Global Digital Currency System Analysis and Research

Xinyue Du1, Xiangyang Li2, Qian Zhong3, Xiufen Wang3*

1School of Food Science and Bioengineering, Tianjin Agricultural University, Tianjin, 300384, China

2School of Engineering and Technology, Tianjin Agricultural University, Tianjin, 300384, China

3School of Computer and Information Engineering, Tianjin Agricultural University, Tianjin, 300384, China

*Corresponding author

Abstract: In recent years, with the rapid development of cryptography technology and Internet technology, digital currency has exploded in popularity in various parts of the world. Our team’s objective is to find a model to analyze the global digital currency system, and then use our models and research to ｃｒｅａｔｅ a strategy for the development of global economy. Firstly, we consult the relevant data and information. Then we construct two representative ECC models of digital currency, as well as UTXO model and Account model. And it turns out that the digital currency has higher safety factor, lower cost and convenience. Secondly, based on our models, we analyze the development of digital currency at the individual, national and global levels. We find that there has been a large fluctuation in the recent years. Thus, we further study this issue and the results show that the lack of effective supervision is one of the main causes of fluctuation. Then, we conclude that more and more countries would pay more attention to block-chain technology and related regulatory mechanisms. Thirdly, aiming at further analysis of the digital currency market of different countries, we choose America and China in our further investigation. We get that most countries expect better development of the digital financial system and greater rapport in international relations. However, at present these countries don’t modify their current banking and monetary models. Finally, we perform a sensitivity test to verify the stability of our model and conclude the strengths and weakness of our model. The result demonstrates that our models can help us to deeply understand the development of digital currency in a certain extent.

Keywords: Digital currency; Block-chain technology; Supervision mechanism