Bitcoin PoW & Game Theory Aspects
By Othman Darwish Since the invention of Bitcoin cryptocurrency and its underlying blockchain technology, a new era of asset digitization emerge. By asset we mean anything could be owned, has a value, and could be transferred from one party to another. Asset digitization aims to provide proof of the ownership, bookkeeping of value, and streamline electronic exchanges. Electronic transfer of asset done traditionally by the help of centralized and trusted bookkeeper/asset registrar, here the central authority acts as notary service to guarantee the validity and finality of the ownership transfer. As a result, a central entity would maintain a ledger ( bookkeeper ) of assets transfer transactions, and keep maintaining its valid and final state. With the emergence of blockchain technology, this game changed forever; the needs for a central party that acts as a trusted intermediary to execute ownership transfer of an asset is eliminated, and replaced by blockchain security, cons