Digital money solutions on
distributed ledger technology
How does it work?
We change the world of finance by recording financial transactions with regulated currencies using a distributed ledger. It is an asset database that can be shared across a network of multiple sites, places or institutions. Unlike traditional paper-based or digital ledgers, distributed ledger exists simultaneously in many copies with no central administration or data storage. It removes the need for an expensive central IT infrastructure and ensures that, even if one copy is corrupted, others will maintain integrity. In summary, the technology of distributed ledger removes the need for central servers, providing significant benefits of cost, scalability and security.
Data in our distributed ledger is stored as a blockchain. A blockchain is a type of database that takes a number of records and puts them in a block. Each block is then ‘chained’ to the next block, using a cryptographic signature to ensure trust and accountability. Blockchain database as a distributed ledger can record transactions between two parties efficiently and in a verifiable, permanent way.
What is digital money?
Imagine a song. It can be recorded on a physical carrier, like a CD, a vinyl or a cassette, it can be aired on radio, downloaded as an MP3 or streamed online. Still, it remains the same song.
Money works just like songs. It can be used in a physical form of coins and banknotes, stored on an external server in a bank or downloaded to your device as a file. The last form is digital money.
In the European Union the circulation of digital money is regulated by The Directive 2009/110/EC of the European Parliament and of the Council of 16 September 2009 (The E-Money Directive (2009/110/EC)). E-money is a legal tender equivalent to cash or money in a bank account. It can be issued by banks and other payment institutions.
Billon devised the technology to store digital money as encrypted files on a mobile device or in a cloud. Each entry has a serial number embedded, together with denomination, currency, identifier of the issuing bank as well as layer of digital watermarks and digital signatures. Signatures are both in standard RSA format and on elliptic curves created by bank’s HSM. It is a digital counterpart of a paper banknote.
Security of our customers’ money is our paramount concern. To assure its maximum level we implemented three independent cryptographic mechanisms for digital signatures and transactions: RSA, forward secure, and elliptic curves. It is practically impossible to break all three simultaneously. As a result every file is coded in a randomly chosen way which still allows us to verify its authenticity.
In addition all assets and sensitive data on a device or in a cloud are encrypted using AES algorithm. We do not store any passwords or PIN codes. Even if a device is stolen, a perpetrator who does not know your password has no possibility to access money stored there.