DIGITAL CASH

This Free Seminar Report and PPT is mostly useful for searcher of electrical or electronic seminar topics with full report.or e-commerce and management people .This is report is based on E-currency, virtual cash,virtual money like bit coin,lite coin etc. famous in few years on internet or online mobile world.

This report is about digital cash, a way to implement  electronic payments in an environment of mutual trust between the bank and the system users. An anonymous token-based electronic payment system is referred to as digital cash (also known as electronic cash, e-cash, D-cash). Digital cash offers a solution to the problems of paper cash and today’s credit cards; it is secure and protects people’s privacy

DIGITAL CASH

DIGITAL CASH 

( Full Report ) DIGITAL CASH ( Ms Word ) ( Cover ,Index, Chapters, List of Figures )

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1.1 What is digital cash ?

Definition: 

Digital cash is a payment message bearing a digital signature which functions as a medium of exchange or store of value.

Essentially, digital cash mimics the functionality of paper cash. Paper currency and coins represent value because they are backed by a trusted third party, the government and the banking industry. Digital coins will also represent value because they are backed by a trusted third party, usually a bank that is willing to convert digital cash to physical cash.

Unlike real cash digital cash does not have physical existence (paper cash). But digital cash has value that makes possible digital cash exchangeable for paper cash. Digital cash is a transfer protocol for some underling form of money such as real cash.

Basic operations

Basic operations in digital cash transaction are :

a) Withdrawal : In which a customer transfers some of his money from his  bank account to his digital wallet (personal computer) in the form of digital coins.

 

b) Payment : In which customer transfers digital cash from his digital wallet (personal computer) to the merchant site.

c) Deposit : In which merchant  sends digital cash to the customer’s bank for verification. After appropriate examining the customer’s bank dispatches desired amount (equivalent to digital cash amount) to the merchant’s bank account.  

 

Actors of digital cash transaction 

                                    Bank                                                Costumer                           Merchant

Digital coin structure

A digital coin consists of the following elements :

•  Serial number – a unique number that identifies the coin .

•  Denomination – the actual value of the coin .

•  Validity Period . 

Structure of digital coin  

How does Digital Cash work?

The customer opens an account in a bank which issues digital cash. Customer is then required to deposit the amount of money he desires in his account. The bank issue digital cash to the customer equal to the amount the customer has deposited in his account.

A customer is required to download and install cyber wallet (software) onto his computer.Cyber wallet can be downloaded from bank’s site itself. Digital cash is downloaded in this cyber wallet. Digital cash is managed by this cyber wallet.

When user require digital cash he requests by sending an encrypted message to the bank. Customer uses his private key for encryption. The bank reads the message with public key of customer and verify it has been digitally signed in order to identify the user. The bank then generates "serial numbers", encrypts the message with it’s private key , signs it with its digital signature and returns it. The user is now entitled to use the message (coin or token) to spend it at merchant sites.

When a customer buy something at the web store that accepts digital cash , the stores software generate a payment request. When you click the “Pay by digital cash” button than customers cyber wallet which holds the digital cash (issued by bank) subtracts the payment amount and sends to the merchant site. Merchant sends the digital cash it has received from customer to the bank for verification. After verification the amount is credited to the merchant's account. Diagram below give an idea of a digital cash transaction.

 

Steps involved in the digital cash transaction : 

1.                  Customer  withdraw digital cash from bank and stores in a digital wallet.

2.                  Customer orders the product he require via internet at merchant’s site.

3.                  Merchant asks for payment.

4.                  Customer pays bill sending digital cash to the merchant.

5.                  Merchant sends digital cash to the bank for validation.

6.                  Bank validates digital cash, then merchant deposit digital cash.

7.                  Finally merchant sends product and receipt to the customer.

  

How is digital cash stored ?

In off-line digital cash system we need to store digital cash in utilities like smart cards, digital wallet.

                         a) Digital wallet:

·                 It is a database (software) that store account information.

·                 Located on user’s system.

·                 Stores user identification information, digital cash.

·                 Digital wallet can be downloaded from www.cybercash.com. 

b) Smart card :

·                 Card with computer chip embedded on its face.

·                  

·                  

·                 Stores digital cash.

·                 Have processing capabilities like addition and subtraction.

·                 Used for off-line digital cash transactions.

·                 For example : Visa, Mondex, Octopus, Java.  

Bibliography and References

Books

1. Computer Networks by Andrew S Tanenbaum.

URL’S

 1. http://www.itd.nrl.navy.miITD/5540/ieee/cipher/cipher-crypto-stds.html

 2. http://ps.superb.net

 3. http://www.cwi.nl/~brands/cash.html

 4. http://www.certicom.cahtml/ecc.htm

 5. http://www.cybercash.com

 6. http://www.digicash.nl

( Full Report ) DIGITAL CASH ( Ms Word ) ( Cover ,Index, Chapters, List of Figures )

CLICK TO DOWNLOAD