Digital Safe - Whitepaper

Nowadays, and these are times of huge economic development, work mobility and frequent trips for tourist purposes, I would like to interest you in our new project, the Digital Safe system. First, some information about why we have created such a system:

To begin with households:

- 59% of Polish citizens aged 15 and older have participated in at least one tourist trip. Characteristics of domestic trips : In 2017, Poles took part in 45.9 million domestic trips,i.e. 5.5% more than in 2016. As in previous years, short-term trips (for 2-4 days) dominate, with their share in domestic trips ammounting to 61% (28 million trips). The average length of stay is 8.5 nights for long-term trips and 2.0 nights for short-term trips. Tourism and recreation is the purpose of 57.8% long-term trips and 29.5% short-term trips. Characteristics of foreign travel : In 2017, the number of foreign trips made by Poles was estimated at 12.0 million, which means a 6.2% increase compared with 2016. Polish tourits most often visited Germany (2.4 million), Italy and Great Britain (1 million each), Greece (0.72 million), Croatia (0.71 million) and the Czech Republic (0.7 million). The average length of stay was 10.0 nights (compared to 9.3 nights in 2016). The main purpose of foreign trips of Poles was tourism and recreation (54.9%); Trips to visit relatives and friends also have a significant share (31.6%), and business trips constitute approximately 9% of all trips abroad. Poles most often stayed in hotels and motels (42%); the percentage of people staying with relatives of friends was high as well (35.9%). The dominating transport is the plane - its share increases yearly and in 2017 it amounted to 52.4%. The share of trips organized independently was 65.5%, and every fourth trip was organized by a travel agency (25.8%).

Increased participation of Poles in tourist excursions

Table 1. Participation of Poles in tourist trips (number of participants aged 15 and over) (%)

Table 2. Participation of Poles in tourist trips (number of participants aged 15 and over) (million)

https://infin.gov.pl/aktualnosci/instytut-finansow-podczas-forum-suwerennosci-monetarnej/

The Institute of Finance took part in a "Monetary Sovereignty Forum" conference on March 28,2023. The overarching topic of panels and debtaes was the role of cash in maintaning the security and continuity of money transfers, but also the role of security in the area of cashless payments. During the event, the director of The Institute of Finance, Łukasz Chrobak, acted as the moderator of the debate "The role of cash in stabilizing economic turnover", in which representatives of the National Bank of Poland, as well as the public and private sectors participated. "Cash and cashless payments are one of the key areas of our lives. For years we have been observing discussions among experts, researchers and economists about the role and development of both of these forms. On one hand, the COVID-19 pandemic has shown us that we cabn shop effectively without leaving home. However, on the other hand, the armed aggression on our eastern border that has been going on for over a year has made us realize how fragile and unreliable the modern network infrastructure necessary for safe and fast non-cash transactions can be". - stresses, Director of the Institute Łukasz Chrobak. The Forum participants included representatives of banks, institutions, public administration and the third sector. "We are glad that we could take part in such an important debate on casg and non-cash payments among leading experts. I am convinced that each event like this and every exchange of experiences has a real impact on the development of security, reliability and economic sovereignty in Poland" - adds, Łukasz Chrobak. The organizer of the "Monetary Sovereignty Forum" conference is the Polish Economic Society, whose aim is to organize training and conferences, as well as develop reports and educational activities.

Cash is the only means of payment that works in situations of war and natural disasters such as floods or fires, when the necessary infrastructure for other forms of payment is not functioning. Therefore, cash is the most favoured. It is worth recalling that the record level of cash withdrawals in Poland (6 billion PLN) was achieved on March 13, 2020, i.e. at the beginning of the COVID-19 pandemic, and throughout 2020 there was a record increase in the value of money in circulation - by 34.8% vompared to the previous year [18]. Based on a public opinion from September, 2020 on the quality of banknotes in general circulation in Poland , respondents indicated the following reasons for withdrawing more cash during the COVID-19 pandemic: the desire to have cash

* "just in case" (48%);

* fear of limitations in the use of non-cash payments (35%);

* preferance in making cash payments (10%);

* no possibility to make cashless payments (9%).

In 2022, queues appeared in front of ATMs after the Russian invasion of Ukraine began. In 2007, at the Currency Conference in Bangkok, representatives of the Central Bank of Thailand gave a presentation about how during thr tsuanmi and immediately after it, no infrastructure was working and the only possible payments were by cash. (quoted from the ISO website)

How and where do Poles invest their financial surpluses. According to the study, every second respondent - as stated-

- they keep it in an account (54%) or a bank deposit (44%).

- over 1/4 of people (27%) keep them in cash at home;

- 17% of respondents admit that they invest their savings in foreign currencies

- 13% uses investment funds and shares.

The study "ALternative investments through the eyes of Poles" commissioned by Volkswagen Financial Services and Volkswagen Bank was conducted by ARC Rynek i Opinia on a representative group of 343 adult Polish citizens (Polish Press Agency)

However cash is exposed to :

destruction

theft

fraud

Based on the statistics of the Polish Police over the last 5 years:

Burglary over the course of 5 years by administrative division of the country - confirmed crimes, crimes detected, % of detection.

table 3. Burglary over the last 5 years

The report "Risk map of Poles", prepared by the Polish Chamber of Insurance shows that concerns about assets are some of the most common. As many as 57% of Poles are concerned about their homes or apartments being broken into with every third Pole finding such an event to be highly possible. Not without reason,since - according to data from the National Police Headquarters - in 2021 there had been over 71,6 thousand reported burglaries in Poland. It is slightly less than in 2020, however the previous three years the statistics had been even worse. The good news is that the detection rate of those burglaries is improving, although last year it was only 50%. That means that in half of the cases the culprit had not been found. So, as the data presented above shows, Poles are more often going on trips and leaving their valuables and cash at home. We are very attached to money, we like having it and that is where our system comes in handy.

This is where our product comes in, which causes a burglar stealing cash must take into account that if our idea is implemented by the owner of the stolen money, he may be quickly caught. Another issue is the cash accumulated in stores after closing.

Instead of signing contracts with security companies, just use our system and mark the store or company with the logo of our app

BENEFITS OF THIS IDEA

1. Increased effectiveness of banknote verification: The method based on generating an individual multi-character code and its verification ensures high effectiveness in recognizing the authenticity of banknotes. This significantly reduces the risk of accepting a counterfeit banknote, protecting both sellers and consumers.

2. Convenient and quick verification: The process of verifying the authentivity of a banknote using a phone and app is simple and does not require special equipment. This allows any person or institution that has access to the app or interface to quickly and easily verify banknotes, speeding up the payment process.

3. Elimination of counterfeits: The use of an individual multi- character code and verification of the authenticity of banknotes contributes to the elimination of counterfeits. Counterfeit banknotes that fail verification can be easily detected and rejected. This reduces the risk of financial losses associated with accepting counterfeit banknotes.

4. Ability to track the history of banknotes: Archive information about transactions and storing individual multi-character codes allows you to track the history of banknotes. This allows you to track the origin of banknotes, their movement and the transactions associated with them. This can be useful in financial auditing, regulatory inspections and comabting illegal activity.

5. Transaction security in various sectors: The method of securing banknotes can be used in various sectors, such as retail, financial services, catering and transport. It provides additional payment security for both entrepreneurs and customers, which strengthens trust in the payment system and protects against fraud.

6. Possibility of developing electronic payments: Generating an individual multi-character code that turns the denomination of a banknote into an electronic form, opens the door to the development of electronic payment systems. The ability to store information about banknotes in digital form facilities the introduction of innovative payment solutions and streamlines transaction processes.

7. Theft protection: A system based on banknote scanning and authenticity verification provides additional protection against theft. The ability to quickly and reliably recognize counterfeit banknotes minimizes the risk of financial losses related to the accepting of illegal means of payment.

The introduction of the described method of securing banknotes may contribute to increasing payment security, increasing trust in the financial system and reducing losses related to counterfeiting. However, it should be kept in mind that the implementation of this method requires an in-depth analysis of compliance with legal and financial regulations in a given country.

DESCRIPTION

Title: White Paper:

An innovative way of securing banknotes in business transactions

1. Introduction

This white paper presents an innovative method of securing banknotes in economic transactions. The purpose of this invention is to expand the possibilities of using effective methods of securing banknotes both in business transactions and in households. In the current environment, where banknote theft is a serious threat, this innovative system provides additional security and authenticity of banknotes.

2. Description of the banknote security method

The banknote security method described in this white paper is based on scanning the banknote using a telephone equipped with a reader (camera). Then, using a special application installed on the phone, the banknote scan is sent to the system management server.

3. Banknote authenticity verification process

In the system management server, the received banknote scan is subjected to the authenticity verification process. Verification is based on reading the serial number of the banknote, which is obtained from the reader. Along with the serial number, the phone number and IMEI number of the phone are also sent.

4. Generating an individual multi-character code

After positive verification of the banknote's authenticity, the server generates an individual multi-character code that converts the banknote's denomination into its electronic form. This individual multi-character code is then archived and sent to the application on the phone associated with the IMEI number.

5. Multi-character code verification

Any person or institution with access to the application or interface can verify the current denomination of a banknote based on its individual multi-character code. For this purpose, a system management server is used to enable verification.

6. Persistent wallet on the system management server

An advantageous feature of this invention is the ability to set up a permanent wallet on the system management server. By sending the phone number and IMEI number, the user can create a permanent wallet that facilitates banknote operations.

BENEFITS OF THIS IDEA

2. Convenient and quick verification: The process of verifying the authenticity of a banknote using a phone and application is simple and does not require specialized equipment. This allows any person or institution that has access to the application or interface to quickly and easily verify banknotes, speeding up the payment process.

3. Elimination of counterfeits: The use of an individual multi-character code and verification of the authenticity of banknotes contributes to the elimination of counterfeits. Counterfeit banknotes that fail verification can be easily detected and rejected. This reduces the risk of financial losses associated with accepting counterfeit banknotes.

4. Ability to track the history of banknotes: Archiving transaction information and storing individual multi-character codes allows you to track the history of banknotes. This allows you to track the origin of banknotes, their movement and the transactions associated with them. This can be useful in financial auditing, regulatory inspections and combating illegal activity.

6. Possibility of developing electronic payments: Generating an individual multi-character code that turns the denomination of a banknote into an electronic form opens the door to the development of electronic payment systems. The ability to store information about banknotes in digital form facilitates the introduction of innovative payment solutions and streamlines transaction processes.

The introduction of the described method of securing banknotes may contribute to increasing payment security, increasing confidence in the financial system and reducing losses related to counterfeiting. However, it should be remembered that the implementation of this method requires in-depth analysis, testing and assessment of its effectiveness and compliance with legal and financial regulations in a given country.

PROJECT CHALLENGES

The Digital Safe project poses a number of challenges to its creators that can be both exciting and motivating.

1. Security at the highest level: Creating a system with an extremely high level of security that will ensure full protection of stored valuables.

2. Innovation in technology: The use of the latest technologies such as biometric authorization, data encryption and analysis, and blockchain technology combined with the efficient and secure XEN network will provide an effective and convenient solution for users.

3. Usable optimization: Designing an intuitive user interface that will enable easy and convenient management of the contents of the digital by users with various levels of technical advancement.

4. Integration with financial systems: Create opportunities to integrate with other financial services, such as mobile payment systems and online banking platforms, to provide users with a comprehensive solution to manage their values.

5. Attack Resistance: Protect your digital vault from potential cyber attacks and hacking attempts, ensuring the reliability and security of your stored data.

6. Regulatory Compliance: Ensuring the project complies with applicable laws and regulations regarding data privacy and financial security.

These challenges not only pose technical difficulties for developers, but also provide an opportunity to create an innovative and effective solution that can significantly improve the security and convenience of users in managing their values.

SUMMARY OF THE PROJECT

The digital safe project is an innovative solution aimed at ensuring safe storage of banknotes and in the future, valuable items, such as documents etc., in a secured manner and easily accessible to the owner. The main features of the project include:

1. High level of security: Advanced security mechanisms such as two-factor authorization, data encryption and the use of biometric user data ensure an extremely high level of security

2. Easy access and monitoring: Userrs can easily access their stored items via bthe mobile app or web interface, as well as the ability to monitor te vault's contents and transaction history.

3. Quick response to threats: A digital safe system can automatically alert users to suspicious activity or unauthorized access attempts, allowing a quick response in case of a threat.

4. Eliminating of the risk of loss or theft: Storing items digitally eliminates the risk of loss or theft, giving users confidence that their valuables are safe.

This project not only rnsures the safety and convenience of users, but also poses a number of technological challenges to the creators reelated to ensuring the highest level of security, optimization of use and integration with other financial systems. Thanks to this, the digital safe is an effective and innovative solution for people looking for a safe way to store and manage their values.

In banks or other financial institutions there are banknote counters that are equipped with serial number readers. These devices make it possible to verify the authenticity of banknotes based on their serial numbers. This is a common practice to detect counterfeit banknotes and to track and report illegal cash activities. However, the method of securing banknotes described in this project, uses mobile technology, such as scanning banknotes using a mobile phone camera and sending the data to a system management server. This opens up new possibilities for verifying the authenticity of banknotes and generating individual multi-character codes that can be used to electronically identify banknotes in transactions. In effect, it may be beneficial to combine existing banknote verification numbers, such as serial number readers in banks, with the new techonolgies described in the project. Such a hybrid system could provide even greater security and effectiveness in verifying the authenticity of banknotes.

Whitepaper.pdf

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