• Digital money
    in distributed ledger

How does it work?

We encrypt financial transactions using national currencies in a distributed ledger. The distributed ledger is an asset database that can be shared across a network of people, businesses or institutions. Unlike the traditional centrally-administered and centrally-stored ledgers, each participant of our network has their own ledger. This solution eliminates the need to maintain a costly IT infrastructure and ensures the credibility of the transaction – even if someone tries to manipulate the data in one copy, other copies will retain the correct information. Thanks to this, the distributed ledger does not require central servers and provides better cost optimization, scalability and security.

The data in Billon’s distributed register is stored as a blockchain sequence. Blockchain is a type of database in which data is stored in consecutive blocks. Each new block contains an encrypted reference to the previous one, so it is not possible to change the contents of one block without modifying all subsequent ones. Transactions made using blockchain technology are therefore reliable, irreversible and practically impossible to counterfeit.

Blockchain is often associated with bitcoin – a well-known, controversial crypto-currency. Billon has developed an improved blockchain architecture that works in a similar way but is faster, scales better and uses regulated currencies.

What is digital money?

Let’s say you have a favorite song. It can be saved on some physical storage, like a CD, a vinyl record or a cassette. It can also be played on the radio, downloaded as an mp3 file or listened to as a stream on a streaming service. But it’s still the same song. Your favorite.

Money works the same way. It can be used in a physical form – as coins and banknotes. It can also be stored on an external server in the bank or downloaded as a file to your device. This last form is called digital money.

The use of digital money in the European Union is regulated by the European Parliament and Council’s Directive 2009/110 / EC from the 16th of September, 2009, on the electronic money institutions. According to the directive, the digital money is a legal payment method that can be issued by banks and other financial institutions. You can use it just like cash or money in your bank account.

Billon has developed a technology that can store digital money as encrypted files on electronic devices or in the cloud. Each monetary file contains its own serial number, denomination, currency denomination, publisher bank identifier, digital watermark and digital signature. It is signed with RSA keys as well as signatures based on elliptic curves using the bank’s hardware cryptographic modules. Such file is a digital equivalent of a paper note.

Security

The security of our customers is our top priority. This is why we have introduced three independent cryptographic mechanisms to secure transactions and digital signatures: RSA keys, forward secure and elliptic curves. This way each file is encoded differently, randomly and independently of the application, but at the same time its authenticity can be verified. A simultaneous breach of these three systems is practically impossible.

In addition, funds stored in the Billon application as well as all sensitive data sent over the Internet are encrypted using the symmetric AES algorithm. We do not store passwords or PINs. Even if the device is stolen, a thief who does not know the password will not be able to access the money.