Abstract

Current cryptocurrencies, starting with Bitcoin, build a decentralized blockchain-based transaction ledger, main- tained through proofs-of-work that also serve to generate a monetary supply. Such decentralization has benefits, such as independence from national political control, but also significant limitations in terms of computational costs and scalability. We introduce RSCoin, a cryptocurrency framework in which central banks maintain complete control over the monetary supply, but rely on a distributed set of authorities, or mintettes, to prevent double-spending. While monetary policy is centralized, RSCoin still provides strong transparency and auditability guarantees. We demonstrate, both theoretically and experimentally, the benefits of a modest degree of centralization, such as the elimination of wasteful hashing and a scalable system for avoiding double- spending attacks.

Authors

George Danezis, Sarah Meiklejohn

Year

2015

Journal

arXiv preprint arXiv:1505.06895.

Keywords

Computational Finance, Cryptology, and Finance

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