Digital Credential - Digital Cash

Digital Cash

Money is usually not seen as a qualification that is attached to a specific person as token money is taken to have a value on its own. Digital assets like digital cash are easily copied. Consequently digital cash protocols have to make an extra effort to avoid the double spending of coins. Credentials are a proof of qualification that is attached to a person. E-Coins are given to individuals, who cannot pass them on to others, but can only spend them with merchants. As long as they spend a coin only once, they are anonymous, but should they spend a coin twice, they become identifiable and appropriate actions can be taken by the bank. This commonality, the binding to an individual, is why digital cash and digital credentials share many commonalities. In fact most implementations of anonymous digital credential also realize digital cash.