Blockchain Technology, Cryptocurrency: Entropy-Based Perspective

Abstract

The large-scale application of blockchain technology is an expected to be an inevitable trend. This study revolves around published papers and articles related to blockchain technology, relevance analysis and sorting through the retrieved documents with six core layers of blockchain: Application Layer, Contract Layer, Actuator Layer, Consensus Layer, Network Layer and Data Layer. Based on the analysis results, this study found that China’s research is more towards the preference and application of landing and industry and smart cities with blockchain as the underlying technology. International research is more focused on the research of finance as the underlying technology of blockchain and tries to combine crypto assets with real industries, such as crypted assets and payment systems for traditional industries. This paper studies the impact of monetary entropy on cryptocurrencies in smart cities and uses the monetary entropy formula to measure the crypto-economic entropy. We use Kolmogorov entropy to describe the degree of chaos in the cryptocurrency market in a smart city. The study illustrates the current status of blockchain technology and applications from the perspective of cryptocurrency in a smart city. We find that smart cities and cryptocurrencies have a mutually reinforcing effect.