Bitcoin-like Protocols and Innovation

• Main Authors: MAS, Ignacio, LEE, David K. C.
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2015
• Subjects: Bitcoin protocols; Bitcoin; Innovations; Blockchain; Mining; Block time; Forks; Crowd sales; Crowd funding; Electronic payment system; Side chain; Peer-to-peer exchanges; Prepaid card; Merchant; ATM solutions; Business; E-Commerce
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/4213; https://doi.org/10.1016/B978-0-12-802117-0.00021-7
• Institution: Singapore Management University

In this chapter, the authors examine the Bitcoin protocol and its innovation. Their conclusion is that Bitcoin's role as a system providing financial services may have been grossly underestimated, and bitcoin's role as an alternative to fiat currencies is likely to fail. This chapter discusses the Bitcoin key engineering elements that offer the possibility of a radically different approach for architecting electronic payment systems among other more sophisticated system such as crowd sales, crowd funding, peer-to-peer exchanges, and other side-chain capabilities. The technologies embedded within the Bitcoin system that have the potential to develop into very open, contestable, and interconnected ecosystems for the delivery of new and existing form of financial services will also be described.