Financial Cryptography

Wikicrypto

A while ago, Matt pointed me to several links in Wikipedia on "Project Cryptography", crypto topics1, topics2, digital signatures, etc etc. All could do with some updating, but that's the nature of Wikis, right?

Which reminds me to check in and post the current definition of Financial Cryptography, that breed of crypto that might not include any crypto...

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 some known as Digital Cash.

The term "financial cryptography" was coined by Hettinga to encompass that innovation and also all of the other potential ways in which cryptography could lead to finance applications. These applications include a very wide range of possibilities, including finance, retail payment systems, trading, digital rights management (DRM), virtual gaming, reputational systems, community currencies, and access and authentication systems.

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.

Don't like it? Then change it!