A BLOCKCHAIN-BASED TRUST MODEL FOR BITCOIN CRYPTOCURRENCY AND ITS POPULARITY IN GEORGIA


Bitcoin is a digital currency based on a decentralised system of trust dealing with Cryptography. Every time when you need to authorize a payment, you’re asked for verification. An idea of the verification is that once you’re authorized under your name, it is irreversible. The identification process through someone's signature is not limited to payments. This is an age-old problem. There are a number of trust models applied by various cryptographic schemes, respectively. This paper explores three of them: a) the web of trust employed by Pretty Good Privacy (PGP) users using their own set of trusted public keys, b) Kerberos, a secret key distribution scheme using a trusted third party, c) certificates, a way to allow trusted third parties making authentication of each other and each other's users. Each of the above mentioned trust models differs in complexity, scope, scalability and general applicability. Which model of trust to apply in certain circumstances of the bitcoin cryptocurrency are discussed in the given paper. It describes the major security issues and their techniques of building trust models by monitoring blockchain transactions behavior.