fairCASH - the first true digital cash solution

Peer-to-Peer (P2P) refers to a distributed application architecture. Peers are equally privileged, equipotent participants in our fairCASH world. This is the shortest possible way to form a network of communicating node couples. Such a communication is not in the need for central coordination. Each peer supplies and consumes eCoins, in sharp contrast to the traditional central ePayment world.

Payment amounts can be transferred on-line or off-line. We find several meanings in the literature defining different positions about this. Our definition is tied to a strict model of how the transaction is done and not to the technical way of transmission.

In brief, "off-line" means that some given transaction can be performed between two peer devices directly, without requiring a (trusted) third party. An “off-line” transaction of electronic tokens thus manages the whole transaction between two peer devices as true Peer-to-Peer (P2P) relationship process. This means that a user of a peer device can freely pass the electronic tokens to another party (another peer device) without involving a third party. Off-line transfers does not need an external service (e.g. by a (trusted) third party) for executing the transaction protocol and thus the transfer of the electronic tokens between two peer devices occurs directly.

fairCASH implements exactly this P2P and off-line transaction method.

In contrast, the term "on-line" means involvement of a (trusted) third party in a given transaction. An "on-line" transaction hence means that there is the need of a trusted third party as a service institution (which may be an intermediate clearer) in order to be able to conduct the transaction. One of the biggest obstacles of an on-line transfer of electronic tokens is the impossibility to transfer the electronic tokens, if the service is down or unreachable.

fairCASH separates transactions P2P and off-line done from loss compensation.
fairCASH separates transactions P2P and off-line done from loss compensation.

Taken as a challenge to computational fairness in the field of electronic commerce, fairCASH separates all ‘good’ transfer cases from the 'failed' ones using the teleportation concept.

fairCASH generates for these ‘bad’ transfers affidavits for an external arbiter (eMint). These loss proofs can be turned into new value (e.g. exchanged against eCoins) in a succession step at any time outside the transfer protocol.

This mechanism disconnects the transfer from the necessity of being on-line. The reimbursement process has to be negotiated with the eMint in the need to be done on-line.

All this is achieved in an automated and user transparent way.