Derived Value Money

Page #8345 of Chapter: Crypto-for-the-rest-of-us

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Derived Value Money amounts to a "digital claimcheck" over an underlying form of money. And so, it does not change the quantity of available money, and does not wrestle control from the power that regulates the money claimed by the digital claimchecks.

The digital form of the money holds the key to its advantages in handling, storing, securing, and managing.

Several forms of digital claimchecks are used in limited ecosystems, and usually provide convenience, and versatility, but do not arise to a full fledged money system.

The first serious attempt to use cryptography for a digital claimcheck was carried out by David Chaum who published and patented his ideas around the year 1990. His company DigiCash had a brief rise, but did not sustain itself.

David Chaum emphasis was on the aspect of anonymity. He developed a cryptographic protocol based on the RSA system, which created money that could not be traced to its origin.

A modern derived digital currency arrayed to become a serious candidate for the money platform of the future is BitMint.

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