Token-Based Payment Systems

TL;DR

This paper explores how tokens and distributed ledgers underpin digital payment systems, providing a taxonomy, discussing models, and analyzing key features like privacy, issuance, and accountability.

Contribution

It offers a comprehensive taxonomy and analysis of token-based digital payment systems and their support models using distributed ledger technology.

Findings

Taxonomy of token-based payment systems

Models for distributed ledger support

Guidance on privacy, issuance, accountability

Abstract

In this article, we consider the roles of tokens and distributed ledgers in digital payment systems. We present a brief taxonomy of digital payment systems that use tokens, and we address the different models for how distributed ledger technology can support digital payment systems in general. We offer guidance on the salient features of digital payment systems, which we comprehend in terms of consumer privacy, token issuance, and accountability for system operators.