An Electronic Cash System with Emergent Reputation
A peer-to-peer electronic payment network with emergent reputation would allow financial institutions to fund green, infrastructure, development and impact projects through corporates in emerging economies. It would also greatly reduce theft, corruption and counterfeiting. Digital signatures form the basis of asset transfer within the network and offline receipt of payments is supported. Communication within the network is asynchronous with an expectation of intermittent connectivity. Reputation within the network can facilitate a meritocracy and entrepreneurship leading to faster economic recovery.
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Financial institutions currently have difficulty providing funds at an individual level due to their need to disburse large amounts and the ever-present opportunities for fraud. This gives rise to a complex “trickle down” approach that appears to be ineffective as funds are subjected to fees by intermediaries and can be diverted away from their intended use.
What is needed is a network that provides these institutions with
We start with an example: an international body wishes to provide foreign direct investment to corporates that meet the requirements of the funds mandate such as green, impact and/or development initiative in an emerging economy or
The recipients can only spend these assets with the third parties within the dispersal profile (e.g. contractors building
At some point, a recipient may wish to convert their assets back into the original backing asset via the segregated account. This can be accomplished by authorised agents (such as local financial institutions) offering exchange facilities. These institutions can then make a claim against the segregated account to receive the face value of the asset together with a simultaneous removal of the corresponding cryptographic asset from the network.
NetworkWe propose that the network will be private and peer-to-peer with a controlled on-boarding process to ensure the legal identities of the peers are known. Each peer will provide various services to the network to assist with asset tracking and other flows. Messages between peers are not known to other peers to reduce information leaks relating to financial information. Figure 1: A schematic representation of the system
We propose that all messages are digitally signed using
We use a cryptographic seed (
During the seed creation
- Alan Safahi, “Cutting money transfer fees could unlock $15bn for developing countries. Here’s how” https://www.weforum.org/agenda/2018/06/cutting-money-transfer-fees-could-unlock-15bn-for-developing-countries-heres-how/
- S. Nakamoto, “Bitcoin: A Peer-to-Peer Electronic Cash System” https://bitcoin.org/bitcoin.pdf
- Pieter Wuille, “Hierarchical Deterministic Wallets” https://github.com/bitcoin/bips/blob/master/bip-0032.mediawiki
- Marek Palatinus, Pavol Rusnak, Aaron Voisine, Sean Bowe, “Mnemonic code for generating deterministic keys” https://github.com/bitcoin/bips/blob/master/bip-0039.mediawiki
Kyle Hauser – CEO & Founder of Yokiki
Gary Rowe – CTO & Co-Founder
Jim Burton – Lead Developer & Co-Founder
Barry Childe – Business Development Advisor & Co-Founder
We have also created a downloadable version of the white paper which is available as a PDF.