2. Proof of Peers
2. Proof of Peers
Detailed Description of the 1CoinH Technology
IOU
“Money” can be very simple. If I write a note that says I owe you 100 Coins, this can already be considered as money by my peer that receives the note. Similarly you can imagine a village on a forgotten Island where all villagers use similar IOU notes to pay each other for products and services. When all peers agree this is working, it works. There are actually various examples of neighborhoods that “created” money this way and were ordered by authorities to stop using their unauthorized “money”. These stories are the inspiration to create a bottom-up money-creation-system.
Backed By Living Hours
Instead of “backing” coins in IOU’s by nothing, it is better to “back” the coins in this system by the hours a person is alive. This way the “meaning” of the coin can be understood similarly around the world. When peers are able to check if you didn’t cheat with the coins you created, this should provide enough trust to accept the coins.
Smartphones Only
When you envision a digital financial system that plows back wealth inequality globally, outside any centralized controlled institute or system, then it is clear that it is necessary to design method that uses smart phones that only connect one-to-one in transactions and don’t need internet access at all.
Prove Your Self-Sovereign Identity
When you want to create a system where every person receives one coin per hour, it is obvious that a person should not be able to create more than 1 identity. But when there are no centralized institutes that verify if a person doesn’t create more than one identity (to receive multiple coins per hour), how can you be sure it doesn’t happen, especially when a person has full control over creating his/her own Self-Sovereign Identity? The solution to this problem are the “peers”. The peers of a person (especially the closest ones) are the ones to check this. Without coins involved this check would not be very important. But when you do a transaction with a person and there is a risk this person commits identity fraud that can make the value of your coins zero (because others that are aware of the identity fraud wont accept your illegal created coins) than it becomes really important to check if the identity of the person is indeed uniquely used by that person.
This is the reason that people that use this 1CoinH system will start to interact with their closest peers (like friends and family) and only later – once they amassed a substantial list of transactions that can be properly verified by more distanced peers – with many other people. The combination of a real Self-Sovereign Identity, the creation of the 1CoinH coin, the one-to-one smartphone connections and hash/blockchain technologies make this possible, which enables the unique solution that – until now – has been overlooked by all new digital coin initiatives.
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.
