Blockchain Tech to Create Paradigm Shift in US Currency

Blockchain Tech to Create Paradigm Shift in US Currency

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Blockchain technology will contribute to securing the American dollar. A blockchain initiative to make the US Dollar more like Bitcoin has been funded by the National Science Foundation, an independent agency of the United States federal government.

The protocol, KRNC, developed by Krnc, could eliminate the need for private cryptocurrencies. It allows existing electronic dollars to be retrofitted with new cryptographic features, including digital scarcity and smart contracts.

“KRNC takes the positives of Bitcoin and adds them to money the public already owns,” said Clint Ehrlich, the project’s chief scientist. 

The KRNC blockchain was awarded a phase-one R&D grant following an anonymous peer review by a panel of outside experts, and their evaluation of the protocol’s intellectual merit and commercial potential.

“It’s a paradigm shift – one that unlocks thousands of times more reliability and performance,” said Anna Guzova, KRNC’s lead mathematician. “This is the first blockchain protocol with asymmetric resistance to Sybil attacks,” when the attacker subverts the reputation system of a network service by creating a large number of pseudonymous identities.

While today’s protocols use old technologies, Proof-of-Work and Proof-of-Stake, which require an “honest majority” for security, the blockchain employs a new technology: Proof-of-Balance, which was inspired by formal mathematical models of animal communication. Proof-of-Balance eliminates the “honest majority” requirement, allowing a blockchain to remain secure even if an adversary outspends all honest protocol participants, according to oaoa.com.