Lee, Byunguk
A icle
Technology o phenomenon: Why blockchain is no a
echnology
Adminis a i e Sciences
P o ided in Coope a ion wi h:
MDPI – Mul idisciplina y Digi al Publishing Ins i u e, Basel
Sugges ed Ci a ion: Lee, Byunguk (2025) : Technology o phenomenon: Why blockchain is no a
echnology, Adminis a i e Sciences, ISSN 2076-3387, MDPI, Basel, Vol. 15, Iss. 2, pp. 1-17,
h ps://doi.o g/10.3390/admsci15020057
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Ci a ion: Lee, B. (2025). Technology o
Phenomenon: Why Blockchain Is No
a Technology. Adminis a i e Sciences,
15(2), 57. h ps://doi.o g/10.3390/
admsci15020057
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A icle
Technology o Phenomenon: Why Blockchain Is
No a Technology
Byunguk Lee
Seoul Business School, aSSIST Uni e si y, Seoul 03767, Republic o Ko ea; [email p o ec ed]
Abs ac : Blockchain was in oduced in 2008, ye i emains poo ly de ined o e a decade
la e . Despi e he lack o a uni e sally accep ed de ini ion, i s u ili y con inues o be widely
ad oca ed. Howe e , a unc ion o ea u e can only be classi ied as a echnology i i
add esses a speci ic human discom o . A me e combina ion o ambiguous unc ionali ies
wi hou a clea pu pose canno be conside ed a echnology. This pape in es iga es whe he
blockchain is an app op ia e e m o a speci ic echnology o me ely an ambiguous amal-
gama ion o ea u es. I u he a gues ha echnologies wi h analogous unc ionali ies
should be classi ied as dis inc echnologies i hei applica ions di e . Th ough a li e a u e
e iew o he c i e ia o de ining a echnology, his pape inds ha blockchain does no
mee hese equi emen s. Addi ionally, exis ing de ini ions o blockchain o en ail o mee
p ope c i e ia o inaccu a ely desc ibe i s unc ionali y. In he academic con ex , he e m
“blockchain echnology” is a clea misnome ha should be discou aged. The indings can
guide decision making o s akeholde s, including companies, egula o s, and legisla o s
in ol ed in he i ual asse ma ke .
Keywo ds: echnology; de ini ion; blockchain; human discom o ; unc ion; ea u e
1. In oduc ion
Technology is a se o unc ions o ea u es, and he e a e coun less ways o combine
hese unc ions and ea u es. Consequen ly, he me e ac o combining unc ions and
ea u es in a no el manne does no necessa ily esul in a new echnology. A combina ion
o hese elemen s quali ies as echnology when i exhibi s ce ain in insic p ope ies. Mo e-
o e , echnology mus be bene icial o humani y; he e o e, icks employed in gambling o
me hods o o u e ha a e no conduci e o he well-being o humankind a e no consid-
e ed echnology (Mum o d,1950). Meanwhile, o de ine a echnology, he e a e speci ic
c i e ia ha he de ining s a emen mus ul ill. Fo ins ance, i is necessa y o p o ide a
p ecise and clea desc ip ion o i s scope and o indica e wi h equal cla i y wha i does no
encompass (Hempel,1965).
Many people men ion he e m blockchain, ye i is su p ising ha no es ablished
de ini ion exis s. Mo eo e , li le e o has been made o p ope ly de ine blockchain om
a echnological pe spec i e. This aises he ques ion o whe he his gap is due o a lack
o esea ch o i blockchain i sel does no quali y as a echnology, making a de ini i e
de ini ion inhe en ly una ainable.
The aim o his pape is o de e mine whe he he e m blockchain mee s he necessa y
c i e ia o echnology. In o de o achie e his, he Bi coin whi e pape is subjec ed o
a comp ehensi e analysis in o de o iden i y he speci ic unc ions, ea u es and he
o iginal a ionale behind he de elopmen o blockchain. Subsequen ly, hese indings
a e e alua ed in compa ison o he undamen al equi emen s ha a echnology mus
Adm. Sci. 2025,15, 57 h ps://doi.o g/10.3390/admsci15020057
Adm. Sci. 2025,15, 57 2 o 17
ul ill. To be p ecise, h ee dis inc analyses a e conduc ed. Fi s ly, an analysis is conduc ed
o de e mine whe he blockchain is me ely a combina ion o ea u es and unc ions o
quali ies as a s andalone echnology based on equisi e c i e ia. Secondly, he ma ke ’s
widely accep ed blockchain de ini ions a e examined o asce ain whe he hey mee he
necessa y c i e ia o a echnical de ini ion. Finally, he ma ke ’s desc ip ions o blockchain
a e checked o de e mine whe he hey accu a ely desc ibe he ue unc ions and ea u es
o blockchain. In pa icula , his s udy in es iga es whe he he e m “dis ibu ed ledge ”
as a de ini ion o blockchain and “secu i y ool” as i s cha ac e iza ion accu a ely ep esen
he unde lying echnology.
Technology e ol es o e ime, and i s componen s na u ally change and adap . O e
he pas decades, blockchain has unde gone signi ican e olu ion, gi ing ise o nume ous
a ian s. While he componen s o a echnology may e ol e, i s co e objec i e mus emain
consis en . A shi in his objec i e signi ies a undamen al change in he echnology’s pu -
pose, ans o ming i in o a di e en echnology al oge he . Bi coin is buil on blockchain,
and i would be illogical o con inue using he e m “blockchain” o desc ibe sys ems
ha ha e signi ican ly al e ed o e en comple ely e e sed i s undamen al unc ions
and a ibu es.
Cu en ly, nume ous en i ies in he ma ke use he e m “blockchain”, ye some
exhibi cha ac e is ics en i ely opposi e o hose o Bi coin. In o he wo ds, en i ies wi h
undamen ally di e en a ibu es a e labeled unde he same e m. As a esul , claiming
ha a sys em is buil on blockchain p o ides li le meaning ul insigh in o he speci ic
echnology employed. Blockchain has hus become a ague e m, lacking cla i y in bo h
unc ionali y and pu pose. The deba e o e whe he blockchain and c yp ocu encies a e
insepa able exempli ies he p e ailing con usion. Some a gue hey a e inhe en ly linked,
while o he s dispu e his claim. In eali y, he answe is s aigh o wa d: in some cases,
hey a e insepa able, while in o he s, hey a e no . Howe e , hese opposing iews e e o
en i ely di e en a chi ec u e while using he same e minology.
Gi en he mul i ude o sys ems cu en ly labeled as blockchain, a key objec i e o his
pape is o assess whe he “blockchain” is an app op ia e designa ion o a echnology.
The p ecise de ini ion o blockchain is cu en ly lacking, and he ambigui y esul ing om
his de iciency has been discussed in a ious schola ly wo ks, which ha e highligh ed
nume ous issues ha a ise as a esul (Ghi o e al.,2021;Ho man e al.,2020;Sul an e al.,
2018;Taba abaei e al.,2023). The concep o blockchain was no clea ly de ined om i s
incep ion. I is no able ha he e m “blockchain” is absen om he o iginal 2008 whi e
pape o Bi coin in which i was i s in oduced. Ins ead, he e ms “block” and “chain”,
which a e common in he ield o compu e science, a e men ioned sepa a ely on se e al
occasions (Nakamo o,2008).
In compu e science, he e m “block” is used o desc ibe a uni o da a ha is p ocessed
simul aneously (Black,1998;Ja ada e al.,2022). The e m “chain”, on he o he hand, is
used o e e o he a angemen ha es ablishes he sequence o p ocessed da a, ypically
indica ing a empo al ela ionship be ween he da a elemen s (Co men e al.,2022;G aham,
1994). Consequen ly, i we ake he e m “blockchain” and in e p e i based on he meanings
o he indi idual wo ds in he con ex o compu e science, i could be desc ibed as “da a
p ocessed simul aneously, a anged in a sequence ha speci ies hei empo al ela ionship”.
“The p ocessed da a ha ing a empo al ela ionship” p ecisely ma ches he cha ac e is ics
o a ledge . A ledge is a eco d o ansac ions, and he mos c i ical aspec o hese eco ds
is he imes amping o e en s ha occu a speci ic poin s in ime. This alignmen is also
why blockchain is o en e e ed o as a Times amp Machine (Kons an inidis e al.,2018;
Kuma esh,2021).
Adm. Sci. 2025,15, 57 3 o 17
The e m “blockchain” did no o igina e om an academic o echnical de ini ion;
a he , i was c ea ed by combining he gene al e ms “block” and “chain” om compu e
science, which appea ed in he Bi coin whi e pape , and was ini ially used o desc ibe he
unc ions and ea u es o Bi coin. Consequen ly, he e m “blockchain” is an inhe en ly
ambiguous concep , ende ing i challenging o iden i y a speci ic echnology a he ou se .
The indings o his s udy indica e ha blockchain ails o mee he essen ial c i e ia
o a echnology. Consequen ly, i canno be classi ied as a echnology in i s own igh , bu
a he as a me e combina ion o unc ions and ea u es. Mo eo e , a conside able numbe
o he e ms cu en ly in use o explain o de ine blockchain, including dis ibu ed ledge s,
ha e been ound o be inadequa e in accu a ely desc ibing blockchain o ailing o mee he
c i e ia o a p ope de ini ion. Fu he mo e, his pape demons a es ha he nume ous
a ibu es o blockchain ha a e equen ly ci ed, including i s pu po ed secu i y and
da abase capabili ies, a e based on e oneous assump ions and a e, in ac , no closely
ela ed o he ac ual unc ionali ies o blockchain.
This s udy enhances he unde s anding o blockchain unc ionali y and e minology,
bene i ing bo h po en ial adop e s in echnical a eas and esea che s examining i s ole
in he i ual asse ma ke . By add essing ambigui ies and p oposing c i e ia o p ecise
de ini ions, i mi iga es he isks associa ed wi h misin o ma ion-d i en ial and e o ,
acili a es mo e in o med decision making, and p omo es he b oade adop ion o accu a e
e minology. Ul ima ely, i con ibu es o a mo e s uc u ed and eliable ounda ion o
blockchain- ela ed esea ch and p ac ical applica ions.
In his pape , he e ms “Bi coin” and “blockchain” a e used in e changeably. The
e m “Bi coin” is p ima ily used when e e encing blockchain in acco dance wi h he
in e p e a ion o he concep se o h in he whi e pape . In con as , he e m “blockchain”
is used o e e o a b oade concep ha encompasses all po en ial u u e o ms, ex ending
beyond he scope o he whi e pape .
2. Theo e ical F amewo k
Concep ual analysis is a p ocess ha in ol es he syn hesis o exis ing li e a u e in
o de o e ine and sys ema ize de ini ions. These de ini ions a e hen applied o speci ic
cases o objec s o s udy. This app oach in eg a es e minologies used in p io esea ch in
o de o de i e a common de ini ion and examines whe he a gi en subjec aligns wi h he
es ablished concep ual amewo k. Wilson’s Concep Analysis (Wilson,1970) examines
a ious con ex s in which a e m is used o ex ac i s co e meaning, while Sa o i’s Concep
Fo ma ion (Sa o i,1970) de ines a concep and hen conduc s a compa a i e analysis o
de e mine whe he a gi en subjec i s wi hin ha de ini ion.
This pape employs a concep ual analysis amewo k o compa a i e analysis wi h
he objec i e o de e mining whe he blockchain can be classi ied as a echnology. In
o de o achie e his, we use a me hodology which in ol es he ex ac ion o he common
elemen s ha a echnology should possess. This is achie ed h ough a e iew o he exis ing
li e a u e, which is hen compa ed o blockchain o de e mine whe he blockchain can be
conside ed a echnology. Fo he a ainmen o his goal, an examina ion o he li e a u e
was conduc ed on he essen ial elemen s o echnology o e he pas se e al decades, wi h
he objec i e o ex ac ing he common elemen s. Simila ly, he p e equisi es o a echnical
de ini ion a e examined h ough a sys ema ic e iew o he li e a u e and hen con as ed
wi h he di e se de ini ions and desc ip ions o blockchain ha a e cu en ly a ailable in
he ma ke place.
Figu e 1illus a es he heo e ical amewo k o his pape . Ini ially, a li e a u e
e iew was conduc ed o iden i y he condi ions ha a echnology mus ul ill and he
equi emen s o a alid echnical de ini ion. Fi s , h ough pa h
1
, we examine whe he
Adm. Sci. 2025,15, 57 4 o 17
he unc ions and ea u es o Bi coin mee he equi emen s o a echnology. Simila ly,
h ough pa h
2
, we assess whe he he de ini ions o blockchain a ailable in he ma ke
mee he equi emen s o a alid echnical de ini ion. Likewise, h ough pa h
3
, we
compa e whe he he desc ip ions o blockchain’s unc ions in he ma ke a e accu a e and
ee om e o s o alsehoods.
Figu e 1. Concep ual amewo k wi h compa a i e analysis.
2.1. Requi emen s o Technology
The de ini ion o echnology i sel emains a challenging ask, due o he complexi y
o he concep . This complexi y has led o mul iple dispu es o e i s de ini ion, e en
a he Sup eme Cou le el, pa icula ly in cases in ol ing pa en li iga ion and o he
legal ma e s (Mo is,2014). Howe e , despi e he di e se pe spec i es and de ini ions
o echnology, he e exis common and essen ial componen s ha all de ini ions sha e.
These co e elemen s unc ion as c i e ia o de e mining whe he a speci ic se o unc ions
quali ies as echnology.
Lewis Mum o d was one o he ea ly esea che s who s udied he condi ions ha
echnology mus mee . He a gued ha echnology has e ol ed as a means o sa is y human
ma e ial and psychological needs, and ha i should ad ance in a way ha alle ia es
human discom o and imp o es li e. I i ails o do so, hen echnology has los i s
o iginal pu pose (Mum o d,1950). Simila ly, Gilbe Simondon belie ed ha he pu pose
o echnology is o ul ill human needs and elimina e discom o . He a gued ha echnology
mus con ibu e o imp o ing human li e and c ea ing be e li ing condi ions (Simondon,
2011). Donald A. No man a gued ha designs which a e easy o use s o engage wi h
and ha alle ia e e e yday incon eniences a e p ime examples o good echnology. He
main ained ha i echnology ails o mee use s’ needs and expec a ions, i canno be
conside ed success ul. No man emphasized ha he p ac icali y o echnology, pa icula ly
in e ms o usabili y, is c ucial o add essing human discom o (No man,2013). I an
Illich a gued ha echnology should enhance human au onomy and alle ia e discom o .
He c i icized echnology ha complica es o dis up s human li e, sugges ing ha such
echnology is heading in he w ong di ec ion. Illich p oposed ha echnology should se e
as a ool o make li e mo e con enien and enjoyable o people (Illich,1973).
These a ious wo ks sha e a common concep : echnology mus con ibu e o alle ia ing
human discom o and imp o ing quali y o li e. I echnology ails o imp o e human li e
o e en causes incon enience, i de ia es om i s essen ial pu pose. This c i ical pe spec i e
emphasizes ha ue echnology should enhance he quali y o li e a he han complica e i .
Fo blockchain o be conside ed wi hin he ealm o echnology, i mus con ibu e o
he alle ia ion o some o m o discom o o incon enience. In o he wo ds, he e mus be
Adm. Sci. 2025,15, 57 5 o 17
a speci ic incon enience ha blockchain esol es—some hing ha would make li e mo e
di icul o uncom o able in i s absence.
As illus a ed in Table 1, he undamen al p e equisi e o a echnology is he esolu ion
o human discom o and he con ibu ion o human wel a e. Consequen ly, o an en i y o
be ca ego ized as a echnology and no me ely a meaningless assemblage o cha ac e is ics,
he e mus be a human discom o ha i add esses. In he absence o such discom o o i
i is unable o alle ia e he exis ing discom o , i should no be classi ied as a echnology.
Table 1. Requi emen o a Technology.
Li e a u e Key Poin
Lewis Mum o d
(Mum o d,1950)
Alle ia es human discom o and
imp o es li e.
I an Illich
(Illich,1973)
Enhances human au onomy and
alle ia es discom o .
Gilbe Simondon
(Simondon,2011)
Ful ills human needs and
elimina es discom o .
Don No man
(No man,2013)
C ucial o add essing human discom o .
In he ecen li e a u e on echnology, esea ch does no ejec o deny he cha ac e is-
ics o adi ional echnology de ini ions bu a he seeks o inhe i hem while a emp ing
o expand hei de ini ion. Coccia M expanded he concep o echnology beyond humans
o include animals, de ining i as a complex sys em enabling o ganisms o adap , achie e
goals, and sol e p oblems. Despi e his b oade scope, echnology emains undamen ally
p ac ical and economically d i en, emphasizing i s sys ema ic and pu pose ul na u e (Coc-
cia,2019). Adam Thie e analyzed 27 exis ing de ini ions o echnology, no ing he lack o
a singula de ini ion. Some de ini ions ocus solely on i s o m, while o he s inco po a e
i s pu pose. He highligh s ha echnological de ini ions e ol e based on his o ical and
socie al con ex s, ye p ac icali y and he ul illmen o human pu poses emain cons an
ac oss e as (Adam Thie e ,2024).
This s udy de ines he essen ial equisi es o echnology as he “alle ia ion o human
discom o and he imp o emen o li e” as a uni e sal c i e ion, as i is a common ac o
in echnology de ini ions h oughou his o y and encompasses pu pose ulness, economic
iabili y, and e iciency. Alle ia ing human discom o equi es iden i ying a speci ic dis-
com o , elimina ing i h ough echnology and he eby imp o ing quali y o li e. Fo
blockchain o quali y as a echnology, i mus (1) clea ly de ine he discom o i add esses,
(2) p o e ha i s emo al enhances li e quali y (3) and demons a e ha exis ing echnolo-
gies a e ei he incapable o highly ine icien in esol ing i .
2.2. Requi emen s o Technical De ini ion
In science and echnology, he e a e necessa y equi emen s ha a de ini ion mus
ul ill, and he li e a u e commonly discusses se e al majo a ibu es. B idgman, P.W.
emphasized cla i y and p ecision, speci ici y and consis ency a guing ha de ini ions
mus be clea and ee om ambigui y. In o he wo ds, a de ini ion should be desc ibed
accu a ely so ha i can be uni e sally unde s ood by i s in ended audience and should
clea ly delinea e he concep being de ined, di e en ia ing i om o he s (B idgman,1927).
Ca nap, R. discusses he impo ance o consis ency, s a ing ha a de ini ion mus be
consis en wi h exis ing science o laws. In o he wo ds, a de ini ion should no con adic
p e ious esea ch and should seamlessly in eg a e in o he es ablished amewo k o
heo ies (Ca nap,1988). Hempel, C.G. add essed he impo ance o scope and bounda ies,
Adm. Sci. 2025,15, 57 6 o 17
emphasizing ha a good de ini ion should clea ly explain he ange ha he concep
encompasses and delinea e i s bounda ies. This means i should speci ically indica e wha
is included in he de ini ion and, impo an ly, wha is no (Hempel,1965).
As can be seen om Table 2, a echnical de ini ion mus p o ide a clea and p ecise
delinea ion o i s scope and u ili y, wi h accu acy ha dis inc ly di e en ia es i om o he
en i ies, and mus align wi h exis ing esea ch and heo ies. I is o pa amoun impo ance
ha a clea and de ailed explana ion o wha is no included is p o ided. The e o e, any
de ini ion whose scope is no clea ly de ined o ha con adic s he amewo k o exis ing
heo ies canno be conside ed a alid de ini ion.
Table 2. Requi emen o a echnical de ini ion.
Li e a u e Keywo d
B idgman, P.W
(B idgman,1927)
Accu acy—unde s ood by i s in ended
and clea ly delinea e he concep
being de ined.
Hempel, C.G
(Hempel,1965)
Indica e wha is included and,
impo an ly, wha is no .
Ca nap, R.
(Ca nap,1988)
Should no con adic p e ious esea ch
and should seamlessly in eg a e in o he
es ablished amewo k o heo ies.
Ha ing es ablished he undamen al equi emen s ha a echnology mus sa is y and
he c i e ia o a alid echnical de ini ion based on he exis ing li e a u e, we will now
examine whe he blockchain can be classi ied as a echnology, and whe he he a ious
de ini ions and desc ip ions o blockchain cu en ly a ailable on he ma ke align wi h he
equi emen s o a echnical de ini ion.
3. Analysis o Bi coin Fea u es and Func ions
The a ionale behind he c ea ion o Bi coin and i s in ended unc ions a e clea ly
ou lined in he Bi coin whi e pape . I iden i ies sho comings in adi ional ansac ional
p ocesses ha ely on us in hi d pa ies, no ing ha “comple ely non- e e sible ansac-
ions a e no eally possible, since inancial ins i u ions canno a oid media ing dispu es”.
The pape a gues ha he in ol emen o a us ed hi d pa y necessi a es media ion,
which is inhe en ly p oblema ic. To add ess his, i p oposes a solu ion: eco ding ansac-
ions in a way ha makes hem compu a ionally in easible o e e se, he eby elimina ing
he need o media ion. This is explici ly s a ed in bo h he in oduc ion and he conclusion.
(Nakamo o,2008).
The majo i y o he Bi coin whi e pape elucida es he me hodologies used o make
ansac ions compu a ionally imp ac ical o e e se. No ably, Sec ion 10 o he whi e pape
highligh s ano he unc ion o Bi coin: p i acy. Bi coin ensu es p i acy by concealing
he iden i ies o ansac ion pa icipan s h ough add esses gene a ed om hidden keys,
in con as o adi ional ansac ions. The pape does no explici ly desc ibe any o he
pu poses o unc ions, excep o he emo al o a us ed hi d pa y, which can lead o
educed ansac ion ees. Howe e , since his is me ely a side e ec a he han a p ima y
pu pose, i should no be conside ed. Mo eo e , his a ionale is alid only i he a gumen
ha media ion i sel is he co e p oblem is jus i ied.
In ligh o he abo e, he unc ions o Bi coin, as ou lined in he whi e pape , can
be dis illed in o wo undamen al p inciples: i s , he implemen a ion o a ledge ha is
inhe en ly esis an o compu a ional e e sal o elimina e he need o media ion; and
second, he acili a ion o ansac ions h ough add esses gene a ed om hidden keys.
Adm. Sci. 2025,15, 57 7 o 17
This s udy examines he ela ionship be ween hese wo aspec s and human discom o ,
assessing whe he blockchain echnology e ec i ely add esses hese issues and con ibu es
o human well-being. This analysis will de e mine whe he blockchain can be conside ed a
echnology in i s own igh .
The asse ion ha a echnology elimina es human discom o implies ha , in i s
absence, such discom o would esu ace. The e o e, examining he human discom o
ha blockchain add esses is essen ially an analysis o he po en ial discom o ha would
a ise wi hou i .
3.1. Ledge Tha Is Inhe en ly Resis an o Re e sal Th ough Compu a ional Means
The whi e pape a gues ha media ion i sel is undamen ally lawed, ul ima ely aming
i as a o m o human discom o ha mus be elimina ed. Consequen ly, i p oposes ha
media ion should be made impossible. To add ess his, he concep o a P2P ledge is in o-
duced, designed o be compu a ionally in easible o e e se. Bi coin’s i s eal implemen a ion
in 2009 employed p oo -o -wo k o make al e ing eco ds p ohibi i ely expensi e in e ms
o ene gy consump ion. The concep o p oo -o -wo k was o iginally p oposed in 1992 by
Cyn hia Dwo k and colleagues as a me hod o comba he sp ead o unsolici ed elec onic
messages, o spam, by in en ionally consuming subs an ial compu a ional esou ces o hinde
spamme s’ abili y o dis ibu e messages (Dwo k & Nao ,1992).
We will now analyze whe he media ion quali ies as a o m o human discom o o be
add essed and he ex en o which blockchain has con ibu ed o esol ing his challenge.
In con as , media ion ep esen s a undamen al aspec o inancial ope a ions (Ila ia
& Paech,2018). T ansac ion e o s can a ise om a ious ac o s, including phishing scams
and simple human mis akes. When such e o s occu , inancial ins i u ions a e equi ed
o in e ene h ough media ion, which is conduc ed in s ic compliance wi h es ablished
laws and egula o y p ocedu es o ensu e p ope go e nance. While ins ances o imp ope
media ion, such as aud, may occu , he a gumen ha media ion i sel is undamen ally
lawed is no alid. Conside ing he human discom o caused by losses ha canno be
emedied due o he absence o media ion, i becomes clea ha media ion unc ions as an
in e media y echnology designed o alle ia e human discom o .
The Bi coin sys em a oids media ion no h ough es ablished ules o go e nance, bu
solely by obs uc ing eco d changes h ough p ohibi i ely expensi e compu a ional me hods.
As a esul , media ion is almos impossible in cases o e oneous ans e s, phishing, o loss
o enc yp ion keys. Con e sely, hose wi h supe io compu ing powe can al e eco ds a
hei disc e ion. This is accomplished h ough he decen alized consensus p o ocol, which
equi es longe chains o o e ide sho e ones. This p ocess is no subjec o any egula ion.
In conclusion, he objec i e o Bi coin, which is o elimina e he need o in e media ies,
does no alle ia e human discom o bu a he inc eases i . Fu he mo e, i has also ailed
o achie e his goal, e en om a echnical poin o iew. Indeed, in he absence o any
o m o go e nance, he me e p esence o supe io compu a ional esou ces enables he
en o cemen o media ion, e en in ins ances o illici ac i i ies. This is commonly e e ed
o as a 51% a ack (Apon e-No oa e al.,2021).
3.2. P i acy Th ough Hidden Key
The second unc ion ex ac ed o Bi coin analysis is i s p i acy ea u e, which conceals
he ansac ion pa ies by employing a hidden enc yp ion key and conduc ing ansac ions
ia an add ess gene a ed by he use .
The abili y o iden i y ansac ion de ails in mode n inance is no a consequence o a
lack o echnology o p e en i ; a he , i is he esul o he Know-You -Cus ome (KYC)
sys em, which has been designed wi h he speci ic pu pose o p e en ing money launde ing
Adm. Sci. 2025,15, 57 8 o 17
and o he illici ac i i ies. Consequen ly, any echnological endea o o ci cum en KYC
does no nega e he inhe en discom o o he p ocess, bu a he cons i u es a c iminal ac
in iola ion o he law.
I he issue ela ed o p i acy is me ely a ma e o human discom o , he e would be
no necessi y o he de elopmen o a dis inc echnological solu ion o add ess i . The issue
could be esol ed by simply no implemen ing KYC. In o he wo ds, his is no a ma e o
echnological de iciency, bu a he a p oblem c ea ed by egula ions and laws. I KYC we e
o be igno ed, i would be possible o all ansac ions o be concealed and p i acy o be
gua an eed.
In conclusion, he p i acy ea u e implemen ed by Bi coin can be conside ed a me e
wo ka ound ha allows use s o c ea e hei own add esses in o de o ci cum en KYC
p ocedu es. I is e iden ha his ea u e has no bea ing on he undamen al issue o
esol ing human discom o .
3.3. Sma Con ac and O he Va ia ions o Bi coin
Depa ing om Bi coin’s o iginal objec i e, some a gue ha i s a ious unc ions and
cha ac e is ics can be ede ined as aluable echnologies. Fo example, he compu a ionally
expensi e me hod used o elimina e media ion is p oposed as a po en ial secu i y ea u e o
p e en ampe ing. This pe spec i e also e lec s he iew ha while ea ly blockchains had
limi ed unc ionali y, mo e ad anced and e sa ile blockchains will eme ge in he u u e.
New echnologies o en build on exis ing ones, some imes by combining hem in no el
ways o di e en pu poses. Simila ly, Bi coin’s unc ions ely on p e iously de eloped
echnologies. The same applies o Bi coin add esses designed o p i acy. While he concep
o independen ly gene a ing add esses using he hash alue o a public key in oduces a
no el ea u e—enabling anonymous ansac ions h ough c yp og aphic keys—i is me ely
an applica ion o c yp og aphic hashing and asymme ic enc yp ion wi hin blockchain.
This ea u e alone does no de ine blockchain. Simila ly, la e addi ions such as Decen al-
ized Applica ions, hough hey expand unc ionali y and a ac in e es , equi e a clea
iden i ica ion o he human discom o hey aim o add ess o classi ica ion as a dis inc
echnology. Ul ima ely, e en i di e en echnologies sha e simila o iden ical unc ionali-
ies, hey mus be conside ed sepa a e echnologies wi h di e en names i hei pu poses
a e undamen ally di e en . A change in pu pose wa an s a di e en e m. Using he
e m “blockchain” o a ious echnologies wi h di e en pu poses is misleading om a
echnological s andpoin and se es p ima ily as a ma ke ing ac ic.
3.4. Is Bi coin Technology?
Table 3p esen s a summa y o he e alua ion o whe he Bi coin mee s he c i e ia o
classi ica ion as a echnology.
Table 3. Assessmen o unc ions o Bi coin.
Func ion Assessmen Commen
Neu aliza ion o Media ion Media ion is no human discom o ; on he con a y, i
is a co e unc ion in inance ha mus necessa ily exis .
In con as o media ion based on legal legi imacy,
Bi coin is a sys em ha enables any indi idual wi h
supe io compu ing esou ces o compel media ion.
P i acy P o ec ion
The absence o p i acy is no a sou ce o human
discom o ; a he , i is an ins i u ional mechanism ha
has been es ablished o he pu pose o ensu ing sound
and anspa en inancial p ac ices.
The issue o p i acy is no a pu ely echnical ma e ;
a he , i is a ques ion o egula ions and laws.
As shown in Table 3, Bi coin does no con ibu e o he alle ia ion o any human
discom o . Consequen ly, i canno be classi ied as a echnology, no can blockchain. While
exis ing echnologies ha e been in eg a ed in no el ways, he esul is me ely a collec ion
Adm. Sci. 2025,15, 57 15 o 17
ad ancemen s. Blockchain is o en p esen ed as a symbol o no el y and inno a ion,
ein o cing he pe cep ion ha he i ual asse ading ma ke is a u u e-o ien ed en i y
closely ied o blockchain’s p og ess. A ecen pape by o icials om he Eu opean Cen al
Bank e eals ha p omo e s o Bi coin as an in es men asse a ely men ion any economic
unc ions ha jus i y i s alue. Mo eo e , since Bi coin does no enhance he economy’s
p oduc i e capaci y, he weal h e ec o ea ly holde s comes a he expense o b oade
socie al consump ion (Bindseil & Schaa ,2024). In essence, he i ual asse ma ke exhibi s
cha ac e is ics o a Ponzi scheme, whe e ea ly adop e s accumula e weal h a he cos o
la e pa icipan s.
I is impe a i e ha u u e esea ch del es deeply in o he social impac o he i ual
asse ma ke . I is o pa amoun impo ance o de ine wi h p ecision he impac o he
ma ke o i ual asse s on socie y, and o asce ain whe he his impac is bene icial o
ha m ul. I is an icipa ed ha u u e esea ch will aim o de ine he ue na u e o blockchain
wi h g ea e echnical cla i y.
Funding: This esea ch ecei ed no ex e nal unding.
Ins i u ional Re iew Boa d S a emen : No applicable.
In o med Consen S a emen : No applicable.
Da a A ailabili y S a emen : Da a a e con ained wi hin he a icle.
Con lic s o In e es : The au ho s decla e no con lic s o in e es .
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