How Federated eCash and Bitcoin can embed properties of a digital money system

Advertisements

Watch this episode on YouTube

Listen to this episode:

In this episode of Bitcoin, Explained, moderators Aaron van Werden and Sjors Provoost are again joined by Ruben Somsen, a sidechain expert and Layer 2 expert, this time to talk about Federated Ecash, a project that has since been Bitcoin infrastructure company Blockstream is sponsored October 2021.

Subsequently, van Werden, Provoost and Somsen discussed the history and design of Ecash, a groundbreaking digital cash project developed by cryptographer David Chaum and his startup Digicash in the early 1990s. The trio explain how the Ecash system enabled regular bank customers to make private transactions over the internet.

This latest iteration of Ecash, Federated Ecash, takes the original concept but applies it to use by custodial (or co-custodial) Bitcoin and Lightning wallets. In short, a Federated Ecash service would accept Bitcoin deposits and exchange them for Bitcoin-denominated Ecash tokens. These tokens can be sent to other users and eventually redeemed for the deposited bitcoins. Those bitcoins, meanwhile, would be locked in a multisig address shared by a number of custodians.

To conclude the episode, van Werden, Provoost, and Somsen went through a short list of ideal properties for a digital cash system and evaluated how Bitcoin, Ecash, and the combination of the two embed those properties.


Share post on

Sonic BTC is reader-supported. When you buy through links on our site, we may earn an affiliate commission.

Andreessen Horowitz Launches A16z Crypto Analysis Lab Bitcoin

Andreessen Horowitz Launches A16z Crypto Analysis Lab

A16z, also known as Andreessen Horowitz, the venture capital (VC) company that has invested...

By wpadminsonic164
•
Bitcoin Value Nears $41,000 as US Inflation Jumps to eight.5% Bitcoin

Bitcoin Value Nears $41,000 as US Inflation Jumps to eight.5%

US inflation hits new 40-year record at 8.5%.Bitcoin traded green above $40,500 as the...

By wpadminsonic164
•
Lending platform Ledn launches bitcoin-backed mortgage product, bringing in $ 70 million Bitcoin

Lending platform Ledn launches bitcoin-backed mortgage product, bringing in $ 70 million

Ledn, the global platform for digital wealth savings and lending, announced the upcoming launch...

By wpadminsonic164
•
Central Financial institution Of Argentina Bans Banks From Providing Bitcoin, Crypto Providers Bitcoin

Central Financial institution Of Argentina Bans Banks From Providing Bitcoin, Crypto Providers

The central bank of Argentina has banned financial institutions from offering any services involving...

By wpadminsonic164
•
International Chip Scarcity Looms Over Bitcoin Mining Business, ASIC Provide Tightens Bitcoin

International Chip Scarcity Looms Over Bitcoin Mining Business, ASIC Provide Tightens

While Bitcoin's hashrate has been coasting along above 175 exahash per second (EH/s) and...

By wpadminsonic164
•
Bitcoin Enchancment Proposal 21 Eases Person Expertise When Paying Invoices Bitcoin

Bitcoin Enchancment Proposal 21 Eases Person Expertise When Paying Invoices

The below is a direct excerpt of Marty's Bent Issue #1181: "BIP21 is a...

By wpadminsonic164
•
There’s an Insatiable Urge to Burn Crypto — A Have a look at Why Tasks Burn Tokens and the Advantages Bitcoin

There’s an Insatiable Urge to Burn Crypto — A Have a look at Why Tasks Burn Tokens and the Advantages

In recent times, cryptocurrencies that burn tokens have been very popular and a number...

By wpadminsonic164
•
Bitcoin mining firm Luxor launches ASIC buying and selling desk Bitcoin

Bitcoin mining firm Luxor launches ASIC buying and selling desk

On January 11, 2022, Washington-based bitcoin mining company Luxor announced the launch of a...

By wpadminsonic164
•

Latest Posts

Cardano

Crypto Value Evaluation Jan-28: Ethereum, Ripple, Cardano, Solana, and Luna – CryptoPotato

This week, we take a closer look at Ethereum, Ripple, Cardano, Solana, and Luna,...

By wpadminsonic164
•
Binance has Nigerian Idol road release on Nigerian college grounds – Nairametrics Binance

Binance has Nigerian Idol road release on Nigerian college grounds – Nairametrics

Binance, the world's leading blockchain ecosystem and cryptocurrency infrastructure provider, has activated the street...

By wpadminsonic164
•
Andreessen Horowitz Launches A16z Crypto Analysis Lab Bitcoin

Andreessen Horowitz Launches A16z Crypto Analysis Lab

A16z, also known as Andreessen Horowitz, the venture capital (VC) company that has invested...

By wpadminsonic164
•
Cryptocurrency Worth Prediction: Cardano, Terra & Bitcoin – American Wrap December twentieth – FXStreet Cardano

Cryptocurrency Worth Prediction: Cardano, Terra & Bitcoin – American Wrap December twentieth – FXStreet

Bitcoin price is moving sideways and is trapped between the crucial weekly moving averages....

By wpadminsonic164
•
OpenEthereum Ended Support For Its Software With Merge Approaching Ethereum

OpenEthereum Ended Support For Its Software With Merge Approaching

OpenEthereum ended support for its software with the Merge approach in order to prepare...

By wpadminsonic164
•
Cryptocurrencies Now Serving to Discover Area with Unistellar Telescopes – BlockTribune Stellar

Cryptocurrencies Now Serving to Discover Area with Unistellar Telescopes – BlockTribune

Cryptocurrencies Now Helping Explore Space with Unistellar Telescopes Announcements, News, Now Accepting | February...

By wpadminsonic164
•
Supervisor Cat Rocket Club Welcomed to Boss Planet Metaverse on Cardano By DailyCoin – Investing.com Cardano

Supervisor Cat Rocket Club Welcomed to Boss Planet Metaverse on Cardano By DailyCoin – Investing.com

Boss Cat Rocket Club Welcomed to Boss Planet Metaverse on Cardano 'Boss Cat Rocket...

By wpadminsonic164
•
BITCOIN Attenzione promotion APRILE! – CryptoMonday NEWS w13/'21 Videos

BITCOIN Attenzione promotion APRILE! – CryptoMonday NEWS w13/'21

CryptoMonday: ogni Lunedì, andiamo a fare il resoconto sulla settimana appena trascorsa in termini...

By wpadminsonic164
•