Exclusively Informational Money (EXIM) Redefines Digital Asset Security

Why It Matters

This concept challenges conventional approaches to digital asset security, suggesting that the ownership model of a digital currency dictates its security needs. Designers can leverage this understanding to create more robust and user-friendly digital systems by focusing on the inherent properties of the information itself rather than solely on access control mechanisms.

Key Finding

Digital money can be designed so users control it but don't own it, meaning it can't be stolen but can be lost. This shifts security focus from typical computer defenses to cryptographic methods.

Key Findings

• Exclusively Informational Money (EXIM) units are controlled but not owned by agents.
• EXIMs cannot be stolen but can be lost or discarded.
• Traditional computer security (e.g., firewalls, passwords) is not always essential for EXIMs.
• Cryptographic information security is unavoidable for EXIM usability.
• Bitcoin exhibits characteristics of an EXIM, though this classification can be debated.

Research Evidence

Aim: What are the security implications of designing digital currency as exclusively informational money (EXIM)?

Method: Conceptual analysis and thought experiment

Procedure: The paper introduces the concept of Technical Informational Money (TIM) and develops the more extreme notion of Exclusively Informational Money (EXIM). It then analyzes the security requirements for EXIMs, contrasting them with traditional computer security measures, and uses Bitcoin as a case study, proposing a hypothetical EXIM called Bitguilder.

Context: Digital currency and financial technology design

Design Principle

The security model of a digital asset should be intrinsically linked to its ownership and control paradigm.

How to Apply

When developing new digital tokens or cryptocurrencies, analyze whether the design intends for users to 'own' the token or simply 'control' its state. This distinction will guide the necessary security measures.

Limitations

The analysis is largely theoretical and relies on a hypothetical construct (Bitguilder) to illustrate EXIM principles. The ethical assessment of Bitcoin is also a significant component, which may be outside the scope of pure technical design.

Student Guide (IB Design Technology)

Simple Explanation: Imagine digital money that you can use and manage, but you don't technically 'own' it like a physical object. This means it can't be stolen from you, but you could accidentally lose it. Because of this, we don't need as many passwords and firewalls as usual, but we still need strong encryption to make sure the information is safe.

Why This Matters: Understanding different models of digital asset control, like EXIM, helps you design more secure and innovative digital products. It challenges you to think beyond traditional security assumptions.

Critical Thinking: If digital assets are designed as EXIM, what are the ethical implications of users 'losing' assets that are not technically owned by anyone?

IA-Ready Paragraph: The concept of Exclusively Informational Money (EXIM) offers a novel perspective on digital asset security. By designing digital units that are controlled but not owned, designers can shift the focus from traditional computer security measures like passwords and firewalls towards a greater reliance on cryptographic information security. This approach acknowledges that such assets cannot be stolen but can be lost, thereby informing the development of more appropriate and potentially more user-friendly security protocols for digital currencies and other digital assets.

Project Tips

• When defining your digital product, clearly state whether users 'own' or 'control' the digital assets.
• Research different cryptographic techniques relevant to information security.
• Consider the user experience implications of security measures that focus on loss prevention rather than theft prevention.

How to Use in IA

• Use the concept of EXIM to justify a specific security approach in your design, explaining how it differs from traditional security models.
• Discuss how the 'control vs. ownership' paradigm influences the choice of security features in your design project.

Examiner Tips

• Demonstrate an understanding of how the fundamental nature of a digital asset (e.g., ownership) dictates its security requirements.
• Critically evaluate the security trade-offs between traditional computer security and cryptographic information security in digital design.

Independent Variable: Design paradigm of digital money (e.g., owned vs. controlled)

Dependent Variable: Security requirements and measures

Controlled Variables: ["Nature of digital units","User interaction with digital units"]

Strengths

• Introduces a novel classification for digital money.
• Provides a detailed analysis of security implications for a new model.

Critical Questions

• How would the legal framework for digital assets change if they were classified as EXIM?
• What are the psychological impacts on users of 'controlling' but not 'owning' digital assets?

Extended Essay Application

• Investigate the evolution of digital asset ownership models and their impact on security design.
• Explore the potential for EXIM principles to be applied to non-monetary digital assets like digital art or intellectual property.

Source

Bitcoin and Beyond: Exclusively Informational Money · UvA-DARE (University of Amsterdam) · 2013