MIT Digital Currency Initiative on Aug 31 2023

I have a copy of the Initiative. Following is my take how it relates to Picoin Digital Currency:

Many central banks are exploring how public money might be transformed into a digital asset. Today nearly all central banks are conducting research into or are actively experimenting with the issuance of central bank-issued digital currency, or CBDC

Let’s explore how MIT’s Parallelized Architecture for Scalably Executing smart Contracts (PArSEC) smart contract architecture and research on CBDCs relate to PiCoin, a decentralized digital currency that’s building its own ecosystem outside traditional centralized finance.

Bridging MIT’s PArSEC with PiCoin:

A Vision for Scalable, Programmable Digital Currency

The MIT Digital Currency Initiative’s August 2023 report introduces PArSEC, a centralized smart contract platform designed to power future CBDCs with high scalability, flexibility, and programmability. While its focus is on state-issued money, the core principles and breakthroughs from this research strongly align with what PiCoin is organically developing in the decentralized space - but with a community-first approach.

Break it down:

1. Programmable Money and Smart Contracts

> What MIT says:

PArSEC enables smart contracts - automated, rule-based transactions - to operate at massive scale. It supports composability, allowing different smart contracts to interact even if not originally built for each other.

What PiCoin is doing:

> The Pi Network is actively building toward utility-based smart contracts through its developer platform and ecosystem apps.

> Projects like Pi Browser, Pi Wallet, and Pi Apps are preparing the groundwork for smart contract functionality on the Pi blockchain.

> This mirrors the programmability goal that PArSEC enables but with peer-to-peer decentralization, where everyday users, not just governments, build and engage.

2. High Throughput and Mass Adoption

What MIT found:

> PArSEC achieves throughput of over 100,000 transactions per second (TPS) through parallel processing.

How PiCoin connects:

> Though Pi hasn’t released its own TPS metrics yet, Pi’s architecture is designed for scalability.

> With a projected user base in the tens of millions, it is essential that the Pi Network be able to handle a large volume of microtransactions - especially for real-world utility apps, peer-to-peer marketplaces, and local services.

> Pi’s lightweight mobile-first mining model and future optimization of the Mainnet will align with the scalability goals highlighted by MIT.

3. Security & Flexibility

MIT’s approach:

> By using modular architecture, PArSEC allows researchers to test different smart contract languages and configurations without modifying the core transaction processor - supporting innovation while maintaining system integrity.

PiCoin’s strategy:

> PiCoin’s Testnet environment, community app integrations, and the eventual open Mainnet reflect this ethos. Developers can already test their Pi-powered applications in a sandbox environment, which echoes PArSEC’s modular experimentation.

> The Pi Network is also KYC-verified for user trust and is exploring 2FA and private key solutions through its Pi Wallet - aligning with PArSEC’s emphasis on security and user-level control.

4. Sovereign Money vs. Community Currency

MIT’s focus:

> CBDCs aim to modernize sovereign currency - state-backed, centrally managed, and controlled.

Pi’s path:

> Pi is not backed by a government, but by a grassroots global community. Its value, known as GCV (Global Consensus Value = $314,159.00 per Pi), is community-driven, not imposed by central banks or speculators.

> This bottom-up approach answers the same questions CBDC researchers are asking:

** “What is money’s true value, and how do we build trust and functionality into it?”

** Instead of relying on top-down centralization, Pi builds value through collective consensus, transparency, and real utility.

5. Open Source and Collaboration

> PArSEC’s code is open-source, encouraging global collaboration through the Open CBDC project.

> Pi Network is also embracing open development, encouraging developers to build real-world applications via Pi Apps, rewarding contributions with real Pi payments in a decentralized way.

> Both ecosystems recognize that the future of digital money depends on openness, experimentation, and collaborative evolution - whether from academic institutions or global pioneers.

Conclusion:

> A Parallel Vision, A Shared Destination

> While MIT’s PArSEC is focused on empowering governments with programmable digital money, PiCoin is empowering the people.

> Both seek a future where money is smart, scalable, and meaningful - but PiCoin does so by enabling individuals, not just institutions.

> As CBDCs continue to evolve in research labs and policy chambers, PiCoin is already growing in marketplaces, communities, and apps worldwide, laying bricks for a decentralized economy built on trust, time, and real human exchange.

In short:

> MIT is building the blueprint.

> Pi is building the city for PiCoin population!