Designing Future Sustainable Cryptocurrencies: Principles and Expectations

This book chapter introduces the principles of designing cryptocurrencies and outlines the key characteristics expected from future currencies. The chapter provides an overview of the foundational components of cryptocurrency networks and emphasizes scalability, security, and sustainability as pivotal characteristics for the next-generation currencies. It begins by introducing the fundamental elements involved in designing cryptocurrency networks, which include hash functions, data structure, and digital signatures. It further explains the primary processes necessary for achieving decentralization, and the procedure of mining and verifying transactions. In addition, the chapter describes the environmental sustainability aspects of crypto networks, with a specific focus on three key areas: (1) energy consumption, (2) electronic waste generation, and (3) opportunities for sustainable practices through decentralized transactions. Finally, the chapter highlights the potential for sustainable practices and the social benefits that can be derived from future cryptocurrency technology.