5. Originating
5. Originating
Detailed Description of the 1CoinH Technology
Verify Coins Yourself
The most important feature of the 1CoinH is that there is no trusted central institute that validates a transaction. Each participant has the responsibility to do this verification themselves each time he enters a transaction. This is because not verifying the coins you receive (with your app) could lead to loss off the value of these coins. Because others that do the research might find out the coins are not legit and refuse to accept them from you, which leads to these coins to eventually devalue to 0.
How To Originate Coins?
Each participant holds an originating overview which is stored in his personal blockchain where all the transactions and details of its origins can be found. At any given moment the devalued value of all self generated and received coins can be determined. If you received 100 coins 5000 hours ago, then the current value is 100 x (0.6 ^ (5000/8766)) which is 74.72 coins.
Use Old Or New Coins?
Because all coins devalue at the same rate, it really doesn’t matter if you use coins that were created long ago or that are created recently. Not using coins seems perhaps strange, but the only way to prevent coins from devaluing is not having coins. It simply doesn’t make a difference which coins devalue in your wallet. For risk purposes it is smart to use coins from people you really know and avoid coins with little overlap with your well known transaction partners.
Acceptance Security
It’s best to receive the most secure coins:
- Get coins that are originated by the sender;
- Get the coins that are originated by people I already received coins from;
How many different Originated Coins Per Transaction?
In theory this could be without limits. Having no restrictions on the number of coins with different origins, would however make the blockchain unnecessarily long. To start, the phone app is restricted to allow a maximum of 5 different originated coins, next to the self-originated coins of the sender of the coins. It seems important that at every transaction a certain portion of the self-originated coins of the sender of the money should be included in every transaction.
Still Have Questions?
The 1CoinH / Ethical Money system is nothing like we have ever seen before. We can imagine you have plenty of questions left.
Please don’t hesitate to ask us. It also helps us to understand what we haven’t explained well enough.
