DigiCash

Last updated
DigiCash Inc.
Founded1989;35 years ago (1989)
Founder David Chaum
Defunct1998 (1998)

DigiCash Inc. was an electronic money corporation founded by David Chaum in 1989. DigiCash transactions were unique in that they were anonymous due to a number of cryptographic protocols developed by its founder. [1] DigiCash declared bankruptcy in 1998 and subsequently sold [2] its assets to eCash Technologies, another digital currency company, which was acquired by InfoSpace on February 19, 2002. [3]

Contents

History

David Chaum is associated with the invention of Blind Signature Technology. In 1982, while studying at the University of California, Berkeley, Chaum wrote a paper describing the technological advancements to public and private key technology, in order to create this Blind Signature Technology. [4] Chaum's Blind Signature Technology was designed to ensure the complete privacy of users who conduct online transactions. Chaum was concerned with the public nature and open access to online payments and personal information. He then proposed to construct a system of cryptographic protocols, in which a bank or the government would be unable to trace personal payments conducted online. [5] This technology became fully implemented in 1990, through Chaum's company, DigiCash. [6]

Technology

DigiCash was a form of early electronic payment, which required user software to withdraw notes from a bank and designate specific encrypted keys before it can be sent to a recipient. This advancement of public and private key cryptography allows electronic payments to become untraceable by the issuing bank, the government, or a third party. This system of Blind Signatures through DigiCash software improved security for its users through the issuance of secured keys, which prevented third parties from accessing personal information through online transactions. The Mark Twain Bank, later acquired by Mercantile bank, located in Missouri was the only U.S. bank that supported DigiCash systems. Deutsche Bank, based in Germany, was the second backing bank of DigiCash systems. [7]

Bankruptcy

DigiCash was unable to grow the company successfully through the expansion of its user base. Chaum stated in an interview in 1999 that the DigiCash project, and its technology system, entered the market before e-commerce was fully integrated within the Internet. [8] In 1998, DigiCash filed a Chapter 11 bankruptcy and in 2002 the company was sold for assets. [9] A more modern implementation of the DigiCash approach is provided by Taler Systems SA as Free Software with the "GNU Taler" protocol. [10]

See also

Related Research Articles

<span class="mw-page-title-main">Digital signature</span> Mathematical scheme for verifying the authenticity of digital documents

A digital signature is a mathematical scheme for verifying the authenticity of digital messages or documents. A valid digital signature on a message gives a recipient confidence that the message came from a sender known to the recipient.

Financial cryptography is the use of cryptography in applications in which financial loss could result from subversion of the message system. Financial cryptography is distinguished from traditional cryptography in that for most of recorded history, cryptography has been used almost entirely for military and diplomatic purposes.

Articles related to cryptography include:

<span class="mw-page-title-main">David Chaum</span> American computer scientist and cryptographer

David Lee Chaum is an American computer scientist, cryptographer, and inventor. He is known as a pioneer in cryptography and privacy-preserving technologies, and widely recognized as the inventor of digital cash. His 1982 dissertation "Computer Systems Established, Maintained, and Trusted by Mutually Suspicious Groups" is the first known proposal for a blockchain protocol. Complete with the code to implement the protocol, Chaum's dissertation proposed all but one element of the blockchain later detailed in the Bitcoin whitepaper. He has been referred to as "the father of online anonymity", and "the godfather of cryptocurrency".

In cryptography, a certificate authority or certification authority (CA) is an entity that stores, signs, and issues digital certificates. A digital certificate certifies the ownership of a public key by the named subject of the certificate. This allows others to rely upon signatures or on assertions made about the private key that corresponds to the certified public key. A CA acts as a trusted third party—trusted both by the subject (owner) of the certificate and by the party relying upon the certificate. The format of these certificates is specified by the X.509 or EMV standard.

Ecash was conceived by David Chaum as an anonymous cryptographic electronic money or electronic cash system in 1982. It was realized through his corporation Digicash and used as micropayment system at one US bank from 1995 to 1998.

<span class="mw-page-title-main">Blind signature</span> Form of digital signature

In cryptography a blind signature, as introduced by David Chaum, is a form of digital signature in which the content of a message is disguised (blinded) before it is signed. The resulting blind signature can be publicly verified against the original, unblinded message in the manner of a regular digital signature. Blind signatures are typically employed in privacy-related protocols where the signer and message author are different parties. Examples include cryptographic election systems and digital cash schemes.

<span class="mw-page-title-main">Digital currency</span> Currency stored on electronic systems

Digital currency is any currency, money, or money-like asset that is primarily managed, stored or exchanged on digital computer systems, especially over the internet. Types of digital currencies include cryptocurrency, virtual currency and central bank digital currency. Digital currency may be recorded on a distributed database on the internet, a centralized electronic computer database owned by a company or bank, within digital files or even on a stored-value card.

CertCo, Inc., was a financial cryptography startup spun out of Bankers Trust in the 1990s. The company pioneered a risk management approach to cryptographic services. It had offices in New York City and Cambridge, Massachusetts. It offered three main public key infrastructure (PKI) based products: an Identity Warranty system ; an electronic payment system ; and an Online Certificate Status Protocol (OCSP) responder for validating X.509 public key certificates. It went out of business in Spring 2002 never having found a wide market for its products despite filing a number of patents and developing new technology.

Stefan Brands is the designer of the core cryptographic protocols of Microsoft's U-Prove technology. Following his academic research on these protocols during the nineties, they were implemented and marketed under the U-Prove name by Credentica until Microsoft acquired the technology.

In cryptography, a ring signature is a type of digital signature that can be performed by any member of a set of users that each have keys. Therefore, a message signed with a ring signature is endorsed by someone in a particular set of people. One of the security properties of a ring signature is that it should be computationally infeasible to determine which of the set's members' keys was used to produce the signature. Ring signatures are similar to group signatures but differ in two key ways: first, there is no way to revoke the anonymity of an individual signature; and second, any set of users can be used as a signing set without additional setup.

Digital credentials are the digital equivalent of paper-based credentials. Just as a paper-based credential could be a passport, a driver's license, a membership certificate or some kind of ticket to obtain some service, such as a cinema ticket or a public transport ticket, a digital credential is a proof of qualification, competence, or clearance that is attached to a person. Also, digital credentials prove something about their owner. Both types of credentials may contain personal information such as the person's name, birthplace, birthdate, and/or biometric information such as a picture or a finger print.

Decentralized computing is the allocation of resources, both hardware and software, to each individual workstation, or office location. In contrast, centralized computing exists when the majority of functions are carried out, or obtained from a remote centralized location. Decentralized computing is a trend in modern-day business environments. This is the opposite of centralized computing, which was prevalent during the early days of computers. A decentralized computer system has many benefits over a conventional centralized network. Desktop computers have advanced so rapidly, that their potential performance far exceeds the requirements of most business applications. This results in most desktop computers remaining idle. A decentralized system can use the potential of these systems to maximize efficiency. However, it is debatable whether these networks increase overall effectiveness.

<span class="mw-page-title-main">Mix network</span> Routing protocol

Mix networks are routing protocols that create hard-to-trace communications by using a chain of proxy servers known as mixes which take in messages from multiple senders, shuffle them, and send them back out in random order to the next destination. This breaks the link between the source of the request and the destination, making it harder for eavesdroppers to trace end-to-end communications. Furthermore, mixes only know the node that it immediately received the message from, and the immediate destination to send the shuffled messages to, making the network resistant to malicious mix nodes.

<span class="mw-page-title-main">Moni Naor</span> Israeli computer scientist (born 1961)

Moni Naor is an Israeli computer scientist, currently a professor at the Weizmann Institute of Science. Naor received his Ph.D. in 1989 at the University of California, Berkeley. His advisor was Manuel Blum.

<span class="mw-page-title-main">Adam Back</span> British cryptographer and cypherpunk (born 1970)

Adam Back is a British cryptographer and cypherpunk. He is the CEO of Blockstream, which he co-founded in 2014. He invented Hashcash, which is used in the Bitcoin mining process.

In cryptography, the dining cryptographers problem studies how to perform a secure multi-party computation of the boolean-XOR function. David Chaum first proposed this problem in the early 1980s and used it as an illustrative example to show that it was possible to send anonymous messages with unconditional sender and recipient untraceability. Anonymous communication networks based on this problem are often referred to as DC-nets.

U-Prove is a free and open-source technology and accompanying software development kit for user-centric identity management. The underlying cryptographic protocols were designed by Dr. Stefan Brands and further developed by Credentica and, subsequently, Microsoft. The technology was developed to allow internet users to disclose only the minimum amount of personal data when making electronic transactions as a way to reduce the likelihood of privacy violations.

Amos Fiat is an Israeli computer scientist, a professor of computer science at Tel Aviv University. He is known for his work in cryptography, online algorithms, and algorithmic game theory.

<span class="mw-page-title-main">GNU Taler</span> Electronic payment system

GNU Taler is a free software-based microtransaction and electronic payment system. Unlike most other decentralized payment systems, GNU Taler does not use a blockchain. A blind signature is used to protect the privacy of users as it prevents the exchange from knowing which coin it signed for which customer.

References

  1. Chaum, David (1983). "Blind Signatures for Untraceable Payments" (PDF). Advances in Cryptology. Vol. 82. pp. 199–203. doi:10.1007/978-1-4757-0602-4_18. ISBN   978-1-4757-0604-8.
  2. Pitta, Julie (1999/11/01). Requiem for a Bright Idea - Forbes
  3. "In Brief: InfoSpace Buys eCash Technologies". American Banker. 2002-03-01. Retrieved 2021-03-18.
  4. Blind Signatures for Untraceable Payments," D. Chaum, Advances in Cryptology Proceedings of Crypto 82, D. Chaum, R.L. Rivest, & A.T. Sherman (Eds.), Plenum, pp. 199-203.
  5. Chaum, David. "Security Without Identification: Transaction Systems To Make Big Brother Obsolete". Communications of the ACM 28.10 (1985): 1030-1044. Web.
  6. "eCash: Overview, Rise and Fall". Investopedia. Retrieved 2023-09-25.
  7. https://web.archive.org/web/20220817175828/https://chaum.com/wp-content/uploads/2022/01/05-07-96-DigiCash_s-Ecash%E2%84%A2-to-be-Issued-by-Deutsche-Bank.pdf [ bare URL PDF ]
  8. Brodesser, Jens-Ingo. "First Monday Interviews: David Chaum." First Monday [Online], 4.7 (1999): n. pag. Web. 8 Jun. 2016
  9. Pitta, Julie. "Requiem for a Bright Idea." Forbes. N.p., 1 Nov. 1999. Web. 5 May 2016.
  10. Pentland, Alex 'Sandy'. "Digital cash and privacy: What are the alternatives to Libra?". MIT Media Lab. Retrieved 2019-12-30.