Signed Electronic Currency Issuance for Bank-Free Payment Validation

The issue bank performs preliminary validation by attaching a digital signature to the electronic currency at the time of issuance. This preliminary action ensures validity without requiring repeated validation during subsequent transactions, as the signature remains valid until the currency is spent or revoked.

A digital signature mechanism acts as an intermediary between the issue bank and users. The signature serves as a cryptographic proof of validity that can be verified by any party without requiring direct communication with or validation from the issue bank for each transaction.

The electronic currency system enables self-service transactions between users without requiring intervention from the issue bank. Users can directly transfer and spend electronic currency while the attached digital signature automatically ensures validity, eliminating the need for continuous bank intervention.

The validation function is extracted from the transaction process itself and embedded into the currency structure through the digital signature. This separates the validity assurance mechanism from the transaction execution, allowing transactions to occur independently without requiring active validation during each operation.