Archytas CBDC
A CBDC infrastructure designed to digitize circulating currency
Last updated
A CBDC infrastructure designed to digitize circulating currency
Last updated
Official Venture Launch February, 17th, 2023.
A central bank digital currency (CBDC) is a digital representation of a country's fiat currency that is issued and backed by the national central bank. CBDCs can be implemented using a distributed ledger technology (DLT) such as a blockchain, which allows for a decentralized and secure record of transactions. One potential DLT platform for implementing a CBDC is Apache Cassandra, an open-source, distributed database management system that is designed to handle large amounts of data across many commodity servers.
In this CBDC implementation, there would be only a single treasury, which is the national central bank. As the issuer and manager of the CBDC, the central bank would have several important functions, including the ability to black-list, white-list, mint, and burn currencies. The central bank's role as the single treasury in this CBDC implementation would give it a high level of control and flexibility over the system.
However, the CBDC system itself would be decentralized, with the Cassandra database distributed across multiple nodes and no single point of failure. This hybrid approach combines the benefits of centralization, such as strong control and management by the central bank, with the benefits of decentralization, such as increased security and resilience.
To ensure the security and privacy of CBDC transactions, the system can use elliptic curve cryptography (ECC) for data encryption. ECC is a public key encryption system that uses the mathematics of elliptic curves over finite fields to generate secure keys for encrypting and decrypting data. ECC has several advantages over other encryption methods, such as smaller key sizes, faster computational speed, and resistance to attacks.
In this CBDC implementation, users would be able to open an account simply by providing their phone number. This would make it easy for individuals who may not have access to traditional bank accounts to participate in the CBDC system. The phone number would be used as a unique identifier for the user's account, and the account would be linked to the user's CBDC wallet.
The consensus mechanism used in this CBDC would be a proof-of-data model, which verifies the most recent transaction in the Cassandra database and checks if the amount requested can be processed. This would be done through an algorithm that performs a series of mathematical equations based on the past three transactions in the user's wallet, to verify the authenticity and feasibility of the transaction. The proof-of-data consensus ensures that each transaction is valid and that the user has sufficient funds in their account to complete the transaction.
Once a transaction is verified, it is added to the Cassandra database as a new record. The database is distributed across multiple nodes, and each node maintains a copy of the transaction records. This ensures that the CBDC system is decentralized and that no single point of failure can compromise the integrity of the system.
Overall, this CBDC implementation using Apache Cassandra and ECC for encryption would provide a secure and efficient way for individuals and businesses to conduct digital transactions using the national currency. The proof-of-data consensus mechanism would ensure the integrity of the system, and the use of phone numbers for account identification would increase financial inclusion. The hybrid approach of combining centralization and decentralization would provide a balance of control and resilience in the CBDC system.