Digital currency is any currency recognized as legal tender in electronic form within a computer network. It's a form of money where a digital banknote refers to an authentic digital asset that participates in transactions between clients, intermediary banks and a remote database server controlled and monitored by a Central or National Bank. A digital currency is firmly backed by either fiat money, an exchange-traded commodity, real estate or gold.

The creation of an authentic digital asset is driven by a set of innovative solutions featuring digital chip card technology, or DCCT for short. The digital barcode provides a globally unique file identifier, while the blockchain platform forces hosted digital assets to remain immutable, irreplaceable, irrevocable and available for validation at all times.

Building trust is a key success factor, to which digital chip card technology ("DCCT") contributes with ease of use, protection against counterfeiting and the autonomy of verification of digital assets located on the blockchain. What differentiates digital currencies from one another is how the notes are structured and produced, how digital money is counted, how the flow of digital notes is tracked, how digital money payments are made, and where transactions are stored. See more...

Digital banknotes are stored in a database located on a platform that acts as a remote database server. The platform manages the entire digital currency system and is secured by a supreme authority, such as the Central or National Bank. In addition, each digital banknote is assigned a unique hash code, which prevents two identical banknotes from being put into circulation at the same time and protects digital money from counterfeiting.

A digital banknote created by digital chip card technology is an actual file, not an avatar in the digital world, so we can trace the flow of banknotes by following their hash codes from transaction to transaction, from blockchain to blockchain.

The file can be of any format and with any extension, but for the sake of a clear visual identity it is best to be in the form of an image.

Payment is made by transferring banknotes from one digital wallet to another, in such a way that the files representing the banknotes are deleted from one account and moved to another account. From a computer programming point of view, it is a move operation, not a copy operation. One and the same banknote can only be found in one digital wallet at a given time. There is cloud-based software running in the background that verifies the authenticity of the banknote file by reading the contents of the embedded digital barcode upon each transaction. Transaction verification means authentication of all banknotes participating in the transaction. The total number of banknotes in circulation may never change.

Each transaction is stored in the blockchain, and the data is recorded as follows:

• the name or username of the sender (that is, the person sending the money);
• the name or username of the recipient (the one who receives the money);
• IP address of the server that regulates the transaction;
• a timestamp, which shows the date and time when the transaction was made;
• the hash code of each banknote that participated in the transaction, and
• the hash code of a previously completed transaction.

The rule on which the creation of the chain of transactions is based is that each newly formed blockchain file contains the hash code of the previously formed blockchain file. Validation of such a system is fairly quick and simple. The procedure is transparent and understandable, while the content of each of the blockchain files in the chain can be read both online and offline. The memory capacity of one block in the chain is up to 1MB.

A blockchain created by digital chip card technology is not a virtual sequence of blocks, but an actual file, just as every banknote is an actual file, and a digital wallet is a real database, with real money stored in it. Each transaction file can be downloaded from both the sender's account and the recipient's account at all times. Once downloaded, the user (that is, the sender or recipient) can make it publicly available, display it online, share it with other people, or set it up for verification through an online service.

Digital Chip Card Technology, or DCCT for short, represents a set of innovative solutions implemented in security protocols and e-business systems that gravitate towards preserving privacy, confidentiality, authenticity and integrity of data and protection against misuse. Digital chip card technology has the potential to find wide application in establishing digital currencies and managing electronic funds transfers.

The digital barcode is one of the most prominent products of digital chip card technology and an indispensable part of digital money. It stands for a set of information about a file that represents a digital banknote in a digital currency system and related data. This includes information about the file itself (name, author name, creation time, etc.), as well as information related to preservation the authenticity of the file, the integrity of the content of which the file is composed and the identity of the owner. A transaction involving a banknote with an embedded digital barcode is not a "black box" where no one knows what's inside, but an actual file that can be sent, received, stored and reviewed. This is what makes the digital currency asset transparent and safe to use.

DCCT Network is a blockchain system with up to three devices connected to a common peer-to-peer (P2P) computer network. The device can be a computer, tablet or smartphone. Data transmission over the network is carried out by exchanging electronic messages in the form of digital telegrams. In the language of digital money, a digital telegram is actually a digital banknote. DCCT Network is a more innovative, productive, transparent, environmentally friendly and cost-effective solution that adds new value to the digital currency system.

The first node in the queue is the one that sends the money. The second node in the queue acts as a supervisor and mediator and serves as a remote database server that provides information about completed transactions. The third node is the one that receives the money from the sender. A digital banknote transaction is considered final after all three nodes (devices) in the network have verified the data contained in the digital banknote. Using the same data verification software, the three nodes make decisions completely independently of each other and inform each other of the outcome of the verification. Even if the transaction data from any of the three nodes becomes unavailable for any reason, temporarily or permanently, it is still available for validation in the remaining nodes, even if only one node remains. The stability and functionality of DCCT Network are not subject to external influences, nor do they depend on changes within the system. The files and metadata stored on DCCT Network cannot be altered, forged or removed, which makes this platform suitable for transmitting confidential, encrypted information and guarantees the preservation of the authenticity of the digital assets hosted over there. If necessary, DCCT Network can be easily transformed into a chain of interconnected transactions thanks to the blockchain file structure and custom algorithms designed to enable this feature in the first place.

The benefits of introducing digital money are numerous, and these are just a few of them:

• It's a faster, simpler and more reliable way to pay.
• The costs of payment services and money transfers have been significantly reduced.
• Availability 24/7
• Every transaction is recorded on a digitally signed blockchain and available for review at any time.
• There are no printing costs for the production of digital banknotes.
• Competition between financial organizations involved in working with digital currency is encouraged.
• Digital money is eco-friendly.
• The possibility of manipulation, counterfeiting or theft of digital money is minimized.

As time goes on, the benefits of using digital money will only increase.

Here we will address some of the biggest misconceptions that prevent digital currency from being properly understood and handled. Despite the fact that most of them are quite solvable (provided we properly approach solving issues related to this matter), they still cause controversy:

• Inadequate mathematical methods are used to validate transactions, which unnecessarily burden the entire blockchain system and make it more complex and expensive than it should be.
• The validation process is inevitably accompanied by a number of topics open for discussion, such as high costs, inability to record large amounts of data, environmental challenges, huge energy consumption, vulnerability to illegal distribution and sale, and more.
• Any network failure could potentially compromise the security and integrity of the data stored in the blockchain, while the credibility of the blockchain itself would be irreparably damaged.

There are some other challanges we may face:

• To save your digital assets, it is best to keep them in a bank rather than in your own digital wallets.
• A digital bill must be a physically "tangible" file with relevant data embedded in it, as a guarantee of its real value.
• Centralized digital currency systems allow for real-time transaction tracking, which also allows users to be tracked and arguably affects their privacy, etc.

The bottom line is trust, and digital currency creators must keep that in mind.

By definition, any cryptocurrency is a digital currency. Contrary to some opinions, digital currency is also a form of cryptocurrency, and this is why:

• Digital currency must have cryptographic protection of the data contained in it. By no means is it a good idea for a digital currency to be an open source creation.
• All transactions made using digital currency must be recorded and stored on the blockchain.
• Transaction verification means authentication of all banknotes participating in the transaction.
• The process of authentication is autonomous and is based on the information embedded in the banknote itself, without referring to external links and sources. If the authentication of a banknote were to be performed using data stored outside the banknote itself, there would be a serious risk of data manipulation.
• The creation of digital banknotes and the subsequent transactions in which these banknotes participate, including the mandatory verification of each banknote individually, is a centralized process and takes place on specialized computer servers equipped with dedicated software that can safely coordinate and protect all this data. Leaving such complex operations to untrained users and digital wallets on their smartphones, tablets or computers would be a serious drawback for the digital currency system.

The presence of sophisticated computer programs that manage a centralized database of digital banknotes and transactions seems to be the most significant difference between digital currency and cryptocurrency. On the other hand, this is one of the main reasons why digital currencies would enjoy much more trust than cryptocurrencies. Despite all the rumors and shouting slogans calling for the decentralization of money flows, most people would refuse to accept the risk, uncertainty and contradictions that are ineluctably associated with cryptocurrencies. #Please note that this only applies to the digital currency ecosystem developed by our company. It has nothing to do with digital currency solutions introduced by other companies.

The digital currency system is based on the exchange of digital notes stored in digital wallets, with each banknote being assigned a unique digital barcode that is invisibly embedded into it. To approve a transaction, it is necessary to verify the authenticity of the data embedded in the barcode of every single banknote participating in the transaction and save the verification results on a custom blockchain. This is a process governed by cloud-based software that runs in the background on a remote database server and is monitored by highly skilled personnel. The only institution capable of providing conditions for the smooth functioning of such a complex system is the Central or National Bank.

Or, in other words, can we safely use digital currency in offline mode? The answer is, no, we can't. Neither computers, tablets, smartphones nor digital wallet applications downloaded from an app store in any way guarantee the security of digital money storage and transactions. Individual users cannot be expected to handle complex technology and guarantee security. Would anyone entrust their property to someone who is not qualified to look after that property?

Compared to desktop and mobile devices, opening digital wallets on our accounts in commercial banks would certainly be a safer solution, mostly thanks to trained banking staff and technical capabilities. But it would also lead to unnecessary complications and additional costs. For example, if a commercial bank goes bankrupt, who is expected to protect digital wallets and digital money users? The Central Bank, of course. That is why we will take the Central Bank as the supreme authority from the very beginning, and let the commercial banks take on a new role.

Commercial banks will serve to open digital wallets on behalf of their clients, enable the replenishment of digital wallets and initiate the transfer of funds from one digital wallet to another. Desktop and mobile apps provided by commercial banks will be adapted to exchange files and information with the remote database server that manages the entire network. Each transaction is stored on the blockchain that was initially created in the digital wallet. A commercial bank taking part in the digital currency system will mirror the content of the blockchain so that it becomes available for download when the user logs into their bank account. Once downloaded, the blockchain can be verified and viewed via an online service at all times.

If designed using digital chip card technology, digital money cannot be counterfeited. The software is customized to continuously scan the database for digital banknote hash codes and delete any duplicates. Preventing counterfeiting is one of the main reasons why a user's digital money must be stored in a centralized digital wallet rather than a digital wallet on their phone. Actually, there is one way to counterfeit digital money, and that is for the government to print unlimited money. Speaking of digital money, the government mints an unlimited number of files representing digital coins. If this were to be done, it would undermine trust in banks and the entire monetary system based on digital currency. In all honesty, such a scenario is not recommended.

Yes. It is recommended that you make copies of digital banknotes and store them in as many places as possible. Just make sure you keep them offline so they are beyond the reach of cyber attacks. Each copy retains the features of its original, including the contents of the embedded digital barcode and hash code. If the original banknote is removed from the database for any reason (which shouldn't happen, but you never know), there is a copy ready to replace it. Please note that copies of banknotes may not be put into circulation together with the originals under any circumstances.

A smart contract is a computer program running on a blockchain that is automatically executed upon meeting pre-defined terms and conditions. It relies on a binding agreement between two parties presented in traditional paper or digital form. A smart contract is made up of "if true then [do something] else [do something else]" conditional statements embedded within the transaction file, with outcomes dependent on whether or not predetermined conditions are met and verified. The execution of the smart contract initiates the completion of a transaction and the update of a transaction file represented by a digitally signed block of data, which is then stored on each of the nodes that make up the blockchain network. The transaction file can no longer be reversed, modified, corrupted or misused and is available for download and validation at all times.