# Digital Currencies

Internet, traceable uniqueness and enhanced security, among other benefits.

Digital technologies represent the transformation and application of digital principles (commonly manifested as mathematical formulas and deductions) in the physical world. This refers to artificial intelligence and digital communication, such as CDMA, while digital currency is a practice of mathematical logic cryptography in the financial field. From the professional perspective of cryptography, the foundation of this passcode is a sequence of numbers generated from one or several mathematical formulas. The solution of this sequence is non-repeating and infinite. Digital currency takes this sequence as the denominator and monetary transaction is as the numerator. When a transaction is executed and changes the numerator, the denominator changes along with it. As long as the solution of the denominator is non-repeating and infinite, the numerator can never grow as large as the denominator.

Based on this mathematical foundation, a system comes into existence. But it is worth noting that only a sovereign digital currency is backed by national credit. Without any wealth of service support behind them, digital currencies -regardless of their name or concept -- are only digital cryptographic games. Thus, they do not have any practical circulation value. Blockchain takes digital technology as the medium and can only be defined as narrow digital form of money. We will consider it as broad money only when it gets linked to a sovereign currency, including sovereign digital currency.

Is there a risk in digital currency? The answer is yes, if we discuss this question from an objective perspective of the logical relationship between encryption and decryption.

Strictly speaking, all technologies are decodable; the difference lies only in the difficulty and timeliness of decoding. For instance, we now commonly believe that "pi" (the ratio of the circumference of a circle to its diameter) is an infinite nonrepeating decimal. But since the calculation speed has been greatly improved with the emergence of quantum computing technology, if someday in the future, we find out that pi is actually a constant, it will not be very surprising. But of course, for an instantly generated digital currency, if its encryption technology is being worked out some 50 or 100 years later, guarding against its replication will be completely unnecessary.