Social credit #6
Description
A decentralized cryptocurrency that departs from the typical "wallet-based" architecture for a "coin-based" architecture, solving many of the shortcomings of conventional cryptocurrencies.
Features
- No transaction costs
- Instant transactions (< 1 second confirmations)
- Unlimited scalability by avoiding a global ledger
- Coin scarcity ensured by tying to Freenet donations
Design
- Coin: Contract-key representing a specific quantity of currency
- Wallet: Public/private key pair that can own a coin.
- The method of issuance for a coin is configurable, e.g. coins may be issued in return for a monetary donation to Freenet development
- A coin's contract validates a list of transactions for this coin, including:
- (First transaction) proof of issuance to a particular wallet
- Transfer of custody from one wallet to another
- Splitting of coin into multiple other coins
- Merging of multiple coins into a single coin
Threat mitigation
Double-spending
Most of the complexity in conventional cryptocurrencies is due to the need to prevent double-spending. This is where A transfers funds to B but then executes another transaction to transfer the same funds to C, creating two contradictory versions of the transaction history.
The conventional solution is to broadcast all transactions to everyone and then have network participants commit to one version of the transaction history. They commit by performing a complex computational task ("proof of work" aka "mining") or by staking currency ("proof of stake").
Social credit takes a different approach which relies on real-time observability of data in Locutus. Interested parties - particularly the coin recipient - can subscribe to a coin's transactions and be notified within milliseconds when ownership is transferred.
<<<work in progress>>>