SmartWallet, an Electronic Wallet of Virtual Currencies

The “SmartWallet” is an electronic wallet application being developed at the Digital Innovation Lab as an application that leverages the block-chain technology infrastructure to achieve the goals of security, transparency, non-repudiability and scalability of transactions within a closed block-chain of registered stake-holders comprising funding agencies, service providers and consumers or target beneficiaries. The electronic wallet is capable of handling several “virtual currencies” or “virtual tokens” that may be used for payment of specified goods and services within a closed eco-system. Virtual tokens can be defined for any use-cases and multiple use-cases can be handled simultaneously on the same electronic wallet.

This electronic wallet system is designed to facilitate the funders and other stake-holders to keep track of the movement of the goods and services they are funding, allowing for more transparency, accountability and efficiency within the system and helping to reduce leakages within the eco-system.

The electronic wallet application, which uses block-chain technology at the back-end, makes the system secure, tamper-proof and highly resistant to hacking. It also facilitates transparency amongst stake-holders. The concept of smart contracts is used to design and deploy contracts between multiple stake-holders such as i) funders and service providers, ii) funders and targeted beneficiaries or consumers, iii) service providers and targeted beneficiaries or consumers. Smart contracts enable the system to automatically initiate payments between participating entities only when the pre-specified conditions of a contract between those entities are fulfilled.

The electronic wallet can also be envisaged as a powerful conditional payments device which will initiate pay-outs for specific goods and services delivered only if specific conditions are met. Thus, the wallet can only be deployed in pre-specified use-case scenarios or against budgeted expenditure. For example, a food-coupon or food-stamp should only be used for purchasing food items. This electronic wallet provides the flexibility to design a food-coupons eco-system in which the beneficiaries can only use the payment mechanism for purchasing sanctioned food items from a set of pre-approved stores which will accept these food-coupons. A broad range of application scenarios can be designed and deployed on the SmartWallet framework.