An Analysis of the Bitcoin Electronic Cash System

In a world that relies heavily on technology, privacy is sought by many. Privacy, among other things, is especially desired when making an online payment. This motivates the use of electronic cash, a form of electronic payment system based on the paper cash system used daily. The most successful and widely used of these services is Bitcoin – a decentralized peer-to-peer electronic cash system. This paper provides a broad introduction to Bitcoin, while analyzing its construction and investigating some of its perks and flaws. It can be seen that, when compared to paper cash and electronic cash, Bitcoin is in a class of its own.