Digital cash
1 / 13

Digital Cash - PowerPoint PPT Presentation

  • Updated On :

Digital Cash. Damodar Nagapuram. Overview. Monetary Freedom Digital Cash and its importance Achieving Digital Cash Disadvantages with digital cash Conclusion. Why Monetary Freedom?. Monetary transactions Cash, Check, and Credit Card transactions

I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
Download Presentation

PowerPoint Slideshow about 'Digital Cash' - honey

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.

- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
Digital cash l.jpg

Digital Cash

Damodar Nagapuram

Overview l.jpg

  • Monetary Freedom

  • Digital Cash and its importance

  • Achieving Digital Cash

  • Disadvantages with digital cash

  • Conclusion

Why monetary freedom l.jpg
Why Monetary Freedom?

  • Monetary transactions

    • Cash, Check, and Credit Card transactions

  • Organizations keep records for purchases, communication, financial history

  • Can be against privacy

  • Consumers need to trust that net will make safeguard their privacy and transactions, while continuing to make shopping easy and enjoyable

  • Freedom from Unit of transaction

Digital cash4 l.jpg
Digital Cash

  • Digitally signed payment message

  • Piece of information which is recognized as having value

  • This piece is then accepted by Merchants

  • True digital cash stores and conveys meaning in and of itself

    • Not just represent value in bank account

  • This is missing in today’s e-commerce

Key elements of digital cash l.jpg
Key Elements of Digital cash

  • Minimum requirements

    • Confidentiality

      • Anonymity

      • No monitoring

    • Authentication

      • Digital Cash is valid

      • Banks can authenticate parties

    • Integrity

      • Should not be easy to alter a piece of digital cash

    • Non-Repudiation

    • Confirmation that the transaction was complete

    • Settlement

Key elements of digital cash contd l.jpg
Key Elements of Digital cash (contd.)

  • Other characteristics

    • Divisibility

    • Off-line capability

    • Peer-to-Peer transactions

    • Scalability

Achieving digital cash l.jpg
Achieving digital cash

  • Register Based Systems

    • A counter is stored on a smart card

  • E-cash

    • Tokens storable on card/computer

  • Digital Checks

    • Similar to paper checks + digital signatures

  • Electronic coupons

    • Similar to digital checks but limited to one issuer

Protocols for digital cash l.jpg
Protocols for Digital Cash

  • Withdrawal phase of secure credit card scheme

  • Alice sends her public key k to bank

  • Bank returns a signature for it

Protocols contd l.jpg
Protocols (contd.)

  • Payment phase

  • n-acct number

  • Her public key k signed by bank

  • Shop can verify Alice’s acct, pub key

  • Shop can verify sign. on the receipt, amount

  • Receipt fwd.ed to bank

Blind signatures l.jpg
Blind Signatures

  • A bank can create a digital bank note by signing a message which specifies the serial number and value of the note

  • Bank sends to Alice

  • Alice sends it to Bob

  • Bob deposits with bank account

Blind signatures contd l.jpg
Blind Signatures (contd.)

  • Problem: Bank knows that Alice and Bob have just mad a transaction.

  • Solution: Blinding signatures

    • Multiply the note number by a random factor before sending it to bank

    • Divide the number after its signed by bank

  • Double spending problem

  • Verification with bank when a digital note is used

Issues with digital cash l.jpg
Issues with Digital Cash

  • Easy to do illegal transactions if forged/ technology failures

  • $1 million in paper will be heavy!!

  • Consumer resistance: Lack of complete trust

  • Other issues:

    • Power failures

    • Loss of records

    • Undependable software

Conclusion l.jpg

  • Promising Technology

  • Monetary freedom

  • Several issues to resolve before we can truly achieve this