From 0524fbeec617489eb372d5e0e4d540004c30c171 Mon Sep 17 00:00:00 2001 From: Florian Dold Date: Sun, 19 Aug 2018 22:32:34 +0200 Subject: conclusion first draft --- conclusions.tex | 77 ++++++++++++++++++++++++++++++++++++++++++++++++++++++++- 1 file changed, 76 insertions(+), 1 deletion(-) (limited to 'conclusions.tex') diff --git a/conclusions.tex b/conclusions.tex index 4d5e3c9..1d260b4 100644 --- a/conclusions.tex +++ b/conclusions.tex @@ -1,7 +1,79 @@ - \chapter{Conclusions and Future Work} \section{Conclusions} +% sources and inspirations +% https://www.bis.org/publ/arpdf/ar2018e5.pdf +% https://www.bis.org/publ/qtrpdf/r_qt1709f.pdf +% http://andolfatto.blogspot.com/2015/02/fedcoin-on-desirability-of-government.html + +% mention eKrona/Riksbank + +Payment systems have far more reaching implications than just their technical +properties and advances. Many cryptocurrencies come attached with their own, +often rather naive version of monetary policy and the associated systemic risks +for the whole financial system. Completely decentralized cryptocurrencies +provide either too much or too little anonymity, with negative effects such as +discriminatory pricing or illegal activity and tax evasion. + +Even centrally banked electronic currencies come with their own risks, +such as: +\begin{itemize} + \item increased risk of a bank run, as it is easier to withdraw digital + cash even from remote locations + \item increased volatility due to foreign holdings that would + not be as easily possible with physical cash + \item unavailability in crisis situations without electricity and internet + connectivity + \item electronic cash carries an increased risk of theft or even disruption + from cyber-attacks +\end{itemize} + +With the ongoing digitalization of daily life, some form of electronic cash +seems to be inevitable. While some central banks (such as the Swedish +Riksbank) are already looking for the right technology to implement an +electronic version of their centrally banked currency, other countries (such as +Switzerland) tread more carefully in the process of digitizing their centrally +banked currency. + +An electronic version of cash will most likely be a necessity, and implementing +it with Taler has good trade-offs. We believe that some of the risks mentioned +above can be mitigated. Taler-style e-cash comes with some unique benefits: +\begin{itemize} + \item unique benefit of income transparency compared to cash and traditional + Chaum-style e-cash + \item third-party anonymity for payers + \item avoidance of consumer debt compared to credit cards +\end{itemize} +Some of the risks, such as volatility due to foreign holdings and likelihood of bank runs, +can be mitigated by putting limits on the amount of Taler e-cash that a customer can withdraw. +This disincentivizes the use of Taler as a means of storage-of-value. + +The alternative to (centrally banked) e-cash is a payment system under full +control of often foreign and unregulated monopoly companies such as Google, +Apple, Facebook or Microsoft. While centrally banked digital cash might also +threaten to disintermediate regulated regulated banks, this scenario is likely +preferable to a monetary policy under full control of corporate, global and +unregulated entities. + +While cash deserves its role as a means of storage-of-value and payment in the +forseeable future, the fate of digital payments still remains undecided: Will +society and politics decide on a system under control of citizens, or on a +system entirely controlled by corporate overlords. + +Taler provides the technical means to implement the former alternative. + +As concluded by some more recent reports of banking institutions \cite{XXX}, +the distributed ledger technology underpinning cryptocurrencies such as Bitcoin +might have more potential for applications within or between banks, in the form +of permissionless blockchains. Our Byzantine Set Consensus protocol is an +incremental performance improvement on a vital component of such systems. + +In combination with a distributed ledger based on Byzantine Set Consensus, +Taler can be used for a full-stack, robust payment system, with design +trade-offs that are more favorable to society that many of the proposed +alternatives. + + \section{Future Work} \subsection*{Post-Quantum security} @@ -18,6 +90,8 @@ \subsection*{large, scaleable deployment} I.e. sharding, db replication, load balancer(s) +\subsection*{Hardwar security module for exchange} + \subsection*{Bitcoin/Blockchain integration} \subsection*{UX study and improvements} @@ -26,6 +100,7 @@ I.e. sharding, db replication, load balancer(s) \subsection*{Formal verification of proofs} (CryptoVerif, etc.) +\subsection*{Coin Restrictions / ``Taler for Children''} \subsection{Others/TODO} probabilistic auditing -- cgit v1.2.3