Technology Choices and Design Options

Leon V. Schumacher (leon.schumacher@digitalekho.com)

Chapter Chapter 14 in Decoding Digital Assets, 2024, pp 209-244 from Springer

Abstract: Summary This chapter on technology choices and design options for Central Bank Digital Currencies (CBDCs) covers a wide range of topics. It highlights the diverse design possibilities beyond conventional databases, distributed ledgers, and offline tokens, emphasizing the feasibility of integrating real privacy measures. The technical stack for CBDCs consists of several layers, including servers, software, network infrastructure, consensus mechanisms, and user devices, each playing a specific role. The comparison between databases and distributed ledger technologies (DLTs) reveals that databases excel in speed and scalability, while DLTs focus on security and immutability. The chapter also explores different CBDC implementations, such as account-based, token-based, and DLT-based solutions, each impacting privacy differently. It stresses the importance of cryptographic primitives in ensuring secure transactions and the potential challenges posed by quantum computing. Additionally, the roles of digital wallets, money custody options, backups, and hybrid systems combining DLT and database technologies are discussed, all critical in shaping the effectiveness, security, and user-friendliness of CBDCs.

Date: 2024
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-031-54601-3_14

Ordering information: This item can be ordered from
http://www.springer.com/9783031546013

DOI: 10.1007/978-3-031-54601-3_14

Access Statistics for this chapter

More chapters in Springer Books from Springer
Bibliographic data for series maintained by Sonal Shukla (sonal.shukla@springer.com) and Springer Nature Abstracting and Indexing (indexing@springernature.com).