The European National Bank practice took a gander at an assortment of purpose cases, the majority of which were very palatable, as well as the utilization of self-custodied wallets.
The European National Bank (ECB) has distributed a rundown of the consequences of its computerized cash prototyping exercise. The exercise looked at four other scenarios of interoperability with existing payment systems and the offline use of a simulated digital euro.
As part of Eurosystem preparations for a possible pilot launch of a digital euro in the fall of this year, the project was part of the second phase. From July 2022 to February 2023, the exercise was held.
Using an unspent transaction output (UTXO) data model, the Eurosystem developed the NXT centralized settlement engine for the exercise. Privately held businesses provided five examples of model client interfaces that addressed distinct use cases. Additionally, self-custody wallets were tested.
By using one-time UTXO addresses that did not reveal the wallets that held them, the UXTO model safeguarded customer privacy. The user experience for custodied and non-custodied wallets was the same.
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The disconnected exchange use case was more tricky. The report came to the following conclusion in an effort to acquire "more in-depth knowledge of how the combination of hardware and software protocols could avoid double spending and ensure settlement finality and non-repudiation":
“Questions remain as to whether the existing technology is capable of delivering, in the short to medium term (five to seven years), a production-ready and secure offline solution.”
Despite this, the exercise demonstrated "interoperability of online and offline digital euro prototypes, even if based on different data models and technical designs."
The "Market Research Outcome Report" on the digital euro was published simultaneously with the exercise summary by the ECB. It likewise found that disconnected "arrangements consistent with the Eurosystem necessities would be novel and could create vulnerability when a disconnected arrangement may be prepared."
For offline transactions, respondents preferred near-field communication, Bluetooth interfaces, or QR codes. The statistical surveying tended to 12 exceptionally specialized parts of a potential computerized euro rollout, for example, intermediary queries and committed cash accounts for the executives.
(Derek Andersen - Cointelegraph - 2023)