Federated E-Cash Can Act as Bitcoin Scaling Solution
David Chaum first introduced the concept of E-cash in 1983. Since then, it has been considered as one of the cornerstones to promoting honest transactions. The Federation of E-Cash is an entity constituted by independent members who act as distributed custodians for the creation of a multi-sig wallet.
The basic principle behind the operation of the E-Cash federation is depositing underlined coins in the Bitcoin wallet, which means that integrity and honesty remain intact throughout the process. The process of being becoming a custodian happens through the E-mint.
The fundamental operational procedure behind E-Cash is the issue of redeeming or IOU requests. This request can be easily exchanged for Bitcoin at the procedure of mint. These receipts can also be traded between the different users of the mint for further convenience.
The distinctive competence of this process is that the process of issuance is completely blind. This means that it cannot be known to whom a particular redeem receipt has been sent. The concept of blind signature is one of the most credible features of Mint Grants which provides a high level of safety and security to the transactions. In addition to providing strong privacy credentials, this ensures that operators at the mint process cannot identify the transaction history, users, or balances.
The real utility of the blind signature can be ascertained by the fact that the entire process is calibrated in a manner that the user acquires the signature without revealing the identity. It works on a mechanism similar to encryption and doesn’t even require a secret key to complete the process. The data transmitted through the message is completely obscured, and as a result, blind data is delivered to the person who signs. This leads to the signer generating the blank signature and returning it to the user. Thanks to holomorphic mechanisms, a user can easily unblind the message and get a valid signature.
There is no doubt that Federated E-Cash solutions can help Bitcoin achieve new heights on scaling operations. It is complementary to the scalability aspect and can prove instrumental in enhancing the popularity of Bitcoin scaling in the future. Many experts and analysts in the field of cryptocurrency are hailing Federated E-Cash as the next revolution in the crypto field that can enhance the process of transaction and utility for customers who are eager to adopt digital coins.