Abstract
This paper proposes a blockchain-based digital-currency model based on certificates, and uses stablecoins as an example to illustrate the model. A stablecoin is anchored on a fiat currency, and often backed by 100% fiat such as USD. Unlike traditional cryptocurrency models, the blockchain system using this model does not store the assets directly, but instead store the certificates of these assets. People can trade digital certificates like trading digital currencies, but the value of these certificates in stored in custodian banks. The transaction process is slightly different from cryptocurrency transactions. The advantage of trading certificates is that the loss of these digital certificate does not mean the loss of value. If a private key is lost, a client can recover her assets from the custodian bank with a replacement certificate. Due to this nature, using this model, the center of digital economy remains at banks, rather than the blockchain network, as suggested by Digital-Currency Areas (DCA).
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Acknowledgment
This work is supported by Chinese Ministry of Science and Technology (Grant No. 2018YFB1402700).
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Tsai, WT., Xiang, W., Wang, S., Deng, E. (2023). A New Digital-Currency Model Based on Certificates. In: Qiu, M., Lu, Z., Zhang, C. (eds) Smart Computing and Communication. SmartCom 2022. Lecture Notes in Computer Science, vol 13828. Springer, Cham. https://doi.org/10.1007/978-3-031-28124-2_3
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DOI: https://doi.org/10.1007/978-3-031-28124-2_3
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