SSRN ID2832751 Code2588027

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<title>Blockchain Technology: What is it Good for? by Saifedean Ammous ::
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<h1>Blockchain Technology: What is it Good for?</h1>
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<p class="note note-list">
<span>5 Pages</span>
<span>Posted: 1 Sep 2016</span>
</p>
<div class="authors authors-full-width">
<a class='lead-author-profile-link'
href=https://papers.ssrn.com/sol3/cf_dev/AbsByAuth.cfm?per_id=2588027
target='_blank' title='View other papers by this author'><span>See all articles by
Saifedean Ammous</span><i class='icon icon-gizmo-navigate-right' aria-
hidden='true'></i></a><h2><A
HREF=https://papers.ssrn.com/sol3/cf_dev/AbsByAuth.cfm?per_id=2588027
target='_blank' title='View other papers by this author'>Saifedean
Ammous</a></h2><p>Lebanese American University</p>
</div>
<p>Date Written: August 8, 2016</p>
<div class="abstract-text">
<h3>Abstract</h3>
<p>This paper explains the functioning of “blockchain technology” and
critically assesses its potential role in improving services in banking, contracts,
and database systems. Comparing blockchain to the current best practice technology
in these fields reveals several barriers to successful commercial implementation:
Blockchain technology involves costly redundancies and irreversibility, faces
serious scaling problems and significant barriers to complying with regulations,
and is a security liability unless secured with its own freely trading currency. A
survey of the state of the blockchain industry shows that in eight years since
blockchain technology was invented, it has had no commercial applications other
than digital cash. The paper concludes that a blockchain is a peculiar engineering
design whose only advantage is in removing third party intermediation to allow for
the creation of digital cash, and is unlikely to offer economic advantages for any
commercial problem other than the one it was specifically engineered to solve.
<P></p>
</div>
<center>
</center>
<p><strong>Keywords:</strong> Bitcoin, blockchain, payments</p>
<p><strong>JEL Classification:</strong> F30, O31</p>

<p>
<strong class="hidden-xs hidden-sm">Suggested Citation:</strong>
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citation">
Ammous, Saifedean, Blockchain Technology: What is it Good for?

(August 8, 2016). Available at SSRN: <a href="https://ssrn.com/abstract=2832751"
target="_blank">https://ssrn.com/abstract=2832751</a> or <a
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<h1>Blockchain Technology: What is it Good for?</h1>

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<span>Posted: 1 Sep 2016</span>

<p>Date Written: August 8, 2016</p>

<p><strong>Keywords:</strong> Bitcoin, blockchain, payments</p>

<p><strong>JEL Classification:</strong> F30, O31</p>

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Ammous, Saifedean, Blockchain Technology: What is it Good for?

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