Towards Tokenization and Tethered Tokens
In this online world, how would we be able to spend something electronically, without being online? It works just now, as the Merchant can check with your bank to authorize a transaction. But, let’s say if you are in a place where there is no Internet connection, what could we do? Also, how could we give someone a gift token to redeem something, and then for it to be checked by the provider of the token? Well, this can be solved using an accumulator and witness statements. We will see that we could also create tethered fiat currency tokens, and where we could redeem them without requiring a credit card.
A gift token
Let’s say you received a gift token for your Christmas from ToysRGifts.
With this, ToysRGifts creates an electronic token for you with a number of preloaded gift IDs. For example, they could create one with a GID of “6e87a2f7–5d9a-485a-b7fa-3c746d9040d8” and match it to a $100 gift. All of the preloaded gift tokens could then then loaded onto an electronic token and created as an accumulator value. This accumulator adds data together but does not reveal any of the details of the data contained in the accumulator. Thus it will not be possible for us or the seller knowing the gift IDs. When you go to the store, you purchase the goods and the seller then passes the accumulator value to ToysRGifts.
