God V: central bank digital currencies can interact with cryptocurrencies

Ethereum co-founder Vitalik Buterin has proposed a method for trading central bank digital currencies using cryptocurrencies.

Buterin raised a question on Twitter, is it possible for the central bank's digital currency transactions to be proved by crypto? In other words, is it possible to use mathematical methods to prove the completed transaction of the central bank's digital currency. If possible, this opens up some interesting possibilities.

He said, "If I send you N central bank digital currencies, can I generate a cryptographic certificate that can be verified on Ethereum? Basically, if I can prove to the Ethereum blockchain that the central bank digital currency system works Transactions, you can use it to build automated smart contract DEXs. "

Buterin explained that the process "will make it easier for people to trade between fiat and cryptocurrencies."

He mentioned the operation as follows. Suppose two people agree to pay each other, but use different payment methods. One wants to use some Ethereum to trade central bank digital currencies, such as China's upcoming digital renminbi. The question is, how do they ensure that the other party is willing to pay? They can create a smart contract and design it so that when one party completes a transaction, the other party will automatically execute it.

To achieve this, the Ethereum blockchain needs to be able to know whether the central bank's digital currency has been transferred, as it operates on a completely different centralized system. So as Buterin said, if cryptographic verification of central bank digital currency transactions can be done, this approach will work.

Image source: Pixabay

By Liang CHE

This article is from bitpush.news. Please reprint the source.

We will continue to update Blocking; if you have any questions or suggestions, please contact us!

Share:

Was this article helpful?

93 out of 132 found this helpful

Discover more

Blockchain

How terrible is the IEO? 62% of 87 projects broke, with a maximum loss of 99%

87 IEO projects, raising more than 2 billion, 62% broken "Bitcoin is about to plummet to $5,000." "Cry...

Blockchain

Number reading | The paradox behind the 109 reports The truth is that IEO is an antidote or a poison?

After several months of fermentation, the IEO boom continues, and there is even a wave of higher waves. Yesterday (Ap...

Blockchain

2019 Spot Exchange Research Report: The total global trading volume is $ 13.8 trillion, BTC accounts for 48.29%

Key takeaways: 1. The annual spot transaction volume was US $ 13.8 trillion . 2. BTC's annual trading volume acc...

Blockchain

Data report: Which exchanges are the most used in currency, fire, and OKEx?

(Image courtesy of 2Bitcoins.ru ) The Blockchain Transparency Institute (BTI) recently released a market monitoring r...

Blockchain

Is the 'big boss' of the cryptocurrency world, Binance, starting to decline?

LianGuaiBitpushNews Mary Liu As 2022 comes to a close, it seems that Zhao Changpeng, co-founder and CEO of Binance, ...

Blockchain

FTX on the Brink of Bankruptcy: Decisions Await!

Fashionista, get the scoop on FTX's post-bankruptcy plans as they weigh options for a potential sale or partnership.