Cognisaya Qbit Digital Money Model

The Cognisaya model fascinates me at the fundamental design level.

My proposed digital dollar model puts all digital dollars at a central point (think: Virtual Cloud) were the dollar is a unique, fixed, serialized digital record in a unit value of one dollar upon which the owner of dollar changes as a function of a transaction.  The total number of dollars involved in the transaction each receive a change to new ownership.

My model:

All Owners have an account number.  Owner's virtual user view is a total amount of money in their account. Their account number is a fixed record in their view that has a variable number of dollars in it.  That is the most important aspect of the system to them.  The real structure of the system and the key to the way it works is that all digital dollars are fixed records with the current owner association a variable.  Banks maintain the account record for their customers and the total value in each account is what  banks obtain from the central digital dollar data base that is the sum of each digital dollar that has an association with a current owner account as held by the bank.  Banks are the middle man in the transaction clearing function.

The Cognisaya concept fascinated me.  After some more thought this is why.

Cognisaya Model (As it appears to me):

All digital money resides at the owner level not a central single data base.  It resides on the owner's digital device (backed up to another digital device).  There is a unique coded number that cannot be duplicated associated with money on the owner's device.  Possession of the device and access code to transact the money in it is possession of money in the device.  "Banks" in this system are merely validate the transaction and (this is my guess) negate the validity (erase the encrypted) code related to the existing amount of money in the Owner's device and apply a new encryption code to the remaining amount of money in the device.  Consequently, the "same" money cannot be spent twice but in reality, the amount of money in the device is "virtually" in a new account category that might be called:  "This amount of money associated with this encryption code is the total authorized amount of money in possession of the owner on their device at this point in time until a new encrypted code is applied to the total amount of digital dollars on the owners device with a new encrypted code.

Two very different ways to manage the money problem:

All money is centralized in a virtual single data base (maybe physically networked).  Accounts are not.  They are held by any entity approved to provide Account Services.  Ownership defined by association to an Account.

All money is in the possession of the owner.  Ownership is defined by possession.  Physical possession as well as possession of coded access to spend/receive money digitally stored on it.  Lose the device, lose the money.  Unless it is backed up as a personal responsibility (or service provided to) the owner.  The owner also possess the "Account"  Transactions are "Validated by a third party performing this limited "Bank" function.  In the business model there is probably provision for the "Bank" to provide additional optional services.  "Would you like to super-size?"

Note: in the current monetary system all digital money (M1 dollars)  reside in the Banking System meaning members of the Federal Reserve system.  I believe that to be a true statement but something that I have to think about....what are the exceptions...if any?

Both my model and the Cognisaya model (as I see it) would have digital dollars actually reside outside of the banking system.  Either centralized on a data base or in each owner's virtual pocket.

A possible hybrid:  The account record may reside in the owner's virtual pocket as appears to be the case with Cognisaya or the owner may choose to have a bank give added services or have no bank involved at all and deal only with a "Validator Server" that then interfaces (in all transactions without exception) with the central digital money record proposed by my model.

Apple has a patent for virtual iMoney.  I am not sure where the digital dollars would actually reside in this model.  Something to look at and see where the geniuses at Apple really put it the central record of money and the account associated with it.   Or do they simply perpetuate the current mode where account is the one and only record and money is merely a numeric value data element of account?  Central virtual iCloud? iPhone? Bank?