Cardano microchip research to provide a cash experience for cryptocurrencies

Cardano (ADA) is developing a microchip in a cryptocurrency language that can be used to exchange cryptocurrencies offline and provide hundreds of millions of people around the world with a new experience similar to fiat currencies.


In a recent Cointelegraph interview, Charles Hoskinson (Charles Hoskinson) detailed the IOHK’s crypto chip research work in the Blockchain Lab of the University of Wyoming. This will apply to many breakthrough scenarios, including a cash-like cryptocurrency experience.

Encrypted language chip

Initially, IOHK, the development company of Cardano (ADA), began to try and explore supply chain usage scenarios, but soon realized that there were no chips on the market that met its needs, but also had embeddability, key storage capabilities and comparative Low cost:

“We have noticed that there is currently no standard in the market that is powerful enough to be used with cryptocurrencies or hardware standards used in the supply chain.”

Hoskinson emphasized that all work on the chip will remain open source, which will benefit both Cardano and the entire crypto community.

When will Lamborghini be on the chain?

The chip can be used in various supply chain scenarios, including the certification and management of luxury goods. For example, it can be used to determine the authenticity of Louis Vuitton handbags, and can also be used to verify the purchase of limited edition Lamborghini:

“The only users who have the authority to buy these ‘limited edition models’ must be verified. We can see many such examples, which will eventually verify the user’s identity. For example, the lottery system: if they win, they have the right to purchase. Generally speaking, companies have the privilege of selling to the outside world, so Lamborghini gives their customers this right as if paying money for free. “

From cryptocurrency to physical cash

Not all chip cases are applied to high-priced commodities, but also involve agriculture and the developing world. One of the most influential is the transition from virtual currency to physical currency:

“The essence of bitcoin is to change from cash to cash on a similar line. But if you think about it in reverse, what if you want to switch from a cryptocurrency to a cash-like experience? It is difficult to do without hardware components . “

Cardano believes that developing countries are one of the key markets for future cryptocurrency success. Of the 6 million farmers in Africa, only 2% have a smartphone:

“Seeing this, you might say that the remaining 98% are mostly offline, with no bank or Crypto currency. If you can build a currency system for them and tell them that they must use online Crypto currency, this is not a good idea. So, what is important now is how to use blockchain technology to provide a cash payment experience. All that needs to be done is to create a hierarchical structure, like a micro-bank that can manage and issue these tokens to people, and then through their local Mobile phone or infrastructure can be verified. “

Unlimited expansion encryption

This way of working is to transfer the private key of one chip to another chip. It will also provide proof of erasure to ensure that the key only exists on the new device. The chip can be embedded in a mobile phone and does not require a network to transmit encryption keys:

“If this can be done, basically the end-to-end value transfer of mobile phones can be carried out without an Internet connection. It is transferred like a twenty-dollar bill, copying the experience of using cash. This solution The advantage is that it can be expanded indefinitely, because these transactions don’t actually happen on the blockchain. Therefore, from the perspective of the blockchain, nothing happens. “

This project will take several years to complete, and Hoskinson is worried that the problem is affected by Sino-US relations, which may cut off the chip production supply line. In addition, the encryption-related industry is considered a weapon system, and the government has restricted exports. Although this issue may be overlooked during peacetime, these control measures tend to become strict during times of conflict.

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