New application of blockchain: digital currency model design in the context of Winter Olympics

MATEC Web of Conferences 336, 08011 (2021) CSCNS2020 https://doi.org/10.1051/matecconf/202133608011 New application of blockchain: digital currency model design in the context of Winter Olympics Zihuan Feng1, and Xun Liang1,* 1 School of Information, Renmin University of China, Beijing, 100872, China Abstract. With the further expansion of blockchain application ecology, various applications and infrastructure around digital currency are constantly enriched and improved, and the whole market is booming along the healthy track. The Chinese government also attaches great importance to the development and application of block chain technology. President Xi Jinping stressed the importance of the block chain as an important breakthrough in the core technology independent innovation in the eighteenth collective learning of the Central Political Bureau. In October 2020, the pilot project of digital RMB will be launched in Shenzhen. Under the blockchain empowerment, the design, issuance and landing preparation of China's digital RMB have been in the forefront of the central bank's digital currency. Although the technical feature of blockchain is decentralization, the central bank can effectively integrate the distributed operation by using blockchain, so as to better realize the centralized management and control of digital currency. Taking the Beijing Olympic Games as an example, this paper analyzes the problems that may occur in the use of digital RMB in the Winter Olympics, puts forward an assumption of using digital currency based on partial decentralization, and puts forward the overall architecture design, and analyzes its feasibility and practicability. 1 Introduction In May 2020, Gang Yi, governor of the people's Bank of China, said that digital RMB(DC/EP, Digital Currency /Electronic Payment) would be tested in Shenzhen, Suzhou and the future Winter Olympic Games. In October 2020, Shenzhen launched a digital RMB test activity; in December 2020, Suzhou issued RMB 20 million consumption red packets for digital RMB testing. Although digital RMB is not based on blockchain, it still retains the basic characteristics of cryptocurrency, such as anonymity, security, unforgeability and anti double flower, through specific issuance management mode and relevant technical principles, on the basis of ensuring centralized management requirements. Under the blockchain enabling, the design, issuance and landing preparation of China's digital RMB have been in the forefront of the central bank's digital currency [1]. Blockchain technology was born in bitcoin digital currency in 2008. It provides a decentralized credit establishment paradigm without trust accumulation. It is a distributed * Corresponding author: © The Authors, published by EDP Sciences. This is an open access article distributed under the terms of the Creative Commons Attribution License 4.0 (http://creativecommons.org/licenses/by/4.0/). MATEC Web of Conferences 336, 08011 (2021) CSCNS2020 https://doi.org/10.1051/matecconf/202133608011 database technology. By maintaining the chain structure of data blocks, it can maintain the continuous growth and unforgeable data records [2]. Blockchain has broad application prospects in the financial field. Major financial institutions all over the world actively participate in the investment of blockchain projects and strengthen the research on blockchain technology, including Nasdaq, Goldman Sachs, Citigroup, Morgan Stanley, UBS, etc. The infrastructure of banks and other financial institutions, combined with the underlying blockchain technology, will have a profound impact on the existing payment, transaction and settlement methods, and improve the efficiency of their operation. Blockchain technology has a wide range of application prospects in finance, credit reporting, Internet of things, asset management and many other fields. With the maturity of blockchain technology, the further expansion of blockchain application ecology, the further development of the number of product users and application scenarios, a variety of digital currency applications and infrastructure are constantly enriched and improved, and the whole market is booming along the healthy track. As a disruptive technology, blockchain is leading a new round of technological change and industrial innovation globally [3]. The Chinese government also attaches great importance to the development and application of block chain technology. General Secretary Xi Jinping stressed the importance of the block chain as an important breakthrough in the core technology independent innovation in the eighteenth collective learning of the Central Political Bureau[4]. Digital RMB can retain the centralized characteristics of traditional legal currency and fit the excellent characteristics of decentralized digital currency, which is exactly the reference of blockchain technology and its concept. However, the decentralized nature of blockchain conflicts with the centralized management requirements of the central bank, The special nature of the central bank requires that its nodes should have the highest authority and regulatory ability. Although the digital currency of the central bank is also combined with the blockchain technology, it is still completely dominated by the state and has sovereign credit. Its essence is centralized, which is contradictory to the characteristics of decentralized blockchain technology [5]. Therefore, digital RMB is still a centralized system. However, the traceability and unforgeability of the data on the blockchain are just what the RMB regulatory field lacks. Based on the blockchain structure, it can largely avoid the occurrence of financial money laundering and make every transaction open and transparent. Based on the characteristics of blockchain and the functional structure of digital RMB, this paper analyzes the problems that may occur in the use of digital RMB in the relatively closed Winter Olympic Games, taking Beijing stadium of the Winter Olympic Games as an example, puts forward an assumption of issuing and using digital currency based on partial decentralization under the closed scenario, and puts forward the overall framework Design and analyze its feasibility and practicability. 2 Application of blockchain in digital currency Bitcoin is the first application of blockchain, and the most famous implementation is "bitcoin". Bitcoin is a peer-to-peer digital currency, which provides the world with an alternative to the traditional banking system. Since its appearance in 2009, bitcoin has successfully processed millions of transactions. What's more, bitcoin network has never experienced a large-scale system failure. At present, there are thousands of nodes in bitcoin network, and its P2P network architecture ensures the steady increase of bitcoin transaction volume. From the history of digital currency, bitcoin can be said to be a significant social experiment in the history of fin (...truncated)