

The Bitcoin scheme is a rare example of a large scale global payment system in which all the transactions are publicly accessible (but in an anonymous way). We downloaded the full history of this scheme, and analyzed many statistical properties of its associated transaction graph. […]

Two Bitcoins at the Price of One? Double-Spending Attacks

Two Bitcoins at the Price of One? Double-Spending Attacks on Fast Payments in Bitcoin.

Bitcoin is a decentralized payment system that is based on Proof-of-Work. Bitcoin is currently gaining popularity as a digital currency; several businesses are starting to accept Bitcoin transactions. An example case of the growing use of Bitcoin was recently […]

Traveling the Silk Road

Traveling the Silk Road: A measurement analysis of a large anonymous online marketplace – Updated November 2012

We perform a comprehensive measurement analysis of Silk Road, an anonymous, international online marketplace that operates as a Tor hidden service and uses Bitcoin as its exchange currency. We gather and analyze data over eight months […]

On Bitcoins and Red Ballons

Bitcoin relies on a peer-to-peer network to track transactions that are performed with the currency. For this purpose, every transaction a node learns about should be transmitted to its neighbors in the network. As the protocol is currently defined and implemented, it does not provide an incentive for nodes to broadcast transactions they are […]

Bitcoin: A Peer-to-Peer Electronic Cash System – Satoshi Nakamoto

The Original Bitcoin paper

Bitcoin: A Peer-to-Peer Electronic Cash System Satoshi Nakamoto [email protected] www.bitcoin.org Abstract. A purely peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial institution. Digital signatures provide part of the solution, but the main benefits are lost if […]