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Tewari, Hitesh; Nuallain, Eamonn O.
2015 IEEE International Conference on Web Services, 06/2015Conference Proceeding
This paper introduces a new P2P Electronic Cash system called Netcoin. The purpose of Net coin is to facilitate inexpensive peer-to-peer monetary transactions on the Web. Its salient features are that it is a traceable system with an efficient mechanism for verifying transactions. Net coins are reusable and can be easily passed from one user to another. The issuing of virtual currency and verification of transactions are performed by trusted mints, which act as the gateway between the fiat and virtual currency worlds. There is no need to maintain a public ledger, which would inhibit use on a global scale because of rapidly increasing memory and bandwidth requirements. The system is neither inflationary nor deflationary in nature and does not purport a new economic model. As a fiat-backed currency it should not suffer the volatility issues associated with Bit coin. In this paper the two most prominent electronic payment systems of the last forty years, namely Ecash and Bit coin, are examined. Net coin is then introduced in detail and is designed to address the shortcomings of these payment systems.
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