Financial cryptography

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Financial cryptography (FC) is the use of cryptography in applications with strong financial motivation.

The field found its original inspiration in the work of Dr David Chaum who invented the blinded signature. This special form of a cryptographic signature permitted a coin to be signed without the signer seeing the actual coin, and permitted a form of digital token money that offered untraceability. This form is sometimes known as Digital Cash.


As a business, FC followed the guide of cryptography and only the simplest ideas were adopted. Account money systems protected by SSL such as PayPal, e-gold and GoldMoney were relatively successful, but DRM, blinded token money and efforts by banks were not.

Financial cryptography is frequently seen as of broad scope. Grigg sees financial cryptograpy in seven layers [1], being the combination of seven distinct disciplines: cryptography, software engineering, rights, accounting, governance, value, and financial applications. Business failures can often be traced to missing disciplines or poor application of same. This view has FC as a crossdiscipline subject.

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