The post Essay of the Day: Mutual Credit Cryptocurrencies – Beyond Blockchain Bottlenecks appeared first on P2P Foundation.
]]>The proposals described in this essay are coming closer to reality, now that Arthur Brock and associates at Ceptr.org, are advancing in the construction of a alternative Holochain.
We identify and clarify the core elements of and describe a new approach to designing such currencies distinct from blockchains – an approach rooted in biomimicry. We explore efficiencies for decentralized data and decision-making and distinguish consensus of distributed process, rather than data in ledgers, at the core. We then illustrate an implementation of a cryptocurrency using these principles and a use case which brings a centuries old practice into the digital era. We address the central vulnerability to this model working at scale, showing how the solution can be built with existing technologies. Finally, we also confront social challenges involved in governance of crypto-systems.
By leveraging Intrinsic Data Integrity to run numerous parallel tamper-proof chains you can enable nodes to do various P2P transactions which don’t actually require group consensus. It is not only possible, but far more scalable to build cryptocurrencies without a global ledger consensus approach or cryptographic tokens. This paper has provided a framework to build a tokenless cryptocurrency, and showed how mutual credit is an appropriate currency issuance method for operating such a cryptocurrency on completely peered chains. Basic PKI with a DHT addresses the obvious vulnerabilities.
First published as an article here. Also, after the original publication they have built the technology.
Read the full article here.
If you would like to comment on this draft, feel free to do so on the google doc version.
The post Essay of the Day: Mutual Credit Cryptocurrencies – Beyond Blockchain Bottlenecks appeared first on P2P Foundation.
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