MIT develops technical platform for digital dollars
Software

MIT develops technical platform for digital dollars

Federal Reserve Bank of Boston and Massachusetts Institute of Technology (MIT) submitted the first results of joint research and open source software developments that can form the basis of the digital dollar – the official electronic currency (CBDC) of the United States. The authors of the work emphasize that they do not try to make any political decisions about CBDC and only focus on the technical side of the issue.

Image source: Gerd Altmann / pixabay.com

Image source: Gerd Altmann / pixabay.com

The results presented by the researchers are just the first phase of a multi-year program called Project Hamilton. The task of specialists is to create flexible and fault-tolerant software. To date, a platform has already been developed that allows processing up to 1.7 million transactions per second, and “a majority” Transactions take less than two seconds. The platform is flexible enough that its work can be adjusted after launch to adapt to political aspects, change the network structure and even the fundamental goals of the CBDC.

At the initial stage, the platform will not involve intermediary involvement in transactions, as well as commission payments for referrals, but these features may be added later if a relevant policy decision is made. The project also envisages the possibility of changing the architecture depending on the needs of the financial system. Therefore, according to the authors of the project, the use of a distributed registration standard for modern cryptocurrencies has its disadvantages: decentralization threatens bottlenecks and data protection problems.

In the coming phases, the creators of Project Hamilton plan to further explore alternative options for the architecture of digital currencies and focus on issues such as security and ease of code development. In addition, they want to find a balance between data protection and legal compliance. Keep in mind that the US Federal Reserve is now actively exploring the possibility of launching an official digital currency.

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Robbie Elmers

Robbie Elmers is a staff writer for Tech News Space, covering software, applications and services.

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