An Introduction to Technology Architectures: Shaping the Future of Payments

This chapter of the book delves into the technology architectures crucial for the future of digital payments. It explains three key systems: centralized systems like a Minecraft server, which are efficient but have single points of failure; distributed systems like Google's search system, known for scalability and error detection; and decentralized systems such as Bitcoin, which offer resilience by distributing control across multiple nodes. The chapter highlights the trade-offs between anonymity and decentralization in payment systems and poses critical questions about the impact of centralized control on decentralized systems, especially in the context of digital currencies like CBDCs and stablecoins.