Another Look at the Hong Kong and Shanghai Banking Corporation

 

It's been quite a while since our last blog. Life happens to include reflection. Let us continue in our quest for the earlier understanding of how we are not to far removed from where many things started.

After reading our trusted historian of the Southeast Asian continent, Hugh Farmer, we come across this,

 

"In July 1865 the bank opened an office in London to facilitate foreign exchange services for clients in China and India to help recruit and train junior bankers.

International trade has always been at the heart of our business. By 1875, the bank had expanded into seven countries across Asia, Europe and North America, with branches in the ports of Yokohama, Calcutta, Saigon and Manila. We financed exports, including tea and silk from China, cotton and jute from India, and sugar from the Philippines.

The much respected Thomas Jackson, was our Chief Manager three times between 1876 and 1902. The bank prospered under his management and, by the turn of the 20th century, we operated in 16 countries and territories. We also grew our government finance business, issuing many loans for infrastructure projects, including China’s first public loan in 1874." (Farmer, 2025)

 

While many would focus on the many countries that HSBC operated within, our focus at this time would be at least for now is Thomas Jackson.

 

 

"The legend of Thomas Jackson began in 1876 when he was appointed Chief Manager of The Hongkong and Shanghai Banking Corporation. He took the helm three times between 1876 and 1902 and transformed a fledgling bank into Asia’s leading financial institution. He set an example that won the confidence and loyalty of all around him and continues to inspire our respect and admiration today."

 

"Thomas was born in 1841 in Carrigallen, a small village in County Leitrim, Ireland. His Presbyterian ancestors had farming roots in Crossmaglen, County Armagh, and Thomas spent his childhood on the family farm at Urker Lodge. He was educated at Morgan's School and entered the world of finance when he joined the Bank of Ireland’s Belfast branch in 1860."  (HSBC)

This is for the purposes of showing the Scottish roots of Thomas Sutherland and the Irish roots of Thomas Jackson. It was more of an alliance between mutual partners for wealth and perhaps control. To show some more of that control we move on to Berenberg Bank,

 

"During a stay in London at the end of 1924, Gaspard Farrer, the partner at Barings, said: "It is not only friendship between our firms, but more than that: a sort of partnership. Besides Kidder, Peabody, you are the nearest to us." (Verlag, 2015, p. 208)

 

 

And again we are right back to one of the founders of HSBC in the form of,

 

"Joh. Berenberg, Gossler & Co. ... By virtue of the activities of the bank abroad it became a founding shareholder of the ... the Hongkong and Shanghai Banking Corporation HSBC (1865), ... " (Founded 1590. The history of one of the oldest banks in the world., p. 10)

 

And following,

 

"There are six foreign banks in Hamburg, including the Hong Kong and Shanghai Banking Corporation; the Berenbergs were among its founding shareholders back in 1865.” (Verlag, 2015, p. 236)

 

While there is currently no direct link to Baring Brothers Co., Limited to the founding of HSBC with the obvious alliance between Baring Brothers Co., Limited and the Berenberg Bank, I think that we could conclude that … (Orbell, 1985)

Oh, and remember this, of Sir Francis Baring it was said that he was given,

"A directorship of the East India Company, which effectively monopolised British trade in the East, followed in 1779."

Intelligent Publishing on X: ""A directorship of the East India Company, which effectively monopolised British trade in the East, followed in 1779." Page 9. Chapter 2. Baring Brothers & Co., Limited A History to 1939. https://t.co/aEDKpIC3e0" / X

Page 9. Chapter 2. Baring Brothers & Co., Limited A History to 1939.

Again of Sir Francis Baring,

"His skills were publicly acknowledged in 1792-93 on his appointment as chairman of the East India Company with the onerous task of re-negotiating the Company's charter, for which he was rewarded with a baronetcy."

Intelligent Publishing on X: ""His skills were publicly acknowledged in 1792-93 on his appointment as chairman of the East India Company with the onerous task of re-negotiating the Company's charter, for which he was rewarded with a baronetcy." Pages 11-12. Chapter 2. https://t.co/WVGk9wYXIh" / X

Pages 11-12. Chapter 2. Baring Brothers & Co., Limited A History to 1939.

 

 

Until next time.

 

Works Cited

Farmer, H. (2025, 4 17). Early history of the Hongkong and Shanghai Banking Corporation Limited. Retrieved 9 6, 2025, from The Industrial History of Hong Kong Group: https://industrialhistoryhk.org/early-history-of-the-hongkong-and-shanghai-banking-corporation-limited/

Founded 1590. The history of one of the oldest banks in the world. (n.d.). Joh. Berenberg, Gossler & Co. KG. Retrieved from https://www.berenberg.de/uploads/web/Publications/Firmengeschichte_2019-04-10_en.pdf

HSBC. (n.d.). Thomas Jackson: Life and Legacy In this exhibition we trace a remarkable and illustrious career. Retrieved 9 6, 2025, from Thomas Jackson: Life and Legacy: https://history.hsbc.com/exhibitions/thomas-jackson-life-and-legacy

Orbell, J. (1985). Baring Brothers & Co., Limited. A History to 1939. London: Baring Brothers & Co., Limited.

Verlag, C. H. (2015). Change is the only constant: Berenberg. A history of one of the world's oldest banks. Hamburg, Munich: Carl Hanser Verlag.

A Connection Between Banking and Trading Houses II

 

As research continues into the early days of banking and commerce it yields connections that become that much more interesting. The Hong Kong and Shanghai Banking Corporation apparently had many participants that some of us would have never otherwise known had we not peered back into history. 

When reading about Augustine Heard & Co. Dent & Co. is another firm that was mentioned.  

 

“Dent & Co. played a role in the founding of the Hongkong and Shanghai Banking Corporation in March 1863, for it was the unofficial member of the Legaslative Council and chairman of the Bank’s provisional committee, Francis Chomley of Dent’s who applied to the Governor for a charter of incorporation in December 1864. Within two years, however, the company began to wind up its business and sell off its assets. In 1866 Overend and Gurney in the City of London floundered, touching off a run on the banks and bringing down other businesses, including the overextended Dent’s, which folded in 1867. The partner at the time, Alfred Dent, Thomas’s son and later a business associate of Gustav Van Overbeck said, ‘It was a bitter moment when we had to haul down the old house flag.” (Farmer, 2018)

 

Thomas Sutherland, Arthur Sassoon, Berenberg Bank, Augustine Heard & Co., and now Dent & Co. were all players during the founding of the Hong Kong and Shanghai Banking Corporation.

 

Until next time …

Cue-Talks: A Connection Between Banking and Trading Houses

 

What Matters - Augustine Heard & Co. (google.com)

Intelligent Publishing on X: ""Joh. Berenberg, Gossler & Co. ... By virtue of the activities of the bank abroad it became a founding shareholder of the ... the Hongkong and Shanghai Banking Corporation HSBC (1865), ... " 🤔 p. 10 The bank in the period of promoterism https://t.co/FxqDJ0oJ9m https://t.co/uJdpuuYt6Q" / X (twitter.com)

Intelligent Publishing on X: ""There are six foreign banks in Hamburg, including the Hong Kong and Shanghai Banking Corporation; the Berenbergs were among its founding shareholders back in 1865. p. 236 https://t.co/YudRXcOANu" / X (twitter.com)

What Matters - Sir Thomas Sutherland and the Board of HSBC (google.com)

What Matters - Dent & Company (google.com) 

References

Farmer, H. (2018). Dent & Company’s early days in China and John Dent. Hong Kong: The Industrial History of Hong Kong Group. Retrieved November 9, 2023, from https://industrialhistoryhk.org/john-dent/

A Connection Between Banking and Trading Houses

 

As we continue our studies into the beginnings of the relationship between banking and finance to merchant houses it is becoming clearer that the major players whether British or American cannot escape the less nor more careful eye.

 

We have already discussed Russell and Company, Jardine Matheson & Company, and have shared a podcast on Augustine Heard and Company. We then come across Russell Sturgis and Company which,

 

"Though muddled in other issues at times, Ward was very clear about the partners’ trade at Canton. The relationship of Russell, Houqua and Barings yielded quick and huge dividends, and, like other things Barings touched, endured the coming storm. Ward estimated the average per-voyage Boston-Canton-Boston profits on Barings’ ships at £20,000.

... Russells’ competitors despaired of the awesome lock on profits this triangle possessed, which only deepened with the absorption of Russell, Sturgis & Company by Russell & Company in 1839.” (Austin 128)

 

 

While further diving into Baring Brothers and the Birth of Modern Finance we find,

 

“In spring 1832, Thomas Ward made a new and important Far Eastern arrangement for the House. He concluded an agreement with Russell & Company – the largest, oldest and most prestigious American commission House in China. The agreement gave Russell the right to draw on Barings. A drawing account added a quantitative advantage to the American firm in a part of the world where financial resources were relatively scarce. It also added a qualitative element by bullet-proofing Russell’s bills throughout the Far East. In return, Russell provided Barings with access to its thriving businesses in Manila and South Asia; and to the Turkish opium concession Russell acquired from Perkins & Company in 1830, a firm with which Barings had long done business.²²²” (Austin 66)

 

An interesting connection between a merchant house and a trading house turned bank.[1] Continuing,

“By its agreement with Russell & Company, Barings likely benefited also from the firm’s working relationship with Houqua – the most powerful hong merchant in Canton and long-time friend of the Americans.²²³ Arrangements with Russell & Company occurred simultaneously with the reorganization in July of Magniac & Company into the trading colossus of Jardine, Matheson & Company in preparation for the end of East India Company dominance the following year. Russell and Magniac already had a close association from which Barings could profit as financial intermediary. If all this were not ample for a huge advantage in the east on the cusp of East India reform, Bates’s cousin by marriage, Russell Sturgis, added to Barings’ clout when he established a branch of the family firm, long based in Manila, at Canton on 1 May 1834.²²⁴” (Austin 66)

 

Russell Sturgis and Company as stated above was absorbed by Russell and Company in 1839. Russell Sturgis after haven established a branch of the family firm in 1834 became a prominent member of Baring Brothers by 1851.[2] So, Baring Brothers one of the earliest banks arguably the first if not Berenberg Bank was tied to Russell and Company, Russell Sturgis, and Jardine, Matheson and Company right around the time of the end of the monopoly on trade held by the British East India Company.

 

We have explored how governments, corporations or merchant and trading houses, churches, and now the banking and finance community are indeed working together and have for quite some time. As discussed in an earlier blog post, the connection between corporations and banks also can lead to corporate heads assisting in the establishment and even the directorship of banks.

“Heard’s was among the firms of ‘repute and distinction’ convened by Thomas Sutherland to establish The Hongkong and Shanghai Banking Corporation in 1864: Albert Heard served as a member of the provisional committee and as a director of the Bank (1865-67). Later George was also a director and served a term as chairman.” (Gillian Bickley)

 

As we continue down this rabbit hole the discovery of connections between entities are immense.

 

Until next time …

 What Matters - Augustine Heard & Co. (google.com)

What Matters - Sir Thomas Sutherland and the Board of HSBC (google.com)

References

Austin, Peter E. Baring Brothers and the Birth of Modern Finance. Ed. Robert E. Wright. London: Pickering & Chatto (Publishers) Limited, 2007. Book.

Gillian Bickley, Peter E Hamilton and George Cautherley. "Augustine Heard & Company, major American 19th century China trading house with its headquarters in Hong Kong from 1856." Dictionary of Hong Kong Biography 1 November 2011: 544. website. 17 3 2023. <https://industrialhistoryhk.org/augustine-heard-company/>.

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[1] “First a merchant house, then a bank, Barings had built a high reputation since its founding in 1763.” (Austin 2)

[2] Russell Sturgis became partner of the House of Baring in 1851. (Austin 219)

Who Runs Corporations, CEOs or the Board of Directors?

 

https://pixabay.com/photos/office-boardroom-meeting-table-1516329/

When you continue to dig you keep finding more. While we have mentioned previously Thomas Sutherland and his partners founding the Hongkong and Shanghai Banking Corporation with branches, in Hong Kong, Shanghai, and Yokohama, while reading a very interesting book on a very important family we also found,

On pages 42-43,

"Bombay's inflationary share values had become less and less tempting to those who foresaw a sudden end to the cotton boom. China seemed a far safer and more attractive outlet for capital. But a central banking unit was needed to discount bonds and keep commodities and currencies flowing evenly. The Hong Kong and Shanghai Banking Corporation was duly established by an international group of 

merchants with a capital of % 5 million. It would merge the requirements and interests of the established agency houses and thereby short-circuit delays in referring bills to houses in Bombay and faraway London.

Hong Kong was the headquarters, with premises in Queen's Road first rented from the Sassoons and purchased outright from them a year or two later. Arthur Sassoon and Thomas Sutherland of P. & O. were original members of the Board. A major branch was at once set up in Shanghai where the two majestic bronze lions outside the Bank became one of the city landmarks. They would often be touched for luck by passers-by on the Bund. A smaller office was soon established in Yokohama to handle the fattening trade with Japan."

So, there you have it folks. One of Thomas Sutherland's partners was Arthur Sassoon. The Sassoon family was said to be the Rothschilds of the East by some. 

"At their peak of social and financial prominence, it was customary to describe the Sassoons as 'the Rothschilds of the East'."

Prologue. Page 1. The Sassoons. Stanley Jackson. E. P. Dutton & Co., Inc. New York. 1968.

"They were one of the richest families in the world for two hundred years, from the nineteenth century through the twentieth, and were known as "the Rothschilds of the East.""

Front Jacket. The Sassoons: The Great Global Merchants and the Making of an Empire.  Joseph Sassoon. Pantheon Books, New York. 2022.

More on all of this later ...

References

Jackson, S. (1968). The Sassoons. New York, NY: E. P. Dutton & Co., Inc.

Sassoon, J. (2022). The Sassoons: The Great Global Merchants and the Making of an Empire. New York, NY: Pantheon Books.

When Banks and Corporations Collaborate

I am repeating myself time and again. Well, I have heard it said that repetition is the mother of skill. One can see the same things from different sources within their studies. And those different sources at times reveal more than the previous utilized sources. With this said let us pear into two things one that tie in today and one that further fleshes out the not-too-distant past.

 

After haven followed finance and economics over the years, today we have witnessed much money printing, investment speculation, and even the persistent financialization[1] of the economy. The economy is no longer measured by real people creating real goods and providing services. Many now look to the stock market as though is it an adequate representation of what’s happening within the real economy.

 

We might think that speculation, and what one termed “commercial debauchery” is something new. The more things change the more things remain the same. Even real estate faced within the past some of what we experienced in more modern times in the 2008-2009 housing market debacle. In a discussion concerning a booming period that took place a few years after March 1863, Stanley Jackson in his The Sassoons observes,

 

“No firm could fail to stay afloat during Bombay's four years of high tide, but the Sassoons escaped the disasters which later submerged many of their competitors. So much sudden wealth had led to commercial debauchery. A dozen new companies spawned every day, mostly bogus, and with nothing but paper assets to justify a mushroom rise in values.” (Jackson, 1968, pp. 41-42)

 

Familiar?

 

Furthermore,

 

“The greatest frenzy of all was in land reclamation. With pier room so restricted, the most flamboyant schemes were launched for draining the swamps. Shares in the Back Bay Reclamation Company, 2,000 Rs. at par, soared to 50,000 in a few weeks. Every mud flat on the island was bought, sold and swiftly re-sold, some of the share-pushers having paid only a nominal deposit before issuing a dazzling prospectus. It became superfluous to reclaim a single foot during this wildcat delirium. The lemmings still raced headlong to the golden strip of foreshore.” (Jackson, 1968, p. 42)

 

Even at that time the real estate market had its own shenanigans. Now we will go back to the Hong Kong and Shanghai Banking Corporation to show you another key player during the time when Thomas Sutherland, after he had either moved on or remained as superintendent of the Whampoa dock of the Peninsular and Oriental Steam Navigation Company (P & O, later P & O Nedlloyd), served as a board member. The Sassoons were much savvier than those who got caught up in the speculation and gambling understanding that chasing a quick buck yielded few if any long term return. At some point China seemed a safer and more attractive outlet for capital. However, and quite interesting might I add,

 

 

“… a central banking unit was needed to discount bonds and keep commodities and currencies flowing evenly. The Hong Kong and Shanghai Banking Corporation was duly established by an international group of merchants with a capital % 5 million. It would merge the requirements and interests of the established agency houses and thereby short-circuit delays in referring bills to houses in Bombay and faraway London.” (Jackson, 1968, pp. 42-43)

 

A central bank was needed. Not a new concept and just the bank that was needed was already set up by that time. And then,

 

“Hong Kong was the headquarters, with premises in Queen's Road first rented from the Sassoons and purchased outright from them a year or two later. Arthur Sassoon and Thomas Sutherland of P. & O. were original members of the Board. A major branch was at once set up in Shanghai where the two majestic bronze lions outside the Bank became one of the city landmarks. They would often be touched for luck by passers-by on the Bund. A smaller office was soon established in Yokohama to handle the fattening trade with Japan.” (Jackson, 1968, p. 43)

 

And there you have it folks. Thomas Sutherland and Arthur Sassoon were both on the board of the Hong Kong and Shanghai Banking Corporation. I found this interesting during my studies that one of the major families that are still prominent had a member on the board of the major bank that began in Hong Kong that later set up a branch in Shanghai and would even then later set up a branch in Yokohama to facilitate trade there. We have already covered at least some of what was traded. I do hope that you are seeing the links. Until next time …

 https://cue-talks.blogspot.com/2021/01/nothing-new-under-sun_12.html

References

Jackson, S. (1968). The Sassoons. New York, NY: E. P. Dutton & Co., Inc.

Team, T. I. (2021, June 6). Financialization. (Investopedia, Producer) Retrieved October 6, 2021, from Investopedia: https://www.investopedia.com/terms/f/financialization.asp

 

 

---

[1] Financialization refers to the increase in size and importance of a country’s financial sector relative to its overall economy. Financialization has occurred as countries have shifted away from industrial capitalism. The term also describes not just the increase of the market and financial sector's presence in our lives but the increasing diversity of transactions and market players as well as their intersection with all parts of the economy and society. (Team, 2021)

The Rise of Digital Money (Decentralized(?))

In this segment we will deal with digital money, specifically, cryptocurrency. Before we continue let us define cryptocurrency,

“A cryptocurrency is a digital or virtual currency that is secured by cryptography, which makes it nearly impossible to counterfeit or double-spend. Many cryptocurrencies are decentralized networks based on blockchain technology—a distributed ledger enforced by a disparate network of computers. A defining feature of cryptocurrencies is that they are generally not issued by any central authority, rendering them theoretically immune to government interference or manipulation.” (Frankenfield, Cryptocurrency Definition)

 

There are several cryptocurrencies currently so for the purposes of brevity and by what many can relate to we will deal with Bitcoin. Let us define bitcoin,

 

“Bitcoin is a digital currency created in January 2009. It follows the ideas set out in a whitepaper by the mysterious and pseudonymous Satoshi Nakamoto.1 The identity of the person or persons who created the technology is still a mystery. Bitcoin offers the promise of lower transaction fees than traditional online payment mechanisms and, unlike government-issued currencies, it is operated by a decentralized authority.” (Frankenfield, Bitcoin Definition: How Does Bitcoin Work?)

 

Who is Satoshi Nakamoto?

 

“Satoshi Nakamoto is the most enigmatic character in cryptocurrency. To date, it is unclear if the name refers to a single person or a group of people. What is known is that Satoshi Nakamoto published a paper in 2008 that jumpstarted the development of cryptocurrency.” (Hayes)

 

In 2009, a paper titled “Bitcoin: A Peer-to-Peer Electronic Cash System” was published that detailed a peer-to-peer network[1] as a solution to the double-spending problem.[2] Since a physical bill can only exist at one place at a single time a single bill cannot be a victim of the double-spending problem. Digital currencies do not exist physically but digitally, so the double-spending problem poses a threat. Nakamoto ultimately proposed a decentralized approach to transactions that would culminate in the creation of something called blockchains.[3]

 

Bitcoin is considered an electronic coin that is considered “… a chain of digital signatures.” (Nakamoto) “The network timestamps transactions by hashing them into an ongoing chain of hash-based proof-of-work, forming a record that cannot be changed without redoing the proof-of-work.” The Bitcoin document purported to be written by Nakamoto mentions an argument against a central authority and a mint, with every transaction having to go through them, just like a bank. (Nakamoto) It also mentions an electronic payment system that would be based upon a cryptographic proof instead of trust as well as a system for participants to agree on a single history of the order in which they were received. My question would be who is to run this system? Who would be the trusted participants within this system?

 

I, personally, hold that we should diversify where we can and make money in whatever store of value that we can. Cash, stocks, bonds, electronically traded funds (ETFs), commercial paper, precious metals (physical or paper), cryptocurrencies, real estate, etc. Recently many have discussed their biases or genuine concerns of cryptocurrency due to the dark web, money laundering and the drug markets. James Martin observes,

“Cryptomarkets are complex computer-based phenomena. In cyberspace they represent virtual meeting places for a motley assortment of deviants, drug users, entrepreneurs and political activists who come together online to share information and to trade. Whilst logged on to a cryptomarket, the physical location and identity of users are masked by free yet highly sophisticated encryption technology. This enables anonymous communications and commerce, the nature of which is often subversive or illegal, particularly with regard to the use, sale and distribution of illicit drugs.” (Martin 6)

 

While it is true indeed that the dark net/dark web exists, it is interesting how fewer in number discuss the Anti-Money Laundering Regime (AML Regime) and the fact that drugs, corporations, banks, and financial institutions in relation to drugs go back to at least the 1800s as we have covered here in the following mediums:

Jardine Matheson and HSBC:

https://cue-talks.blogspot.com/2021/01/jardine-matheson-and-hsbc.html

Nothing New Under the Sun:

 

https://cue-talks.blogspot.com/2021/01/nothing-new-under-sun_12.html

Disagreement Among the Invisible:

 

https://cue-talks.blogspot.com/2021/01/disagreement-among-invisible.html

 

A Look into Russell and Company:

 

https://cue-talks.blogspot.com/2021/02/a-look-into-russell-company.html

 

When Corporations and Governments Mix:

 

https://cue-talks.blogspot.com/2021/02/when-corporations-and-government-mixes.html

 

When Corporations, Churches, Newspaper Media, and Governments Collaborate:

 

https://cue-talks.blogspot.com/2021/02/when-corporations-church-newspaper.html

 

Another Look at Jardine Matheson & Co.:

https://cue-talks.blogspot.com/2021/02/another-look-at-jardine-matheson-co.html

 

When Corporations Assists Governments in Wars:

https://cue-talks.blogspot.com/2021/04/when-corporations-assist-governments-in.html

 

There are several other sources that I could make available on drug money laundering utilizing the United States Dollar (USD) and other world currencies concerning advanced economies (AEs) or emerging market economies (EMEs). I will leave you with these to show the relationship with the banking industry.

Buzzfeed News:

THE FINCEN FILES

 

Thousands of secret suspicious activity reports offer a never-before-seen picture of corruption and complicity — and how the government lets it flourish.

 

By Jason Leopold, Anthony Cormier, John Templon, Tom Warren, Jeremy Singer-Vine, Scott Pham, Richard Holmes, Azeen Ghorayshi, Michael Sallah, Tanya Kozyreva, and Emma Loop

https://www.buzzfeednews.com/article/jasonleopold/fincen-files-financial-scandal-criminal-networks

 

The International Consortium of Investigative Journalists (ICIJ):
Global banks defy U.S. crackdowns by serving oligarchs, criminals and terrorists

 

The FinCEN Files show trillions in tainted dollars flow freely through major banks, swamping a broken enforcement system.

 

By The International Consortium of Investigative Journalists (ICIJ)

 

September 20, 2020

 

https://www.icij.org/investigations/fincen-files/global-banks-defy-u-s-crackdowns-by-serving-oligarchs-criminals-and-terrorists/

Lastly a visual for you:

https://cue-talks.blogspot.com/2020/12/financial-rules-changes.html

Next we will be diving into Govcoins and Stableboins:

https://intelpub.podbean.com/e/the-rise-of-e-money/

 

References

Cope, James. What's a Peer-to-Peer (P2P) Network? Prod. ComputerWorld. Needham, 8 April 2002. 29 June 2021. <https://www.computerworld.com/article/2588287/networking-peer-to-peer-network.html>.

Frankenfield, Jake. Bitcoin Definition: How Does Bitcoin Work? Prod. Investopedia. New York, 1 June 2021. Website. 29 June 2021. <https://www.investopedia.com/terms/b/bitcoin.asp>.

—. Cryptocurrency Definition. Prod. Investopedia. New York, 25 May 2021. Website. 29 June 2021. <https://www.investopedia.com/terms/c/cryptocurrency.asp>.

—. Double-Spending Definition. Ed. Julius Mansa. Prod. Investopedia. New York, 30 June 2020. Website. 29 June 2021. <https://www.investopedia.com/terms/d/doublespending.asp>.

Hayes, Adam. Satoshi Nakamoto Definition. Ed. Erika Rasure. Prod. Investopedia. New York, 8 March 2021. Website. 29 June 2021. <https://www.investopedia.com/terms/s/satoshi-nakamoto.asp>.

Martin, James. Drugs on the Dark Net How Cryptomarkets are Transforming the Global Trade in Illicit Drugs. UK: PALGRAVE MACMILLAN, 2014. Book.

Nakamoto, Satoshi. Bitcoin: a Peer-to-Peer Electronic Cash System. 2009. Document. 29 June 2021. <https://bitcoin.org/bitcoin.pdf>.

 

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[1] In its simplest form, a peer-to-peer (P2P) network is created when two or more PCs are connected and share resources without going through a separate server computer. A P2P network can be an ad hoc connection—a couple of computers connected via a Universal Serial Bus to transfer files. A P2P network also can be a permanent infrastructure that links a half-dozen computers in a small office over copper wires. Or a P2P network can be a network on a much grander scale in which special protocols and applications set up direct relationships among users over the Internet. (Cope)

 

[2] Double-spending is the risk that a digital currency can be spent twice. It is a potential problem unique to digital currencies because digital information can be reproduced relatively easily by savvy individuals who understand the blockchain network and the computing power necessary to manipulate it. (Frankenfield, Double-Spending Definition)

 

[3] In a blockchain, timestamps for a transaction are added to the end of previous timestamps based on proof-of-work, creating a historical record that cannot be changed. (Hayes)