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Cryptocurrency Mining Protocols: A Regulatory and Technological Overview

In: Disruptive Technology in Banking and Finance

Author

Listed:
  • Timothy King

    (University of Kent)

  • Dimitrios Koutmos

    (Texas A&M University)

  • Francesco Saverio Stentella Lopes

    (University of Rome Tre)

Abstract

This chapter offers an overview of digital currencies beginning with a background to the digitalization of money. The chapter then proceeds to discuss central bank issued digital currencies, a highly topical area of recent development, and issues surrounding the regulation of digital currencies. The second half of the chapter begins by providing the reader with a short history of ledgers and explains the differences between centralized and decentralized ledgers. Next cryptocurrencies are discussed in detail including issues surrounding their adoptions, and how they work including the various consensus algorithms employed to secure and validate cryptocurrency transactions.

Suggested Citation

  • Timothy King & Dimitrios Koutmos & Francesco Saverio Stentella Lopes, 2021. "Cryptocurrency Mining Protocols: A Regulatory and Technological Overview," Palgrave Studies in Financial Services Technology, in: Timothy King & Francesco Saverio Stentella Lopes & Abhishek Srivastav & Jonathan Williams (ed.), Disruptive Technology in Banking and Finance, edition 1, chapter 0, pages 93-134, Palgrave Macmillan.
    • Handle: RePEc:pal:psincp:978-3-030-81835-7_4
    DOI: 10.1007/978-3-030-81835-7_4
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    References listed on IDEAS

    as
    1. Dimitrios Koutmos, 2020. "Market risk and Bitcoin returns," Annals of Operations Research, Springer, vol. 294(1), pages 453-477, November.
    2. Julia M Maritz & Steven A Sullivan & Robert J Prill & Emre Aksoy & Paul Scheid & Jane M Carlton, 2017. "Filthy lucre: A metagenomic pilot study of microbes found on circulating currency in New York City," PLOS ONE, Public Library of Science, vol. 12(4), pages 1-16, April.
    3. John M. Griffin & Amin Shams, 2020. "Is Bitcoin Really Untethered?," Journal of Finance, American Finance Association, vol. 75(4), pages 1913-1964, August.
    4. Dimitrios Koutmos & Timothy King & Constantin Zopounidis, 2021. "Hedging uncertainty with cryptocurrencies: Is bitcoin your best bet?," Journal of Financial Research, Southern Finance Association;Southwestern Finance Association, vol. 44(4), pages 815-837, December.
    5. Kumhof, Michael & Noone, Clare, 2018. "Central bank digital currencies - design principles and balance sheet implications," Bank of England working papers 725, Bank of England.
    6. Markus K. Brunnermeier & Harold James & Jean-Pierre Landau, 2019. "The Digitalization of Money," Working Papers 2019-13, Princeton University. Economics Department..
    7. Timothy King & Dimitrios Koutmos, 2021. "Herding and feedback trading in cryptocurrency markets," Annals of Operations Research, Springer, vol. 300(1), pages 79-96, May.
    8. Sean Foley & Jonathan R Karlsen & Tālis J Putniņš, 2019. "Sex, Drugs, and Bitcoin: How Much Illegal Activity Is Financed through Cryptocurrencies?," The Review of Financial Studies, Society for Financial Studies, vol. 32(5), pages 1798-1853.
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    Cited by:

    1. Farhat Iqbal & Mamoona Zahid & Dimitrios Koutmos, 2023. "Cryptocurrency Trading and Downside Risk," Risks, MDPI, vol. 11(7), pages 1-18, July.
    2. Dimitrios Koutmos & Wang Chun Wei, 2023. "Nowcasting bitcoin’s crash risk with order imbalance," Review of Quantitative Finance and Accounting, Springer, vol. 61(1), pages 125-154, July.

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