The Transferable Digital Notes System (TDNSYS) is a simple, reliable and easy to implement solution for replacing paper money with digital currency. The system is centralized, based on the client server model and can be implemented employing existing, reliable and proven state of the art technologies used in the Financial market infrastructures (FMIs). A Central Bank must implement the system.
The solution to the double spending problem is patent protected. This solution is not based on accounts with the Central Bank, blockchain or distributed ledger technologies. Preventing double spending is very fast. It requires only a few database transactions and negligible CPU processing time. Performing a TDN transaction is as fast if not faster than a credit card payment. There is no need for clearance as it is with credit card transactions. The money is available to the retailer instantly.
A TDN is a unique, impossible to guess long string of numbers associated with a money amount. The long string of numbers is called the
The following transactions are supported by TDNSYS implemented at the Central Bank in order to perform payments or money transfers:
A TDN holder can use it to make a payment or to transfer it to somebody else. TDNs can be deposited in a bank account in the same way as paper money or they can be converted to paper money at a retail bank. The retail banks can deposit their TDNs in their reserve account with the Central Bank.
A transaction consists in the transferring of the
Here are the steps of very simple transaction:
It should be noticed that a TDN can be transferred without being connected to the Central Bank. In this situation the transaction is based on trust. The payee assumes the TDN is valid and the payer will not transfer the TDN again.