Softwar: A Novel Theory on Power Projection and the National Strategic Significance of Bitcoin

Current analysis of Bitcoin’s underlying proof-of-work technology is almost exclusively based on financial,

monetary, or economic theory. Recycling the same theoretical frameworks when performing hypothesis

deductive analysis of Bitcoin has the potential to create systemic-level analytical bias which could

negatively impact public policy making efforts and could even pose a threat to US national security.

This thesis introduces a novel theoretical framework for analyzing the potential national strategic impact

of Bitcoin as an electro-cyber security technology rather than a peer-to-peer cash system. The goal of this

thesis is to give the research community a different frame of reference they can utilize to generate

hypotheses and deductively analyze the potential risks and rewards of proof-of-work technologies as

something other than strictly monetary technology. The author asserts it would be beneficial for

researchers to explore alternative functionality of proof-of-work technologies to eliminate potential blind

spots, provide a more well-rounded understanding of the risks and rewards of proof-of-work protocols

like Bitcoin, and positively contribute to the development of more informed public policy in support of

the March 2022 US Presidential Executive Order on Ensuring the Responsible Development of Digital

Assets and the May 2022 US Presidential Executive Order on Improving the Nation’s Cybersecurity.