Cardano develops a microchip for cryptocurrency payments

The Cardano project is working on the creation of a microchip that will allowpay for purchases with cryptocurrencies,similar to plastic cards.

Thanks to these chips, the use of cryptocurrencies can become as simple as cash payments. Also, such devices can be used for other purposes, for example, in supply chains.

According to project founder Charles Hoskinson(Charles Hoskinson), when Cardano began to study the prospects of blockchain and cryptocurrencies in supply chains, then analysts were faced with the lack of suitable chips in the market. There were no devices that would allow cryptographic keys to be stored, they were inexpensive to manufacture and could be built into a wide variety of things.

“We found that there is no market standard fordevices with an open architecture that would be powerful enough to work with cryptocurrencies and be used in supply chains, ”said Hoskinson.

He said that such a chip can be usedto verify the authenticity of the product, especially when it comes to luxury goods, for example, Louis Vuitton bags. Well, of course, with the help of such chips it will be possible to pay with cryptocurrencies even if there is no connection to the network:

“The whole point of Bitcoin was to move away fromcash and switch to online payments. But what if we go in the opposite direction? What if cryptocurrencies can be spent as simple as cash? But it will be extremely difficult to do without special chips and devices, ”said the founder of IOHK.

He noted that, for example, in Africa out of 6of millions of farmers, only 2% have a smartphone. They simply will not be able to use online payments, so they need the option of using cryptocurrencies without connecting to a network.

With the help of such chips it will be possible to transmitcryptographic key, and confirmation is required that the key will be deleted on the first chip and exists in a single copy. Users simply touch their phones or other devices to each other and a transaction occurs. Moreover, since transactions are not recorded on the blockchain, the solution can be scaled infinitely.

At the same time, Hoskinson admits that such a project is very long-term and it will take many years for the use of cryptocurrency chips to become really popular.

Recall that at the end of April, the Cardano development team announced the generation of the first block on the test network of the Shelley update, expected in the second half of the year.

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