16

Blockchain Technology

areas are the issues that the literature is discussing at this point (Kumar & Smith,

2017; Griffith, 2017; Dierksmeier & Steel; 2018).

Cryptocurrencies were brought onto the agenda of humanity with Bitcoin,

which was introduced in 2008 with a nine-page article titled “Bitcoin: Peer to Peer

Electronic Cash System” published under the pseudonym Satoshi Nakamoto. In fact,

the effort of the digital world to produce a digital form of money is not specific to

Bitcoin. The article published by mathematician David Chaum in 1983 is one of

the pioneering studies in this field (Chaum, 1983). David Chaum later founded the

electronic money firm called “DigiCash” in 1990 based on this research. With the

software offered by DigiCash, users were able to keep their money on their comput­

ers in a digital format called “eCash”, signed by the bank cryptographically, and use

this digital currency in any contracted institution in a confidential and secure manner

without sharing information. Although this initiative went bankrupt in 1998 due to

the insufficient number of users, the concepts and approaches it brought provided

inspiration for future solutions.

Economic crises over time have shaken trust in the traditional monetary system,

so interest in digital money is increasing day by day. The emergence of the digital

currency Bitcoin in 2009, just after the 2008 crisis, is not considered a coincidence.

According to research, the loss of the purchasing power of the US dollar over the

years, the emerging new crises, and the search for new solutions have paved the

way for the emergence of cryptocurrencies and their rapid growth in popularity.

Bitcoin started mining and transfers by producing the first block (Genesis Block)

on 3 January 2009. Bitcoin, which emerged in the environment of uncertainty in

economic and financial systems and enables safe person-to-person payment without

an intermediary institution, has rapidly grown in awareness and use with its innova­

tive structure, simplicity and transparency. With the effect of the rapidly growing

reputation of the pioneering cryptocurrency Bitcoin, many new cryptocurrencies

have rapidly emerged with various changes to be used in alternative or more specific

transactions. These cryptocurrencies, which emerged after Bitcoin, were called “alt­

coin”, meaning alternative coin. Thousands of altcoins are currently in circulation

in the market, and new altcoins are released every day (Nakamoto, 2008; Kumar &

Smith, 2017; Griffith, 2017; Dierksmeier & Steel, 2018).

The use of cryptocurrencies is increasing day by day, and it has begun to attract

the attention of all direct and indirect actors. The issue is being followed and inves­

tigated by all imaginable micro and macro actors, such as governments, regulatory

agencies, central banks, financial institutions, academics and households. The first

condition for a healthy discussion of important topics, such as making correct evalu­

ations, taking necessary steps and taking necessary measures, is the correct and

clear definition of cryptocurrencies. No clear, agreed definition has yet been estab­

lished on this issue. In the study conducted by the Committee on Payments and

Market Infrastructures, cryptocurrencies are defined as money that does not belong

to any person or institution, is available electronically and can be transferred from

person to person. The European Central Bank defines it as electronic money con­

trolled by its own developers and used and accepted among members of a particular

virtual community. The European Banking Authority, on the other hand, considers it