The Journal of Digital Assets
- Volume 1
- December 2022
- Issue 1
Articles
- Green Bitcoin: Global Sound Money
- Heung-No Lee, Young-Sik Kim, Dilbag Singh, and Manjit Kaur
- First Published: 05 December 2022
- Abstract | Full Text(713) | PDF download(196)
Abstract
Modern societies have adopted government-issued fiat currencies many of which exist today mainly in the form of digits in credit and bank accounts. Fiat currencies are controlled by central banks for economic stimulation and stabilization. Boom-and-bust cycles are created. The volatility of the cycle has become increasingly extreme. Social inequality due to the concentration of wealth is prevalent worldwide. As such, restoring sound money, which provides stored value over time, has become a pressing issue. Currently, cryptocurrencies such as Bitcoin are in their infancy and may someday qualify as sound money. Bitcoin today is considered as a digital asset for storing value. But Bitcoin has problems. The first issue of the current Bitcoin network is its high energy consumption consensus mechanism. The second is the cryptographic primitives which are unsafe against post-quantum (PQ) attacks. We aim to propose Green Bitcoin which addresses both issues. To save energy in consensus mechanism, we introduce a post-quantum secure (self- election) verifiable coin-toss function and novel PQ secure proof-of-computation primitives. It is expected to reduce the rate of energy consumption more than 90 percent of the current Bitcoin network. The elliptic curve cryptography will be replaced with PQ-safe versions. The Green Bitcoin protocol will help Bitcoin evolve into a post-quantum secure network. In addition, it improves the properties of Bitcoin’s hash PoW while addressing environmental concerns.Keywords: sound money, verifiable random function
