The creator of the predecessor of bitcoin, the electronic currency Ecash, as well as one of the founders of the movement “cyberpunk” David Chaum (David Chaum) launches a new cryptocurrency Praxxis.
The famous cryptographer plans to release a new digital currency Praxxis, which has such characteristics as security, speed and scalability, and can become a replacement for cash, as Chaum said in an interview with The Block. The purpose of the new digital currency is to serve as a means of payment. The crypto asset is created on the Elixxir blockchain, launched
“Bitcoin is not cash. It is a digital currency. It is a means of preserving capital. But it lacks the key characteristics of money, ” said Jim Dolbear, president of Elixxir.
According to Chaum, existing blockchain solutions have fallen into the so-called blockchain trilemma, where scalability, decentralization, and security cannot be fully satisfied by a single protocol. Chaum believes it’s time to break free of the old paradigm, because blockchains developed on this model “don’t really work.”
“For many years, people have been promised scaling, sidechains, sharding, but these technologies have not yet been implemented,” Chaum said.
According to him, the inability to simultaneously address security, scalability and speed issues also prevents cryptocurrencies from becoming a global transaction system. Praxxis, on the other hand, aims to break this impasse and ensure user privacy by deploying a so-called “denominated coin structure”. The scheme splits payments into smaller amounts and links them to other payments, so only the user knows how much money they are spending on each transaction.
As Chaum says, the Praxxis protocol is also resistant to quantum computing. This means that the protocol can survive attacks carried out by quantum computers, and Praxxis can be resistant to regular cryptanalysis initiated by hackers and even government agencies. Chaum said the government has standardized an encryption scheme that is widely used to protect digital information, including crypto assets.
However, this scheme is based on specific functions and can be hacked by the government. Instead, the Praxxis protocol “uses cryptography based on random functions… in this way, it automatically becomes quantum-stable, as well as resistant to conventional cryptanalysis.”
Hash functions, which are the mathematical basis of blockchains, are very difficult to change even with the help of quantum computers. At the same time, private key encryption, usually used for cryptocurrency wallets, is vulnerable to quantum attacks, hence the theoretical need for a quantum-stable digital currency.
At the moment, the technical specifications of the Praxxis are almost unknown, but a white paper will reportedly be released later this year. Dolbir said the company is currently being funded by private investors. For example, in the fall of last year, it became known that the co-founder of Ripple invested
to the project