Sphere: A Decentralized Economy-Based Electronic Currency

WILMINGTON, Del. - March 18, 2019 - PRLog -- Abstract. A decentralization of electronic currency would allow business activity and development of a single network to be independent of other different business networks. Cost of a decentralized currency of the network can become stable as long as participants of that network are still active.

We propose a solution for such a big problem of traditional economy as a "direct dependency of local prices on global ones". We also propose an innovative mechanism that allows participants of NCN to get any service of one business network for money (hours) earned in other network ('s).

The currency is implemented by usage of two innovative technologies, "Proof of Participation protocol" (PoP) [3] and "Smart Transactions" [2].

1. Introduction

Traditional finance system is not enough transparent and opened for their daily customers. The principles which it is based on are self-centered. In essence, it does not produce a product of any kind but has a great influence on almost all business fields of global economy. Why is that? The answer is obvious, "Global Control".

Centralization of the system leads to such a problem as inflation. Meantime, the inflation is a result of reduction of gold reserves in a "Gold Standard" monetary system. In other words, a price of bread will likely go up if a value of the gold reserve goes down. Then, the question that appears is "Why would Alice from Arizona have to pay the same price for the bread as well as Bob from New-York does who is unemployed?".

In our vision, a decentralization of business activity of any kind will totally vanish such a notion as inflation. We are confident of possibility to be locally and economically independent for each business unit. A decentralized electronic currency will let the business units form its own economy-based prices on local business network.

2. Decentralization of Currency

In compared with traditional currencies such as US dollars, Euros or other ones, a decentralized currency has a series of advantages. Among the advantages are "an independence of job cost of one business activity from other one". For example, if a participant of Logistics network has ten years of logistic experience and many of his or her business contracts are executed in that network, any negative economic changes in other business network cannot greatly change the participant's job cost.

The Advantages:

a. No Inflation. The cost of the currency is being formed exclusively inside the network and depends directly on business activity in such network.

b. Minimum Level of Unemployment. As the currency is equivalent to hours earned by a business contract and that hours can be exchanged for any service of any business network of NCN, the participant will extremely motivated to earn as many hours as possible. In compared with traditional market, in order to get some service or job the only one the participant will need is hours.

c. Flexible convertibility. The currency can be converted as in fiat currency as in other electronic currency by corresponding calculation of a job cost.

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https://medium.com/@EggerMielberg/economy-based-electroni...