From the oldest civilization known to man till date, we humans have used various technologies to calculate an individuals value.
The following diagram shows us the evolution of money as a technology.
Alice provides a service that Bob uses. As a form of acknowledgement of the service, Bob "pays" Alice via any means Alice deems valuable. Be it dollar, Bitcoin, Ether, doesn't matter. At the end of the day, it's about the service Alice provides and the means with which Bob can pay in order to avail the service.
Humanity has tried to solve the problem of value calculation since time immemorial. Every time we leaped from one technology to another, in came skepticism. As Andreas pointed out in his talk, the movement from Gold to paper money was the moment of greatest skepticism in human civilization. I believe this new form of value calculation will be the next! It took 400 years for paper money to be accepted broadly. However at the rate at which information travels in todays world, it shouldn't be too long before the majority of society accepts this as the fair form of an individuals value calculation.
CHIT in Sanskrit stands for "consciousness". This token represents the belief this blockchain project represents. In plain words, the more CHIT tokens one has, the more consciousness one has collected.
The blockchain keeps track of the value provided by an individual. Let's consider the following example.
Both Alice and Bob run a node through. Running a node is essential to providing a service. If the service is not owned by one providing it, all the value earned by the service is not theirs. Alice provides a service which is represented by her token "A". The service she provides can be looked up via her public address. Once Bob uses the service, he will acknowledge it by publishing an immutable document of the same to the blockchain. For now we will start with DID(Decentralised Identities) as a form of valid proof submission. How does Bob submit this document?
Bob will broadcast a transaction to all the nodes. The information in the transaction will contain the following main details apart from others which we will discuss in the technical section.
- Token to be minted
- DID proof that is required to mint the token
The DID proof will be verified by all the nodes and will be added as one transaction. Similarly bunch of transactions put together will form a block. Out of all the transactions, one user whose token was minted will be selected in random and that user will get to add the block in exchange for a CHIT token. Let's say for the sake of this example Alice was selected. She will be rewarded with 1 CHET token as a reward for providing value.
At the end of the exchange, Bob's wallet will have 1 "A" token and Alice will have 1 "CHIT" token.
The transaction will record the proof of value exchange. Right now it's a DID but in the future it can be anything from a DID, transaction, IPFS link, NFT, anything that is immutable.
- A users value is calculated as the total number of tokens(which have crossed the nakamoto coefficient threshold). If a token crosses the nakamoto coefficient, it means that the user behind the token has provided some sort of value to majority of the wallet holders.
- A token crosses the nakamoto coefficient threshold when it is collected by x% of the wallets being used. For starting off we can keep a threshold of 90%. Moving forward we can have many more thresholds.
- A token can be collected as many times. However the number of tokens don't matter. Only whether the token was minted by a wallet or not.
- Each user is incentivised to operate only one wallet. In the beginning, until each wallet is backed by biometric verification, it is not possible to merge the value one wallet has collected with another.
- A user cannot send their own token to any other wallet. Only an external address can mint a token.