The offline cash puzzle solved by a local blockchain
Abstract A major drawback in deploying central bank digital currencies (CBDC) is the offline puzzle, which requires that a CBDC must keep the liquidity provision given by cash, and, simultaneously, avoid double‐spending, cloning, and other issues. The puzzle is solved by minting the coins in serial...
| Main Author: | |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Wiley
2024-03-01
|
| Series: | IET Blockchain |
| Subjects: | |
| Online Access: | https://doi.org/10.1049/blc2.12049 |
| _version_ | 1827335636937342976 |
|---|---|
| author | Henrique de Carvalho Videira |
| author_facet | Henrique de Carvalho Videira |
| author_sort | Henrique de Carvalho Videira |
| collection | DOAJ |
| description | Abstract A major drawback in deploying central bank digital currencies (CBDC) is the offline puzzle, which requires that a CBDC must keep the liquidity provision given by cash, and, simultaneously, avoid double‐spending, cloning, and other issues. The puzzle is solved by minting the coins in serial numbers, which are stored on a local blockchain inside a smartphone or EMV card. The local blockchain is strengthened by a two‐stage approval architecture that mitigates attacks and enables non‐repudiation handling. The coins are protected by hardware keys embedded in the microchip and can be continuously mined by the wallet to enhance security. The coins can be either minted as hot coins, which can be retrieved in case of loss, or minted as cold coins, like physical cash. |
| first_indexed | 2024-03-07T18:18:13Z |
| format | Article |
| id | doaj.art-d4dcb5b1200a4151af96fac1c55169e6 |
| institution | Directory Open Access Journal |
| issn | 2634-1573 |
| language | English |
| last_indexed | 2024-03-07T18:18:13Z |
| publishDate | 2024-03-01 |
| publisher | Wiley |
| record_format | Article |
| series | IET Blockchain |
| spelling | doaj.art-d4dcb5b1200a4151af96fac1c55169e62024-03-02T07:26:04ZengWileyIET Blockchain2634-15732024-03-0141435810.1049/blc2.12049The offline cash puzzle solved by a local blockchainHenrique de Carvalho Videira0Brazilian Central Bank Digital Brazilian Real Initiative and Financial System SupervisionRio de JaneiroBrazilAbstract A major drawback in deploying central bank digital currencies (CBDC) is the offline puzzle, which requires that a CBDC must keep the liquidity provision given by cash, and, simultaneously, avoid double‐spending, cloning, and other issues. The puzzle is solved by minting the coins in serial numbers, which are stored on a local blockchain inside a smartphone or EMV card. The local blockchain is strengthened by a two‐stage approval architecture that mitigates attacks and enables non‐repudiation handling. The coins are protected by hardware keys embedded in the microchip and can be continuously mined by the wallet to enhance security. The coins can be either minted as hot coins, which can be retrieved in case of loss, or minted as cold coins, like physical cash.https://doi.org/10.1049/blc2.12049cryptocurrenciesdigital cashdigital moneyelectronic cashe‐money |
| spellingShingle | Henrique de Carvalho Videira The offline cash puzzle solved by a local blockchain IET Blockchain cryptocurrencies digital cash digital money electronic cash e‐money |
| title | The offline cash puzzle solved by a local blockchain |
| title_full | The offline cash puzzle solved by a local blockchain |
| title_fullStr | The offline cash puzzle solved by a local blockchain |
| title_full_unstemmed | The offline cash puzzle solved by a local blockchain |
| title_short | The offline cash puzzle solved by a local blockchain |
| title_sort | offline cash puzzle solved by a local blockchain |
| topic | cryptocurrencies digital cash digital money electronic cash e‐money |
| url | https://doi.org/10.1049/blc2.12049 |
| work_keys_str_mv | AT henriquedecarvalhovideira theofflinecashpuzzlesolvedbyalocalblockchain AT henriquedecarvalhovideira offlinecashpuzzlesolvedbyalocalblockchain |