influencing characteristics of crypto-currency adoption
TRANSCRIPT
INFLUENCING CHARACTERISTICS OF CRYPTO-CURRENCY ADOPTION
THESIS
Submitted in Partial Fulfillment of
the Requirements for
the Degree of
MASTER OF SCIENCE (Management of Technology)
at the
NEW YORK UNIVERSITY
POLYTECHNIC SCHOOL OF ENGINEERING
by!
Esia Yosupov!
May 2015
iii
ABSTRACT
INFLUENCING CHARACTERISTICS OF CRYPTO-CURRENCY ADOPTION
by
Esia Yosupov
Advisor: Prof. Nasir Memon, Ph.D.
Co-Advisor: Prof. Joseph Stanley Nadan, Ph.D.
Submitted in Partial Fulfillment of the Requirements for
the Degree of Master of Science (Management of Technology)
May 2015
!
Crypto-currencies (or digital currencies) have gained popularity in the recent few years,
considering its young existence of six years. Crypto-currencies are simply enabling means to
transact in the virtual space globally without the need of intermediaries and third parties. It is
built on the “Blockchain” technology, which provides an innovative means of transfer. This
paper investigates crypto-currencies, its underlying technology, and the motivation of its
development and adoption. It further takes the next step in evaluating consumer’s mindsets
around crypto-currencies utilizing the patented IdeaMap® and RDE methods to identify the
most influencing characteristics of crypto-currencies. Three distinct segments were
identified, where each segment is concerned with discrete elements involving cost, privacy,
and accessibility. It concludes that the creation of new services and applications will drive
widespread adoption of digital currencies.
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Table of Contents
1. Introduction ...................................................................................................................... 1
1.1 Background ...................................................................................................................... 2
1.2 Problem Statement ........................................................................................................... 3
1.3 Research Questions .......................................................................................................... 4
1.4 Proposed Hypothesis ........................................................................................................ 4
2. Literature Review ............................................................................................................ 5
2.1 Crypto-currencies ............................................................................................................. 5
2.1.1 Technical ................................................................................................................... 5
2.1.2 Acceptance and development ..................................................................................... 6
2.1.3 Regulations ................................................................................................................ 7
2.2 Market Research .............................................................................................................. 7
2.3 Mind Genomics .............................................................................................................. 11
3. Research Methodology .................................................................................................. 15
3.1 Experimental Design by Mind Genomics ...................................................................... 15
4. Understanding crypto-currencies ................................................................................. 22
4.1 What is a crypto-currency? ............................................................................................ 22
4.1.1 Types of crypto-currencies ...................................................................................... 22
4.1.2 The Current state of crypto-currencies ................................................................... 23
4.2 Technological Innovation: Blockchain .......................................................................... 25
4.2.1 The Distributed Ledger ............................................................................................ 25
4.2.2 Bitcoin Blockchain Mechanism ............................................................................... 27
4.2.3 Transactions on the Blockchain .............................................................................. 30
4.3 Advantages ..................................................................................................................... 34
4.3.1 Payment strategy ..................................................................................................... 34
4.3.2 Lower or Zero Costs ................................................................................................ 34
4.3.3 New Classes of Payment .......................................................................................... 35
4.3.4 Processing Times ..................................................................................................... 36
4.3.5 Cross Border ............................................................................................................ 36
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4.3.6 Security .................................................................................................................... 36
4.3.7 Privacy ..................................................................................................................... 36
4.3.8 Transparency ........................................................................................................... 37
4.3.9 Accessibility ............................................................................................................. 37
4.4 Challenges ...................................................................................................................... 39
4.4.1 Regulations .............................................................................................................. 39
4.4.2 Crime risks ............................................................................................................... 42
4.4.3 Risk to Users ............................................................................................................ 43
4.5 The Blockchain: Beyond Payment System .................................................................... 44
4.5.1 Smart contracts ........................................................................................................ 46
4.5.2 Property Title ........................................................................................................... 47
5. Experimental Results ..................................................................................................... 49
5.1 Total Sample Preferred Element Order (TSPEO) .......................................................... 49
5.2 Profile Preferred Element Order (PPEO) ....................................................................... 52
5.3 Segments Preferred Element Order (SPEO) .................................................................. 55
5.4 Discussion ...................................................................................................................... 60
5.5 Contribution ................................................................................................................... 61
5.6 Result implications: Market opportunities ..................................................................... 63
6. Final Remarks ................................................................................................................ 66
6.1 Conclusion ..................................................................................................................... 66
6.2 Limitations ..................................................................................................................... 68
6.3 Further Research ............................................................................................................ 68
7. Bibliography ................................................................................................................... 69
8. Appendices ...................................................................................................................... 74
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Table of Figures
FIGURE 1 – BASIC APPROACH TO THE MIND GENOME .............................................................. 12
FIGURE 2 – HIGH-LEVEL STEPS OF THE EXPERIMENTAL DESIGN PROCESS ............................... 15
FIGURE 3 – THE “WELCOME” SCREEN OF THE TEST STIMULI .................................................... 18
FIGURE 4 – THREE ELEMENTS VIGNETTE, AND THE RATING SCALE ........................................ 20
FIGURE 5 –KEY METRICS BITCOIN ADOPTION OF 2015 COMPARED WITH YEAR 2014 .............. 24
FIGURE 6 – WORLD MAP OF THE DECENTRALIZED BITCOIN NETWORK ................................... 26
FIGURE 7 – A GENERAL WORKFLOW OF THE BITCOIN BLOCKCHAIN PROCESS ........................ 29
FIGURE 8 – A STEP-BY-STEP OF THE BITCOIN TRANSACTION PROCESS ................................... 33
FIGURE 9 - A COMPARISON BETWEEN TRADITIONAL PAYMENT TRANSACTION AND BITCOIN . 35
FIGURE 10 – CRYPTO-CURRENCIES ATM WORLD MAP ........................................................... 38
FIGURE 11 – NUMBER OF BITCOIN ATMS BY CONTINENTS ..................................................... 38
FIGURE 12 – MOST COMMON CRYPTO-CURRENCY MALWARE BY FAMILY .............................. 42
FIGURE 13 – KEY EVENTS INFLUENCING BITCOIN PRICE IN YEAR 2014 ................................... 43
FIGURE 14 – BITCOIN VS. EARLY INTERNET VC INVESTMENTS ($ MILLIONS) .......................... 45
FIGURE 15 – THE ECOSYSTEM OF CRYPTO-CURRENCIES .......................................................... 48
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List of Tables
TABLE 1 - TWENTY CHARACTERISTICS OF A DIGITAL CURRENCY ............................................ 17
TABLE 2 – THE LEADING FIVE CRYPTO-CURRENCIES .............................................................. 23
TABLE 3 – TSPEO: TOTAL SAMPLE PREFERRED ELEMENTS ORDER ....................................... 51
TABLE 4 – TSPEO: TOTAL SAMPLE PREFERRED ELEMENT ORDER: FIVE TOP AND THE BOTTOM
ELEMENTS. .............................................................................................................. 52
TABLE 5 – S2PEO: SEGMENT TWO PREFERRED ELEMENT ORDER ........................................... 56
TABLE 6 – S1PEO: SEGMENT ONE PREFERRED ELEMENT ORDER ............................................ 57
TABLE 7 – S2FEO: SEGMENT TWO PREFERRED ELEMENT ORDER ............................................ 58
TABLE 8 – S3PEO: SEGMENT THREE PREFERRED ELEMENT ORDER ........................................ 59
TABLE 9 – PREFERRED MESSAGING FOR CUSTOMERS .............................................................. 62!!
List of Appendices
APPENDIX A – PARTICIPATES PROFILE QUESTIONS ................................................................. 74
APPENDIX B – STUDY PARTICIPANT’S PROFILE INFORMATION S. .............................................. 75
APPENDIX C – EXPERIMENTAL STUDY ON DIGITAL CURRENCIES – DATA RESULTS ................ 77 !
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1. Introduction
According to David Andolfatto, vice president and head of research at the Federal
Reserve Bank of St. Louis, “Bitcoin has provided the breakthrough innovation” (Andolfatto,
2014). The same viewpoint shared by Marc Andreessen co-founder of Netscape, co-author of
Mosaic and Bitcoin investor, as; “Bitcoin gives us, for the first time, a way for one Internet
user to transfer a unique piece of digital property to another Internet user, such that the
transfer is guaranteed to be safe and secure, everyone knows that the transfer has taken
place, and nobody can challenge the legitimacy of the transfer. The consequences of this
breakthrough are hard to overstate” (Andreesen, 2014). The motivation behind the
statements of David and Marc is the introduction of “a peer to peer electronic cash system …
based on cryptographic proof instead of trust.” (Satoshi, 2008).
The fundamental innovation in crypto-currencies is the subordinate technology (the
ledger) that empowers trust-less transactions without the need of an intermediary. For each
exchange system to exist there must be trust between two sides. Today, we can make online
transactions in light of the fact that we trust banks and organizations like PayPal.
Nonetheless, fraud issues and compromise of personal information on the web has been
initiated to reexamine existing models (Ali, Barrdear, Clews, & Southgate, 2014).
Exiting models are referred to the payment systems used in modern economies today,
which has not significantly changed from the early monetary system of the 16th century. The
development of technology, allowed ledgers to operate more efficiently (such as converting
paper notes to digital notes), however the structural, centralized payment system has
continued as and still holds the fundamentals from those roots (Ali, Barrdear, Clews, &
Southgate, 2014). While a great part of the emphasis on virtual currencies has been
coordinated at their ability to substitute or supplement fiat currencies, there is a developing
view that the real innovation is the decentralized ledger of transactions called the
“Blockchain”. Proponents of Blockchain technology believe that this system could have far-
reaching impacts on the wider industries and applications (Long, Lee, Steiner, Wood, &
Handler, 2015).
The protocol of Blockchain describes how to keep a public ledger of transactions
considering a protected and secure approach to exchange distinct bit of digital property
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starting with one client then onto the next: everybody realizes that the exchange has occurred
and no one can challenge its legitimacy. The protocol is a major disruptive creation and can
possibly supplant any central handling power with a decentralized distributed
cryptographically secure equivalent, enhancing proficiency and versatility (Swan, 2015).
1.1 Background The idea of crypto-currencies or virtual currencies has been an alluring idea dating as
far back as the late 20th century. Groups were keen on accomplishing privacy and libertarian
goals by utilizing cryptography (Grinberg, 2011). David Chaum, in the 1980s, had acquired
various digital currency licenses identified with guaranteeing anonymity and privacy utilizing
cryptography, presented the first “untraceable payments” protocol in 1983. As he stated in
the paper “A new kind of cryptography, blind signatures … it allows realization of
untraceable payments systems which offer improved auditability and control compared to
current systems, while at the same time offering increased personal privacy” (Chaum, 1998).
All through the 1990s, numerous variations of the Chaum’s unique plan were
acquainted. For example, Digital Cash (DigiCash) attempted to bring electronic money
protocol into practice. In any case, DigiCash, that went bankrupt in 1998, as an after effect of
poor administration and unsuccessful deals. Essentially, clients ended up having no second
thoughts about entering credit card information online (Grigg, 1999).
In 1998, another protocol was proposed, a digital, circulated, unknown currency
called “b-money” that would permit “untraceable pseudonymous entities to cooperate with
each other more efficiently, by providing them with a medium of exchange and a method of
enforcing contracts…” (Wei, 1999). But practically speaking the protocol was impractical
and could not be executed (Grinberg, 2011).
Every new plan expected to remove the bank as an essential body in controlling
online purchases for cost, and privacy advantages. However, a few plans did not work, others
have fallen under design faults primarily because of lack of trust1 in transactions. Other
different reasons incorporated a mix of administrative inadequacy and questionable
lawfulness ( Hughes, Middlebrook, & Broox, 2007). Indeed, even today, there are virtual
1 Referred to the double spending problem in conducting online transactions. Banks or third parties play a role is verifying that the money is not spend previously.
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currencies accessible on the Internet, for example, Pecuin, e-gold, Linden dollars and even
Facebook credits, however none of those virtual currencies are successful or gained mass
adoption (Grinberg, 2011).
As one can see Bitcoin is not the first private money, not the first digital currency,
and not the first currency in view of cryptography, but rather it has been the first to depend
on distributed, decentralized system to solve the double spending problem while at the same
time utilizing the lessons adapted by the past experiments. It was proposed by Nakamoto in
2008 and released as open source code the accompanying year (Satoshi, 2008).
1.2 Problem Statement Crypto-currencies have gained a lot of attention in the recent years. It introduces a
technology that is new and considerably disruptive, but there is a relatively limited research
done in the topic. The future of crypto-currencies is unclear nevertheless it is a fast changing,
still developing, environment. As we write this paper, there are still new developments and
changes affecting positively the crypto-currencies ecosystem.
Crypto-currencies has been existent for six years, however there is a growing public
concerns with what this technology entails, and how it can be used, and what are the
motivation for adopting and developing it.
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1.3 Research Questions The discussion above leads towards the question of our research in this paper:
What are the features of crypto-currencies influencing its adoption?
In order to answer the key research question we defined sub research questions:
• Sub Research Question 1: What are crypto-currencies and its underline technology?
• Sub Research Question 2: What are the benefits and the risks associated with the
development and adoption of crypto-currencies?
1.4 Proposed Hypothesis Proposed hypothesis to examine are:
Hypothesis 1: Adoption of crypto-currencies involves the benefits of cost, privacy and
security.
Hypothesis 2: Lack of consumer protection is a barrier to mass adoption of crypto-currencies.
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2. Literature Review
2.1 Crypto-currencies Given the fact that crypto-currencies has been in existence for about six years, there is
little scholastic research available on the subject. It is only in the recent years, the subject
attracted scholars and researchers to investigate this phenomenon. Because of its premature
age, there is limited data available to analyze crypto-currencies. Most exchanges platforms of
crypto-currencies and fiat money has been established just in year 2010. Scholastic sources
resulted for the most part in articles identified with technology, regulation, and social
implications of early use of Bitcoin and other related crypto-currencies.
The most relevant articles were chosen in view of the relevance of the material
identified with the exploration inquiries of this postulation. Literature on the subject of
crypto-currencies can be grouped under three subjects. The primary subject spins around the
technicality of crypto-currencies, which basically concentrates on portraying its innovative
viewpoints. The second subject incorporates economic literature of crypto-currencies focuses
on financial incentives and its role of money. Finally, the third subject incorporates
regulations and laws in development and acknowledgement of crypto-currencies.
2.1.1 Technical Dominant part of exploration in crypto-currencies spins around its technical details.
Numerous research papers mean to study the workings behind crypto-currencies. The basics
of crypto-currencies are the fundamentals of cryptography. (Babaioff, Oren , Zohar , &
Shahar, 2011) found that there is a fundamental issue with the miming process rewards in the
Bitcoin Protocol. They suggest an improved design for the Bitcoin protocol to eliminate the
problem. Researchers have additionally examined the security and privacy of crypto-
currencies exchanges. (Moore & Nicolas, 2013) research resulted with a high risk of
breaking security of crypto-currency exchange platforms. Another issue concerning its
technicality is in the pre-mining procedure where first miners may gain high rewards when a
new crypto-currency is released to the public.
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(Ali, Barrdear, Clews, & Southgate, 2014) suggests that key innovation of digital
currencies is the Blockchain technology, which permits electronic payments to operate within
a completely de-centralized system, with no intermediaries such as banks.
2.1.2 Acceptance and development The acknowledgement of crypto-currencies was investigated by (Luther , 2013)
assumed that the low acknowledgement of crypto-currencies is due to the absence of a
massive economic dependability and government support. In his report, Luther looks for
explanations why crypto-currencies such as Bitcoin hasn’t acquired an intensive adoption,
reasoning in low network effects and high switching costs from conventional financial
systems to crypto-currency. He actually conveys that crypto-currencies, like Bitcoin, will not
probably to achieve wide acceptance without the “significant income connected
precariousness or government help” (Luther , 2013).
Interestingly, one can likewise hope to measure up the acknowledgement of digital
currency to prior comparable systems, and observe that it has really been extremely
successful. (Barber, Boyen, Shi, & Uz, 2012) argued this point of view and compared Bitcoin
with other e-money schemes. They discover numerous ways in which Bitcoin is by far
superior to past systems. The most significant factor is to incentivize users to join in the
Bitcoin network. Also, they argue that the design of Bitcoin is not impeccable and has
weaknesses and flaws. It concludes that if executed effectively, “the core design could
support a robust decentralized currency” (Barber, Boyen, Shi, & Uz, 2012).
Similarly (Maurer, Nelms, & Swartz, 2013) take a glance at the favorable
circumstances of Bitcoin from social semiotics angle, characterizing Bitcoin as “practical
materialism” and suggests that its anonymity, low exchange costs and decentralized design
replays raises debates.
Other papers surrounding the acceptance and development investigate whether digital
currencies can fulfill the properties of fiat money, and to what degree it can disrupt or
compliment current financial establishments (Lo & Wang, 2014). (Lazcano, 2013) came up
with yet another exciting viewpoint of economic growth and explains what sort of contour
banking market has considered numerous economic inventions that whatsoever keeps of the
economic world has later grasped. It's probable to label Bitcoin to be a product of contour
banking because it’s a program that operates beyond official economic system. Such style,
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Bitcoin might probably portray such an innovation that legal financial system will welcome
in some form in future.
2.1.3 Regulations Because of criminal interest and money laundering linked with Bitcoin, it had pulled
in lot of negative media. Subsequently, administrative and legitimate bodies noting to
investigate the risks digital currencies may impose. A few nations have cautioned against the
utilization of crypto-currencies. Others have taken substantial administrative measures to
discourage end users.
Governments attempt to address consumers’ protection in using crypto-currencies.
They likewise revise current laws and regulations that may officially cover digital currencies
and caution against posing limiting laws on digital currencies that could restrict the new
technology before it has an opportunity to develop. What’s more, they give a few suggestions
about how to treat digital currencies going forward (Brito & Castillo, 2013).
(Lee , Long, McRae, & Handler, 2015) discusses Bitcoin noticing its growing value
and proposing a few factors behind its success. Furthermore Bitcoin is compared with other
e-trade currencies and gold-sponsored currencies. It recommends its decentralization and
ambiguity is in maturity of its development. One illustration of financial instability citing end
users to utilize a system without an official endorsement is the instance of Swiss Dinar in
Iraq (Grinberg, 2011). For this situation, seemingly noteworthy financial insecurity was the
cause behind consumers to utilize money that was formally surrendered and did not have any
natural value. Then again, it is significant to recollect that on account of Swiss Dinar, it was
the earlier system that individuals were willing to utilize, making such move to Bitcoin
unusual in the event of fiscal instability.
2.2 Market Research Marketing research is outlined as the systematic gathering and analysis of marketing-
related data to produce information that can be used in making decisions (Kotler & Keller,
2011). Research needs adhering to a scientific series of measures, which will generate
reliable and valid knowledge. Through analysis and model, the information is altered into
appropriate knowledge for the purpose of decision-making functions.
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Considering crypto-currencies as not simply a traditional product, it is a product that
thought to be high tech. considering the Technology Adoption Life Cycle that classifies the
market and their reaction to an advanced product. Customers have an inclination to drop on
an axis of raising tenderness to risk. At first outlined by (Rogers, 2003), consumers belong to
one among five easy classifications: innovators, early adopters, early majority, late majority
or laggards. Geoffrey Moore, in his book Crossing the Chasm, proposes an alternate of the
initial Technology Adoption Lifecycle. He shows that for discontinuous or disruptive
inventions, there is a chasm or gap between the primary two groups: innovators and early
adopters to the early and the late majority. It is within the chasm that services and application
fail. As suggested by Moore, the technology adoption life cycle itself is nonlinear with
periods of slow growth followed by speedy growth (Moore G. A., Crossing the Chasm,
2006). Complicated systems should be studied holistically with specific attention to the
affiliation and adaptation between system parts (Moore G. A., Inside the Tornado, 2005).
How market research is completed nowadays on high tech?
Businesses have historically committed to massive analysis and development
departments to drive innovation and provide sustainable growth. That product, however, is
eroding thanks to variety of factors. What is rising is basically a lot of open product,
wherever corporations perceive that not whole all wonderful many concepts ought to are
available the firm on and not whole all wonderful many concepts developed among the
organization may well be properly sold-out internally (Chesbrough & Crowther, 2006).
The first decades of selling analysis dedicated to sorts of sampling, collecting data
and systematic techniques. Researchers additionally dedicated to approaches to live strategies
like for example concepts, perceptions, tastes, attitudes, personalities and lifestyles.
The time of the Seventies and Nineteen Eighties is sometimes called the golden era of market
research. Throughout this point research strategies turned a lot of scientific. Computing
power created getting and examining data quicker, easier, cheaper, and more accurate.
Businesses spent substantial resources into research to understand the market, the client, and
the deciding process. Analysis study results became the support or explanation for selecting
specific tactic methods and strategies (SagePub).
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Through the late Nineteen Nineties and early 2000s a cultural shift in research started
at first to occur. Decision makers required considerably quite support for promoting
decisions. They wished promoting researchers to supply concepts in to what the data meant.
Just explaining potential areas, traits of customers, and the selection method was no
additional adequate. Decision makers required concepts in to why specific potentialities were
created by customers and the way the results of a research study will offer an improved data
of the best strategies and ways.
Now a days, starting to enter still another, newer phase of selling analysis the
informatory phase. Simply providing concepts could no additional be enough. Managers
need promoting researchers to be space of the choice, to supply feedback and approach into
promoting selections (SagePub).
Literature within the market research in crypto-currencies was reviewed. As was
observed, research was conducted applying normal surveys to grasp what individuals believe
crypto-currencies are. Numerous surveys directed by Central banks, consulting firms,
government and reputed specializing crypto-currencies news sites such as coindesk.com and
bitcointalk.com expected to uncover what the extensive population think about crypto-
currencies and its difficulties to adoption.
Juniper Research was the first effort to conduct market research by reviewing the
future of crypto-currencies, searching for market trends and competitive landscape. Juniper
Research was the primary business to analyze and to measure the activities and potentialities
within the fast-moving crypto-currency area (Juniper Research, 2015). It concluded positive
concepts for the following five years.
Banks have accomplished amount of surveys. The Canada’s Central bank has written
an operating paper that has discovered little proof that arbitrage prospects in crypto-currency
areas exist (Gandal & Halaburda, 2014). The Commonwealth of Massachusetts Section of
Banks conducted a consumer survey that assesses the buyer Attitudes on Bitcoin and
different electronic currencies (Commonwealth of Massachusetts Division of Banks, 2014).
Consulting corporations such as Accenture reviewed consumer selection can form the
continued way forward for funds, surveying North America payment clients (Accenture,
2014). PwC, client intelligence in press and entertainment, has explored Bitcoin risks, and
benefits in the media (PwC, 2014). Coin Center, a non-profit analysis and support category
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has released data from a five-month survey uncovering how well the American people know
and understand Bitcoins (Coin Center, 2015). Lastly, the most recent survey concluded that
8% of business would accept Bitcoin in next twelve months (Perez, 2015).
To get a more in-depth understanding of the creation of crypto-currencies, this paper
examines the technology of crypto-currencies from the innovative product perspective. We
are attempting to help partners to comprehend adoption of crypto-currencies from product
point of view. We intend to analyze the particular attributes of crypto-currencies impacting
wide adoption. To the author’s knowledge, this approach hasn’t been taken before.
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2.3 Mind Genomics Mind genomics is a market research methodology designed to systematically map end
users’ observations and inclinations. The approach is to identify a little subset of grouping
messages that takes into consideration by a significant and frugal category of new populace
into example based segments to accomplish better focusing on (Moskowitz H. , Gofman,
Beckley, & Ashman, 2006).
Basically, it is an inductive approach plans to better see how individuals respond to
diverse ideas. As individuals are inalienably quite different from one another, they sort out
and react to ordinary encounters, in an unexpected way. Mind genomics is frequently
depicted as “the experimental exploration of the everyday” on the grounds that it recognizes
what sort of messages interests consumers. Those messages then used to identify recently
gathered segments of mindsets. The “mindset” just speaks to set of thoughts, which portrays
the way individuals consider a specific service or product. “Genome” is utilized as a
metaphor; the Mind Genome is expressed as a set of thoughts that “move together”
(Moskowitz H. , Gofman, Beckley, & Ashman, 2006).
The exploration of Mind Genomics joins the science of genomics and the technology
of informatics. Its premise is determined in a formal and organized way utilizing four
standards: Stimulus–response (from experimental brain science), Conjoint investigation
(from customer examination and insights), Internet-based testing (from marketing
exploration), and various tests to identify examples of mind-sets (designed after genomics).
Practically speaking, the system for Mind Genomic can be utilized to build new,
innovation thoughts in business applications. Mind Genomics provides with actionable
results. In the book of “Selling Blue elephants”, the writers express a test of making new
services and items that regularly consumers cannot verbalize precisely what they need, aspire
to, or like. Hence, identifying and experimentally investigating the components that could
drive consumer’s enthusiasm utilizing systematically designed models and join highlights
into the best possible mixes. This methodology is known as the Rule Developing
Experimentation (RDE). The experimental configuration of Mind Genomics based, on RDE,
involved seven stages (Moskowitz & Gofman, 2007):
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Step 1: Raw material, characterize the problem: thoroughly considering the problem
and identifying gatherings of highlights
Step 2: Design the experiment utilizing these elements
Step 3: Gather customer responses to the models
Step 4: Analyze individual results
Step 5: Optimization
Step 6: Uncover attitudinal segments
Step 7: Generate principles to make new items
The outcome is significant standards (bearings) for managed upper hand and having the
capacity to know the variable based on the math of consumers’ minds before they can even
comprehensible the need. The general fundamental approach to the Mind Genome is shown
in Figure 1 (Moskowitz H. , 2014)
Figure 1 - Basic approach to the Mind Genome
Groundwork)of)Mind)Genomics)
The premise of Mind Genomics is conjoint analysis, which is a key tool to
comprehend and organize characters in marketing. The science of Mind Genomics was
presented in 2005, however the thought of Mind Genomics began in a paper by (Moskowitz
H. , Gofman, Itty, Katz, Manchaiah, & Ma, 2001) fifteen years prior. Since then, it has been
13
broadly surveyed, with case histories, in a book expounded on ten years back (Moskowitz,
Porretta & Silcher, 2005). Its originator, Dr. Howard R. Moskowitz, is a surely understood
experimental clinician in the field of psychophysics and a designer of world-class market
research technology. Among many others, he had received the Sigma Xi’s 2010 Walston
Chubb Award for Innovation. His work generally distributed in the exploratory press (20
books and more than 300 logical articles), he is referred to worldwide as the main
mastermind and inventor of cutting edge research technology in the region of new product
and idea development (Walston Chubb Award, 2010).
The scholarly legacy of Mind Genomics gets from the spearheading work of analysts,
managing the outline of experiments (Moskowitz & Gofman, 2007), and from the use of this
work called conjoint analysis. Conjoint analysis, is the quantitative structure, can be
diminished to a straightforward engaging articulation, to be specific the utilization of
experimental configuration to comprehend responses to thoughts by measuring responses to
mixtures of thoughts. Conjoint analysis utilizes experimental configuration, combining little
parts, creating blends, gaining subjective responses to those mixes, and afterward finding
what segments drive the responses (Moskowitz & Gofman, 2007).
Based on conjoint analysis, the study of Mind Genomics intends to make a collection
of information about how individuals react to the parts of an unpredictable boost. Then, it
creates databases that include product portrayals or situational “vignettes”. At surface level,
the science evaluates what is essential. At a more profound level, the science makes a
collection of learning that uncovers how individuals consider diverse themes, functioning
from responses to complex vignettes descending to all the more fine-grained granularity
concerning how particular segments contribute.
Mind Genomics contrasts from other exploration systems. Standard surveys exhibit
the elements to the respondents autonomously, in a straight, incoherent style, one element at
once, and trains respondent to rate that one element. Then again, Mind Genomics
experimental design gives significantly more capable results by examining how gatherings of
viewpoints “move together”. It consolidates distinctive elements into what called “vignettes”
(which are straightforward explanations of thoughts), requesting that respondents respond to
a mix of vignettes. It creates ideas that can be than tried utilizing computer software
14
presentation of boosts and programmed investigation making it possible to reveal mind-set
segments quickly and effectively (Moskowitz H. , 2012).
The work of Mind Genomics is widely utilized as a part of diverse commercial
enterprises, for example, sustenance and technology and helps organizations worldwide to
optimize products, informing and illustrations plan. Its real customers (recorded on its site)
are Samsung, Coca-Cola. One demonstrated example of overcoming adversity utilizing this
methodology can be seen by the account of Hewlett-Packard (HP) that utilized the RDE
technique to test and optimize new ideas among focused on consumers. RDE studies yield
the advantage of extra buyer bits of knowledge and division opportunities (Moskowitz &
Gofman, 2007).
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3. Research Methodology
3.1 Experimental Design by Mind Genomics The Experimental design by Mind Genomics was found to be a successful technique
in identifying functional use of information and bits of knowledge to make better products,
applications and services. The technics utilized in this analysis is to use the study of Mind
Genomics. Our aim is to assess the strongest perspectives (i.e., traits or qualities) that will
influence consumers (diverse partners) to utilize a digital currency. Figure 2 shows the
experimental design process.
Figure 2 - High-level steps of the Experimental Design Process
Experimental)Design)Steps)
The experimental investigation of the everyday is applied to the technology of digital
currencies. The destinations are to find the strongest characteristics of a digital currency, and
additionally the weakest traits of a digital currency and to identify 2 to 3 segments that are
like-minded.
)
)
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Step)1)–)Design)Silos)and)Elements)))
The principal venture of Mind Genomics study starts with raw material. Silos are the
classifications of the product or its experience. Elements are statements that portray the silos.
The stimuli falls into four silos, every silo contains five elements. The silo portrays a general
thought though the elements are the particular instantiations of the general thought. Elements
were not picked randomly but instead created by a structured technique, first identifying
classes and then elements at which accredited to the classifications picked. The four silos
identified with the digital currency experience were distinguished as the following: 1)
Features of Digital Currency 2) Ease of Use 3) Cost 4) Security and Privacy. The elements
are communicated in straightforward definitive articulations mode. The revelatory
articulations are composed in non-specialized terms so any customer can comprehend it.
Table 1 shows each of the four silos and its five elements.
Design)size)considerations)
Preferably, the experiment is developed by 6X6 configuration; six silos with six
relating elements. Totaling in 36 elements, prompting 48 vignettes (or ideas). The length of
time of finishing the experiment of 6X6 configuration is more or less 15 - 20 minutes. The
ideal design for our purpose is a 4X5 configuration. Totaling in 20 elements, prompting 30
vignettes, lessens the length of time around 8 to 10 minutes. It is recommended that lower
term have higher likelihood of respondents to finish the experiment.
The primary step is thought to be the most difficult part on the grounds that it obliges
domain expertise. It is suggested that IdeaMap® designed to end up more progressed through
repeated experimentation (Moskowitz & Gofman, 2007). We had the capacity qualify our
element development by giving a profound investigation of crypto-currencies, and consulting
with specialists in the area of cryptographic. Also, the advantages of crypto-currencies that
we identified were converted to element.
17
Table 1 - Twenty characteristics of a Digital Currency
Silo A: Features of Digital Currency A1 It is a decentralized network…not controlled by an individual or a company A2 Your account balance can be printed on a paper A3 Once payment is made you can’t “undo” it … it is not reversible or disputable A4 It can be used globally A5 Instantly transfer money or make a payment worldwide Silo B: Ease of Use B1 Easy to use … via an application on a smart-device or a computer B2 A human “teller” may convert your digital money to (from) cash B3 Most local ATMs worldwide accept this digital currency B4 More than 30% businesses worldwide now accept this digital money B5 Use this digital currency to make micro payments...as small as a penny Silo C: Cost C1 It is 50% cheaper for business owners to process this digital currency than a credit card C2 There is a negligible fee to convert this currency to any other digital currency or cash C3 Creating a digital “wallet” is as easy as downloading an app…no need for a special device or knowledge C4 People without a bank account may use this digital currency C5 The number of coins produced are limited ... the value may increase in the future Silo D: Security and Privacy D1 No identity theft…it doesn’t expose your personal information D2 This digital currency has a very strong mathematical algorithm…it has never been broken D3 This digital currency is insured … just like a credit card D4 Unlike cash…this digital currency is resistant to counterfeiting D5 Proof of a transaction is verified without involving a third party
Step)2)–)Design)a)Rating)Question)
The rating question that was formed is: Rating Question: “How would you value this
digital currency?” The rating was picked on a scale purpose of 1 to 9, where 1 is being the
slightest worth and 9 is being justified regardless of a considerable measure. The rating
question will be rehashed all through the whole experiment. We performed pretests before to
guarantee that it suits the distinctive elements that may show up on the screen. It is critical to
note that, generally, specialists utilization rating question on a level of likeability. Mind
Genomics on the other hand, utilizes the value that offers a higher significance instead of just
whether something is preferred or not.
)
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Step)3)–)Prepare)a)“welcome”)page))
The welcome page is the first screen the respondents visit. It presents the point and
the reason for the study. It tells the respondent what the rating questions is, and highlights the
way that vignettes are unique in relation to one another despite the fact that they may show
up the same. Finally, it informs on the estimated length of time regarding the stimuli test, and
headings to start the study. Figure 3 demonstrates the welcome page that every respondent
will see on the screen once the study starts.
Figure 3 - The “welcome” screen of the Test Stimuli
Step)4)–)Prepare)Profile)questions))
Step 4 includes profile questions that were agreed to serve the speculation and
understanding our subjects better and know their experience. Appendix 1 shows the seven
questions that were included in the study.
Step)5)–)Invitation)Email))
We recognized two target groups for our experiment and designed a focused
invitation for every gathering. The primary gathering is the essential clients of the well-
19
known site Bitgazetteer.com serving in the area of crypto-currencies. The site offers clients
complete worldwide postings of businesses and services that acknowledge crypto-currencies,
accessible crypto-currencies ATMs, and postings distributed by clients. The gathering of
clients is effectively communicating with crypto-currencies, it is possible that they are
entrepreneurs involved with digital currencies or clients who are intrigued spending their
digital currency money. The second gathering that was distinguished is the dynamic
individuals in the crypto-currencies field, for example, new start-ups. Both invitations were
composed in a manner that welcomes cooperation and recommends the results may be to
their greatest advantage.
Running)the)Experiment)
The information from steps 1 through 5 was submitted to IdeaMap® suite2. The
online study was displayed to the members in the accompanying request: welcome screen, 30
screens of permutated element mixes with one rating question asked, 7 profile questions, and
a thank you screen. Every screen is alluded to an idea, shows a mix of elements, or vignettes,
which are made by experimental configuration. Vignettes are involved 2–4 elements; every
silo contributes a most extreme of one element to a vignette. The 20 elements are measurably
autonomous of one another. Figure 4 demonstrates an illustration of a 3-element Vignette,
and the rating question scale beneath. The vignette joins three elements, every focused, one
over the other, with no endeavor to join the elements in fitting syntactic structure. Thusly,
respondents have no problem perusing the four elements, and relegating a rating.
In practice, this configuration is simple for the respondent in light of the fact that the
thoughts are separated and focused. The respondent doesn’t need to chase through a thickly
worded section so as to locate the essential information. This approach of focusing the
element and disposing of connectives is a standard approach in conjoint investigation.
2 www.ideamap.net
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Figure 4 - Three Elements Vignette, and the Rating Scale
After the respondent chooses the rating, the vignette and the rating scale change to be
trailed by the following vignette. The software project controls the whole process. The
respondent need not click additional keys to present the rating, making the process easier. At
long last, the system “permutes” the experimental configuration, so that every respondent
winds up assessing an extraordinary arrangement of mixes. The fundamental experimental
outline stays in place, however the change guarantees that the genuine blends vary starting
with one respondent then onto the next.
Explaining)the)rating)process)
Each member’s ratings are changed over into a parallel response. Ratings of 1–6 are
changed over to the value “0,” and ratings 7–9 are changed over to the worth “100.” Ratings
of 0 alluded to “idea rejecters”, ratings of 100 allude to “idea acceptors”. Aggregate of 30
ideas are exhibited to every member, if a rating given to one idea is 7-9 it is considered
acceptor, if 1-6 rating is given for another idea it is viewed as a “rejecter”. That is,
acceptance/rejecter is unexpected in response to an individual idea, not to the whole item.
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The information for every member are liable to relapse displaying, which is
impeccably legitimate for these sorts of results as every member assessed 37 ideas set up
particularly to be analyzed by relapse demonstrating. The experimental outline guarantees
that each of the 20 elements are factually autonomous of every other. The model is a basic
and straightforward in an added substance mathematical statement structure:
Where is the additive constant (the expected value of the rating when elements 1 to 20 are
all 0), and , and are elements 1, 2 and 20, respectively. Each participant generates
his own additive model for the study in which he or she participated.
Rating = k0 + k1 +...+ k20
k0
k1 k2 k20
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4. Understanding crypto-currencies
4.1 What is a crypto-currency? A large segment of the crypto-currencies today relay on a decentralized digital
currency system, utilizes at a distributed information structure known as the Blockchain, a
log containing all transactions records (Bitcoin.org).
The structure of any current crypto-currency is drawn on a 3-layer technology stack:
Blockchain, Protocol, and Currency. The first layer is the hidden technology, the Blockchain.
It is the decentralized ledger recording transactions. It is a substantial database that is
imparted among all system hubs, overhauled by miners, checked by everybody and is not
controlled by anyone (Bitcoin.org).
The Blockchain technology gives an electronic public exchange record of honesty
without central power. The exchange record is a ledger of all transactions that have occurred
inside a set protocol, recorded in a refined, conveyed information structure. The information
structure is decentralized and imparted by all hubs, i.e. computers, inside the partaking
system or network of systems.
The center level of the stack is the Protocol. It is the product or the system that
handles the exchange of money over the Blockchain. At long last, on the highest point of the
stack is the Currency itself. Bitcoin was the initially made crypto-currency, which provides
all the three layers on the stack. Many new types of crypto-currencies were created, by
altering the convention (or the first code) of Bitcoin.
4.1.1 Types of crypto-currencies It is proposed that there are more than 555 sorts of crypto-currencies till date3. Every
currency is ordinarily a currency and a protocol using the Bitcoin Blockchain. The most well
known crypto-currencies concurring their market top are Bitcoin, Ripple, Dash, and
BitShares. Some may have its own Blockchain, for example, Litecoin and Ripple. It has a
different Blockchain significance it had its own decartelized ledger.
3 See http://coinmarketcap.com last visited May 4th, 2015
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The distinctive sorts of crypto-currencies can further investigated by its protocol.
Table 2 blueprints differences in the convention of the main five crypto-currencies till date4.
All utilize the methodology of mining to secure the system and give a strategy to the issuance
of new currency. Most currencies typically have a maximum supply. There are substantial
contrasts in the more specialized side of the currency. One large difference is in the hashing
algorithm that is utilized. For example, Bitcoin utilizes SHA-256 yet a few currencies have
selected a Scrypt algorithm. Table 2 – The Leading Five Crypto-currencies
Coin Name Block Created (Year)
Algorithm Max Supply (million)
Block Time (min)
Block Reward (coins)
Bitcoin 2009 SHA-256 21 10.00 25
Litecoin 2011 scrypt 82 2.50 50
Ripple 2013 RPCA 99 0.05 N/A
Dash 2014 X11 22 2.50 2.84
BitShares 2014 SHA-512 2 5 2
4.1.2 The Current state of crypto-currencies To comprehend the present state of crypto-currencies, we decide to depict Bitcoin, as
by a wide margin it is the most prevalent crypto-currency. What truly makes crypto-
currencies, for example, Bitcoin so well known? We should take a look at the present metrics
adoption. The Crypto ecosystem is bargained of distinctive performers: infrastructure,
wallets, exchanges, payment services, mining, and financial services.
In the pre-winter of 2013, the first Bitcoin ATM was built and speculator support for
the virtual currency was enthusiastic to the point that for a brief period in late November,
Bitcoin exchanged at costs higher than gold. Notwithstanding concerns over cybersecurity,
Bitcoin is progressively acknowledged by online and brick and mortar retailers. In January
2014, Overstock.com turned into one of the first substantial US online retailers to
acknowledge Bitcoin, and in September 2014, it turned into the first to acknowledge Bitcoin
payments in all remote countries. By the late spring of 2014, Microsoft, Dish Network,
4 Source: http://www.coinwarz.com/cryptocurrency/coins, http://coinmarketcap.com/currencies/views/all, last accessed May 8th, 2015
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Expedia and Dell all began accepting Bitcoin. An expected 63,000 retailers overall
acknowledged Bitcoin by the mid-year of 2014, and that number was anticipated to achieve
100,000 by the end of 2014 (CoinDesk, 2015).
Notwithstanding stores that directly acknowledge payment in Bitcoins, the virtual
currency can be utilized at different retailers, for example, Amazon, CVS, Target, Zappos,
Home Depot and Entire Foods, by acquiring gift cards through eGifter or Gyft. Further,
Xapo, which offers online Bitcoin wallets and underground Bitcoin vaults, recently
discharged the world’s first plastic upheld by Bitcoins. The rate of development in the
quantity of Bitcoin-accepting dealers kept on tapering off this quarter. Exchanges around the
lull of dealer adoption propose the crucial problem is not an absence of vendor enthusiasm
for Bitcoin, instead a deficiency of purchaser adoption.
Figure 5 highlights key metrics in Bitcoin adoption of the first quarter of 2015
compared to the year of 2014 (CoinDesk, 2015). There were about 1 million brand new
Bitcoin storage wallets created in Q1 of 2015, constitute with 14% growth quarter-over-
quarter. The aggregate amount of Blockchain storage wallets approved about three zillion
within February. The rate connected with wallets growth is virtually standard all around the
last calendar year, driving a number of become involved concerning the believability of the
figures and also troubles in what amount of storage wallets tend to be correctly utilized for
bona fide transactions. Income Work area will be forecasting 12 zillion complete Bitcoin
storage wallets through the finale connected with 2015.
Figure 5 –Key Metrics Bitcoin Adoption of 2015 compared with year 2014
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4.2 Technological Innovation: Blockchain
4.2.1 The Distributed Ledger A vital issue for just about any electronic payment program is ways to assure that
how the money cannot be double spent. In physical world, the materialistic exchange activity
maintains the payer from spending the same money more than once.
A payment program that depends upon electronic records will need to have a
technique for counteracting double spending on the triggers that it’s easy to manage
electronic records. The strategy employed by current banking system, which developed as a
modern computerized record keeping system from earlier paper-based, is for special
consortium (ordinarily banks) to steadfastly maintaining the master ledgers to keep up every
customer’s transaction record electronically. Thusly, they maintain records noted in the
ledger of 1 central entity (commonly the central bank). Whoever is maintaining these ledgers
have the ability to stop any transaction if they think if is not legitimate. For customers in
order to use this system, they must trust that these consolidated electronic ledgers are safe,
reliable and maintained well.
The difficult task will be how to give and take money online without a trusted third
party, for instance, PayPal, making certain that exactly the same money being spent more
than once. A choice of strategy would be to actualize a totally decentralized payment
program, where copies of the ledger are imparted between all clients, and a technique is
established where customers recognize to amend to the ledger. Since everyone can check
always any planned change contrary to the ledger, this process evacuates the necessity for a
central agency and subsequently for clients to possess rely upon the uprightness of any single
entity.
Any electronic payment program will need to have a dependable process for saving
transactions that clients may possibly concur is precise. For a decentralized program like
Bitcoin that makes two difficulties. The key is contriving a secure and trustworthy process
for replacing a community ledger as there are heap copies spread all over the world. The
second is, without a central agency to maintain or co-ordinate resources, making the
important motivations for clients to contribute resources to confirming transactions. The key
ideas were initially delineated by (Satoshi, 2008).
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Before the innovation of the Blockchain, it essentially was impractical to organize
singular exercises over the Internet without a centralized body guaranteeing that nobody has
tinkered with the information. A gathering of inconsequential people couldn’t affirm that an
occasion had happened without depending on a central agency to check that this specific
transaction was not deceitful or invalid. Indeed, numerous computer researchers did not
accept that distributed gathering of individuals could achieve accord without a typical
clearinghouse.
Satoshi’s answer was what has ended up known as the Blockchain: a ledger of all
transactions possessed and observed by everybody yet when it is all said and done controlled
by none. It is similar to a titan intuitive spreadsheet everybody has admittance to and
upgrades to affirm every digital credit is distinct. Blockchain technology makes it so that
something that beforehand obliged a centralized power can now be overseen through group.
A Blockchain is just an ordered database of transactions recorded by a system of computers
(Bitcoin Foundation WIKI). Figure 6 shows how robust is the supporting decentralized
network. There are 6441 full bitcoins global nodes running all over the world5.
Figure 6 – World Map of the Decentralized Bitcoin Network
5 Source: getaddr.bitnodes.io. As of April 2015. Last accessed May 9th, 2015
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4.2.2 Bitcoin Blockchain Mechanism
To accomplish a protected and usable system, “Blockchain” depends on
cryptography. The Blockchain is basically a publicly visible ledger that records all
transactions on the system, with every client on the system holding a duplicate of the ledger.
At the point when another transaction is started by a user, it is assembled with different
transactions and these groupings—or ‘‘blocks’’ are intermittently added to the ledger. The
blocks are distributed to every client of the system, and the veracity of the block is affirmed
by the distributed figuring force of the clients joined. When an transaction is endorsed and
sent, it is irreversible on the grounds that just the approval of the sending party is expected to
start the decentralized methodology.
At its most essential, the Bitcoin programming makes an algorithm, or numerical
riddle, that is extremely hard to tackle. The riddle can be handled either by individual clients
acting alone or by “pools” of clients that gather as one to impart figuring force and to
reduction the danger of fizzled attempts. (Bitcoinmining.com). Those endeavoring to
illuminate the riddle by running the Bitcoin program on their computers, committed servers,
or specific equipment are known as Bitcoin “miners”. The Bitcoin programming uses the
Internet to connect every mining machine (computer) together in one huge distributed
system, implying that each machine is joined with the system without the utilization of any
central nexus, for example, and a server (Bitcoin.org).
In its most basic terms, the Bitcoin system utilizes the mining process to bring new
Bitcoins into flow, as well as to confirm each and every Bitcoin transaction that has ever
happened. Bitcoin consequently works freely of any controlling central power, on the
grounds that no outside operators or altruistic manager is expected to screen, track, and
guarantee the substantial use of Bitcoins. This blend of the Bitcoin creation system with the
Bitcoin confirmation component is typified in what is known as “blocks.” (Bitcoin
Foundation WIKI).
Each new transaction of X Bitcoins from Party A to Party B that has yet to be
checked is packaged together with different as-of yet unsubstantiated transactions and put
away into a document called a block. Every block that has ever been acknowledged by the
Bitcoin system frames a piece of a long, constant record known as the Blockchain; every
endorsed block shapes a connection in a chain that follows back sequentially to the first
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“Genesis block” made by Nakamoto in January 2009. Because these blocks contain the
records of all confirmed, effective Bitcoin transactions, Bitcoins Blockchain adequately
unctions as a huge, endless public ledger that subtle elements both the time and the
gatherings of each effective Bitcoin transaction. All in all, this record does not contain or
require any information as to the genuine identities of Party A or Party B, who take cover
behind cryptographic locations that role as aka for the transaction and storage of Bitcoins.
Since it is impractical to focus the proprietor of a Bitcoin pseudonym/account without
extra information, Bitcoin is hence regularly alluded to as a “pseudo-anonymous” crypto-
currency. To develop the prior allegory, when miners are given new “veins” to mine each
round, every miner or pool is given an exclusive “block” that can possibly be the following
block added to the Blockchain. Every potential block that is passed out contains not just a
heap of Bitcoins transactions holding up to be checked, additionally an obscure number
produced from a cryptographic hash function, which is that block’s exclusive “hash.” The
hash number yield by the function can’t be returned or predicted. Every block likewise has a
second number value called the “nonce,” which is the piece of the block that is modified by
the mining process (Bitcoin foundation WIKI).
With the goal miners should check their allotted blocks and get their Bitcoin rewards,
they need to succeed in getting the nonce value beneath the hash value, in this way
understanding the “riddle” and creating proof-of-work, as such, mining happens as miners in
a pool take advantage whatever computer processing power as could reasonably be expected
to take “swings” at the nonce as fast as would be prudent in an incensed race to “strike gold”
by being the first mining group to get their block’s nonce value below their block’s hash
value (Ali, Barrdear, Clews, & Southgate, 2014). The first block to have its nonce reduced
below its hash value announce itself to rest of the system, which then uses the Bitcoin
program to affirm the success. Figure 7 illustrating general workflow of how the bitcoin
Blockchain works6.
When this happens, the confirmed block is added to the block chain, its effective
miners are remunerated with Bitcoins, others who had been chipping away at their own
blocks gets nothing, and another round starts as fresh blocks are issued, another block must
6 Provided by Marc at http://egmr.net/2014/12/marcos-musing-bitcoin/
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be checked and added to the chain if all the transactions it contains are not officially recorded
in the past block.
Figure 7 – A General Workflow of the Bitcoin Blockchain Process
In the event that Party A makes a purchase from Party B utilizing X Bitcoins, Party A
could hypothetically instantly go furthermore launch an arrangement with Party C by
spending the same X Bitcoins. In any case, Party B and Party C can basically wait for the
confirmation procedure to complete before giving Party A the purchased products or
services. Once the transaction with Party B clears and is memorialized in the Blockchain
“ledger,” the block chain will dismiss any transaction with Party C using the same X
Bitcoins. Because the transaction with Party C does not clear, Party C does not give out his
merchandise or services, along these lines guaranteeing that Party A can’t spend the same
Bitcoin more than once. In principle, Party C could give Party A’s buy without waiting for
the verification process. Then again, Party C ordinarily won’t do as such, in light of the fact
that he realizes that there is a uncertainty that his exchange including X Bitcoins from Party
A will be terminates by the block chain if Party A has effectively gone through the Bitcoins
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with Party B, implying that the system won’t perceive the payment of X Bitcoins from Party
A to Party C. Regardless of the possibility that Party C decides to acknowledge the exchange
without waiting for confirmation and gets defrauded therefore, the Bitcoin system is
unaffected—it still just considered the X Bitcoins being utilized as a part of a solitary
exchange (Party A to Party B) and as continually fitting in with one owner at once. Party C
basically misses out by having doled out something for nothing.
4.2.3 Transactions on the Blockchain The whole transaction procedure on Blockchain is hence depends on a system that
addresses and get over the double spending problem.
1 - Agreeing the transaction
A is a Bitcoin miner who has beforehand worked and verified set of transactions and
got 25 new Bitcoins as a prize. B is a furniture seller who sells furniture on line and
acknowledges Bitcoin. A would like to give 2 Bitcoins to B for some furniture and is ready to
pay 0.01 Bitcoins as an exchange fee7.
2 - Creating the transaction message
A makes a communication with three crucial factors: mentioning the previous
transaction by which A received the Bitcoins, the destination bitcoin addresses and the
amounts to pay. The communication may also have few other factors, such as, conditions if
any, digital signatures and any other elements that A may want to place on the payment.
The amount of Bitcoins on any address is gotten from the previous transactions,
which are publicly available on the Blockchain for examination. In the current example, there
is a record of 25 Bitcoins from A’s earlier mining activity which will become as an input for
new transaction8.
7 Bitcoin customers are under no conventional prerequisite to pay for exchange fees and if they decide to have the exchange fees then its up to their discretion. Whatever the case, Bitcoin miners have the ability to pick which transactions they exercise, thus more fee provided to them gives a far more notable encouraging power to accept A’s transaction. 8 Bitcoin transactions might have a number of inputs or outputs.
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Inputs:
• 25 Bitcoins from A.
Output:
• 2 Bitcoins to B.
• 22.99 Bitcoins to A.
• 0.01 Bitcoins as an exchange fee to whatsoever miner effectively checks the transaction.
It is also feasible for A to put few restrictions on the payment, so as that B cannot move
forward and spend earnings until they are met9.
3 - Signing the transaction message
When the communication has been developed, A electronically signs it demonstrating
that A regulates the payer address. To produce a digital signature10, A encodes the data and
signs with corresponding private key. Then, the digital signature can be decoded with the
same public key, which A broadcasts to the system where the transaction could be verified.
4 - Broadcasting the transaction message
A broadcasts the signed communication to the system for verification. Bitcoin miners
are orchestrated in a P2P network11, an informal network of connections without any central
co-ordination. Though the bitcoin miners are not under any obligation to accomplish as a
result, the Bitcoin protocol pushes all communications to be delivered across the network,
offering the communication to all peers on the network. That shows that A’s transaction
could maybe not be transmitted to the entire system at once but rather randomly goes to an
arbitrary section of A’s peers first.
9 In normal situations, most payments do not force any restrictions but nonetheless more perplexing transactions may possibly collaborate numerous restrictions to be satisfied before any payments are released. This capacity enables the system to be extended to assistance more complex transactions. 10 Like regular signatures, electronic signatures provide evidence that a transaction is created by the individual who wishes to make a payment. The digital signature is a manifestation of public-key cryptography. The purpose of the public-key is to decode communications by having a “private” key. 11 The P2P network techniques are generally implied to effectively and acceptably share data between users.
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5 - Transaction verification
Miners collect A’s new record and join it with the others in to new candidate blocks.
Chances are they contend to confirm them in ways that other miners may acknowledge.
Evidence of block transaction verification has two elements: validation and achieving
consensus.
Looking for a block of transactions, including appropriate digital signatures, will take
only a short time. Making consensus is purposely more difficult and involves every miner to
produce the ability of handling resources named as proof-of-work. Comparatively, proof-of-
work needs to be hard to accomplish, nonetheless an easy task to verify. That enables the
incentives of the system to be altered for transaction affirmation by making this simple to
recognize an inaccurate transaction.
The proof-of-work technique employed by Bitcoin Blockchain means that the time
taken for a miner to successfully verify a block of transactions is arbitrary. Anyway, as new
miners join the system, or existing miners invest to increase the computing power of the
machines, the time taken for a fruitful verification may possibly fall. In order to give time for
news of every successful verification to reach the entire system, the complication of the
proof-of-work is adjusted regularly and might be balanced, which means that the average
time between blocks maintains ten minutes constant for Bitcoin, hinting that payments are
not spontaneous.
6 - Success
C is a bitcoin miner and fruitful at verifying a block with A’s transaction inside it,
therefore C will receive reward of new Bitcoins, and also the transaction fees from A’s
transaction. C broadcasts the successful verification result and the remaining miners add the
block to the end of their copies of the block chain and get back to stage 5. Lastly, B receives
2 Bitcoins as a payment, and delivers the furniture to A12 (Satoshi, 2008).
12 Bitcoin Blockchain transactions which (i) offers miners new Bitcoins as a value and (ii) provides the miner any transaction costs made available from transactions within the block. The specific situation of new Bitcoins to every Bitcoin Blockchain deal is halved every 210,000 blocks, on an average of every four years at the rate of ten minutes per block. The existing allocation is 25 Bitcoins every block, which will have 12.5 Bitcoins every block in 2017.
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Figure 8 illustrates a step-by-step simple example how a bitcoin transaction works13.
Figure 8 - A Step-by-Step of the Bitcoin Transaction Process
13 Provided by Joshua J. Romero, Brandon Palacio & Karlssonwilker Inc: https://bitcoinbazaar.wordpress.com/2013/05/12/how-bitcoin-works-by-joshua-j-romero-brandon-palacio-karlssonwilker-inc/
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4.3 Advantages The motivation for the development and the adoption of digital currencies has been
partitioned into two areas. Primarily is to research the advantages of digital currencies as
exchange of money. Secondly, is to examine the potential advantages of the underline
technology of digital currencies: the Blockchain.
4.3.1 Payment strategy Potential advantage offered by digital currencies is a modernized way for payment to
existing methods (i.e. credit cards). . It facilitates cheaper and faster payments. Because of its
desterilized design, it can give a more efficient infrastructure for the exchange of money by
avoiding traditional mediators, to guarantee the procedure and confirm that transactions are
genuine.
4.3.2 Lower or Zero Costs
The cost advantage utilizing digital currencies is noticeable as a part of processing
payment transactions (the fees fluctuates relying upon which exchange is being utilized), and
exchanging money. A seller who accepts any type of digital currency enjoys lower
transaction costs when comparing with and traditional bank, normally on a level of 2-4
percent for every transaction. Some well-known exchanges, for example, Bitpay offers 0%
transaction fees, Coinbase offers to change over Bitcoins to USD for a 1% transaction feee in
addition to $0.15 ACH exchange charge. Expenses rely on upon volume, yet general charges
are lower in comparison to banks (TheBlogChain, 2015).
Another focal point is remitting money abroad. The quantities of transfers really
uncover its potential. Presently, remitting money abroad charges include 8% to 12% of the
total payment (utilizing customary wire services, for example, Western Union or
MoneyGram) and settlements can take a few days to complete (Zhen, 2013). Wire transfers
in the United States can run as much as $30 every exchange locally and $50 globally. As
indicated by a report by Goldman Sachs, the total remittance utilizing Bitcoins as a part of
2013 measured at $4 billion. The normal cost of remittance charged by Bitcoin wallet
application sources is of only 1.0 percent (Goldman Sachs, 2014).
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4.3.3 New Classes of Payment
The use of digital currencies enables opportunities of new classes of payment that are
not economical with existing payments systems, for example, micropayment. Micropayment
is a small financial transaction, and there is no capacity to utilize a charge card online for
amounts less than $1. As of today it is not practical for businesses to monetize very low cost
goods and services and accept micropayments. Crypto-currencies tackle this sort of issue.
Case in point, the scheme of Bitcoin can be divided down by 8 decimal places (0.00000001)
and Ripple is divisible into 6 decimal places 0.000001. Also, other new innovative ideas
were proposed to enable micro transactions for tipping in eateries14 amd smaller scale
payrolls paying workers by the hour\day\week 15. Figure 9 describes the comparison between
traditional payment transaction and bitcoin in a greater detail.
Figure 9 - A Comparison between Traditional Payment Transaction and Bitcoin
14 See https://www.changetip.com 15 See https://www.bitwage.co
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4.3.4 Processing Times
Current bank payment systems such as credit cards can take a few hours, if not days,
to move money between ledgers. Traditional payment services might just be accessible at
business hours, though transactions in digital currencies are open for business 24/7.
Transactions are instant and accessible throughout the day. This advantage is truly fulfilled
by using the Internet, which can be used on any device that has a connection to the network.
Transactions can be made using a smart device such a phone or tablet by simply installing an
application.
4.3.5 Cross Border Another opportunity, specifically for smaller organizations, is to reach worldwide
markets that are often foimposed upon to large costs and delays. Globalization has empowers
to doing business abroad. With crypto-currencies, organizations can reach worldwide
economies.
4.3.6 Security Some of the challenges in fiat currencies are currency counterfeiting, fraud detection.
Transactions made using digital currencies are protected against forged payments or double
spending due to the use of cryptographic algorithms that is a way of securely transferring
funds over the internet.
Another significant playing point is there is no single point of failure, as digital
currencies relay on distributed system, it would mitigate the danger of a single entity having
the capacity to control transactions, and the danger of a single point of failure that could
bring the entire system down.
4.3.7 Privacy Conventional payment systems depend on the privacy of transaction information to
maintain security. As exhibited already, at the time of a transaction, the only information
being uncovered is a bit address, a series of characters (public key). Transactions made using
digital currencies do not reveal personal information. Unlike traditional methods (such as
using checks) the protocol “pushes” rather than “pulls” payment. In other words, a payer
does not need to disclose any of their own personal information to the individual or
organization they wish to pay. This may present favorable circumstances to traders who deal
37
with client information and reduce compliance costs. Most recently, with substantial
increasing in data breaches and compromising of credit card transactions can result in the
release of valuable information that can be used to conduct future transactions (Wan &
Hoblitzell, 2014).
4.3.8 Transparency
A system that depends on a decentralized system, where all transactions are shown in
a public ledger or “Blockchain” gives a greater transparency. This is maintained by the whole
network of systems and is not controlled by any single entity. And also, the open-source
nature of digital currency protocols, gives continuous innovation and enhancements and
addresses technical issues over time.
4.3.9 Accessibility One of the greatest advantages of digital currencies is to reach to unbanked or under
banked in developing nations society. As per the British government, more than 2.5 billion
individuals worldwide don’t have entry to a financial establishment (HM Treasury, 2013).
The vast majority of these individuals are situated in developing nations where corruption is
the status quo is and a protected financial framework is nonexistent. The most outstanding
illustration is the prominence of M-Pesa in Kenya, an online banking system uses a cell
phone to transfer money by means of transferring air-time from one person to another.
According to 2013 data, M-Pesa processed 80 transactions a second and handles transactions
for 31% of the $33.62 billion GDP of Kenya (Mims, 2013).
38
Figure 10 – Crypto-currencies ATM World Map
Another range that falls under “accessibility” is the availability of crypto-currencies
ATMs around the world. Right now there are 386 operating ATMs worldwide altogether. See
figure 10 the world guide of accessible crypto-currency ATMs16. These ATMs offers crypto-
currencies changes to fiat money and vice versa. At present is only support coins such as
Bitcoin, Litecoin, Dogecoin, and Blackcoin. Figure 11 shows what number of Bitcoin ATMs
are introduced in every continent. North America has 50.26% of the ATMs while Euros has
31.84% (CoinATMRadar, 2015).
Figure 11 - Number of Bitcoin ATMs by Continents
16 Source: http://coinatmradar.com. Last Accessed April, 2015
39
4.4 Challenges
4.4.1 Regulations To date, most enforcement agencies and regulators have concentrated on the
utilization of digital currencies in financial transactions (Lee , Long, McRae, & Handler,
2015). However, the worldwide regulation in crypto-currencies is still unverifiable and
developing in many nations. While a few nations support the utilization and exchange of
Crypto, others display threatening environment limiting its utilization or banning it totally.
4.4.1.1 Within the United States
Law enforcements, legal regulators and tax authorities are trying to comprehend
crypto-currencies and how it will fit into the existing systems if by any means. Within the
United States diverse organizations, such as, SEC, IRS, FinCEN has communicated venture
forward toward virtual currencies (Brito & Castillo, 2013). There is still vague picture on
how governments handle crypto-currencies all inclusive, however a few nations and states
are pushing ahead with the crypto-currencies technology.
FinCEN, Financial Crimes Enforcement Network, a body part of the US Treasury has
characterized virtual currency as a “medium of trade that works like currency in a few
situations, however does not have all the properties of genuine currency, does not have
legitimate delicate status in any jurisdiction”. On March 2013, it distributed a direction
characterizing which business servers as MTBs (Money transmitting business). Those MTBs,
must authorize AML against money laundering and KYC (Know your customer) measure,
knowing the individuals they are working with.
The Internal Revenue Service (IRS) regards virtual currency as property, not
currency, for tax purposes. Both the SEC and the Department of Homeland Security (DHS)
has communicated concerns about criminal risk from unlawful utilization of particularly
Bitcoin and distributed different notices warning of the risks in activities connected to digital
currencies. Furthermore, all individuals owing virtual currencies were considered under the
same laws that applied to securities (Brito & Castillo, 2013).
As every state in the USA has its financial controllers and laws, each states treats
crypto-currencies differently. California and New York have been especially forceful in their
40
quest for Bitcoin-related associations, while others, such as New Mexico, South Carolina,
and Montana, don’t direct money-transmitting organizations.
In April 2014, Texas was one of the first states to blueprint an administrative strategy
for the virtual currency market and issued reminders that examine the administrative
treatment of virtual currencies under Texas law. Notwithstanding affirming that virtual
currencies won’t be viewed as legitimate delicate. Furthermore, the trading of virtual
currencies for sovereign currency won’t be considered currency trade under the Texas
Finance Code (Brito & Castillo, 2013).
On the other hand, On 28 June 2014, California, home to numerous virtual currency
start-up companies, turned into the first state to pass enactment authorizing the use of virtual
currencies in transactions guarantees that virtual currencies are lawful to use in the state of
California. At issue was procurement under the California Corporations Code, which gave
that no element, was allowed to “issue or put available for use, as money, anything besides
the legitimate money of the United States”. This procurement, illuminating that the
utilization of virtual currencies does not disregard the law when such currencies are utilized
for the buy of products or services or the transmission of payments (Brito & Castillo, 2013) .
The New York Department of Financial Services (NYDFS) has embraced a
standout amongst the most forceful positions with regards to virtual currencies, and it as of
late turned into the first state to propose an administrative system for virtual currencies.
As right on time as August 2013, New York utilized subpoenas to look for
information on consumer insurance, speculation procedures and hostile to money laundering
consistence from twenty two elements and speculators included in the virtual currency
industry. In the spring of 2014, the NYDFS asked for recommendations from firms to set up
‘regulated ‘exchanges for virtual currencies, with Lawsky expressing there is a ‘critical
requirement for stronger oversight counting hearty gauges for buyer security, digital security
and against money laundering compliance (Brito & Castillo, 2013)‘. Obviously, the proposed
NYDFS regulations incorporate a customized ‘Bit License’ for virtual currency firms
operating in New York, and additionally extra regulations for different sorts of virtual
currency firms past exchanges.
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4.4.1.2 Outside of the United States
Administrative bodies outside of the United States are getting to be progressively
keen on Bitcoin and other virtual currencies. In a report distributed in January 2014, by he
Law Library of Congress analyzed regulations or statements made by the central banks and
government workplaces of forty outside wards and the European Union on Bitcoins. While
the report found that couple of nations has received laws or regulations representing virtual
currencies, there is extensive talk on the theme occurring around the globe (The Law Library
of Congress, 2014).
In different nations Bitcoin has additionally problems with approval. Authorities in
Norway stated that it doesn’t satisfy prerequisites of being a currency. In Finland Bitcoin is
not viewed as legitimate currency, in light of the fact that it is by definition in clash of law,
which states that payment instrument must have the guarantor in charge of its activities. Then
again, purchasing crypto-currencies is in Finland considered as buy of products.
The Central bank of UK discharged in light of 13 questions on 2014 to find what are
the challenges and advantages on digital currencies and to what extant government is
expected to cultivate innovation and to guarantee that financial and payments technology
works better and in light of a legitimate concern for the individuals that utilize them on a
daily basis. The Call of information was replied by extensive variety of individuals from the
public who has digital currencies inclusions, from engineers, organizations giving crypto to
banks, payments plans organizations, scholastics and other government division and offices
(HM Treasury, 2015).
Canada embraced a correction to its Proceeds of Crime and Terrorist Financing Act
that will regard virtual currencies as “money administration organizations” for the reasons of
the Canadian against money laundering law. As an outcome, organizations managing in
virtual currencies will be obliged to enroll with the Financial Transactions and Reports
Analysis Center of Canada, execute consistence projects, look after records, report suspicious
or terrorist-related property transactions and figure out whether any of the clients are
“politically uncovered persons”.
Iceland, Bolivia, Ecuador, Kyrgyzstan and Vietnam are the main nations that appear
to have some level of Bitcoin boycott set up while others, for example, Russia and Thailand
appeared to have prohibited digital currencies then backtracked (The Law Library of
42
Congress, 2014). Additionally, China, executed particular regulations characterized Bitcoin
as a “virtual product” and observed that it was not a currency, and subsequently ought not be
coursed and utilized as a part of the market as such. Further, banks and payment
establishments in China may not bargain in Bitcoins.
4.4.2 Crime risks
The degree of anonymity of crypto-currencies could be driver of criminal exercises
and present issues for law authorizations. Different have agencies expressed concerns about
crypto-currencies, specifically Bitcoin. The absence of regulation may encourage for criminal
directs, for example, drug trafficking, weapons and other unlawful products.
It was perceived that it may urge unlawful performers to preform exercises of money
laundering, terrorist financing, tax avoidance and authorizations avoidance. A noticeable case
was Silk Road, an underground site for purchasing and offering unlawful merchandise, for,
drugs and weapons. As of today, the global regulatory revolving crypto-currencies is still
uncertain.
4.4.2.1 Ransomware
Another well-known unlawful activity is Ransomware, which is a malware in which
gain access to a user’s computer and demand a ransom be paid in the form of crypto-
currencies before it can be released ( The Department of Justice, 2015).
Figure shows the most common crypto-currency malware by family (Dell SecureWorks,
2014). Figure 12 – Most Common crypto-currency Malware by Family
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4.4.3 Risk to Users As noticed, the strategy of crypto-currencies is drawn from cryptographic which
offers a safe method for exchanging value between clients over the system. Nonetheless,
there are some security issues clients may have at different purposes of the crypto-currencies
ecosystem – acquiring, holding, and exchanging coins.
4.4.3.1 Price volatility
One of the evident risks to clients is the value change, specifically in Bitcoin. Bitcoin
has been ended up being exceptionally unstable. Since its presentation in 2009, the cost
expanded from couple of dollars to as high as $1200 in November 2013 and dropped to
below $200 early 2015. Crypto-currencies are not supported by any general power neither
pegged by another currency or commodity, consequently the cost of crypto-currencies may
increase or decrease. It is said by critics that value changes to positive and negative media,
thefts activities. A few recommends it may increment in worth because of its restricted
supply (CoinDesk, 2015).
Figure 13 - Key events Influencing Bitcoin Price in year 2014
The media assumes a part in expanding the instability of the market. A late study by
Kristoufek demonstrates that interestingly media consideration not just drives up the cost
when things are looking positive, additionally drives the cost down when a value air pocket is
44
blast. So this deviated connection incredibly develops the value changes of crypto-currencies
(Kristoufek, 2014). Figure 8 demonstrates key events in the year of 2014 influencing the
price of Bitcoin in USD.
4.4.3.2 Transferred risk to clients
Digital currencies that are stored in a digital wallet on a client’s computer ought to be
mindful of its risks. Like money, it can be lost or stolen if not kept appropriately and secured.
Basically, the risk is transferred from financial institutions directly to users. If losing digital
coins, as of today, is solely depends on the user’s responsibility. Targeted theft attacks on
user’s computers to stealing credentials and private keys by virus or trojan horse is a growing
concern.
4.4.3.3 Lack of control over transactions
In addition to storing a wallet on the computer, a use can create a wallet with an
exchange providers, who will keep user’s private keys. However, lack of control or
regulations over those intermediaries are still exposing users to risk. Clients trust
intermitiateris yet surprising emergencies of exchanges can leave clients with lost trusts. In
2013 One of the biggest trades for purchasing and offering crypto-currencies, Mt. Gox
(MTGOX.com), filled bankruptcy in the wake of encountering a security breach, it
compromised around 75,000 Bitcoins (Valued at more than 400 million dollars) leaving all
clients’ wallets empty.
4.5 The Blockchain: Beyond Payment System The advantages of the Blockchain are more than simply monetary; it stretches out
into areas of governmental issues, social, compassionate person. The underline technology of
crypto-currencies is described by the significance of the technology as an innovation
encouraging the fast, efficient, and secure exchange of responsibility for digital asset over the
Internet, giving a lasting record of what has occurred, and without the need for a third party
to oversee the process.
There are potential positive ramifications for development and the more extensive
economy: transactions efficiencies encourage competition, and an innovation disrupting
payments models (HM Treasury, 2015).
45
Blockchain as a spread period for economic and instinctive development, that could
improve the growth of, and number, spread applications. Blockchain 2.0 transactions feel
upon sources documents and transactions, notoriety and character government, qualified
development proprietorship, and knowledge storage. Some currently imagine Blockchain (or
Bitcoin) 3.0 sometimes as Blockchain engineering purposes previous currency and
agreements in to new areas, like, wellbeing, technology and culture or, planning considerably
more, as spread data government all over (Swan, 2015). Blockchain engineering and spread
purposes open the range of benefits and data that may be overseen and store on and from the
Blockchain.
There is a developing inerest among governments, financial foundations and MNCs
(multinational corporations) in the underline technology of crypto-currencies, the
“Blockchain” alluded as the distributed ledger. MNCs, for example, Samsung Electronics
Co., IBM International Business Machines Corp. what’s more, Intel are investigating to
utilization of Bitcoin technology to make new applications (Kharif, 2015), (Prisco, 2015).
Financial speculator’s interests in the underline technology are developing rapidly. In
2015, venture capitalists were added up to $349 million versus $916 million in the first
quarter of 2015. In comparison with the invention of the Internet in 1996 venture capitalist
investments were added to only $250 (CoinDesk, 2015).
Figure 14 - Bitcoin vs. Early Internet Venture Capitalists investment ($ millions)
46
Many argue that rise of of crypto-currencies is closely resembling that of the Internet.
The representation of Bitcoin is practically is analogous to the stack of the web. As the
underline Internet technology provides the infrastructure, services like Amazon and Netflix
could be expand on top of it. Similarly, Bitcoin can be viewed as the underline TCP/IP
transport layer of the Web enables new services (such as HTTPS, SMTP and FTP) to expand
on top on it (Swan, 2015).
4.5.1 Smart contracts The idea of smart contracts originated by Nick Szabo in the beginning of the World
Wide Web in 1997 who was a cryptographic master. In straightforward words, smart
contracts are computer programs that can consequently execute the terms of an agreement
(Szabo, 1997). At center, these robotized contracts work like other computer program’s if-
then statements. They simply happen to be doing it in a manner that communicates with real
world assets. At the point when a prearranged condition is met, the smart contract executes
the relating contractual provision. Szabo’s idea is now practical with the adoption and the
development of Bitcoin and the blockchain. Smart contract technology is can be build on top
of Bitcoin and other virtual currencies, what some have termed “Bitcoin 2.0” stages. Since
Bitcoin is itself is a computer system, smart contracts can identify with it simply like they
would some other bit of code where a computer system can now trigger payments (Cassano,
2014).
Additionally, the concept of smart contracts may include more prominent automation
of processes, overseeing and upholding contracts. This may be proposed to build
effectiveness and decrease the risk of human mistake. Partners portrayed digital currencies as
“programmable money”, or money with “in-built functionality”, empowering clients to
encode prerequisites into a payment direction so as to attain to self-ruling, self-executing
contracts. The technology could be utilized for more effective property exchanges, or for
credit repayments, where payment could consequently occur or be balanced once indicated
conditions are met (HM Treasury, 2015). Figure 15 illustrates the entire landscape of the of
crypto-currencies ecosystem17.
17 See https://jurnalculture.wordpress.com/2014/03/19/the-bitcoin-business-ecosystem/ Data updated as of August 12, 2013
47
4.5.2 Property Title
The key idea in property titles is to control ownership and access to an asset by
registering it as a digital resource on the Blockchain. The verification of ownership will be by
holding the private key. Fundamentally, it is the property whose ownership would be
controlled by means of the Blockchain. Diverse classes and examples of property may be
coordinated to the Blockchain, for example, financial transactions, public records, recording
and exchanging the responsibility for, shares, securities and other financial instruments
(Long, Lee, Steiner, Wood, & Handler, 2015).
The technology may be applied in settings where records require routinely
authentication or proof of identity. For example, the capacity of digitally “signing” and time-
stamping digital resources could be utilized to effectively and safely keep up records of
digital archives, for both private and public record keeping, for instance for travel permits,
driving licenses, criminal records, land registry and digital voting (Wan & Hoblitzell, 2014).
48
Figure 15 - The Ecosystem of Crypto-currencies
49
5. Experimental Results
Sample data was collected from 54 participants from various gender, ages, regional
areas, professional backgrounds, interest groups and education levels to evaluate the
strongest and the weakest attributes or aspects of a digital currency and how interest changes
across the diverse groups. To begin with, the accumulative sample data was gathered to find
the most influential and the least influential elements from the entire sample size. Second,
data was further examined to see how set of elements drive responses across different groups
(gathered by demographics\profile questions). Finally, data was sectioned into K-clusters to
find segments, which will manifest themselves as patterns of responses to particular concepts
(or set of ideas).
5.1 Total Sample Preferred Element Order (TSPEO) The accumulative data from the entire set of participants of the study is shown in
Table 3. The elements were sorted from highest interest values to lowest interest values. The
base size is the total participants of 54. The constant value is the additive constant for digital
currency of 70. The additive constant functions as a baseline indicator of the overall subject’s
interest in the topic of the study introduced with the title of digital currencies. This means
that without any elements being presented, approximately 70% of the participants would be
interested in the product of digital currencies (meaning it would rate the concept 7–9 on the
scale).
Table Four, shows the top and bottom five elements for the aggregated sample. The
top elements are judged by the highest overall interest values. There are some very strong
performing elements. The highest overall interest value was an element from Silo D, which
deals with the Security and Privacy of a Digital Currency. The strongest element is D2, “This
digital currency has a very strong mathematical algorithm ... it has never been broken”
which has an interest value of 14. The following highest element value was from the same
silo D1, “No identity theft ... it doesn’t expose your personal information”. Another strong
performing element is D5, “Proof of a transaction may be verified without involving a third
party”. Both D1 and D5 elements have interest values of 11. Values of 11+ would suggest a
very strong-performing idea (Moskowitz H. , Gofman, Beckley, & Ashman, 2006). From the
50
same silo there is another element D3, with interest value of 6 is: “digital currency is insured
… just like a credit card”. Value of is 6 considered favorable but not great ideas on the scale.
Results show that elements from security and privacy class have performed the best, which
infers that those are the most influencing aspects of digital currencies.
Negative values imply that when it is added to the concept, the interest goes down.
Interestingly, the bottom three elements with all negative interest values are originating from
silo A, which deals with Features of a Digital Currency. The bottom elements are “It can be
used globally”, and “Account balance can be printed on a paper” have interest values of -10
and -9 respectively. The absolute lowest interest value is -18 from the same category “Once
payment is made you can’t “undo” it ... it is not reversible or disputable”. The remaining two
least performing elements are originating from silo C, which manages the cost, “Creating a
digital “wallet” is as easy as downloading an app ... no need for a special device or
knowledge,” and “The number of coins produced are limited ... the value may increase in the
future” have interest values of -6 and -7 respectively. Results imply that these features of
digital currencies are the least influencing aspects.
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Table 3 – TSPEO: Total Sample Preferred Elements Order for the Crypto-currency product
Total Sample
Base Size 54 Constant 70 D2 This digital currency has a very strong mathematical algorithm ... it has never been broken 14 D5 Proof of a transaction may be verified without involving a third party 11 D1 No identity theft ... it doesn’t expose your personal information 11 D4 Unlike cash ... this digital currency is resistant to counterfeiting 8 D3 This digital currency is insured ... just like a credit card 6 B5 Use this digital currency to make micro payments ... as small as a penny 2 B2 A human “teller” may convert your digital money to (from) cash 1 B4 More than 30% of businesses worldwide now accept this digital money 0 C4 People without a bank account may use this digital currency -2 C1 It is 50% cheaper for business owners to accept this digital currency than a credit card -2 B1 Easy to use ... via an application on a smart-device or a computer -2 B3 Most local ATMs worldwide accept this digital currency -3 A5 Instantly transfer money or make a payment worldwide -3 A1 It is a decentralized network ... not controlled by an individual or a company -4 C2 There is a negligible fee to convert this currency to any other digital currency or cash -5 C3 Creating a digital “wallet” is as easy as downloading an app ... no need for a special device
or knowledge -6
C5 The number of coins produced are limited ... the value may increase in the future -7 A2 Your account balance can be printed -9 A4 It can be used globally -10 A3 Once payment is made you can’t “undo” it ... it is not reversible or disputable -18
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Table 4 – TSPEO: Total Sample Preferred Element Order of five top and the bottom elements.
5.2 Profile Preferred Element Order (PPEO) Profile information was gathered among all participants, this permitted us to assess
every particular group by background. Figures 14A-F shows the profile distribution of the
participants.
Male versus Female
Most of the members were male of 76% (41) of the sample size, and 24% (13) female
(Figure 14-A). Male is slightly more interested in digital currencies with an additive constant
value of 71, while female had additive constant value of 69. Division of male from female
members shows that both male and female are equally interested in digital currencies.
The top performing element for male was the silo of Security and Privacy “This
digital currency has a very strong mathematical algorithm … it has never been broken”
adjusted to the aggregate sample. The top element for female was an element from the same
classification.
Interestingly, the low performing element was different for distinctive gender. The
lowest performing element for female was in the Ease of Use silo B “Easy to use … via an
application on a smart-device or a computer” (-20) though the lowest performing element
for male was in the Features of Digital Currency, “Once payment is made you can’t “undo”
it … it is not reversible or disputable” (-18).
Total Sample
Base Size 54
Constant 70
D2 This digital currency has a very strong mathematical algorithm ... it has never been broken 14 D5 Proof of a transaction may be verified without involving a third party 11 D1 No identity theft ... it doesn’t expose your personal information 11 D4 Unlike cash ... this digital currency is resistant to counterfeiting 8 D3 This digital currency is insured ... just like a credit card 6
10 middle elements are not shown
C3 Creating a digital “wallet” is as easy as downloading an app ... no need for a special device or knowledge -6
C5 The number of coins produced are limited ... the value may increase in the future -7 A2 Your account balance can be printed -9 A4 It can be used globally -10 A3 Once payment is made you can’t “undo” it ... it is not reversible or disputable -18
53
Ages: 25-34 years versus 35-44 years versus 45-54 years
The age groups of the respondents are shifted. Most of the respondents were in the
age group of 25-34, which signified 43% (23) of the sample size. The second biggest group
of 24% (13) of members was between the ages of 35-44. Ages of 45-54 comprised of %17
(9) (Figure 14-C). Interestingly, age group of 35-44 years was the least inspired by digital
currencies. Its additive constant value is 55, while for all other age groups additive constant
value is 70 or more.
The same age group of 34-44 separates itself by favoring the element of “payment is
made you can’t “undo” it … it is not reversible or disputable” with high interest value of 16
whereas every other group it was the least performed element with negative values varied
between -6 through -23.
Vested parties: Business proprietors, Consumers, Financial Industry, Government,
Developers
The sample data was further filtered by group of interest. The majority of the
respondents of 56% (30) are classified as business owners and 50% (27) are consumers.
Financial industry group consisted of 22% (12) and government only 11% (6) of the entire
sample (Figure 14-E).
All the members from this group had one common lowest performing element, which
involves non-reversible payments. Most noteworthy interest values fluctuated over the
Privacy and Security silo. Group members from government accounted with high performing
interest value (17) for the element in Accessibility of ATMs while other groups, for example,
financial industry and develop[ers had interest values of -7 for the same element.
When assessing the element, which includes “Proof of a transaction may be verified
without involving a third party”, all groups altogether, entrepreneurs and consumers
including financial industry show positive high interest values and collectively supported the
idea of not having third party control during the transaction from point A to point B which is
the most significant advantage and key innovation of digital currencies as explained in
previous sections.
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Specialized (STEM) versus Non-specialized (Non-STEM)
Most of the members of total sample have the background of STEM 59% (33) and
followed by business, finance, economics and others 33% (18) (Figure 14-F). Sample
indicates that members with STEM (Science, Technology, Engineering, and Mathematics)
background are more favorable towards the security and privacy aspects of digital currencies.
“This digital currency has a very strong mathematical algorithm … it has never been
broken” with an interest value of 21. Very interestingly, the same element favored low
negative values from non-technical background members such as Social, Behavioral
Sciences (0) Liberal arts (-2) and music (-21).
The most favored element amongst non-technical was “Creating a digital “wallet” is
as easy as downloading an app … no need for a special device or knowledge” scoring 19, 17
and 13 for Medial, Social\Behavioral and Music respectively. The same element performed
the lowest with STEM background members with a negative value of -13. It is suggested that
that human perception changes with distinctive backgrounds.
The similar opposite comparison can be noticed between STEM and
Business/Finance/Economics members. The second most favored element amongst STEM
was “Proof of a transaction may be verified without involving a third party” with interest
value of 17 whereas the same element performed low amongst Business/Finance/Economics
members with a value of zero.
Education level: high school versus beyond high school
Larger part of the respondents of 37% (20) of the sample data, were holding a
Master’s degree taking after by undergrad of 24% (13). Just 7% of the members are holding a
PhD (4) (Figure 14-F). It was noticed that all groups beyond high school education have
valued a higher privacy and security silo “This digital currency has a very strong
mathematical algorithm … it has never been broken” with interest values ranging between 20
and 24. Whereas the same element performed low amongst high school level with interest
value of -12. The most favored silo amongst high school was Features of Digital Currencies.
As per the data, there are no other major different beliefs or significant results between high
school and beyond high school.
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Regional: North America vs. Asia vs. Europe
As crypto-currencies are a worldwide technology, which is not controlled or
represents by any central administrative or legitimate body, therefore, the data is further
isolated topographically fundamentally centered on North America, Asia and Europe. Legal,
political and cultural situations may impact individuals’ recognitions and subsequently
regions expect differences of opinions. Dominant part of the respondents of 65% (35) of the
sample data lives in North America, followed by 15% (8) who dwells in Europe, and 11% (6)
in Asia (Figure 14-D).
The element “Proof of a transaction may be verified without involving a third party”
was favored most amongst participants who lives in Asia and North America were figured to
15 and 17, while the same element was the least favored element in Europe, with an interest
value of -21. Another interesting finding is the element; “People without a bank account may
use this digital currency” was the most favored with an interest value 16 in Europe, while the
same element was valued contrarily in Asia (-1) and North America (-8).
5.3 Segments Preferred Element Order (SPEO) Finding groups of people with comparative mindsets is the substance of Mind
Genomics; People who react in similar ways to set of thoughts and ideas. Those are our
“mind genomes”. The aggregate data set was segmented with K-cluster analysis. The
segments represent a portion of respondents that have comparative patterns of response
toward the product elements, typically identifying the part of the population who offer ideas
of the representative highlights of a Digital Currency. The data was divided into a two-
segment solution (Table 6), and into a separate a three-segment solution (Table 7).
Cluster)1)solution:)2)segments))
The primary investigation brought about two segments comprised of 39 subjects in
segment 1 and 15 subjects in segment 2. Table 6 demonstrates the constants, interest values,
and top and bottom elements compared to the total sample.
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Table 5 – S2PEO: Segment two Preferred Element Order
Total Sample
Segment 1 of 2
Segment 2 of 2
Base Size 54 39 15 Constant 70.4 71.6 67.2
D2 This digital currency has a very strong mathematical algorithm … it has never been broken 14.1 21.7 -5.7
D1 No identity theft … it doesn’t expose your personal information 11 20.2 -12.9
D5 Proof of a transaction may be verified without involving a third party 10.5 15.5 -2.4
D4 Unlike cash … this digital currency is resistant to counterfeiting 7.7 11.2 -1.3 D3 This digital currency is insured … just like a credit card 5.9 12.5 -11.2 B2 A human “teller” may convert your digital money to (from) cash 1 3.3 -4.8
C1 It is 50% cheaper for business owners to accept this digital currency than a credit card -1.5 -6.2 10.5
A5 Instantly transfer money or make a payment worldwide -3.3 -10.7 15.8 B3 Most local ATMs worldwide accept this digital currency -3.4 1.4 -15.9
A1 It is a decentralized network … not controlled by an individual or a company -4.1 -10.9 13.6
C3 Creating a digital “wallet” is as easy as downloading an app … no need for a special device or knowledge -5.6 -9.4 4.4
C5 The number of coins produced are limited … the value may increase in the future -6.8 -10.1 1.7
A2 Your account balance can be printed -9.3 -16.8 10.3 A4 It can be used globally -10.3 -18.1 10
A3 Once payment is made you can’t “undo” it … it is not reversible or disputable -18.4 -28.6 8.2
Segment 1: Most performed elements “No identity theft … it doesn’t expose your personal
information” and “This digital currency has a very strong mathematical algorithm … it has
never been broken” with high interest values of 20 and 22, respectively. Least preformed
elements were “It can be used globally” and “Once payment is made you can’t “undo” it …
it is not reversible or disputable” with interest values of -29 and -18, respectively.
Least performed elements include worldwide use and non-reversible payments. Non-
reversible characteristic is a significant character of digital currencies. While this could be
useful for merchants who can free themselves of chargeback fraud, yet this is one of the
major drawbacks for purchasers. The purchaser has to trust that they are going to get what
they paid for. However, there is no guarantee and no real way for purchaser to recover the
money if that winds up not being the situation.
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In light of the most and least performing elements this segment was given the title of
the Protection\Privacy minded, individuals who values financial privacy and insurance
online. Table 6 – S1PEO: Segment one Preferred Element Order
Total Sample
Segment 1 of 2
Base Size 54 39
Constant 70.4 71.6
D2 This digital currency has a very strong mathematical algorithm … it has never been broken 14.1 21.7
D1 No identity theft … it doesn’t expose your personal information 11 20.2
D5 Proof of a transaction may be verified without involving a third party 10.5 15.5
D4 Unlike cash … this digital currency is resistant to counterfeiting 7.7 11.2
D3 This digital currency is insured … just like a credit card 5.9 12.5
A5 Instantly transfer money or make a payment worldwide -3.3 -10.7
A1 It is a decentralized network … not controlled by an individual or a company -4.1 -10.9
C3 Creating a digital “wallet” is as easy as downloading an app … no need for a special device or knowledge -5.6 -9.4
C5 The number of coins produced are limited … the value may increase in the future -6.8 -10.1
A2 Your account balance can be printed -9.3 -16.8
A4 It can be used globally -10.3 -18.1
A3 Once payment is made you can’t “undo” it … it is not reversible or disputable -18.4 -28.6
Segment 2: High performing elements exhibited high interests in fast and efficient method of
payment. Top elements were “Instantly transfer money or make a payment worldwide” and
“It is a decentralized network … not controlled by an individual or a company” with
premium values of 16 and 14 respectively. Taking a look at other positive values higher than
11 uncovers the high enthusiasm for cost points of interest; Individuals who look for an easy
and quick worldwide means. Accordingly, segment 2 was titled as the cost effectiveness
minded segment. As can be seen, unlike to section 1, segment 2 is less intrigued by privacy
or security; high elements for segment 1 were given low interest values in segment 2. For
instance, non-reversible payments the value in segment 2 is 10. It is clearly demonstrated that
segment 1 and 2 does not have common shared elements.
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Table 7 – S2FEO: Segment two preferred element order
Total Sample
Segment 2 of 2
Base Size 54 15
Constant 70.4 67.2
A5 Instantly transfer money or make a payment worldwide -3.3 15.8
A1 It is a decentralized network … not controlled by an individual or a company -4.1 13.6
C1 It is 50% cheaper for business owners to accept this digital currency than a credit card -1.5 10.5
A2 Your account balance can be printed -9.3 10.3
A4 It can be used globally -10.3 10
A3 Once payment is made you can’t “undo” it … it is not reversible or disputable -18.4 8.2
C3 Creating a digital “wallet” is as easy as downloading an app … no need for a special device or knowledge -5.6 4.4
C5 The number of coins produced are limited … the value may increase in the future -6.8 1.7
D4 Unlike cash … this digital currency is resistant to counterfeiting 7.7 -1.3
D5 Proof of a transaction may be verified without involving a third party 10.5 -2.4
B2 A human “teller” may convert your digital money to (from) cash 1 -4.8
D2 This digital currency has a very strong mathematical algorithm … it has never been broken 14.1 -5.7
D3 This digital currency is insured … just like a credit card 5.9 -11.2
D1 No identity theft … it doesn’t expose your personal information 11 -12.9
B3 Most local ATMs worldwide accept this digital currency -3.4 -15.9
Cluster)2)L)solution:)3)segments)
The data was segmented further into three K-clusters (Table 6) to examine for even
stronger segmentation. Segment 1 consists of 29 subjects, segment 2 consists of 15 subjects,
and segment 3 consists of 10 subjects. Table 8 shows the constants, interest values, and top
and bottom elements compared to the total sample.
Segment 1 display similar characteristic to the previous segment of privacy\protection
mined. Segment 2 further complements to the cost\efficient minded segment. The top
performing elements consisted of Features of Digital Currency silo “It is 50% cheaper for
business owners to accept this digital currency than a credit card” with an interest value of
11.
Interestingly, the last segment provides us insight to a new segment that is interested
in easy and convenient way of using and accessing the product. Top elements were “Use this
digital currency to make micro payments … as small as a penny” with the highest interest
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value of 34 followed by, “Most local ATMs worldwide accept this digital currency” with an
interest value of 28. “More than 30% of businesses worldwide now accept this digital
money” had interest value of 20. Noticing that this segment is less interested in investments,
where the element “The number of coins produced are limited … the value may increase in
the future” had an interest value of -19.
Therefore, a third segment was given the title of user-friendly “easy and convenient
access” segment, people who seek for easy and convenient way to make transactions. Table 8 – S3PEO: Segment 3 preferred element order
Total Sample
Segment 1 of 3
Segment 2 of 3
Segment 3 of 3
Base Size 54 29 15 10
Constant 70.4 67.9 67.2 82.2
D1 No identity theft … it doesn’t expose your personal information 11 26.8 -12.9 1.2
D2 This digital currency has a very strong mathematical algorithm … it has never been broken 14.1 26 -5.7 9
D5 Proof of a transaction may be verified without involving a third party 10.5 21.3 -2.4 -1.2
C4 People without a bank account may use this digital currency -2.5 -2.5 7.1 -16.8
C2 There is a negligible fee to convert this currency to any other digital currency or cash -5.1 -3.6 7.6 -28.7
C3 Creating a digital “wallet” is as easy as downloading an app … no need for a special device or knowledge -5.6 -5 4.4 -22.2
B2 A human “teller” may convert your digital money to (from) cash 1 -5.2 -4.8 27.9
C1 It is 50% cheaper for business owners to accept this digital currency than a credit card -1.5 -5.8 10.5 -7.4
B5 Use this digital currency to make micro payments … as small as a penny 2.4 -6 -2.8 34.4
B4 More than 30% of businesses worldwide now accept this digital money -0.3 -6.7 -1.6 20.1
C5 The number of coins produced are limited … the value may increase in the future -6.8 -7.1 1.7 -18.9
B3 Most local ATMs worldwide accept this digital currency -3.4 -8 -15.9 28.4
B1 Easy to use … via an application on a smart-device or a computer -1.7 -8.3 -4.7 22.3
A5 Instantly transfer money or make a payment worldwide -3.3 -14.5 15.8 0.4
A1 It is a decentralized network … not controlled by an individual or a company -4.1 -14.6 13.6 -0.2
A4 It can be used globally -10.3 -24.7 10 1
A3 Once payment is made you can’t “undo” it … it is not reversible or disputable -18.4 -30.9 8.2 -22.1
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5.4 Discussion There are obviously drivers of enthusiasm for digital currencies. The study attempted
to utilize the science of Mind Genomics to give observational data to better comprehend the
consumers’ impression of digital currencies. Using the IdeaMap® tool, three fundamental
consumer segments have now been identified in connection to the most compelling attributes
of digital currencies that drive individual’s interest.
The primary segment of the aggregated consumers inspected is most intrigued by
particular aspects concerning with consumer protection and financial privacy in connection
to digital currencies. This segment values and trusts mechanisms that guarantee their
personal information is not traded off. Besides, by believing the system, consequently it
looks for a level of protection.
Another consumer segment is most intrigued by digital currency angles connected
with efficiency and cost benefits. Segment two concentrates on what the consumer
encounters and refinements demonstrate that the efficiency and cost advantage goals are all
imperative to digital currency segment two consumers.
Lastly, the third segment is most inspired by digital currency perspectives connected
with simple to use and accessible. Those will be more keened to realize that digital currencies
are recognized in every business, paying little attention to the amount that can be utilized and
that it can be acquired through different means.
The K-cluster analysis segmented subjects in view of the subject’s data created from
the experiment itself and accommodated extremely fascinating and to a degree special
conclusions. It is clear that, the security perspectives, every way the data are analyzed,
contrasts in consumer intrigues may be discovered and consensuses can be distinguished. For
an all-inclusive statement case, a “Once payment is made you can’t “undo” it … it is not
reversible or disputable” results in negative interest values for the greater part of groups,
subgroups, or segments and therefore is considered to be the least influential attribute of a
digital currency.
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5.5 Contribution In this study we found that there are three distinct segments, those segments contain
related sets of ideas that emerged from the pattern of utilities for different participants.
Influencing attributes of digital currencies for each segment differ majorly.
Key discoveries of the study:
• There are no real contrasts between educations level then again, specialized
individuals favor parts of security while non-specialized lean toward aspects of
usability.
• Consumer protection is the most valued attribute among all groups and subgroups.
• The integrity of the digital currency system is the most influential attribute among all
groups and subgroups.
• There is a different perception about digital currencies in counties in Asia and North
America than Europe.
The approach was taken is imperative for propelling the investigation of consumer
examination, particularly in the business world, where development could be possible
utilizing information about the customer mind-set.
Singular consumers will value one of these perspectives more than others.
Understanding what the consumer values the most (e.g., security) and conveying this
information to the right customer may bring about the lifted interest, an expanded ease of use
and an expanded saw experience for the consumer.
In order to further assist with the creation of new services and applications in the
domain of crypto-currencies, we further identified three main consumer segments in relation
to the most influential aspects of digital currencies that drive individual segment interests.
The three segments are the following:
Segment 1: Financial Privacy\Protection – consumers who are most interested in
consumer protection and financial privacy in the virtual space. This segment values and trusts
mechanisms that ensure their personal information is not compromised. Furthermore, by
trusting the system, in return it seeks for a degree of protection.
Segment 2: Efficient\Cost – consumers who are most interested in digital currency
aspects associated with efficient and cost beneficial, focusing on the consumer experiences.
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Segment 3: Convenient and accessibility – consumers who is most interested in
digital currency aspects associated with easy, convenient and accessible. Those will be more
keened to know that digital currencies are accepted in every business regardless of the
amount that can be used or that it can be obtained through various traditional means (such as
ATMs, tellers).
Those results are unique and are backed by empirical data that can be used as a base
to increase adoption and support the development of crypto-currencies. Table 10 displays the
most valued and least valued elements per each segment. Those can be used as messaging
targeting a specific group. For example, preferred messaging aiming to target Segment 1,
which was identified as the “financial privacy protection”, should include only the top
positive interest values (shown in table 9 – positive interest values), whereas the lowest
negative values indicated very low interest in those types of features or attributes and
messaging that should be avoided.
Table 9 – Preferred Messaging for Customers
Segment 1: Financial Privacy Protection Things to say
No identity theft … it doesn’t expose your personal information This digital currency has a very strong mathematical algorithm … it has never been broken Proof of a transaction may be verified without involving a third party This digital currency is insured … just like a credit card
Things to avoid It is a decentralized network … not controlled by an individual or a company Your account balance can be printed It can be used globally Once payment is made you can’t “undo” it … it is not reversible or disputable Segment 2: Cost Effectiveness
Things to say Instantly transfer money or make a payment worldwide It is a decentralized network … not controlled by an individual or a company It is 50% cheaper for business owners to accept this digital currency than a credit card Your account balance can be printed
Things to avoid This digital currency has a very strong mathematical algorithm … it has never been broken This digital currency is insured … just like a credit card No identity theft … it doesn’t expose your personal information Most local ATMs worldwide accept this digital currency
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Segment 3: Accessibility and Ease of Use Things to say
Use this digital currency to make micro payments … as small as a penny Most local ATMs worldwide accept this digital currency A human “teller” may convert your digital money to (from) cash Easy to use … via an application on a smart-device or a computer
Things to avoid The number of coins produced are limited … the value may increase in the future Once payment is made you can’t “undo” it … it is not reversible or disputable Creating a digital “wallet” is as easy as downloading an app … no need for a special device or knowledge There is a negligible fee to convert this currency to any other digital currency or cash
5.6 Result implications: Market opportunities As can be seen the security of trusts is a standout amongst the most valued properties,
across all segments. Till date, the market has possessed the capacity to address a percentage
of the risks to purchasers. Those new innovative innovation solutions may incorporate multi-
signature strategies, escrow services and cold storage utilized by firms (Davenport, 2015).
Most wallet systems being used today depend on one public and one private key to
permit the release of funds. A more secure method for putting away crypto-currencies and
alleviating the risk of losing finances by losing the private key or burglary bringing about
stolen trusts may include a multi-signature arrangement. Multi-signature procedure requires a
few private keys to sign before stores can be sent and accordingly no single individual or
private key can approve the exchange of trusts, making it more troublesome for somebody to
take units of digital currency from that address. There are a few start-up companies’
organizations that execute those creative systems. For instance, one of the first organizations
to deploy a multi-signature Bitcoin wallet answer for shoppers is BitGo. BitGo current plan
utilizes three keys: one held by the client, one for BitGo and one put away in logged off
reinforcement. No less than two of the three keys are expected to get to the wallet (BitGo).
The prompt playing point of utilizing multi signature technology is to totally
eliminate single point of failure by guaranteeing that the keys are produced and is kept away
on totally separate devices. Case in point, one key may be created on the client’s tablet, while
the other is produced on the cellphone, making it important to have both gadgets in order to
execute. Malware, which taints the tablet, cannot take steal funds, due to the fact that it
doesn’t have the other kept on the telephone.
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Segment 1 in which includes trust elements is the capacity to secure shoppers. The
presentation of an escrow administration permits more secure payments between people,
utilizing a neutral entity that holds the units of digital currency until the purchaser confirms
the receipt of the transactions. Once confirmed, the holding entity can then discharge the
units to the proposed beneficiary on power of the purchaser. Case in point: Alice needs to
send Bitcoin to Bob, whom she may not assume that Bob conveys the stock he has
guaranteed. Bob needs to guarantee he is paid for his stock. They both trust Trent to mediate
a question yet don’t wish to trust him with the stores. They make a 2-of-3 multi-sig address
with one key each from Alice, Bob and Trent. In the event that the transaction goes easily,
Alice and Bob can mutually discharge the trusts without Trent’s inclusion. On the off chance
that there is a question, Trent can mediate, and can move the stores in conjunction with either
Alice or Bob. Over the span of the transaction, the Bitcoin is adequately in a sort of limbo,
since nobody individual can move the stores all alone. This alludes to trades and firms
holding private keys.
Segment 3 that include usability or accessibility to digital currencies attributes.
Concurring the our data, furthermore data that we discovered numerous buyers guarantee that
the utilization of this technology is excessively entangled for the individuals who are
threatened by the technology or simply think digital wallets are a disturbance, there is
presently an option: paper wallets (Barajas, 2014). Having entry to a physical unmistakable
bit of paper is the first venture to treating crypto-currency the same as “fiat” money.
BitAccess, of the best known ATM producer, offers a digital wallet that will be made as a bit
of paper. Bitcoin ATM industry is the main player pulling out all the stops to make
transactions without owning a digital wallet possible. Their own exclusive transaction
equipment, permits any individual who does not possess a digital wallet can in any case
utilize a BitAccess ATM to purchase, offer or send Bitcoin. Utilizing BTM Bitcoin Teller
Machine (BTM) (Barajas, 2014). At the time of composing this paper, to make a paper wallet
was moderately awkward. Evolved numerous steps and tedious for the standard client. BTM
truly improves the methodology of printing money and facilitate the procedure.
In conclusion, a critical highlight is consumer’s security systems, which is considered
to one of the principle deterrent to standard adoption. Bitrated.com is an online trust stage
bails customer to discover all the more about the vendor that they are purchasing from. It is
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similar to a “notoriety administration system”. Bitrated rates each client in view of their past
transactions which at last one can choose whether it is a dependable substance to manage or
not. Moreover, it utilizes the multi signature system to permit settling question and converse
transactions. (Hirshman, 2015).
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6. Final Remarks
6.1 Conclusion Crypto-currencies are not new phenomena, but its implementation is a new concept
that caught up rapidly in the recent years. It has attracted a lot of attention from various
entities worldwide, from entrepreneurs to law enforcements to the mass media. Witnessing
the development and adoption of such a great advancement was the primary driver for
conducing a study in crypto-currencies.
Crypto-currencies bring apparent advantages of enabling a global, fast, efficient and
cheaper means of transaction without the need of a trusted middle party to ensure the
integrity of the process. Initially, crypto-currencies has attracted innovators and early
adopters however, gradually major key players have entered the circle supporting the
development and adoption of crypto-currencies ranging from multinational corporations to
retailers and financials leaders.
Nonetheless, the underline technology of crypto-currencies, the Blockchain,
represents a key innovation with potential positive implication for growth to the wider
economy involving transactions efficiencies, increase competition, and an innovation
disrupting existing payments models.
The development and the adoption of digital currencies have been explored in both
benefits of digital currencies as transfer of money domain as well as disadvantages and the
potential benefits of the key innovation of the Blockchain.
Advantages that were identified as benefits of digital currencies as transfer of money
were fast and lower cost for transacting, bringing new classes of payments (i.e. conducting
micropayments online) and reaching to the global economy with no limitations (cross
Border). A core system at which is decentralized and not controlled by an individual but by
fundamentals of the science of cryptographic. A system that ensures financial privacy and is
accessible to a large population who do not have access to traditional means (i.e. banks) or is
limited to the freedom of money. Lastly, the open source technology ensures transparency
and encourages endless opportunities for future development.
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As every new technology uncovers, there are also challenges and risks that are
associated with crypto-currencies. The identified challenges include the lack of legal support
or regulation around the subject of cryptocurrencies. The lack of understanding whether this
technology – dealing with money – can be treated as fiat money and therefore ruled alike by
the legal systems. The perceived anonymity had attracted illicit actors to conduct illegal
activities linking to the crypto-currencies technology. This leads us to the risk associated with
the individual user who is exposed to being a target to cyber criminals stealing their funds
without a possibility of getting it back. The lack of protection to users is the primary
disadvantage that is believed to be the barrier between the early adaptors to mainstream.
Those identified risks and benefits imply that there can be many influencing aspects
of using and\or developing the technology of crypto-currencies. Armed with those thoughts
in mind, this study attempts for the first time evaluate the influencing attributes of crypto-
currencies on a product level. This knowledge and insights can be than used to identify
practical applications to create better products and services in order to support the
development and adoption of crypto-currencies.
Using the powerful-patented market research IdealMap® tool by the science of Mind
Genomics “the science of the everyday experience”, to better understand the consumers’
perception of digital currencies. Our target audience was identified as individuals of different
backgrounds and experiences who is familiar with the technology of cryptocurrencies and
had experienced it in some way.
The strongest attributes of digital currency that drive interest to users is the system of
crypto-currencies at which doesn’t need a third party to conduct transactions. It is secure,
system that will not break. Unlike fiat currencies, it is resistant to counterfeiting.
Additionally, a strong attribute is a system that ensures not only the security of the method
but also values consumer protection involving in protecting one’s funds and providing
representation in case of an abused trust.
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6.2 Limitations The results of the study were developed utilizing a structured approach of the science
of Mind Genomics to identifying consumer’s perceptions of digital currencies and are limited
to the “idealets” or elements that were designed at the starting venture of the procedure. The
elements were designed taking into account the creator’s learning, knowledge, and
comprehension of the crypto-currencies technology. The three segments that were
distinguished have been created taking into account the sample size, in this way a probability
for future examination is to test the model with distinctive idealets and a bigger sample size.
6.3 Further Research As adoption is indispensable process in the development of digital currencies, it will
be worth to re-run the experimental study to a bigger group and adjusting the configuration to
6X6 model. It will be further more valuable to extent this research to explore the challenges
and motivation of the development of the underline technology of the Blockchain that was
presented, in particular the legal implications aspects.
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Luther , W. J. (2013, July 17). Cryptocurrencies, Network Effects, and Switching Costs. Kenyon College, George Manson University . (M. C. 13-17, Ed.) Maurer, B., Nelms, T., & Swartz, L. (2013). When perhaps the Real Problem is itself, The Practical Materiality of Bitcoin. Social Semiotics , 23 (2), 261-277 . Mims, C. (2013, Feb 13). 31% of Kenya’s GDP is spent through mobile phones. Retrieved May 1, 2015 Moore, G. A. (2006). Crossing the Chasm. HarperBusiness. Moore, G. A. (2005). Inside the Tornado. HarperBusiness. Moore, T., & Nicolas, C. (2013). Beware the Middleman: Empirical Analysis of Bitcoin-Exchange Risk. Financial Cryptography and Data Security Lecture Notes in Computer Science , 7859, pp. 25-33. Moskowitz , H. R., & Gofman, A. (2007). Selling blue elephants. Pearson Prentice Hall. Moskowitz, H. (2014). Big Mind + Big Data: Empathy and Experiment build Mind Genomics. Retrieved from http://home.etf.rs/~vm/os/vlsi/predavanja/IEEE.TransactionsMorocco.v2%20(2).pdf Moskowitz, H. (2012). ‘Mind genomics’: The experimental, inductive science of the ordinary, and its application to aspects of food and feeding. Physiology & Behavior , 107, 606-613. Moskowitz, H., Gofman, A., Beckley, J., & Ashman, H. (2006). Founding a new science: Mind genomics. Journal of Sensory Studies , 21 (3), 266-307. Moskowitz, H., Gofman, A., Itty, B., Katz, R., Manchaiah, M., & Ma, Z. (2001). Rapid, inexpensive, actionable concept generation and optimization – the use and promise of self authoring conjoint measurement for the foodservice industry. Foodservice Technology , 1, 149-168. Perez, Y. B. (2015, Feb 11). Survey: 8% of US Retailers Plan to Accept Bitcoin in the Next Year. Retrieved March 23, 2014, from Coindesk: http://www.coindesk.com/survey-8-us-retailers-plan-accept-bitcoin-next-year/ Prisco, G. (2015, March 19). Intel Joins the Blockchain Technology Race, Forms Special Research Group. Retrieved April 29, 2015, from Bitcoin Magazine: https://bitcoinmagazine.com/19646/intel-joins-blockchain-technology-race-forms-special-research-group/
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PwC. (2014, Feb 7). Digital Disruptor How Bitcoin is Driving Digital Innovation in Entertainment, Media and Communications (EMC). Retrieved Jan 12, 2015, from DIGITAL Disruptor. Rogers, M. E. (2003). Diffusion of innovations. New York: Free Press. SagePub. (n.d.). Chapter 1 - The Role of Marketing Research. Retrieved May 9, 2015, from SagePub: http://www.sagepub.com/upm-data/53627_ch1,2.pdf Satoshi, N. (2008). Bitcoin: A Peer-to-Peer Electronic Cash System. www.bitcoin.org . Swan, M. (2015). Blockchain: Blueprint for a New Economy. Sebastopol CA: O'Reilly Media. Szabo, N. (1997). The Idea of Smart Contracts. Retrieved April 29, 2015, from http://szabo.best.vwh.net/smart_contracts_idea.html The Law Library of Congress. (2014). Regulation of Bitcoin in Selected Jurisdictions. Global Legal Research Center. Report for Congress . TheBlogChain. (2015). Useful Bitcoin Resources. Retrieved April 29, 2015, from TheBlogChain: http://theblogchain.com/useful-bitcoin-resources/ Walston Chubb Award. (2010). Moskowitz to Receive 2010 Walston Chubb Award. American Scientist 98 , 4 (358). Wan, T., & Hoblitzell, M. (2014). Bitcoin Fact. Fiction. Future. Retrieved from Press, Deloitte University. Wei, D. (1999). bmoney. Retrieved from http://www.weidai.com/bmoney.txt Zhen, S. (2013, April 28). Compare the Cost of Bank Wire Transfer Fees. Retrieved May 1, 2015, from Bank Tracker: http://www.mybanktracker.com/news/2013/04/18/wire-transfer-fees-2013/
74
8. Appendices
Appendix A - Participates Profile Questions
What is your gender? • Female • Male
Choose your Age group? • 18-24 years • 25-34 years • 35-44 years • 45-54 years • 55-64 years • 65-74 years • 75 years or more
What is your marital status? • Single • Married • Other
What is your educational professional background? • STEM (Science, Technology, Engineering, and Mathematics) • Liberal Arts • Social/Behavioral Sciences • Business/Finance/Economics • Philosophy • Medical • Music • Other
Highest level of education completed? • High School • Associate degree • Undergraduate Degree • Graduate Degree • Professional degree • PhD
Which of the following best describes your interest group? • Business owners • Consumers • College students • Financial Industry • Government • Developers
Please specify your current region: • Africa • Asia • Europe • Middle East • North America • Oceania • South America
75
Appendix B - a graphical representation of a digital currency study subject’s profile information. Shown are gender, age, martial status, region, education level, interest group. The y axis is the number of total participants.
0!
5!
10!
15!
20!
25!
30!
Single! married! other!
B:#Marital##status#
Male!67%!
Female!33%!
A:#Gender#
0!
5!
10!
15!
20!
25!
18:24! 25:34!! 35:44!! 45:54!! 55:64!! 75!older!!
C:#Age#
0!5!10!15!20!25!30!35!
D:#Region#
76
0! 5! 10! 15! 20! 25!
Graduate!Degree!
Undergraduate!Degree!
High!School!
Professional!degree!
Associate!degree!
PhD!
F:#Education#Level#
0! 5! 10! 15! 20! 25! 30! 35!
Business!owners!
Consumers!
Financial!Industry!
Developers!
Other!
College!students!
Government!
E:#Interest#Groups#
0! 5! 10! 15! 20! 25! 30! 35!
STEM!
Business/Finance/Economics!
Other!
Liberal!Arts!
Social/Behavioral!Sciences!
Philosophy!
Medical!
Music!
G:#Educational/professional#background#
77
Appendix C – Experimental Study on Digital Currencies – Data Results
A1
A2
A3
A4
A5
B1
B2
B3
B4
B5
C1
C2
C3
C4
C5
D1
D2
D3
D4
D5
It is a decentralized network …
not controlled by an individual or a company
Your account balance can be printed
Once paym
ent is made you can’t “undo” it …
it is not reversible or disputable
It can be used globally
Instantly transfer money or m
ake a payment w
orldwide
Easy to use … via an application on a sm
art-device or a computer
A hum
an “teller” may convert your digital m
oney to (from) cash
Most local A
TMs w
orldwide accept this digital currency
More than 30%
of businesses worldw
ide now accept this digital m
oney
Use this digital currency to m
ake micro paym
ents … as sm
all as a penny
It is 50% cheaper for business ow
ners to accept this digital currency than a credit card
There is a negligible fee to convert this currency to any other digital currency or cash
Creating a digital “wallet” is as easy as dow
nloading an app … no need for a special device or know
ledge
People without a bank account m
ay use this digital currency
The number of coins produced are lim
ited … the value m
ay increase in the future
No identity theft …
it doesn’t expose your personal information
This digital currency has a very strong mathem
atical algorithm …
it has never been broken
This digital currency is insured … just like a credit card
Unlike cash …
this digital currency is resistant to counterfeiting
Proof of a transaction may be verified w
ithout involving a third party
Base Size
Constant
-4.1
-9.3
-18.4
-10.3
-3.3
-1.7
1
-3.4
-0.3
2.4
-1.5
-5.1
-5.6
-2.5
-6.8
11
14.1
5.9
7.7
10.5
54
70.4
Total Sample
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1
100
Q1_A
frica
-27.7
-27.1
-15.8
-14.2
-6
-3.1
0.1
-8.7
-4.8
-7.9
-16.8
-19.9
-10.7
-0.3
-22.9
4.8
20.1
7.2
-6.7
14.7
6
93.2
Q1_A
sia
4.5
5.8
-10
-14.2
13.5
-4.5
-20.1
-8.6
-8.3
0.2
15.1
9.3
-3.9
15.8
8.5
-19.2
-6.9
-20.1
-3.1
-20.9
8
83.7
Q1_Europe
78
26.3
-33.2
19.4
-60.2
-7.5
-100.6
-9.8
-20.2
-74.8
-44.2
-8.5
5.4
23.6
70.6
-7.6
28.8
-45.9
-23.9
21.2
41
1
53.3
Q1_M
iddle east
-2.6
-8.6
-22.3
-7.5
-5.7
1.7
9.3
-0.4
6.1
7.3
-2.3
-8
-6.9
-7.9
-8.2
17.6
19
11.5
11.3
17.1
35
64.8
Q1_N
orth Am
erica
-17.7
-22.6
-16.6
-21.8
-12.5
-16.3
-29.6
-18.4
-16.4
-15.9
2.3
0.1
6.5
-3.2
8.2
18.2
18.9
19.3
16.1
0.8
2
65.1
Q1_O
ceania
10.7
-5.1
-22.5
9
-19.9
40.5
-39.9
5.5
-27.4
-3.8
-17.5
43.7
-0.5
-44
-21.7
40.4
36.9
20.2
33.2
6.9
1
19.2
Q1_South A
merica
-0.6
-8.8
-19
-8.1
-5.2
-20.2
-4.5
-15.7
-13
-1.1
6.8
-2.4
10.1
12
-7.9
16.1
10.6
6.6
18.2
16.8
13
69
Q2_Fem
ale
-5.2
-9.4
-18.2
-11
-2.7
4.2
2.8
0.4
3.7
3.5
-4.2
-6
-10.5
-7.1
-6.5
9.4
15.2
5.7
4.4
8.6
41
70.8
Q2_M
ale
8.8
-5.5
-39.3
-39.1
-10.8
-22.1
-12.6
3.4
-24.9
-4.2
19.5
7.7
-8
3.6
15.1
20.4
-2.6
16.1
34.3
12.7
5
88
Q3_18-24 years
-13.4
-23
-28.5
-16
-10.4
-2.9
0.3
-5.6
-2.4
6.2
-5
-11.3
-4.1
-7.8
-13.8
13.8
17.1
5.2
7.7
10.1
23
77.7
Q3_25-34 years
7.9
15.7
4.2
13.1
20.6
1
2.6
-5.3
11.3
0.8
2.7
-1.3
-3.9
4.4
-1.1
-0.6
14.3
1.3
4
7.3
13
54.8
Q3_35-44 years
79
-4.2
-10.9
-11.3
-9
-9.2
1.8
1.6
-2.9
-0.8
-1
-3.1
1.5
-13.9
0.7
-9.3
9.5
13.3
2.1
-1.9
9.8
9
69.6
Q3_45-54 years
-7
-16.7
-31.2
-26.9
-24.1
19.7
21.6
7.3
7.3
1.8
-24
-17.5
3.6
-11.4
-9.8
32
24.6
27.3
11.7
29.9
3
78.1
Q3_55-64 years
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Q3_65-74 years
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0
Q3_75 years or m
ore
-9
-14
-28.3
-19.6
-6
-0.7
2
-4.6
-1.5
4.1
-6.4
-9.5
-13.4
-11
-13
16.3
22.1
11.2
12.8
16.9
32
73.4
Q4_STEM
(Science, Technology, Engineering, and Mathem
atics)
-5.8
-11.3
-17.7
-1
-9.3
3.1
2
-8.5
7.8
1.6
-3.2
-7.3
-1.7
7.8
-6.5
-4.9
-1.9
0.8
-0.4
7.7
5
66.1
Q4_Liberal A
rts
80
-1.7
-22.3
12.4
-21.8
-11
-45.5
-3.1
-29.8
-35.5
-24.4
2.5
9
17.7
16.5
-3.1
6.9
0.1
-13.1
-7.6
20.5
4
55.6
Q4_Social/Behavioral Sciences
-1.7
-7
-15.4
-2.4
-0.3
2.5
-6.6
8.8
4.1
-0.5
3.2
-1.2
0.1
-3.6
-6.7
6 10
2.9
-1
0.4
18
70.1
Q4_Business/Finance/Econom
ics 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 3 66.7
Q4_Philosophy
-24.3
-23.9
5.3
-8.8
-21.9
-22.2
0.9
-30.4
-23
-13.6
10.5
-1.9
19
5.8
-1.1
-4.5
8.9
-11.3
-26.4
-1.8
3 60.8
Q4_M
edical
5.6
1.8
-28
-15.4
1.6
-3.5
-15
9.1
-14.7
-7.7
18.7
-6.2
12.9
4 6.6
-18.9
-21.3
-11.8
-12.8
-25.3
2 65
Q4_M
usic
10.2
8.5
5.4
11
10.8
7.9
-0.5
4.3
10.7
3.2
5.4
11
4.9
7.7
11.7
9.5
4.7
1.7
6 -1.2
9 51.5
Q4_other
-5.4
-18.3
-28.7
-17.3
-7.4
-6.3
-2.9
-0.5
-3.5
4.5
-3.1
-7
-7.8
-8.5
-8.9
19.6
13.4
9.7
17.7
12
24
77.2
Q5_Single
-3.2
-3
-11.6
-5.2
0.6
2.7
7 -3.4
4.3
1.3
2 -1.1
-0.9
3.9
-3.1
8 17
4 -1.3
9.4
26
62.5
Q5_M
arried
-2.3
4.4
-0.4
-1.3
-4.1
-2.6
-13.9
-21.4
-11.3
-3.9
-15
-20.2
-22.7
-7.8
-18
-20.8
-0.8
-4.8
6.8
9.6
4 81
Q5_O
ther
81
-12.3
2.6
-11.7
-12.8
-1.9
-2.5
-16
-1.9
-10.7
-1.5
3.5
-19.3
-8.9
-2.5
-9
-20.9
-12.1
-17.1
-10.7
-20.2
7 105.3
Q6_H
igh School
-7.1
-10.4
0.3
-1.2
-8.8
-3.4
-25.1
-4.8
6.2
-3.4
8.3
16
6.5
13.2
7.6
13.5
7.4
0.6
4.2
-10.2
4 92.6
Q6_A
ssociate degree
-3.3
-24.1
-26.5
-18.9
-14.6
-9.1
16.5
-7.9
-1.6
4.8
-2.4
-6.5
-11.5
-7.7
-10
23.2
17.4
18.6
13.5
29.5
13
61.6
Q6_U
ndergraduate Degree
-7.2
-5.7
-24
-9.7
-2
0.7
4.8
-6.6
3.1
1.5
-4.7
-8.9
0.8
-1.4
-10.1
15.1
20.5
10.5
15.2
19.5
20
65.4
Q6_G
raduate Degree
3.3
-11
-8.8
-11.3
8.4
-4.2
-13.3
-2.9
-12.3
-1
-4.2
8.6
-17.9
-4.6
-6.9
12.8
23.9
3.5
7.8
-0.1
6 62.8
Q6_Professional degree 15.2
4 -8.5
11.4
11.8
17.6
9.5
24.7
16.1
16
2.1
1.4
-5.5
-3.1
9.6
1.4
9 -9
-12.4
-5.4
4 51.5
Q6_PhD
0.8
-6.8
-16.9
-9.9
-8.8
-0.4
3.9
2.2
1.1
5.7
5.6
-0.2
-3.1
1.8
-3.5
10
12.8
6.3
5.5
11.5
30
64.6
Q7_Business ow
ners
82
-5
-8.8
-14.8
-9.2
-3.5
-5.1
-3.2
-8.9
-4.3
-3.2
-6.2
-9.7
-3.8
-8.4
-14.7
9.1
16.8
6 7.8
16.1
27
76.1
Q7_Consum
ers
1.8
-15.4
-28.5
-6.9
-5.1
-8.5
10.1
6.5
-0.5
17
-0.9
-11.2
-12.2
-7
-20.6
28.9
13.7
13.1
14.6
21.1
12
55
Q7_College students
3.5
-4.3
-21.4
-14.3
-4.9
-7.3
7.5
-6.4
4 -1.3
-1
-2.9
-10.3
-4.9
0.1
15.5
15
15.6
8.2
16.1
14
65.3
Q7_Financial Industry
-13.7
-27.1
-46.4
-40.8
-21.1
9.7
-7.7
17.2
7.6
7.3
-10.6
-11.2
-12.8
-13.6
6.2
8.9
-6.1
17.7
16.7
10.1
6 67.2
Q7_G
overnment
-15.9
-23.1
-13.8
-24.4
-12.8
3.3
-11.3
-7.1
-4.6
-4.3
-14.3
-5.6
-13.3
-9.9
-7.6
8.3
10.7
7.9
6.3
5.1
13
86.2
Q7_D
evelopers
-13.2
-15.1
-19.7
-15.7
-4
15
0.1
7 11.3
7.2
-0.1
8.9
-0.4
9.7
10.2
15.7
11.9
6 12.4
9.2
13
50.1
Q7_O
ther:
-10.9
-16.8
-28.6
-18.1
-10.7
-0.5
3.3
1.4
0.2
4.3
-6.2
-10
-9.4
-6.2
-10.1
20.2
21.7
12.5
11.2
15.5
39
71.6
Segment 1 of 2
13.6
10.3
8.2
10
15.8
-4.7
-4.8
-15.9
-1.6
-2.8
10.5
7.6
4.4
7.1
1.7
-12.9
-5.7
-11.2
-1.3
-2.4
15
67.2
Segment 2 of 2
83
-14.6
-21.3
-30.9
-24.7
-14.5
-8.3
-5.2
-8
-6.7
-6
-5.8
-3.6
-5
-2.5
-7.1
26.8
26
19.4
17.5
21.3
29
67.9
Segment 1 of 3
13.6
10.3
8.2
10
15.8
-4.7
-4.8
-15.9
-1.6
-2.8
10.5
7.6
4.4
7.1
1.7
-12.9
-5.7
-11.2
-1.3
-2.4
15
67.2
Segment 2 of 3
-0.2
-3.7
-22.1
1 0.4
22.3
27.9
28.4
20.1
34.4
-7.4
-28.7
-22.2
-16.8
-18.9
1.2
9 -7.8
-6.9
-1.2
10
82.2
Segment 3 of 3