CryptoLogic: Insights into Cryptocurrency and the Digital Asset Ecosystem
- Monday, March 19, 2018
Author: Evan Fox, J.D., LL.M.
Hi there and welcome to CryptoLogic, Berdon’s new blog-ish focused on tax, and other, issues related to the digital/crypto asset space! As these writings progress over the upcoming weeks and months, I hope to do a deep dive into some seriously complex and unsettled tax issues, as well as the technical aspects of digital assets. However, as this is the “kick off special,” a brief introduction into the space would probably be helpful for the uninitiated.
In 2009, the Bitcoin blockchain was launched and was intended to serve as a peer-to-peer digital payment system. Its creator, the still unidentified Satoshi Nakamoto, came up with a computer linked system whereby parties around the world could conduct and record transactions without an intermediary. In the Bitcoin ecosystem, the Bitcoin is the native crypto asset on the Bitcoin blockchain. All blockchains use their own native crypto assets or require use of major ones, such as Bitcoin or Ether (which is the native asset of the Ethereum blockchain). These crypto assets are necessary to the functionality of a blockchain system; they are the incentive mechanism for computers in the network to validate and confirm transactions.