Digital Cryptoeconomics Powered by Digital Cryptocurrency
In this paper we present some intuition about the deep mathematical relationship that exists between public and private keys using elliptic curve cryptography. Also presented are some examples of the math behind digital signatures and its verification using elliptic curve digital signature algorithm (ECDSA), and how it’s applied to creation and mining of Bitcoin digital cryptocurrency. A simple mathematical procedure necessary to create the one-way “trap door” function required to preserve the information asymmetry, which defines ownership of a bitcoin is also given. We’ll also show how quantum computing could be a threat to Bitcoin security and the best practices to preserve its security.