In an article by Forbes’s Nina Bambysheva on February 13th, 2021, Madars Virza’s paper “Zerocash: Decentralized Anonymous Payments from Bitcoin” and Tadge Dryja’s “The Bitcoin Lightning Network: Scalable Off-Chain Instant Payments” were named as one of “The 10 Most Important Scientific White Papers In Development Of Cryptocurrencies.
Read MoreIntense interest in cryptocurrencies, like bitcoin, and the Covid-19 pandemic have sparked debate among central banks on whether they should issue digital currencies of their own. Advocates argue that central bank digital currencies, or CBDCs, can make cross-border transactions easier, promote financial inclusion, and provide payment system stability. Here's how central bank digital currencies could become the future of digital finance.
Read MoreThanks to millions of open source developer hours over the past 12 years, and a burgeoning and supportive ecosystem, Bitcoin is no longer an obscure cryptographic toy. It is now an open-source financial network that secures on the order of $1T of value.
As the use of Bitcoin grows, and as it becomes more deeply embedded into our societies, the security of the network must grow and strengthen alongside it. Yet, as a common good, there is no one single Bitcoin protector or guardian to take on this formidable task. By design, there is no central command. And while this presents significant logistical challenges, it is also the distinguishing feature perhaps most unique to Bitcoin: no central point of failure. Bitcoin's nearly-uninterrupted operation over the years is a testament to the power of decentralization…
The goal of Utreexo is to make running a full node easier, faster, and smaller, and while that’s more of an asymptote than a point on any curve, we’re getting there. Today we’ve released Utreexo demonstration 0.2, which pairs the Utreexo accumulator with a modified version of btcd(temporarily called utcd). Most of the utcd work was done by Calvin Kim, as Niklas Gögge and myself have been working on improving the accumulator and how it interacts with the bitcoin data structures. Calvin has written a post about the work as well.
This new release works more like a normal bitcoin node: it starts up, finds peers, and verifies the blockchain. There are still things it doesn’t have, like a mempool, or a way to deal with reorgs. (It currently deals with reorgs by crashing.)
Read MoreRe: Comments to the Financial Crimes Enforcement Network on Requirements for Certain Transactions Involving Convertible Virtual Currency or Digital Assets
FinCEN Docket No. FINCEN-2020-0020, RIN 1506-AB47
January 4, 2021
DCI Director, Neha Narula and Patrick Murck (@virtuallylaw) submitted this comment on FinCEN's latest proposed rule. They explain this might limit policy choices for a future digital dollar, reduce market competition, and most importantly, that's not how addresses actually work.
Read MoreA new report from MIT, however, strongly argues against the idea of blockchain-based e-voting, largely on the basis that it will increase cybersecurity vulnerabilities that already exist, it fails meet the unique needs of voting in political elections and it adds more issues than it fixes.
Read MoreBy Hannah Lang November 4, 2020 9:30 PM
In American Banker’s weekly podcast “Bank Shot”, Neha Narula was interviewed by Hannah Lang on Central Bank Digital Currency (CBDC).
Read MoreA Federal Reserve-issued digital dollar could speed up payments, expand financial access and reduce financial crime. But it also brings trade-offs that policymakers are only just beginning to consider.
There are many models for “money”--account based models and tokenized money dominate many conversations, but other pathways are breaking new ground as well, including new emoney solutions and conceptions of money as an infrastructure or platform that could support new financial applications and innovations. We talk on this panel about what’s likely--and possible.
Speakers - Andres Wolberg-Stok, Head of Strategy, Office of the CTO, Citi; Robert Bench, Assistant Vice President, Federal Reserve Bank of Boston; Patrick Murck (Moderator), Chief Legal Officer, Transparent; Jenny Cieplak (Moderator), Partner, Latham & Watkins LLP; Neha Narula, Director, MIT's Digital Currency Initiative; Dante Disparte, Vice Chair and Head of Policy & Communications, Libra Association
Read MorePlease join the CSIS Economics Program in partnership with the OMFIF Digital Monetary Institute for a virtual webinar. This event will feature keynote remarks from Brent McIntosh, Under Secretary for International Affairs at the U.S. Department of Treasury and Kenji Okamura, Vice Minister of Finance for International Affairs at Japan’s Ministry of Finance to discuss recent digital currency developments and what they could mean for the future of the international financial and monetary systems. The keynote will be followed by an expert panel discussion to address key issues including:
The link between digital currency, cross-border payments infrastructure, and currency usage in the international financial and monetary systems.
Technology that supports digital currency and how it can meet the design requirements, specifically of central bank digital currency.
Opportunities and risks presented by digital currency to commercial banks and established payments providers.
FinTech offers unparalleled opportunities for financial inclusion, on both macro and micro scales. Today, payments are embedded in platforms in ways that will upend traditional commerce; crypto payments are creating new ecosystems of inclusivity between businesses and customers; and central banks are looking at digital currency to address inclusion on a national scale. This panel discussion will run the gamut of these exciting developments.
Read More“Despite the focus on operating in adversarial environments, cryptocurrencies have suffered a litany of security and privacy problems. Sometimes, these issues are resolved without much fanfare following a disclosure by the individual who found the hole. In other cases, they result in costly losses due to theft, exploits, unauthorized coin creation, and destruction. These experiences provide regular fodder for outrageous news headlines. In this article, we focus on the disclosure process itself, which presents unique challenges compared to other software projects.15 To illustrate, we examine some recent disclosures and discuss difficulties that have arisen…”
Read MoreDCI’s Tadge took part in an episode of “What Bitcoin Did" with host, Peter McCormick, discussing the fundamental and technical differences between Bitcoin and Ethereum, scalability and use cases.
Read MoreOn this week's Money Movement we're joined by Visa's Head of Crypto, Cuy Sheffield; Neha Narula, the Director of MIT's Digital Currency Initiative, an institute leading research and development in crypto, digital currency and now CBDC models; and Robert Bench, AVP at the Federal Reserve Bank in Boston, and a key contributor and collaborator on the future of digital currency with the Federal Reserve.
Read MoreThe Federal Reserve Bank of Boston and the Massachusetts Institute of Technology are partnering on a research effort focused on central bank digital currencies (CBDC).
Federal Reserve governor Lael Brainard spoke about the initiative during an appearance Thursday. In her remarks, Brainard touched on a variety of points around the subject of CBDC and then highlighted the work between the Boston Fed and MIT. Notably, Brainard said that any code developed as part of the initiative would be made public "for anyone to use for experimentation."
Read MoreThe Federal Reserve Bank of Boston has entered into a partnership with the Massachusetts Institute of Technology to better understand the concept of digital currencies.
The bank will work with MIT researchers on a multiyear project to develop and test the use cases of a “hypothetical” central bank digital currency (CBDC), said Fed Governor Lael Brainard during her speech at the Federal Reserve Bank of San Francisco.
She said that digital currencies bring both opportunities and threats related to privacy, illicit activity and financial stability, and the Reserve must clearly understand both aspects of it as they proceed towards the creation of a CBDC.
The research with MIT is expected to help the bank gain hands-on experience and understanding of these aspects.
Read MoreThe U.S. Federal Reserve is actively investigating distributed ledger technologies and how they might be used for digitizing the dollar.
Federal Reserve Board Governor Lael Brainard said the U.S. central bank has been testing DLT over the past several years to study what a digital currency might do to the existing payments ecosystem, monetary policy, financial stability and the banking sector.
“With these important issues in mind, the Federal Reserve is active in conducting research and experimentation related to distributed ledger technologies and the potential use cases for digital currencies,” Brainard said Thursday at the Federal Reserve Bank of San Francisco’s Innovation Office Hours…
Read MoreThe Boston Fed is toying with a digital dollar.
The Hub’s Federal Reserve Bank is teaming up with the Massachusetts Institute of Technology to study the blockchain technology that enables cryptocurrency to be traded. And, based on the latest figures, the currency is red hot.
“We’re not building this for tomorrow, we’re building this for future years,” said Jim Cunha, senior vice president at the Boston Fed.
Boston Fed Assistant Vice President Robert Bench is working for Cunha to rip apart what makes cryptocurrency — sold as Bitcoin, Ethereum, Litecoin and more — be so successful.
Read MoreThe Federal Reserve is conducting experiments with a hypothetical digital dollar for research purposes, though it hasn’t yet committed to issuance that would require a formal policy process involving the government and other stakeholders, Governor Lael Brainard said Thursday.
In addition to the Fed’s own internal work, research teams from the Boston Fed and Massachusetts Institute of Technology are engaged in a “multi-year effort to build and test a hypothetical digital currency oriented to central bank uses,” she said…
Read MoreOne of our goals at the Digital Currency Initiative is to harden the security of cryptocurrency networks. Most users of cryptocurrency take the actual network protocol and all of its implementation — mining, pools, validation, messaging, and more — for granted, and aren’t necessarily aware of all the ways these mechanisms might be attacked or fail. For example, though mining pools are a huge part of Bitcoin’s network security, there isn’t any available public monitoring to make sure that mining pools are well-behaved. There isn’t even a standard way to look at what pool operators are doing or infrastructure to keep tabs on pool operators.
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