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Cardano produces a microchip that corresponds to the “cash” of cryptocurrencies

May 22, 2020

In a recent interview with Cointelegraph, Charles Hoskinson talked about the cryptocurrency microchip that IOHK produces in its blockchain lab at the University of Wyoming that could have many innovative uses even a cash-like experience but with cryptocurrencies.

The crypto microchip

It all started with IOHK, the company responsible for developing cryptocurrencies Cardano (ADA) began examining the use of the supply chain and realized that there were no chips on the market that could meet its requirements: Integrability, ability to store cryptographic keys and produce them cheaply.

“We are really realizing that, unfortunately, there is currently no market standard for reliable open source hardware that is powerful enough to be used with cryptocurrencies, but also in the supply chain.” .

Hoskinson noticed that The chip remains open source and not only benefits Cardano. but to the entire crypto community.

What does Lamborghini have to do with it?

The chip could be used in a variety of cases in the supply chain. including authentication and management of luxury goods. For example, it could be used to determine that authenticity Louis Vuitton handbags or to manage access to purchases from Limited editions from Lamborghini:

“For example, to the only people they can buy them [modelos de edición limitada] are Lamborghinis certified customers. And that’s how many of these things look. In the end, even though they have verified customers, a lottery system is operated and If you win, you have the right to buy it. But they almost always sell this right to someone else and make a profit. So it’s like the free money Lamborghini gives its customers. “

From cryptocurrencies to physical money

Cardano produces a microchip that corresponds to the “cash” of cryptocurrencies
Cardano produces a microchip that corresponds to the “cash” of cryptocurrencies

However, not all uses of the chip are associated with extremely expensive items. Lots They affect agriculture and developing countries. At first glance, one of the most far-reaching projects would involve a counter-intuitive transformation from the virtual currency to the physical currency:

“Bitcoin’s goal was to switch from cash to something that looks like virtual money. But what if you want to go in the opposite direction? What if you want to switch from a native cryptocurrency to something that is one Record user experience? It’s very difficult to do without a hardware component. “

Cardano believes developing countries are one of the key markets for the future success of cryptocurrencies. For example, it was found that only 2% of the six million farmers in Africa own smartphones:

“When you look at that, you say, well, OK, 98 percent are not connected to the world and their business is not banking or digital, so if you were to build a monetary system for them, it would probably be a bad idea to say : “Look, you have to use a purely digital currency. You need something else. And how can I replicate the cash experience and still have a blockchain backup? Well, you create a hierarchy in which these two percent basically become micro-banks, and then they can manage the issuance of these tokens to people and then check their local phones or infrastructure. “

An infinitely scalable cryptocurrency

This would work so that the private key is transferred from one chip to another. It would also provide evidence that it was deleted and ensure that the key is only present on the new device. The chip could be embedded in a cell phone case and would not need the internet for key transfer:

“If you can do this, you can basically communicate with the devices locally without an internet connection and transfer goods like a $ 20 bill from one user to another, and in this way the money experience is replicated. The good thing about the solution is that it is infinitely scalable because these transactions don’t happen on the blockchain as if nothing had happened. “

This is a long term project that It will take years for it to be perfect. One of Hoskinson’s concerns is the shadow of the trade war between the US and Chinathat could shorten the supply lines for chip production. In addition, the crypto industry is considered a weapon system, and governments restrict their exports. Although overlooked during the falcon period, these controls tend to be stricter in times of conflict.