Taler

Introduced ”Taler”, a practical payment system developed to balance accountability and privacy in electronic
transactions. Unlike existing systems such as MasterCard and Visa, which enable mass surveillance, or
decentralized systems like Bitcoin, which come with environmental and anonymity challenges, Taler operates on a
protocol based on Chaum’s design.

 The system addresses the issue of providing change efficiently by introducing a
refresh protocol for divisible transactions with logarithmic costs. Its design prioritizes customer anonymity while
ensuring transparency for merchants. The paper outlines Taler’s key concepts, fundamental protocols, and
correctness arguments, along with a freely available reference implementation. 

A comparative analysis with
blockchain-based systems highlights Taler’s cost-effectiveness and potential for stronger anonymity in ordinary
transactions. The paper also discusses practical considerations, limitations, and real-world concerns, advocating
for Taler as a secure, flexible, and privacy-preserving electronic payment solution.