Introduction

I hope to inspire a new cryptocurrency that acts like a currency.

This safe worldwide currency would be like a stable Bitcoin. It would allow the poor, unbanked and inflation-torn to save, keep and transfer value; encourage lending and liquidity; encourage normal and legal spending.

White-Paper Abstract

Each concept presented here has merit. To be concise, I have abstracted all these ideas into one place, as one monetary system. I also hope to see all this put into one koin, which I may call OmegaKoin. Below is my attempt at an abstract.

Explained here is an evolution of cryptocurrency ideas, including how to create a stable online currency, a new blockchain technology based on trust and identity, a cryptocurrency governing system, arguments for investing and preserving liquidity, and mainstreaming cryptocurrency and improving world-poverty through micro-lending.

Summary of Work

In the following pages, ideas for improved cryptocurrency or koin are introduced.

See my first paper for a very brief glimpse into all my ideas. See my original introduction for some personal and other history, benefits of current technology and my arguments for creating something new.

I propose a koin that can encourage its own stability. An internal mechanism could help keep koin prices level or stable by creating a variable amount of new koin based on demand. I see two ways to accomplishing this. One is to control koin creation by (1) the on-going vote of koin-governing board, or (2) an internal formula or algorithm that changes koin production based on demand. Or both, especially where board influence has limited power, perhaps diminishing with time.

To combat spikes in price, new koins are created, in addition to the normal semi-constant stream available for purchase. So part of the ingenuity of this system is that instead of increasing in value by unit, koin increases total market value by increasing units. Mostly, this all goes back to the network as rewards. See Rewards.

Koin is very different from bitcoin in that there is no competitive hashing. To take over the network one must control many full-user accounts running nodes, not hash-power.

As soon as we start attaching identity to some addresses, many important possibilities come to light. I believe after price-stability, adding identity to the mix is the most important innovation. By moving or expanding koin from the bit-world to the bigger real world, however, we enter a more difficult space, a place in which banks, governments and other entities already operate. (Anonymity for business privacy, etc is also important.)

Banks may feel threatened by cryptocurrency, but banks still can serve important roles.

Everything koin-wise is done by voting. The code running on each node does nothing unless voted to do so. It receives unique signatures from other nodes and users.

With a growing world koin, I believe we must have more division of power and less burden of leadership. This governing system has a division of power: a board of 7 people (who lead, propose changes, and monitor/certify miners); users (who vote changes into code and vote in members); and miners (who implement accepted code changes). I believe this governing system will have greater true longterm flexibility, then a system (and choices) entirely set in code. See Koin Governance.

Let me describe what I call Simple Random -blockchain- technology. Transactions are passed over the network continuously between nodes. A random group of these miner nodes is selected, which all send each other possible lists of transactions to verify. Actually they only send the hashes of these lists. (There is an alphabetized list of the first 13000 transactions, for example. And a list of the first 13500,13520,etc. These are unambiguous lists differing only by the most recent missing transactions.) When all the chosen nodes send their hashes, they all get each others' signed data, then based what is most current and common among them, each nodes independently choses the same 'best' hash and list. This hash and signatures make up the next block, which is sent to and accepted by the network. For more info see Simple Random and More on Simple Random.

In order to help increase liquidity, a koin network could lend or reward lending using certified 3rd parties. It is hoped one of these 3rd-party lenders will micro-loan to small businesses. Hard working poor have been known to use micro-credit to change their circumstances in life and benefit their communities. Perhaps using crypto-currency, an automatic system for slowly building up credit from small amounts, can be implemented. Other social measures may be required or benefit such a system. I believe innovation combined with crypto-currency could revolutionize micro-credit / micro-lending. See Micro-finance.

Third-parties, centralized or distributed, are also used for commodity-backing. The koin network increases its stability by partially backing with gold, silver, natural resource or other commodity. Users choose how well-backed their currency will be.

There are some complexities to implementing some things I propose for koin. For some ideas on purchasing, voting, messages or other network mechanics, see Purchasing/Etc

See Price-leveling for an incomplete but perhaps sufficient discussion on this.

See Koin Mining for an introduction to how altruistic mining could be complemented and balanced with self-interested mining.

See Networking for an brainstorming on this topic.

See Reflections on crypto-currency for recent thoughts.

See United for thoughts on working together.

See Koin and Halal for thoughts on this topic.

See Free Transactions for thoughts on this topic.

See Simple text koin transaction for thoughts on this topic (rough draft).

See Local Spending of Increased Speed for thoughts on this topic.

See Distributed Backing for thoughts on this topic.

See Payment Exchange for ideas on paying merchants more easily.

See The killer app for ideas on what is required physically/technologically for a koin to mainstream.

See Voting and Processes for general thoughts on how to code koin technology.

JH